{"id":"nsw:act-1989-195","name":"State Bank (Corporatisation) Act 1989","slug":"state-bank-corporatisation-act-1989","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"195 of 1989","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":106883,"registerId":"nsw-act-1989-195-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"# Part 1 Preliminary\n\nPart 1 Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1 Name of Act\n\n> This Act may be cited as the [State Bank (Corporatisation) Act 1989](/view/html/inforce/current/act-1989-195).","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Act commences on a day or days to be appointed by proclamation.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n3 Definitions\n\n> > (1) Words and expressions used in this Act have the same meanings as they have in the [State Owned Corporations Act 1989](/view/html/inforce/current/act-1989-134).\n> \n> > (2) In this Act:\n> > \n> > board means the board of directors of the Corporation.\n> > \n> > business day means a day on which banks are open for business generally in New South Wales.\n> > \n> > business undertaking means all assets, rights and liabilities of the State Bank.\n> > \n> > Corporation means State Bank of New South Wales Limited.\n> > \n> > demand deposit means any liability of the Corporation to make a payment in respect of a deposit that is withdrawable on demand, at call or on a period of notice not exceeding 2 business days, but does not include any bond entered into on terms whereby the person holding the benefit of the bond may require the Corporation to repay the amount of the bond before its final maturity.\n> > \n> > deposit has the meaning given by section 3A.\n> > \n> > instrument means an instrument (other than this Act) which creates, modifies or extinguishes rights or liabilities (or would do so if lodged, filed or registered in accordance with any law), and includes any judgment, order and process of a court.\n> > \n> > retail deposit means a deposit denominated in Australian dollars, including, without limitation:\n> > \n> > > (a) money standing to the credit of a cheque account, whether or not it is interest bearing, and\n> > \n> > > (b) money standing to the credit of accounts entitled State Saver, State One, State Super Rate, State Maximiser, State Money Wise, State Money Market and State All In One, and\n> > \n> > > (c) retail State Bank bonds, money market deposits and certificates of deposit,\n> > \n> > but excluding a deposit that is owing to a body corporate authorised to carry on banking business in Australia under the [Banking Act 1959](http://www.legislation.gov.au/) of the Commonwealth.\n> > \n> > State Bank means the State Bank of New South Wales, constituted under the [State Bank Act 1981](/view/pdf/asmade/act-1981-89).\n> > \n> > State banking means State banking as referred to in section 51 (xiii) of the [Commonwealth Constitution](http://www.legislation.gov.au/).\n> > \n> > State insurance means State insurance as referred to in section 51 (xiv) of the [Commonwealth Constitution](http://www.legislation.gov.au/).\n> \n> **s 3:** Am 1994 No 73, Sch 1 (1).","sortOrder":3},{"sectionNumber":"3A","sectionType":"section","heading":"Meaning of “deposit”","content":"#### 3A Meaning of “deposit”\n\n3A Meaning of “deposit”\n\n> > (1) In this Act, deposit means a sum of money paid to the Corporation on terms:\n> > \n> > > (a) under which the Corporation is obliged to repay the money, with or without interest or a premium, and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the Corporation, and\n> > \n> > > (b) which are not referable to the provision of property or services or the giving of security.\n> \n> > (2) For the purposes of paragraph (b) of the definition of deposit, money is paid on terms that are referable to the provision of property or services if, and only if:\n> > \n> > > (a) it is paid by way of advance or part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is not or are not in fact sold, hired or otherwise provided, or\n> > \n> > > (b) it is paid by way of security for the performance of a contract or by way of security in respect of loss that may result from the non-performance of a contract, or\n> > \n> > > (c) without limiting paragraph (b) of this subsection, it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise.\n> \n> > (3) For the purposes of this section, security does not include any right of set-off or counterclaim.