{"id":"C2009A00109","name":"Asian Development Bank (Additional Subscription) Act 2009","slug":"asian-development-bank-additional-subscription-act-2009","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"109 of 2009","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":40409,"registerId":"commonwealth-C2009A00109-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 2009.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act commences on the day this Act 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 agreement for purchase of additional shares","content":"#### 4 Treasurer may make agreement 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 the following 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    (a) 16,379 additional paid‑in shares;\n    (b) 393,101 additional callable shares.\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) The Treasurer may, on behalf of Australia, make promissory notes and issue them to the Bank, for the purposes of making any payment that is to be made by Australia to the Bank under an agreement made under subsection 4(1).\n  (2) A promissory note made under subsection (1) is to be:\n    (a) non‑negotiable; and\n    (b) non‑interest‑bearing; and\n    (c) payable to the Bank at par value upon 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 money necessary for making a payment for the purposes of an agreement made under subsection 4(1) (including any payment that is to be made under a promissory note made under subsection 5(1)) is to be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.","sortOrder":5}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act simply authorises a specific additional subscription and the payment mechanism for it; it does not amend the Bank Agreement or expand Australia’s general ADB membership obligations beyond the specified share purchase."},"complexity_factors":["Specified share types and quantities (paid‑in vs callable) create both immediate cost and contingent liability.","Fixed foreign‑currency price per share requires exchange‑rate handling and budgetary translation.","Promissory notes are non‑negotiable, non‑interest‑bearing and payable on demand, affecting cash‑flow timing and payment risk.","Treasurer has broad discretion to set agreement terms, introducing administrative decision points.","Cross‑reference to the Bank Agreement and defined terms ties interpretation to an external treaty text.","Appropriation from the Consolidated Revenue Fund formally charges public funds; statutory carve‑out of section 5 of the Asian Development Bank Act 1966 alters ordinary payment rules."],"plain_english_summary":"This Act authorises the Treasurer to buy a fixed number of additional Asian Development Bank shares (16,379 paid‑in and 393,101 callable) at US$12,063.50 each, to pay using non‑negotiable, non‑interest‑bearing promissory notes if desired, and to meet payments from the Consolidated Revenue Fund. It gives the Treasurer discretion over contract terms, creates an immediate budgeted outlay and a contingent liability (callable shares), and makes taxpayers ultimately responsible for payments."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The 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 4 substantive sections (excluding short title and commencement)","Just 4 defined terms, all straightforward (Bank, Bank Agreement, callable shares, paid-in shares)","No nested exceptions or complex conditional logic","Single cross-reference to the Asian Development Bank Act 1966 (only to say one section doesn't apply)","Clear, linear structure: definitions → authorisation → payment mechanism → funding","Minimal legislative machinery — essentially a simple appropriation and authority bill"],"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 across Asia and the Pacific.\n\n**What it does:**\n- **Authorises a share purchase**: The Treasurer (Australia's finance minister) can sign an agreement to buy over 409,000 additional shares in the ADB. These come in two types:\n  - **Paid-in shares** (16,379 shares): Australia pays for these upfront with real money\n  - **Callable shares** (393,101 shares): Australia only pays for these if the ADB gets into serious financial trouble and 'calls' on member countries to help — think of it as a financial backstop or guarantee\n\n- **Sets the price**: Each share costs US$12,063.50\n\n- **Lets Australia pay using promissory notes**: Instead of handing over cash immediately, the Treasurer can issue formal IOUs (promissory notes) to the ADB. These notes:\n  - Can't be sold to anyone else (non-negotiable)\n  - Don't earn interest\n  - Must be paid in full whenever the ADB asks\n\n- **Provides the money**: Any payments are funded from Australia's main government bank account (the Consolidated Revenue Fund)\n\n**Who it affects:**\n- Primarily the Australian Government and its Treasurer\n- Indirectly, Australian taxpayers (who ultimately provide the funds)\n- The Asian Development Bank and the developing countries it lends to\n\n**Why it matters:**\nThis increases Australia's financial commitment to the ADB, giving Australia more influence in how the bank operates and more voting power on its board. It also helps the ADB raise more capital to fund infrastructure, education, health and climate projects in the Asia-Pacific region. The callable shares mean Australia is essentially guaranteeing it will backstop the ADB in a crisis, without paying unless that crisis actually happens."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act is narrow and purpose-built — it does exactly what it says on the tin. It authorises a specific share purchase at a fixed price, provides a payment mechanism, and appropriates funds. There is no evidence of scope creep or departure from the original intent of increasing Australia's subscription to the ADB's capital stock."},"complexity_factors":["Distinction between paid-in shares and callable shares requires understanding of multilateral development bank capital structures","Cross-references to an international treaty (the Bank Agreement) and pre-existing domestic legislation (Asian Development Bank Act 1966)","Use of promissory notes as a payment mechanism adds a layer beyond simple cash appropriation","Currency denomination in US dollars introduces exchange rate considerations not addressed in the Act itself","The scale of financial commitment (hundreds of thousands of shares) requires arithmetic to understand the true dollar exposure"],"plain_english_summary":"Allows Australia to purchase ~409,480 additional Asian Development Bank shares (about 16,379 paid‑in and 393,101 callable) at USD 12,063.50 each, with the Treasurer authorized to sign the agreement. Funded from the Consolidated Revenue Fund or non‑transferable promissory notes, the commitment is ultimately backed by taxpayers; most shares are callable (a contingent liability), while the purchase strengthens ADB capacity and Australia’s influence in regional development."}},"importantCases":[],"_links":{"self":"/api/acts/asian-development-bank-additional-subscription-act-2009","history":"/api/acts/asian-development-bank-additional-subscription-act-2009/history","analysis":"/api/acts/asian-development-bank-additional-subscription-act-2009/analysis","conflicts":"/api/acts/asian-development-bank-additional-subscription-act-2009/conflicts","importantCases":"/api/acts/asian-development-bank-additional-subscription-act-2009/important-cases","documents":"/api/acts/asian-development-bank-additional-subscription-act-2009/documents"}}