{"id":"qld:act-1982-033","name":"Statutory Bodies Financial Arrangements Act 1982","slug":"statutory-bodies-financial-arrangements-act-1982","collection":"act","jurisdiction":"qld","status":"in_force","isInForce":true,"actNumber":"33 of 1982","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105011,"registerId":"qld-act-1982-033-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"pt.1","sectionType":"part","heading":"Preliminary","content":"# Preliminary","sortOrder":0},{"sectionNumber":"sec.1","sectionType":"section","heading":"Short title","content":"### sec.1 Short title\n\nThis Act may be cited as the Statutory Bodies Financial Arrangements Act 1982 .","sortOrder":1},{"sectionNumber":"sec.2","sectionType":"section","heading":"Object of Act","content":"### sec.2 Object of Act\n\nThe object of this Act is to provide for the efficient and effective management of the powers of statutory bodies to enter into financial arrangements.\nThe object is achieved by a coordinated and prudent approach towards—\nthe guarantees the Treasurer may give, for the State, for financial arrangements entered into by statutory bodies under this Act or another Act; and\nthe general banking powers, and the borrowing and investment powers, of statutory bodies; and\nthe way in which statutory bodies may, with the Treasurer’s approval, enter into derivative transactions, appoint funds managers and enter into other financial arrangements.\ns 2 prev s 2 om 15 July 1991 RA s 36\npres s 2 ins 1996 No. 54 s 4\n(sec.2-ssec.1) The object of this Act is to provide for the efficient and effective management of the powers of statutory bodies to enter into financial arrangements.\n(sec.2-ssec.2) The object is achieved by a coordinated and prudent approach towards— the guarantees the Treasurer may give, for the State, for financial arrangements entered into by statutory bodies under this Act or another Act; and the general banking powers, and the borrowing and investment powers, of statutory bodies; and the way in which statutory bodies may, with the Treasurer’s approval, enter into derivative transactions, appoint funds managers and enter into other financial arrangements.\n- (a) the guarantees the Treasurer may give, for the State, for financial arrangements entered into by statutory bodies under this Act or another Act; and\n- (b) the general banking powers, and the borrowing and investment powers, of statutory bodies; and\n- (c) the way in which statutory bodies may, with the Treasurer’s approval, enter into derivative transactions, appoint funds managers and enter into other financial arrangements.","sortOrder":2},{"sectionNumber":"sec.3","sectionType":"section","heading":"Act to bind Crown","content":"### sec.3 Act to bind Crown\n\nThis Act binds the Crown.\ns 3 Note—prev s 3 contained definitions for this Act. Definitions are now located in schedule (Dictionary).\namd 1994 No. 31 s 6 sch 2\npres s 3 sub 1996 No. 54 s 4","sortOrder":3},{"sectionNumber":"sec.3A","sectionType":"section","heading":"Dictionary","content":"### sec.3A Dictionary\n\nThe dictionary in the schedule defines particular words used in this Act.\ns 3A ins 1996 No. 54 s 4","sortOrder":4},{"sectionNumber":"sec.3B","sectionType":"section","heading":"References to members of statutory bodies","content":"### sec.3B References to members of statutory bodies\n\nA reference in this Act to a statutory body’s members is, for a body without members, a reference to the person or other entity that makes its decisions or controls its funds as mentioned in section 5 (2) (c) .\nSubsection (1) does not apply to references to a statutory body’s members in section 5 .\ns 3B ins 1996 No. 54 s 4\n(sec.3B-ssec.1) A reference in this Act to a statutory body’s members is, for a body without members, a reference to the person or other entity that makes its decisions or controls its funds as mentioned in section 5 (2) (c) .\n(sec.3B-ssec.2) Subsection (1) does not apply to references to a statutory body’s members in section 5 .","sortOrder":5},{"sectionNumber":"pt.2","sectionType":"part","heading":"Queensland Government Development Authority","content":"# Queensland Government Development Authority","sortOrder":6},{"sectionNumber":"sec.4","sectionType":"section","heading":"Constitution of the authority","content":"### sec.4 Constitution of the authority\n\nThe Under Treasurer is hereby constituted a corporation sole under the name and style ‘The Queensland Government Development Authority’ and under that name and style shall have perpetual succession and an official seal.\ns 4 amd 1988 No. 55 s 6","sortOrder":7},{"sectionNumber":"sec.4A","sectionType":"section","heading":"Continuation of the authority","content":"### sec.4A Continuation of the authority\n\nOn and from the commencement of the Queensland Treasury Corporation Act 1988 , as provided for in that Act, the corporation sole constituted under section 4 of this Act shall have the name and style ‘Queensland Treasury Corporation’ given it by the first mentioned Act and such corporation sole is preserved and continues in existence in accordance with the provisions of that Act.