{"id":"C1959A00046","name":"Housing Loans Guarantees (Australian Capital Territory) Act 1959","slug":"housing-loans-guarantees-australian-capital-territory-act-1959","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"46 of 1959","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":1554,"registerId":"C1959A00046","compilationNumber":"0","startDate":"1959-05-22","status":"InForce","reasons":[],"registeredAt":"2013-01-23T13:55:33.393Z"},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Housing Loans Guarantees (Australian Capital Territory) Act 1959.","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":"Interpretation","content":"#### 3 Interpretation\n\n  (1) In this Act:\n\n> loan includes an advance by way of overdraft.\n\n  (2) The reference in the next succeeding section to the Housing Ordinance 1928‑1957 of the Australian Capital Territory shall be deemed:\n    (a) if that Ordinance is amended—to be a reference to that Ordinance as amended; or\n    (b) if that Ordinance is repealed and remade, with or without modifications, by another Ordinance—to be a reference to that other Ordinance.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Treasurer may guarantee loans","content":"#### 4 Treasurer may guarantee loans\n\n  (1) The Treasurer may, on behalf of the Commonwealth, guarantee the repayment to the lender of a loan (including interest on the loan) made to:\n    (a) a co‑operative building society registered under a law of the Australian Capital Territory relating to co‑operative societies; or\n    (b) the Commissioner for Housing holding office under the Housing Ordinance 1928‑1957 of the Australian Capital Territory.\n  (2) The terms and conditions of the guarantee shall be as agreed to between the Treasurer and the lender.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Delegation by Treasurer","content":"#### 5 Delegation by Treasurer\n\n  (1) The Treasurer may, by instrument in writing, delegate to a person, either generally or otherwise as provided in the instrument of delegation, all or any of his powers and functions under this Act (except this power of delegation) so that the delegated powers and functions may be exercised and performed by the delegate in accordance with the instrument of delegation.\n  (2) A delegation under this section is revocable at will and does not prevent the exercise of a power or the performance of a function by the Treasurer.","sortOrder":4}],"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"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act remains narrowly focused on authorising the Treasurer to guarantee loans for two specified classes of ACT housing borrowers (co‑operative building societies and the Commissioner for Housing) and on delegation of that power. There is no expansion in this text beyond that original, purpose‑specific scope; the interpretation clause (s3(2)) simply ensures the Act continues to apply if the referenced ACT Housing Ordinance is amended or replaced."},"complexity_factors":["Very short Act (5 sections)","Single substantive power (s4) but broadly framed discretion to guarantee loans and to set terms (s4(2))","One defined clarification: “loan” includes overdraft (s3(1))","Cross‑reference to the Housing Ordinance with carry‑forward for amendments/replacements (s3(2))","Delegation clause with a single explicit exception (cannot delegate delegation) and revocability (s5)"],"plain_english_summary":"**What this law does (mechanically)**\n\n- Short title and start: The Act is called the Housing Loans Guarantees (Australian Capital Territory) Act 1959 (s1) and takes effect on Royal Assent (s2).\n\n- Definitions and references: The Act treats a “loan” to include an overdraft (s3(1)). Any reference to the Housing Ordinance 1928–1957 of the ACT is taken to include that Ordinance as amended or any replacement Ordinance (s3(2)).\n\n- Commonwealth guarantee power: The Treasurer may, on behalf of the Commonwealth, guarantee repayment (including interest) of a loan made either to:\n  - a co‑operative building society registered under ACT co‑operative law, or\n  - the Commissioner for Housing appointed under the Housing Ordinance 1928–1957 (s4(1)).\n  The detailed terms and conditions of any guarantee are to be agreed between the Treasurer and the lender (s4(2)).\n\n- Delegation: The Treasurer may delegate his powers under the Act (except the power to delegate) by written instrument; delegations are revocable and do not stop the Treasurer from exercising the power personally (s5).\n\n**Who is affected**\n\n- Beneficiaries: Co‑operative building societies in the ACT and the ACT Commissioner for Housing are the groups explicitly eligible to receive loans that can be guaranteed by the Commonwealth (s4(1)(a)–(b)).\n\n- Lenders: Banks or other lenders who make loans to those specified borrowers are potential counterparties to guarantee arrangements; they negotiate guarantee terms with the Treasurer (s4(2)).\n\n- Commonwealth (taxpayers): The Commonwealth becomes the guarantor for repayment and interest when guarantees are given, creating a contingent fiscal liability for the Australian Government (s4(1)).\n\n**Why it matters (practical effects and choices it creates)**\n\n- Decision and discretion: The Act vests a discretionary power in the Treasurer (or a delegate) to decide whether to provide guarantees and to fix the guarantee terms (s4(2), s5). That discretion determines how often guarantees are used, for what amounts, and on what conditions.\n\n- Fiscal exposure and contingent liability: Each guarantee makes the Commonwealth liable for repayment if the borrower defaults (s4(1)). This exposure is not an immediate cash cost unless called, but it is a real financial commitment that must be managed and disclosed in public accounts.