{"id":"C2004A05219","name":"Multilateral Investment Guarantee Agency Act 1997","slug":"multilateral-investment-guarantee-agency-act-1997","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"126 of 1997","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":55531,"registerId":"commonwealth-C2004A05219-1775103791272","compilationNumber":null,"startDate":"2026-04-02","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 Multilateral Investment Guarantee Agency Act 1997.","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> Agency means the Multilateral Investment Guarantee Agency.\n\n> Convention means the Convention establishing the Multilateral Investment Guarantee Agency, a copy of the English text of which is set out in Schedule 1 to this Act, as that Convention is amended by the resolution of the Council of Governors of the Agency, a copy of which is set out in Schedule 2.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Appropriation","content":"#### 4 Appropriation\n\n  There may be paid out of the Consolidated Revenue Fund, which is appropriated accordingly, money for the purpose of:\n    (a) making any payment that Australia is required to make (whether or not Australia may make the payment in a form other than money) to the Agency under the Convention; or\n    (b) redeeming a security issued under subsection 5(1).","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Issue of securities","content":"#### 5 Issue of securities\n\n  (1) To the extent to which the Agency is prepared to accept from Australia, in lieu of any payment that Australia is required to make to the Agency, promissory notes or other obligations issued by Australia, the Treasurer may authorise the issue of securities.\n  (2) Securities issued under subsection (1):\n    (a) must be payable to the Agency; and\n    (b) must be non‑negotiable and non‑interest bearing.","sortOrder":4}],"analysis":{"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The Act is narrow and purpose-built — it does exactly what it sets out to do: enable Australia's financial participation in MIGA. There is no evidence of scope creep or departure from the original intent. The amendment to the Convention referenced in Schedule 2 (relating to membership expansion) is incorporated cleanly without altering the domestic legal framework."},"complexity_factors":["Very short legislation with only 5 operative sections","Incorporates an international treaty by reference (adding external complexity for anyone needing to read the Convention itself)","Involves two schedules containing treaty text that form part of the legal framework","The concept of non-negotiable, non-interest-bearing securities as payment substitutes may be unfamiliar to laypeople","Otherwise straightforward appropriation and administrative mechanism with no discretionary decision-making complexity"],"plain_english_summary":"This law lets Australia join and meet its obligations to the Multilateral Investment Guarantee Agency (MIGA) by permitting the government to pay membership fees and contributions from public funds and, where accepted by MIGA, issue non-transferable, non-interest promissory notes or securities in lieu of cash.  \n\nIt mainly affects the Australian Government and Treasury, and indirectly benefits Australian investors by keeping Australia in good standing with an agency that protects overseas investments against political and non‑commercial risks."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The text implements Australia’s participation in the Agency by authorising payments and limited securities issuance; it does not, on its face, expand or narrow that subject matter beyond giving effect to the Convention and providing appropriation and issuance rules as set out in the Act."},"complexity_factors":["Dependency on an external international instrument: the Act gives effect to the Convention set out in Schedules 1 and 2 and defined in section 3, requiring cross-reference and possible future update.","Appropriation and fiscal effect: section 4 appropriates money from the Consolidated Revenue Fund for required payments and for redeeming securities, creating an explicit budgetary outflow.","Executive discretion to substitute payment form: section 5(1) allows the Treasurer to authorise issuing securities in lieu of cash, which introduces decision-making discretion over payment methods.","Nature and limits of issued securities: section 5(2) mandates that securities be payable to the Agency and be non‑negotiable and non‑interest‑bearing, limiting marketability and cost but creating a contingent redemption obligation.","Redemption obligation linkage: section 4(b) requires appropriation for redeeming securities issued under section 5(1), tying the substitution power to a concrete future cost.","Timing and commencement: section 2 fixes commencement to Royal Assent, affecting when obligations and discretion become operative."],"plain_english_summary":"Implements Australia’s financial obligations under the Multilateral Investment Guarantee Agency Convention by authorising payments from the Consolidated Revenue Fund and allowing the Treasurer, where the Agency accepts them, to issue non‑negotiable, non‑interest‑bearing promissory notes or other securities in lieu of cash. It affects the Commonwealth’s fiscal position and the Treasurer’s discretion: taxpayers ultimately fund payments and the Act creates contingent liabilities and redemption obligations for the government."},"issue_detection":{"absurdities":[],"contradictions":[]},"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"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: enabling Australia's financial participation in MIGA through appropriations and securities issuance. The scope has not expanded beyond implementing the Convention and managing payment mechanisms."},"complexity_factors":["Only 5 sections total","Just 2 defined terms ('Agency' and 'Convention')","No cross-references to other Acts","Simple conditional logic limited to subsection 5(1) ('To the extent to which...')","Straightforward appropriation mechanism with only 2 purposes specified","No exceptions, exemptions, or nested conditions"],"plain_english_summary":"This law sets up Australia's financial relationship with an international organisation called the **Multilateral Investment Guarantee Agency (MIGA)**.\n\n**What MIGA does:**\nMIGA is part of the World Bank Group. It encourages investment in developing countries by offering insurance to investors against risks like political violence, currency restrictions, expropriation (when a government takes private property), and breach of contract.\n\n**What this law does:**\n- **Authorises payments:** It allows Australia to pay its membership fees and financial obligations to MIGA using money from the government's main bank account (the Consolidated Revenue Fund).\n- **Allows alternative payment methods:** Instead of cash, Australia can issue IOUs (promissory notes or securities) to MIGA, provided MIGA agrees to accept them. These IOUs must be made out specifically to MIGA, cannot be sold to anyone else (non-negotiable), and don't earn interest.\n- **Incorporates the Convention:** It gives legal force in Australia to the international treaty that established MIGA, including later amendments.\n\n**Who it affects:**\nPrimarily the Australian Government (specifically the Treasurer) and Australia's international financial obligations. Ordinary Australians aren't directly affected, though it supports Australia's participation in global economic development efforts.\n\n**Why it matters:**\nAustralia's membership in MIGA demonstrates its commitment to international development and investment stability. The Act ensures Australia can meet its treaty obligations flexibly—either with cash or government-backed securities."}},"importantCases":[],"_links":{"self":"/api/acts/multilateral-investment-guarantee-agency-act-1997","history":"/api/acts/multilateral-investment-guarantee-agency-act-1997/history","analysis":"/api/acts/multilateral-investment-guarantee-agency-act-1997/analysis","conflicts":"/api/acts/multilateral-investment-guarantee-agency-act-1997/conflicts","importantCases":"/api/acts/multilateral-investment-guarantee-agency-act-1997/important-cases","documents":"/api/acts/multilateral-investment-guarantee-agency-act-1997/documents"}}