\n> \n> **s 3A:** Ins 1994 No 73, Sch 1 (2).","sortOrder":4},{"sectionNumber":"Part 2","sectionType":"part","heading":null,"content":"# Part 2\n\nPart 2\n\n4 (Repealed)\n\n**pt 2 (s 4):** Rep 1994 No 73, Sch 1 (3).","sortOrder":5},{"sectionNumber":"Part 3","sectionType":"part","heading":"Provisions applying to the Corporation","content":"# Part 3 Provisions applying to the Corporation\n\nPart 3 Provisions applying to the Corporation","sortOrder":6},{"sectionNumber":"5","sectionType":"section","heading":"Status of the Corporation","content":"#### 5 Status of the Corporation\n\n5 Status of the Corporation\n\n> > (1) The Corporation is constituted by this Act as a bank.\n> \n> > (2), (3) (Repealed)\n> \n> **s 5:** Am 1994 No 73, Sch 1 (4).","sortOrder":7},{"sectionNumber":"6","sectionType":"section","heading":null,"content":"#### 6\n\n6, 7 (Repealed)","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Capital reserves of Corporation—special capital notes","content":"#### 8 Capital reserves of Corporation—special capital notes\n\n8 Capital reserves of Corporation—special capital notes\n\n> > (1) In this section:\n> > \n> > security includes a capital note or other instrument issued by the Corporation, whether secured or not and whether for a fixed or an indefinite term.\n> > \n> > special arrangement means an agreement or arrangement under subsection (2).\n> > \n> > special capital note means a security issued by the State Bank or the Corporation that is the subject of a special arrangement.\n> \n> > (2) The Treasurer may, on behalf of the State, enter into an agreement or arrangement, to which the Corporation is a party or at the Corporation’s request, in connection with the issue of securities by the Corporation.\n> \n> > (3) A special arrangement, and the special capital notes to which it relates, may:\n> > \n> > > (a) require (in specified circumstances) the Treasurer, on behalf of the State, to pay to the Corporation for crediting to the capital reserves of the Corporation an amount calculated by reference to the interest and other amounts paid by the Corporation to the holders of the notes, and\n> > \n> > > (b) require (in specified circumstances) the Treasurer, on behalf of the State, to purchase all or any of the notes and release the Corporation from its obligations and liabilities under the notes so purchased, and\n> > \n> > > (c) provide that (in specified circumstances) the Treasurer may, on behalf of the State, pay all or any of the interest or other amounts due to the holders of the notes and assume any obligations or liabilities of the Corporation under the notes, and\n> > \n> > > (d) provide that the obligations and liabilities of the Corporation under the notes may be enforced only against the State in the case of any default by the Corporation, and\n> > \n> > > (e) provide for the redemption of all or any of the notes by the Corporation, and\n> > \n> > > (f) make any other provision that the Treasurer considers appropriate.\n> \n> > (4) Any liability of the State arising under a special arrangement or special capital note is to be met out of the Consolidated Fund, which is appropriated accordingly.\n> \n> > (5) Unless the Treasurer otherwise determines, the principal amount of each special capital note, is, for accounting purposes, to be treated as a subscription of capital.\n> \n> > (6) Nothing in this section prevents the State or an authority of the State from purchasing or otherwise acquiring special capital notes without releasing the Corporation from its obligations and liabilities under the notes.\n> \n> > (7) A certificate signed by the Treasurer and stating:\n> > \n> > > (a) that any specified security or specified class of securities issued by the Corporation is the subject of a special arrangement, or\n> > \n> > > (b) that any such security has been issued in accordance with the special arrangement, or\n> > \n> > > (c) that a special arrangement does or does not make provision of a specified kind,\n> > \n> > is conclusive evidence, in favour of any person other than the State or the Corporation, of the matters stated in the certificate.\n> \n> > (8) A special arrangement made under section 21A of the [State Bank Act 1981](/view/pdf/asmade/act-1981-89) is to be taken to be a special arrangement under this section.\n> \n> **s 8:** Am 1994 No 73, Sch 1 (7).","sortOrder":10},{"sectionNumber":"Part 4","sectionType":"part","heading":"Transfer of assets, rights and liabilities","content":"# Part 4 Transfer of assets, rights and liabilities\n\nPart 4 Transfer of assets, rights and liabilities","sortOrder":11},{"sectionNumber":"9","sectionType":"section","heading":"Direction to transfer business undertaking","content":"#### 9 Direction to transfer business undertaking\n\n9 Direction to transfer business undertaking\n\n> > (1) The Minister may, by order in writing, direct that the business undertaking of the State Bank be transferred to the Corporation, upon such consideration as is specified in the order.