\n\n- Incentives for lenders and borrowers: With a Commonwealth guarantee available, lenders face reduced credit risk for loans to the specified ACT housing entities, which can lower borrowing costs and increase willingness to lend. Borrowers (co‑ops and the Commissioner) may gain easier access to finance. That shift in risk allocation can change behaviour (e.g., larger or longer loans), and introduces potential moral‑hazard incentives (the borrower or lender taking on higher risk because repayment is guaranteed by the Commonwealth).\n\n- Concentrated benefits and diffuse costs: The direct beneficiaries (co‑operative building societies and the Commissioner for Housing) are a relatively small, concentrated group. The cost side is spread across the Commonwealth (all taxpayers) to the extent guarantees are called.\n\n- Administrative and negotiation burden: The terms of each guarantee are negotiated between the Treasurer and the lender (s4(2)). That creates an administrative process (legal documentation, credit assessment, monitoring of guarantees) which the responsible Treasury officers or delegates must run and resource (s5).\n\n**Trade‑offs, risks and implementation issues to watch**\n\n- Discretion vs. transparency: Broad discretion to set terms (s4(2) and s5) allows tailoring guarantees to particular loans, but it places weight on governance and transparency to avoid inconsistent or preferential treatment.\n\n- Budgetary treatment and contingent risk management: Even if guarantees are rarely called, they should be recorded and managed as contingent liabilities; without clear processes there is risk of under‑estimating fiscal exposure.\n\n- Replacement or amendment of the Housing Ordinance: The Act’s reference to the Housing Ordinance follows any amendments or replacement Ordinance (s3(2)), so the set of authorised ACT housing officials or arrangements that can benefit may shift over time as local law changes.\n\n**Key sections to consult**\n- s3(1) (definition of loan as including overdraft)\n- s3(2) (treatment of the Housing Ordinance reference)\n- s4(1)–(2) (who can receive guaranteed loans; guarantee covers repayment and interest; terms agreed by Treasurer and lender)\n- s5 (delegation rules)\n\n(Statement of purpose claims by the Act: the statutory power plainly enables the Commonwealth to back loans for ACT housing bodies. Mechanically, the law creates a decision point for the Treasurer to assume credit risk on behalf of the Commonwealth in return for negotiating terms with lenders. The practical costs are contingent fiscal liability, administrative negotiation and monitoring; the practical benefits are increased credit capacity and likely lower borrowing cost for the named ACT housing entities.)"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: enabling Commonwealth guarantees for housing loans to specific ACT entities. The amendment mechanism in section 3(2) is a standard legislative drafting technique to accommodate changes to the referenced Territory ordinance without requiring further Commonwealth legislation, but this does not represent scope creep — it is a maintenance provision preserving the original intent."},"complexity_factors":["Only 5 sections total, with minimal text","Single defined term ('loan') with a brief expansion to include overdrafts","One straightforward delegation provision with standard safeguards (revocability, non-exclusivity)","Simple conditional logic in section 3(2) for handling legislative amendments/replacement","No cross-references to other Commonwealth Acts, no regulations, no penalties or offences","Clear, direct operative language ('The Treasurer may...') with minimal qualification"],"plain_english_summary":"**What this law does:**\n\nThis Act gives the Australian Treasurer the power to act as a guarantor for housing loans in the Australian Capital Territory (ACT). Specifically, the Treasurer can promise to pay back a loan (plus interest) if the borrower defaults — but only for two types of borrowers:\n- **Co-operative building societies** (basically member-owned groups that help people build or buy homes) registered under ACT law; and\n- **The Commissioner for Housing** (a government official responsible for public housing under the old ACT Housing Ordinance).\n\n**Who it affects:**\n- **Lenders** (usually banks): They get a government guarantee, meaning less risk if the borrower can't repay.\n- **Borrowers**: Building societies and the Housing Commissioner can access credit more easily because the Commonwealth backs their loans.\n- **The Treasurer**: Has discretion to decide when to give these guarantees and on what terms.\n\n**Key features:**\n- The Treasurer can **delegate** these powers to someone else (but can't delegate the power to delegate further).\n- \"Loan\" is defined broadly — it even includes **overdrafts** (a type of bank credit where you spend more than you have in your account).\n- The law is flexible about which housing law applies — if the old 1928-1957 Ordinance gets replaced, the reference automatically updates to the new law.\n\n**Why it matters:**\nThis was a tool to encourage housing development in the ACT by reducing financial risk for lenders. It's essentially a government backstop to make housing finance flow more smoothly in Australia's capital territory."}},"importantCases":[],"_links":{"self":"/api/acts/housing-loans-guarantees-australian-capital-territory-act-1959","history":"/api/acts/housing-loans-guarantees-australian-capital-territory-act-1959/history","analysis":"/api/acts/housing-loans-guarantees-australian-capital-territory-act-1959/analysis","conflicts":"/api/acts/housing-loans-guarantees-australian-capital-territory-act-1959/conflicts","importantCases":"/api/acts/housing-loans-guarantees-australian-capital-territory-act-1959/important-cases","documents":"/api/acts/housing-loans-guarantees-australian-capital-territory-act-1959/documents"}}