{"id":"C2004A04862","name":"Asian Development Bank (Additional Subscription) Act 1995","slug":"asian-development-bank-additional-subscription-act-1995","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"6 of 1995","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":27050,"registerId":"commonwealth-C2004A04862-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 1995.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act commences 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.","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 2,047 paid‑in shares, and an additional 100,323 callable shares, of the capital stock of the Bank at a price per share that is the equivalent of 12,063.50 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) is to be:\n    (a) payable to the Bank; and\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)) are to be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.","sortOrder":5}],"analysis":{"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"},"issue_detection":{"absurdities":[{"type":"other","section":"3 (definition of 'Bank Agreement')","severity":"medium","reasoning":"Defining an international treaty instrument by reference to a fixed point in time is internally coherent but operationally problematic. If the Bank Agreement is later amended and Australia accepts those amendments, the Act's incorporated definitions (e.g. 'callable shares', 'paid-in shares') remain anchored to the 1995 version. This could produce a legal meaning of key terms that differs from the Bank's own current definitions, creating compliance ambiguity.","confidence":0.72,"description":"The 'Bank Agreement' is defined as the Agreement as in force for Australia 'on the commencement of this Act', freezing the definition at a 1995 snapshot. Any subsequent amendments to the Bank Agreement accepted by Australia would fall outside the statutory definition, potentially creating a divergence between Australia's actual treaty obligations and the operative legal definition under this Act."},{"type":"other","section":"5(2)(b) and 5(2)(c)","severity":"low","reasoning":"The Bills of Exchange Act 1909 (Cth) defines a promissory note as an unconditional promise in writing to pay a sum of money. While the Act can derogate from that regime, labelling an instrument a 'promissory note' while stripping it of negotiability and interest is conceptually strained. The practical effect is a government IOU dressed in promissory-note language, which may cause interpretive difficulties if the instrument is ever disputed.","confidence":0.61,"description":"A promissory note that is simultaneously 'non-negotiable', 'non-interest-bearing', and 'payable at its par value on demand' is a legally hybrid instrument that contradicts standard promissory note characteristics under the Bills of Exchange Act 1909 (Cth). A non-negotiable instrument payable on demand has negligible commercial utility as a 'promissory note' and the label may be a legal fiction — it is functionally an IOU or letter of credit rather than a negotiable instrument."},{"type":"impossible_compliance","section":"6","severity":"low","reasoning":"The standing appropriation combined with on-demand promissory notes effectively delegates to a foreign international institution (the Bank) the practical power to determine when Australian public money is drawn from the Consolidated Revenue Fund. While legally permissible under s 83 of the Constitution for a specific-purpose appropriation, this creates an accountability gap that is anomalous from a fiscal governance perspective.","confidence":0.65,"description":"Section 6 appropriates the Consolidated Revenue Fund for payments under agreements made under s 4(1), including payments under promissory notes issued under s 5(1). However, s 5(2)(c) makes those promissory notes payable 'on demand', meaning the timing and quantum of the drawdown on the Consolidated Revenue Fund is entirely at the Bank's discretion with no parliamentary control mechanism over when the appropriation is actually activated."}],"contradictions":[{"severity":"low","section_a":"5(1)","section_b":"6","confidence":0.67,"description":"Section 5(1) authorises promissory notes as a method of making payments to the Bank, while section 6 separately appropriates the Consolidated Revenue Fund for those same payments — including payments under the promissory notes. This creates a structural redundancy: if promissory notes are issued under s 5(1), no cash payment is made at issuance, yet s 6 appropriates cash 'for making any payment... including any payment that is to be made under a promissory note'. The appropriation is triggered by the note being called on demand, but s 6's drafting implies the appropriation is available for the promissory note itself rather than only its redemption, producing an ambiguity about when the appropriation is engaged."},{"severity":"medium","section_a":"5(3)","section_b":"5(1) and 5(2)","confidence":0.7,"description":"Section 5(3) disapplies s 5 of the Asian Development Bank Act 1966 in relation to payments under s 4(1) agreements. Section 5 of the 1966 Act also governs promissory note issuance to the Bank. By disapplying the 1966 Act's promissory note regime and substituting this Act's own regime under ss 5(1)-(2), there is a potential conflict if the 1966 Act's s 5 contains conditions or limitations that overlap with — but differ from — those in this Act. Without access to the full text of the 1966 Act's s 5, the exclusion may be over-broad (excluding provisions that should still apply) or under-broad (failing to exclude all competing provisions), creating a regulatory gap or overlap."},{"severity":"low","section_a":"4(1)","section_b":"4(2)","confidence":0.58,"description":"Section 4(1) fixes the price per share at 'the equivalent of 12,063.50 United States dollars', while s 4(2) allows the agreement to contain 'such terms and conditions as the Treasurer determines'. This creates a tension: the price is legislatively fixed, but the Treasurer retains broad discretion over 'terms and conditions'. If exchange rate mechanisms, instalment schedules, or currency conversion terms are treated as 'terms and conditions' rather than part of the 'price', the Treasurer could effectively alter the economic value of the fixed price through agreement terms, undermining the legislative specificity of s 4(1)."