\n> \n> > (2) The transfer of assets, rights and liabilities under this section is to take place at a value or values specified in the order.\n> \n> > (3) On the commencement of the order, the following provisions have effect (subject to the order):\n> > \n> > > (a) the assets of the State Bank comprised in its business undertaking vest in the Corporation by virtue of this section and without the need for any conveyance, transfer, assignment or assurance,\n> > \n> > > (b) the rights and liabilities of the State Bank comprised in its business undertaking become by virtue of this section the rights and liabilities of the Corporation,\n> > \n> > > (c) all proceedings relating to the business undertaking commenced before the transfer by or against the State Bank or a predecessor of the State Bank and pending immediately before the transfer are to be taken to be proceedings pending by or against the Corporation,\n> > \n> > > (d) any act, matter or thing done or omitted to be done in relation to the business undertaking before the transfer by, to or in respect of the State Bank is (to the extent that that act, matter or thing has any force or effect) to be taken to have been done or omitted by, to or in respect of the Corporation,\n> > \n> > > (e) a reference in any other Act, in any instrument made under any Act or in any document of any kind to the State Bank or a predecessor of the State Bank is, subject to regulations under section 22 (2), to be read as, or as including, a reference to the Corporation.\n> \n> > (4) The operation of this section is not to be regarded:\n> > \n> > > (a) as a breach of contract or confidence or otherwise as a civil wrong, or\n> > \n> > > (b) as a breach of any contractual provision prohibiting, restricting or regulating the assignment or transfer of assets, rights or liabilities, or\n> > \n> > > (c) as giving rise to any remedy by a party to an instrument, or as causing or permitting the termination of any instrument, because of a change in the beneficial or legal ownership of any asset, right or liability.\n> \n> > (5) No attornment to the Corporation by a lessee from the State Bank is required.\n> \n> > (6) Assets, rights or liabilities may not be transferred under this section to the Corporation unless it is a State owned corporation.","sortOrder":12},{"sectionNumber":"Part 5","sectionType":"part","heading":"Dissolution of State Bank","content":"# Part 5 Dissolution of State Bank\n\nPart 5 Dissolution of State Bank","sortOrder":13},{"sectionNumber":"10","sectionType":"section","heading":"Repeal of State Bank Act 1981 No 89","content":"#### 10 Repeal of State Bank Act 1981 No 89\n\n10 Repeal of [State Bank Act 1981 No 89](/view/pdf/asmade/act-1981-89)\n\n> The [State Bank Act 1981](/view/pdf/asmade/act-1981-89) and all regulations and by-laws under that Act are repealed.","sortOrder":14},{"sectionNumber":"11","sectionType":"section","heading":"Dissolution of State Bank and State Bank Board","content":"#### 11 Dissolution of State Bank and State Bank Board\n\n11 Dissolution of State Bank and State Bank Board\n\n> > (1) The State Bank is dissolved.\n> \n> > (2) The State Bank Board is dissolved.\n> \n> > (3) A person holding office as a director of the State Bank Board immediately before its dissolution:\n> > \n> > > (a) ceases to hold that office, and\n> > \n> > > (b) except as provided by subsection (4), is not entitled to any remuneration or compensation because of the loss of that office.\n> \n> > (4) Part 8 of the [Public Sector Management Act 1988](/view/html/repealed/current/act-1988-033) applies to a person who so ceases to hold office as a director of the State Bank Board, without immediately being appointed to the service of the Corporation or a subsidiary of the Corporation, in the same way as it applies to a person removed from office under that Part.","sortOrder":15},{"sectionNumber":"11A","sectionType":"section","heading":"Corporation to be same legal entity as State Bank","content":"#### 11A Corporation to be same legal entity as State Bank\n\n11A Corporation to be same legal entity as State Bank\n\n> On and from the dissolution of the State Bank, the Corporation is for all purposes a continuation of and the same legal entity as the State Bank.