{"id":"C2004A02807","name":"Asian Development Bank (Additional Subscription) Act 1983","slug":"asian-development-bank-additional-subscription-act-1983","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"90 of 1983","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":34330,"registerId":"commonwealth-C2004A02807-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Asian Development Bank (Additional Subscription) Act 1983.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act shall come into operation on the day on which it receives the Royal Assent.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n  In this Act:\n\n> Bank means the Asian Development Bank.\n\n> Bank Agreement means the Agreement establishing the Asian Development Bank, done at Manila on 4 December 1965, as in force for Australia on the commencement of this Act.\n\n> Note: The Agreement establishing the Asian Development Bank is in Australian Treaty Series 1966 No. 13 (\\[1966\\] ATS 13) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n> callable shares has the same meaning as in the Bank Agreement.\n\n> paid‑in shares has the same meaning as in the Bank Agreement.\n\n> United States dollar means a dollar in the currency of the United States of America of the weight and fineness that was in effect on 31 January 1966.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Treasurer may make agreements for purchase of additional shares","content":"#### 4 Treasurer may make agreements for purchase of additional shares\n\n  (1) The Treasurer may, on behalf of Australia, make an agreement or agreements with the Bank for the purchase by Australia of an additional 2,622 paid‑in shares, and an additional 49,811 callable shares, of the capital stock of the Bank at a price per share that is the equivalent of 10,000 United States dollars.\n  (2) Subject to this Act, an agreement made under subsection (1) may contain such terms and conditions as the Treasurer determines.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Issue of promissory notes","content":"#### 5 Issue of promissory notes\n\n  (1) For the purpose of making any payment that is to be made by Australia to the Bank under an agreement made under subsection 4(1), the Treasurer may, on behalf of Australia, make promissory notes and issue them to the Bank.\n  (2) A promissory note made under subsection (1) shall be:\n    (a) payable to the Bank;\n    (b) non‑negotiable and non‑interest bearing; and\n    (c) payable at its par value on demand.\n  (3) Section 5 of the Asian Development Bank Act 1966 does not apply in relation to a payment that is to be made by Australia to the Bank under an agreement made under subsection 4(1).","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Appropriation","content":"#### 6 Appropriation\n\n  The moneys necessary for making any payment that is to be made by Australia to the Bank under an agreement made under subsection 4(1), including any payment that is to be made under a promissory note made under subsection 5(1), shall be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.","sortOrder":5}],"analysis":{"issue_detection":{"absurdities":[{"type":"retroactive_impossibility","section":"3 (Definition of 'United States dollar')","severity":"high","reasoning":"The US formally ended gold convertibility in August 1971 under Nixon. By 1983 when this Act was passed, no US dollar of the defined 'weight and fineness' physically existed or was in circulation. The definition therefore describes a currency unit that was legally and practically extinct at the time of enactment. Any attempt to calculate the 'equivalent of 10,000 United States dollars' per share under s4(1) using this definition produces a figure that cannot be verified or satisfied using any actual currency in existence, rendering the price mechanism in s4(1) arguably unworkable on its own terms.","confidence":0.92,"description":"The Act defines 'United States dollar' as a dollar of the weight and fineness in effect on 31 January 1966, anchoring the currency to a gold standard specification that has not existed since the United States abandoned the Bretton Woods gold standard in 1971."},{"type":"other","section":"3 (Definition of 'Bank Agreement')","severity":"medium","reasoning":"By fixing the Bank Agreement definition to its state at commencement, the Act creates a potential divergence between the statutory definitions of 'paid-in shares' and 'callable shares' (which inherit this frozen definition) and the Bank's evolving share structure. If the Bank Agreement were amended to alter the meaning of those terms, the Act would continue to operate on the old definitions, potentially causing the Treasurer to deal in share categories that no longer correspond to the Bank's actual capital structure.","confidence":0.78,"description":"The Bank Agreement is defined as the Agreement 'as in force for Australia on the commencement of this Act,' freezing the operative version of the Agreement at 1983. The Bank Agreement has been amended multiple times since 1983, meaning the definition formally governs the Act by reference to a version that may no longer reflect Australia's actual treaty obligations or the Bank's current structure."