\ns 4A ins 1988 No. 55 s 7","sortOrder":8},{"sectionNumber":"pt.2A","sectionType":"part","heading":"Entities to which Act applies","content":"# Entities to which Act applies","sortOrder":9},{"sectionNumber":"sec.5","sectionType":"section","heading":"Act applies to statutory bodies","content":"### sec.5 Act applies to statutory bodies\n\nThis Act applies to statutory bodies.\nPart 2A sets out whether an entity is a statutory body. An entity that is a statutory body within the meaning of another Act, for example, the Financial Accountability Act 2009 , is not necessarily a statutory body under this Act.\nA statutory body is an entity established under an Act that—\nhas control of funds and consists of only 1 person appointed under an Act; or\nhas control of funds and has, or may have, at least 1 member appointed under an Act; or\nhas funds, or from time to time may have funds, and even though it does not have any members appointed under an Act, its decisions are made, or its funds are controlled, by—\nanother person appointed under the same Act; or\nanother entity established under the same Act that has, or may have, at least 1 member who is appointed under the Act ; or\nis a corporation sole constituted by a Minister, or the chief executive or an officer of a department; or\nis a local government; or\nis declared under the Act to be a statutory body for this Act.\nA regulation may declare an entity to be a statutory body.\nIn this section—\nappointed under an Act , in relation to a person or member, means—\na person or member, who is appointed under an Act; or\na person or member, whose appointment is confirmed by the Governor in Council or a Minister under an Act.\ns 5 prev s 5 om 1988 No. 55 s 8\npres s 5 ins 1996 No. 54 s 5\namd 2009 No. 9 s 136 sch 1\n(sec.5-ssec.1) This Act applies to statutory bodies. Part 2A sets out whether an entity is a statutory body. An entity that is a statutory body within the meaning of another Act, for example, the Financial Accountability Act 2009 , is not necessarily a statutory body under this Act.\n(sec.5-ssec.2) A statutory body is an entity established under an Act that— has control of funds and consists of only 1 person appointed under an Act; or has control of funds and has, or may have, at least 1 member appointed under an Act; or has funds, or from time to time may have funds, and even though it does not have any members appointed under an Act, its decisions are made, or its funds are controlled, by— another person appointed under the same Act; or another entity established under the same Act that has, or may have, at least 1 member who is appointed under the Act ; or is a corporation sole constituted by a Minister, or the chief executive or an officer of a department; or is a local government; or is declared under the Act to be a statutory body for this Act.\n(sec.5-ssec.3) A regulation may declare an entity to be a statutory body.\n(sec.5-ssec.4) In this section— appointed under an Act , in relation to a person or member, means— a person or member, who is appointed under an Act; or a person or member, whose appointment is confirmed by the Governor in Council or a Minister under an Act.\n- (a) has control of funds and consists of only 1 person appointed under an Act; or\n- (b) has control of funds and has, or may have, at least 1 member appointed under an Act; or\n- (c) has funds, or from time to time may have funds, and even though it does not have any members appointed under an Act, its decisions are made, or its funds are controlled, by— (i) another person appointed under the same Act; or (ii) another entity established under the same Act that has, or may have, at least 1 member who is appointed under the Act ; or\n- (i) another person appointed under the same Act; or\n- (ii) another entity established under the same Act that has, or may have, at least 1 member who is appointed under the Act ; or\n- (d) is a corporation sole constituted by a Minister, or the chief executive or an officer of a department; or\n- (e) is a local government; or\n- (f) is declared under the Act to be a statutory body for this Act.\n- (i) another person appointed under the same Act; or\n- (ii) another entity established under the same Act that has, or may have, at least 1 member who is appointed under the Act ; or\n- (a) a person or member, who is appointed under an Act; or\n- (b) a person or member, whose appointment is confirmed by the Governor in Council or a Minister under an Act.","sortOrder":10},{"sectionNumber":"sec.6","sectionType":"section","heading":"Entities that are not statutory bodies","content":"### sec.6 Entities that are not statutory bodies\n\nThe following entities are not statutory bodies—\na company incorporated under the Corporations Act ;\na department or part of a department;\na GOC;\nan entity whose only function under the Act under which it is established is to perform the role of a trustee of a superannuation fund;\nAustralian Financial Institutions Commission;\nQTC;\nQueensland Office of Financial Supervision;\nThe Public Trustee of Queensland as a corporation sole;\nThe Treasurer of Queensland under the Financial Accountability Act 2009 , section 53 ;\nan entity declared under a regulation not to be a statutory body.