\n> \n> **s 11A:** Ins 1992 No 34, Sch 1.","sortOrder":16},{"sectionNumber":"12","sectionType":"section","heading":"Government guarantees","content":"#### 12 Government guarantees\n\n12 Government guarantees\n\n> > (1) Until a day to be appointed by the Governor by proclamation for the purposes of this section, the payment of all money due by the Corporation is guaranteed by the Government of New South Wales.\n> \n> > (2) On and from the day appointed under subsection (1), the guarantee created by that subsection ceases, except in relation to:\n> > \n> > > (a) money standing to the credit of current accounts with the Corporation immediately before that day, and\n> > \n> > > (b) term deposits made with the State Bank or the Corporation, or other term liabilities incurred by the State Bank or the Corporation, before that day, and\n> > \n> > > (c) securities issued by the State Bank or the Corporation before that day, and\n> > \n> > > (d) money that becomes due by the Corporation on or after that day on account of a renewal or roll-over of special capital notes issued by the State Bank or the Corporation before that day (being special capital notes that were the subject of a special arrangement under section 21A of the [State Bank Act 1981](/view/pdf/asmade/act-1981-89) or section 8 of this Act), and\n> > \n> > > (e) (without limiting the above) contracts, agreements or arrangements entered into by the State Bank or the Corporation before that day.\n> \n> > (2A) On and from the third anniversary of the day appointed under subsection (1), the guarantee created by that subsection in relation to the matters listed in subsection (2) ceases, except in relation to:\n> > \n> > > (a) any financial accommodation provided to the Corporation (other than demand deposits) that is required by any applicable accounting standards or principles to be recorded as a liability on the balance sheet of the Corporation, and\n> > \n> > > (b) retail deposits (other than demand deposits), and\n> > \n> > > (c) any financial commitments of the Corporation that are not required by any applicable accounting standards or principles to be recorded as a liability on the balance sheet of the Corporation, including guarantees, assets sold with recourse, standby letters of credit, bill endorsements and written put options, documentary letters of credit and performance related contingencies, sale and repurchase agreements, outright forward purchases and forward deposits, and underwriting facilities, and\n> > \n> > > (d) any forward exchange contracts, hedge contracts, currency swap agreements, currency futures agreements, currency options, forward rate agreements, interest rate swap agreements, interest rate futures agreements, interest rate options agreements, gold contracts, gold futures contracts, gold options, stock price futures agreements, stock price options, spot foreign exchange transactions, basis swap transactions, interest rate caps, collar or floor transactions, or cross-currency rate swap transactions, and\n> > \n> > > (e) any liabilities, other than contingent liabilities, if a claim or demand is made on the Government of New South Wales in respect of any such liability before the third anniversary of the day appointed under subsection (1).\n> \n> > (2B) The guarantee of any liability that continues after the third anniversary of the day appointed under subsection (1) pursuant to subsection (2A) ceases immediately if:\n> > \n> > > (a) the terms or conditions of the arrangements giving rise to the relevant liability are amended or varied, or\n> > \n> > > (b) any right to extend the relevant liability is exercised by the Bank,\n> > \n> > unless the Treasurer agrees in writing that the guarantee is to continue despite any such amendment, variation or extension. Any agreement may be given in respect of particular amendments, variations or extensions or in respect of any class of amendments, variations or extensions.\n> \n> > (3) The payment of any money due by a subsidiary of the Corporation is not guaranteed under this section.\n> \n> > (4) (Repealed)\n> \n> **s 12:** Am 1994 No 73, Sch 1 (8).","sortOrder":17},{"sectionNumber":"13","sectionType":"section","heading":"Provisions relating to debenture and inscribed stock continue for previous issues","content":"#### 13 Provisions relating to debenture and inscribed stock continue for previous issues\n\n13 Provisions relating to debenture and inscribed stock continue for previous issues\n\n> > (1) Sections 22–26, 28 and 29 of the [State Bank Act 1981](/view/pdf/asmade/act-1981-89), and any by-laws under that Act relating to the issue of debentures and inscribed stock by the State Bank, continue to have effect in respect of debentures or inscribed stock issued before the repeal of those sections or issued pursuant to warrants in any such debentures or inscribed stock.