},{"type":"self_contradicting","section":"5(2)(c) read with 5(1)","severity":"low","reasoning":"Promissory notes issued for capital subscriptions in international financial institutions are conventionally encashable on a scheduled drawdown basis, not purely on demand, because the purpose is to stage payments. An unrestricted on-demand feature combined with non-negotiability and non-interest-bearing status means Australia could theoretically be called upon to pay the entire subscription immediately with no notice period and no compensation for the timing risk, while the Bank cannot leverage or transfer the instrument. This is internally inconsistent with the purpose of using notes as a deferred payment mechanism.","confidence":0.65,"description":"Promissory notes are required to be 'payable at par value on demand,' yet they are simultaneously described as non-negotiable and issued specifically to fund payments under a subscription agreement. The combination of immediate on-demand payability with non-negotiability creates an instrument of questionable commercial coherence — the Bank holds notes it cannot transfer but can call at any moment for their full face value, providing no practical basis for a structured payment schedule."}],"contradictions":[{"severity":"medium","section_a":"5(1) – Promissory notes as payment mechanism","section_b":"6 – Appropriation from Consolidated Revenue Fund","confidence":0.7,"description":"Section 5(1) authorises payment via promissory notes issued to the Bank, while s6 simultaneously appropriates money from the Consolidated Revenue Fund for 'any payment' including payments under promissory notes. This creates a structural redundancy or potential double-counting: if payment is effected by issuing a promissory note, no money leaves the Consolidated Revenue Fund at the time of issue; money only flows when the note is called. The appropriation in s6 purports to cover both the direct agreement payments and the promissory note payments as if they were additive obligations, risking the inference that the full subscription could be appropriated twice — once on agreement execution and again on note encashment."},{"severity":"high","section_a":"4(1) – Price per share denominated in defined 'United States dollars'","section_b":"3 – Definition of 'United States dollar' (31 January 1966 gold standard)","confidence":0.88,"description":"Section 4(1) sets a price of 10,000 United States dollars per share, which by operation of the s3 definition means 10,000 dollars of 1966 gold-standard weight and fineness. However, any actual agreement made with the Bank would necessarily be denominated in contemporary US dollars (post-gold standard), creating a direct contradiction between the statutory price and the price any real-world agreement could validly express. The Treasurer cannot simultaneously comply with the statutory price formula and execute a commercially valid agreement with the Bank using current currency."}]},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act is narrowly and precisely scoped. It does exactly what its title suggests — authorising a specific additional subscription of shares in the Asian Development Bank. The number of shares, price per share, payment mechanism, and funding source are all clearly defined. There is no evidence of scope creep or deviation from the original stated intent."},"complexity_factors":["Use of specialised financial instruments (promissory notes) that require explanation","Reference to a fixed historical currency value (1966 US dollar) which is an unusual and potentially confusing concept","Distinction between paid-in and callable shares requires understanding of international banking/shareholding structures","Cross-references to another Act (Asian Development Bank Act 1966) and an international treaty (Manila Agreement 1965)","Appropriation mechanism involves understanding of Australia's Consolidated Revenue Fund"],"plain_english_summary":"This law authorises Australia to buy additional Asian Development Bank shares — 2,622 paid‑in and 49,811 callable — at US$10,000 each (1966 dollar rate). The cost falls to the Consolidated Revenue Fund and is funded by the Australian Government/taxpayers.\n\nPayment can be by non‑transferable, non‑interest promissory notes payable on the Bank’s call. The purchase boosts Australia’s ADB shareholding and thus its voting influence over regional development lending."