}]},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act is tightly focused and does exactly what its title suggests — it authorises an additional share subscription to the Asian Development Bank. There is no evidence of scope creep or expansion beyond the original intent. All provisions serve the single purpose of enabling, funding, and governing the mechanics of that purchase."},"complexity_factors":["Involves international treaty obligations and cross-referencing with a 1965 international agreement (the Manila Agreement establishing the ADB)","Distinguishes between two technical share types — paid-in vs callable shares — which require some financial literacy to understand","Involves promissory notes as a payment mechanism, an uncommon concept for general readers","References and partially overrides an earlier Act (Asian Development Bank Act 1966, section 5), requiring cross-referencing to understand the full legal picture","Currency denominated in US dollars rather than Australian dollars, adding a layer of exchange rate ambiguity"],"plain_english_summary":"This Act authorises Australia to buy additional paid‑in and callable shares in the Asian Development Bank, financed from the Consolidated Revenue Fund, with the Treasurer able to issue non‑negotiable, non‑interest promissory notes instead of immediate cash. It commits public funds, affects Australian taxpayers, and increases Australia’s financial stake and influence in the ADB’s regional lending and policy decisions."},"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 enabling the Treasurer to purchase specific quantities of paid-in and callable shares and providing the necessary payment mechanisms."},"complexity_factors":["Only 4 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","Single purpose legislation with no conditional logic or exceptions","Only 6 operative sections total","No delegated legislative powers or regulatory frameworks"],"plain_english_summary":"This law lets Australia buy more shares in the Asian Development Bank (ADB), which is an international bank that lends money to countries in the Asia-Pacific region for development projects like roads, schools, and hospitals.\n\n**What it does:**\n- **Authorises a share purchase**: The Treasurer (Australia's finance minister) can buy 2,047 \"paid-in shares\" (shares Australia pays for upfront) and 100,323 \"callable shares\" (shares Australia only pays for if the Bank gets into financial trouble and calls on members to help).\n- **Sets the price**: Each share costs US$12,063.50.\n- **Lets Australia pay with IOUs**: The Treasurer can issue \"promissory notes\" (basically formal IOUs) to the Bank instead of cash upfront. These notes are non-negotiable (can't be sold to someone else), don't earn interest, and the Bank can cash them in whenever needed.\n- **Bypasses normal rules**: Normally, payments to the ADB need approval under the 1966 Asian Development Bank Act. This law says that rule doesn't apply to these particular payments.\n- **Provides the money**: Any cash payments come from Australia's main government bank account (the Consolidated Revenue Fund).\n\n**Who it affects:**\n- Australian taxpayers (who ultimately fund this investment)\n- The Asian Development Bank (which gets more capital to lend to developing countries)\n- Countries in the Asia-Pacific that borrow from the ADB for development projects\n\n**Why it matters:**\nThis increases Australia's financial commitment to the ADB, giving the Bank more money to lend for regional development. It also shows Australia is maintaining its influence and voting power in a major regional financial institution. The use of promissory notes means Australia doesn't have to find all the cash immediately—it can essentially promise to pay later if needed."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The Act does not amend the Bank Agreement or alter Australia’s membership rights. It narrowly authorises the Treasurer to subscribe for a specified additional number of shares and to meet payment by issuing promissory notes, with funds appropriated from the Consolidated Revenue Fund; it does not broaden other statutory powers or obligations beyond those specified in the instrument."},"complexity_factors":["Narrow, single-purpose subject matter limited to an additional subscription and payment mechanics","Fixed numeric obligations (number of shares and unit price) reduce legal uncertainty","Treasurer discretion to set terms and conditions of the purchase agreements (s4(2))","Promissory note requirements are specific: payable to Bank, non‑negotiable, non‑interest‑bearing, payable on demand (s5(2))","Express exclusion of s5 of the Asian Development Bank Act 1966 for these payments (s5(3))","Direct appropriation from the Consolidated Revenue Fund creates an immediate fiscal impact (s6)","Dependence on defined terms and the external Bank Agreement for meanings of ‘callable shares’ and ‘paid‑in shares’ (s3)","Operational complexities: negotiating agreement terms, issuing promissory notes, currency conversion and large‑sum accounting"],"plain_english_summary":"This Act authorises the Treasurer to buy extra capital in the Asian Development Bank — 2,047 paid‑in shares and 100,323 callable shares — at a fixed US dollar price per share, and to issue non‑interest, non‑negotiable promissory notes to fund the purchase. The required money is drawn from the Consolidated Revenue Fund.\n\nThe Treasurer decides the purchase terms and must carry out the administrative tasks of negotiating the agreements and issuing notes. The measure creates a clear fiscal commitment and administrative workload for Treasury."}},"importantCases":[],"_links":{"self":"/api/acts/asian-development-bank-additional-subscription-act-1995","history":"/api/acts/asian-development-bank-additional-subscription-act-1995/history","analysis":"/api/acts/asian-development-bank-additional-subscription-act-1995/analysis","conflicts":"/api/acts/asian-development-bank-additional-subscription-act-1995/conflicts","importantCases":"/api/acts/asian-development-bank-additional-subscription-act-1995/important-cases","documents":"/api/acts/asian-development-bank-additional-subscription-act-1995/documents"}}