\n> \n> > (2) Subsection (1) has effect despite the repeal of those sections and by-laws by the [State Bank (Amendment) Act 1986](/view/pdf/asmade/act-1986-169), and despite the repeal of clause 10 of Schedule 2 to the [State Bank Act 1981](/view/pdf/asmade/act-1981-89) by this Act.","sortOrder":18},{"sectionNumber":"14","sectionType":"section","heading":null,"content":"#### 14\n\n14–17 (Repealed)","sortOrder":19},{"sectionNumber":"18","sectionType":"section","heading":"Investment of trust funds etc","content":"#### 18 Investment of trust funds etc\n\n18 Investment of trust funds etc\n\n> The repeal of section 68 of the [State Bank Act 1981](/view/pdf/asmade/act-1981-89) does not affect any investment made before the repeal of that Act, and any such investment is taken to be an investment made in accordance with the [Trustee Act 1925](/view/html/inforce/current/act-1925-014).\n> \n> **s 18:** Am 1997 No 102, Sch 2.10.","sortOrder":21},{"sectionNumber":"Part 6","sectionType":"part","heading":"Miscellaneous","content":"# Part 6 Miscellaneous\n\nPart 6 Miscellaneous","sortOrder":22},{"sectionNumber":"19","sectionType":"section","heading":"Alteration of names","content":"#### 19 Alteration of names\n\n19 Alteration of names\n\n> References in this Act to a company by a specified name include references to the company under any altered name.","sortOrder":23},{"sectionNumber":"20","sectionType":"section","heading":null,"content":"#### 20\n\n20, 21 (Repealed)","sortOrder":24},{"sectionNumber":"22","sectionType":"section","heading":"Regulations","content":"#### 22 Regulations\n\n22 Regulations\n\n> > (1) The Governor may make regulations, not inconsistent with this Act, for or with respect to any matter that by this Act is required or permitted to be prescribed or that is necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n> \n> > (2) In particular, the regulations may contain provisions of a savings or transitional nature consequent on the enactment of this Act (including the interpretation of references to the State Bank or any member or employee of the State Bank or to the [State Bank Act 1981](/view/pdf/asmade/act-1981-89) or any provision of that Act).\n> \n> > (3) Any such savings or transitional provision may, if the regulations so provide, take effect on the commencement of this section or a later date.\n> \n> > (4) To the extent to which any such savings or transitional provision takes effect on a date that is earlier than the date of its publication in the Gazette, the provision does not operate so as:\n> > \n> > > (a) to affect, in a manner prejudicial to any person (other than the State, the Corporation, the State Bank or any authority of the State), the rights of that person existing before the date of its publication, or\n> > \n> > > (b) to impose liabilities on any person (other than the State, the Corporation, the State Bank or any authority of the State) in respect of anything done or omitted to be done before the date of its publication.","sortOrder":26},{"sectionNumber":"23","sectionType":"section","heading":null,"content":"#### 23\n\n23, 24 (Repealed)","sortOrder":27},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":"Savings, transitional and other provisions","content":"# Schedule 1 Savings, transitional and other provisions\n\nSchedule 1 Savings, transitional and other provisions\n\n**sch 1:** Rep 1999 No 85, Sch 4. Ins 2011 No 27, Sch 3.10.","sortOrder":29}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The Act as presented includes multiple later amendments and repeals that alter its original text and practical scope. Examples in the text show that definitions and operative sections were amended (s 3: amended 1994; s 8: amended 1994), a clause making the Corporation the same legal entity as the State Bank was inserted (s 11A: inserted 1992), and the guarantee provisions were amended to specify staged cessation and detailed carve-outs (s 12: amended 1994). Several sections are marked repealed, and Schedule 1 contains transferred transitional provisions (sch 1 cl 3), indicating the Act’s scope has been adjusted through later legislative action. These amendments change the temporal and fiscal exposure of the State (s 8; s 12), and add express continuity and accounting rules (s 11A; s 8(5))."