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This legislation remains tightly focused on its original purpose: authorising a specific capital increase subscription to the Asian Development Bank. The scope has not expanded beyond this narrow financial commitment."},"complexity_factors":["Only 6 defined terms in the interpretation section","No cross-references to other legislation except a single exemption (section 5 of the 1966 Act)","Straightforward procedural structure: definitions → authorisation → payment mechanism → appropriation","Minimal conditional logic — only standard 'subject to this Act' qualifiers","Single purpose legislation with no exceptions or nested conditions"],"plain_english_summary":"This law lets Australia buy more shares in the Asian Development Bank (ADB), which is an international bank that lends money for development projects in Asia and the Pacific.\n\n**What it does:**\n- Authorises the Treasurer (Australia's finance minister) to buy **2,622 paid-in shares** and **49,811 callable shares** in the ADB\n- Sets the price at **US$10,000 per share** (using a specific 1966 definition of the US dollar)\n- Lets the Treasurer sign the necessary agreements with the bank\n\n**Key terms explained:**\n- **Paid-in shares**: Shares where Australia actually hands over the money upfront\n- **Callable shares**: Shares where Australia promises to pay if the bank ever needs the money (a kind of backup guarantee)\n- **Promissory notes**: IOUs — legal promises to pay money later\n\n**How payments work:**\n- The Treasurer can issue special IOUs to the bank instead of cash\n- These IOUs are non-negotiable (can't be sold to someone else), don't earn interest, and must be paid when the bank asks\n- All payments come from Australia's general government funds (the Consolidated Revenue Fund)\n\n**Who it affects:**\n- Primarily the Australian government and taxpayers (who ultimately back these financial commitments)\n- Indirectly supports the ADB's lending to developing countries in the region\n\n**Why it matters:**\nThis increases Australia's financial stake and voting power in a major regional development institution, showing commitment to economic development in Asia and the Pacific."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The Act increases Australia’s capital subscription to the Asian Development Bank by specified paid‑in and callable shares (s4), authorises promissory notes as the payment method (s5), and directs payments from the Consolidated Revenue Fund (s6). Mechanically this expands Australia’s immediate fiscal outlay (paid‑in shares) and contingent call exposure (callable shares), while conferring discretion to the Treasurer over purchase terms (s4(2))."},"complexity_factors":["Fixed, large-number subscription figures (2,622 paid‑in; 49,811 callable) require precise fiscal accounting (s4(1)).","Distinction between paid‑in shares (immediate cash outflow) and callable shares (contingent liability) increases fiscal/legal complexity (s4(1)).","Promissory notes: non‑negotiable, non‑interest bearing and payable on demand—unusual payment instrument for international subscription (s5(2)).","Treasurer has broad discretion to set terms and conditions of purchase, creating executive latitude (s4(2)).","Section 5 of the Asian Development Bank Act 1966 is expressly excluded for these payments, altering normal statutory controls (s5(3)).","Appropriation from the Consolidated Revenue Fund makes the Commonwealth legally liable for payments but requires budgetary provision and accounting (s6).","Defined technical terms and historical USD definition may affect valuation and interpretation (s3)."],"plain_english_summary":"This Act authorises the Treasurer to buy extra Asian Development Bank capital: 2,622 paid‑in shares and 49,811 callable shares at US$10,000 each, and to issue non‑negotiable, non‑interest promissory notes to the Bank for payment. Payments are to be made from the Consolidated Revenue Fund, producing immediate budget outlays for paid‑in shares and a contingent liability for callable shares; the Treasurer may determine purchase terms (s4) and s5 of the Asian Development Bank Act 1966 is displaced for these payments (s5(3))."}},"importantCases":[],"_links":{"self":"/api/acts/asian-development-bank-additional-subscription-act-1983","history":"/api/acts/asian-development-bank-additional-subscription-act-1983/history","analysis":"/api/acts/asian-development-bank-additional-subscription-act-1983/analysis","conflicts":"/api/acts/asian-development-bank-additional-subscription-act-1983/conflicts","importantCases":"/api/acts/asian-development-bank-additional-subscription-act-1983/important-cases","documents":"/api/acts/asian-development-bank-additional-subscription-act-1983/documents"}}