},"complexity_factors":["Extensive cross-references to other statutes and instruments (State Owned Corporations Act 1989, State Bank Act 1981, Interpretation Act 1987) (s 3; sch 1 cl 3).","Multiple transitional and savings provisions with staged timings and carve-outs, especially for the government guarantee (s 12(1)–(2A)–(2B); s 22).","Executive discretion concentrated in a few offices: Minister (transfer orders) (s 9(1)), Treasurer (special arrangements, account treatment, continuing guarantees) (s 8; s 12(2B)), and Governor (regulations) (s 22).","Legal effects that alter ordinary contract law remedies (automatic vesting and non‑breach treatment on transfer) require careful mapping of contractual rights (s 9(3)–(4)).","Definitions that determine which liabilities are covered (deposit, retail deposit, demand deposit) are technical and affect entitlements under the guarantee and transitional rules (s 3; s 3A; s 12).","Presence of repealed and amended provisions scattered through the text increases interpretive effort (numerous ‘repealed’ notes and amendment citations).","Special capital note mechanisms combine financial, accounting and sovereign‑support elements, including certified conclusive evidence against third parties (s 8(2)–(7))."],"plain_english_summary":"The Act corporatises the State Bank by transferring its business, assets and liabilities into a State‑owned company, treating that company as the same legal entity and preserving ongoing proceedings and contracts. It provides temporary State guarantees and authorises the Treasurer to enter support arrangements (including for special capital notes), creating limited fiscal exposure.\n\nIt chiefly affects depositors, creditors, the State (Minister/Treasurer) and the new Corporation by ensuring legal continuity and staged government backing during transition."},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":true,"description":"The original 1989 Act was a straightforward corporatisation statute designed to convert the State Bank into a company and transfer its business. However, the 1994 amendments (Act No 73) significantly expanded the scope by inserting complex, phased guarantee arrangements (sections 12(2A), 12(2B)) that created a detailed regulatory framework for government backing of financial instruments. The original intent was transitional — to facilitate the bank's conversion — but the amendments made the Act a permanent vehicle for managing ongoing government financial exposure, including sophisticated treatment of derivatives, hedging instruments, and contingent liabilities. The Act also gained superannuation preservation provisions (Schedule 1, clause 2) and complex definitional amendments for 'deposit' (section 3A), moving well beyond simple corporate restructuring into detailed financial regulation."},"complexity_factors":["Multiple phases of government guarantee with cascading cut-off dates (initial, proclamation date, third anniversary) and different categories of protected liabilities at each phase","Nested definitions: 'retail deposit' excludes corporate banks, 'deposit' excludes security arrangements and advance payments, with 'security' itself defined to exclude set-off rights","Extensive cross-referencing to other Acts: State Owned Corporations Act 1989, State Bank Act 1981 (repealed provisions), Banking Act 1959 (Cth), Public Sector Management Act 1988, Trustee Act 1925, Interpretation Act 1987","Conditional continuity provisions: section 11A makes the Corporation the 'same legal entity' as the dissolved State Bank, creating complex succession issues","Special capital notes mechanism (section 8) with Treasurer's certificates having conclusive evidentiary effect, creating a statutory exception to normal evidence rules","Savings and transitional provisions in Schedule 1 with retrospective effect limitations (section 22(4)) protecting third parties from prejudicial retrospective operation","Significant amendment history with many repealed sections (sections 4, 6, 7, 14-17, 20, 21, 23, 24, and original Schedule 1) indicating substantial legislative evolution since 1989"],"plain_english_summary":"This law converted the State Bank of New South Wales from a government-owned statutory corporation into a company limited by shares (a 'State owned corporation'). It did three main things:\n\n**1. Created a new corporate structure**\n- Established 'State Bank of New South Wales Limited' as a bank under this Act\n- This new company took over all the assets, debts, and operations of the old State Bank\n\n**2. Transferred the business**\n- The Minister could order that all assets, rights, and liabilities of the old State Bank be transferred to the new Corporation\n- This happened automatically by law — no paperwork needed to transfer individual assets\n- The new company could legally act as if it were the old State Bank when dealing with overseas matters\n\n**3. Wound up the old bank**\n- Dissolved the original State Bank and its Board of Directors\n- Repealed the old State Bank Act 1981\n- Directors lost their jobs without compensation (though some got public sector redundancy benefits)\n\n**Special protections for depositors**\nThe NSW Government guaranteed all money owed by the new bank, but this guarantee was phased out over time:\n- Initially, all deposits were guaranteed\n- After a date set by proclamation, only certain existing deposits and contracts kept the guarantee\n- After three more years, only specific types of retail deposits and financial instruments remained guaranteed\n- The guarantee would stop if terms were changed without the Treasurer's approval\n\n**Why this matters**\nThis was part of a broader 1980s-90s trend of 'corporatisation' — turning government businesses into companies that could operate more commercially while still being state-owned. It allowed the bank to compete more like a private bank while maintaining government backing for certain obligations. The complex guarantee arrangements were designed to reassure depositors during the transition while gradually reducing taxpayer exposure."},"summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The original intent was to restructure the State Bank as a government-owned corporation operating on commercial principles. In practice, the scope significantly narrowed over time as the State Bank was privatised and ultimately absorbed into the Commonwealth Bank. The Act now appears to serve only residual or transitional purposes, a much smaller scope than the active governance framework originally envisioned."},"complexity_factors":["Involves corporate law concepts (corporatisation, shareholding structures) that require some legal knowledge to fully understand","Interacts with multiple other pieces of legislation (banking law, corporations law, public sector employment law)","Historical context spanning multiple legislative changes from 1989 to 2011 adds interpretive complexity","The subject matter (the State Bank itself) no longer exists, making the practical scope of remaining provisions unclear without reading the full text","Ministerial and government accountability mechanisms may involve cross-references to administrative arrangements orders"],"plain_english_summary":"## State Bank (Corporatisation) Act 1989 (NSW)\n\n**What is this law about?**\n\nThis NSW law was enacted in 1989 to transform the State Bank of New South Wales from a government body into a corporation (a company-style structure). This process — called **corporatisation** — means the bank would be structured and operate more like a private business, while still being owned by the NSW Government.\n\n**Who does it affect?**\n\n- **NSW taxpayers and the public** — as ultimate owners of the bank through the government\n- **State Bank employees** — whose employment arrangements would have changed under the new corporate structure\n- **Customers of the State Bank** — who would deal with a bank now operating under normal commercial rules\n- **The NSW Government** — which took on a shareholder-style relationship with the bank\n\n**Why does it matter?**\n\nThis was part of a broader 1980s–90s trend across Australia where governments converted publicly-run services into commercial entities. The idea was to make them more efficient and financially self-sustaining. In NSW's case, the State Bank was later sold to the Colonial State Bank and eventually absorbed into the Commonwealth Bank — meaning this law largely served as a stepping stone toward full privatisation.\n\n**Current status:**\n\nThe law has been largely dormant since 2011 (when it was last updated), reflecting that the State Bank itself no longer exists as a separate entity. Only minimal residual provisions appear to remain in force."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/state-bank-corporatisation-act-1989","history":"/api/acts/state-bank-corporatisation-act-1989/history","analysis":"/api/acts/state-bank-corporatisation-act-1989/analysis","conflicts":"/api/acts/state-bank-corporatisation-act-1989/conflicts","importantCases":"/api/acts/state-bank-corporatisation-act-1989/important-cases","documents":"/api/acts/state-bank-corporatisation-act-1989/documents"}}