\nAlso, an entity is not a statutory body if—\nall or some of its income is paid into the consolidated fund; or\nall or some of its expenses are paid out of the consolidated fund, other than a payment in the nature of an endowment, grant-in-aid or subsidy from the consolidated fund.\nSubsection (2) is subject to a declaration about an entity under section 5 (2) (f) or (3) .\ns 6 prev s 6 om 1988 No. 55 s 8\npres s 6 ins 1996 No. 54 s 5\namd 1999 No. 29 s 50 sch ; 2001 No. 45 s 29 sch 3 ; 2006 No. 16 s 68 sch 1 ; 2009 No. 9 s 136 sch 1 ; 2010 No. 12 s 251 sch\n(sec.6-ssec.1) The following entities are not statutory bodies— a company incorporated under the Corporations Act ; a department or part of a department; a GOC; an entity whose only function under the Act under which it is established is to perform the role of a trustee of a superannuation fund; Australian Financial Institutions Commission; QTC; Queensland Office of Financial Supervision; The Public Trustee of Queensland as a corporation sole; The Treasurer of Queensland under the Financial Accountability Act 2009 , section 53 ; an entity declared under a regulation not to be a statutory body.\n(sec.6-ssec.2) Also, an entity is not a statutory body if— all or some of its income is paid into the consolidated fund; or all or some of its expenses are paid out of the consolidated fund, other than a payment in the nature of an endowment, grant-in-aid or subsidy from the consolidated fund.\n(sec.6-ssec.3) Subsection (2) is subject to a declaration about an entity under section 5 (2) (f) or (3) .\n- (a) a company incorporated under the Corporations Act ;\n- (b) a department or part of a department;\n- (c) a GOC;\n- (d) an entity whose only function under the Act under which it is established is to perform the role of a trustee of a superannuation fund;\n- (e) Australian Financial Institutions Commission;\n- (f) QTC;\n- (g) Queensland Office of Financial Supervision;\n- (h) The Public Trustee of Queensland as a corporation sole;\n- (i) The Treasurer of Queensland under the Financial Accountability Act 2009 , section 53 ;\n- (j) an entity declared under a regulation not to be a statutory body.\n- (a) all or some of its income is paid into the consolidated fund; or\n- (b) all or some of its expenses are paid out of the consolidated fund, other than a payment in the nature of an endowment, grant-in-aid or subsidy from the consolidated fund.","sortOrder":11},{"sectionNumber":"pt.2B","sectionType":"part","heading":"Powers under this Act and relationship with other Acts","content":"# Powers under this Act and relationship with other Acts","sortOrder":12},{"sectionNumber":"sec.7","sectionType":"section","heading":"Exercise of powers under this Act","content":"### sec.7 Exercise of powers under this Act\n\nA statutory body may exercise a power under this Act only if the body is satisfied, on reasonable grounds, that exercising the power is necessary or convenient for performing its functions under its authorising Act or another Act.\ns 7 prev s 7 om 1988 No. 55 s 8\npres s 7 ins 1996 No. 54 s 5","sortOrder":13},{"sectionNumber":"sec.8","sectionType":"section","heading":"Status of general banking powers under pt 4","content":"### sec.8 Status of general banking powers under pt 4\n\nA statutory body’s powers under part 4 —\nare additional to—\nits powers under the other parts of this Act; and\nits powers under its authorising Act or another Act to operate a basic institutional account; and\ndo not affect its express powers under its authorising Act or another Act to operate an overdraft institutional account.\nHowever, if there is no express power to operate an overdraft institutional account in the body’s authorising Act or another Act, its powers to operate an overdraft institutional account are limited to the powers under this Act even though, for example, its authorising Act or another Act states the body has—\nthe powers of a body corporate or individual; or\nthe power generally to enter into contracts; or\nthe power to do all things necessary or convenient for, or in connection with, the performance of its functions.\nIn this section—\nbasic institutional account means a deposit and withdrawal account with a financial institution without an overdraft facility.\noverdraft institutional account means a deposit and withdrawal account with a financial institution with an overdraft facility.\ns 8 prev s 8 om 1988 No. 55 s 8\npres s 8 ins 1996 No. 54 s 5\nsub 1997 No. 57 s 32\n(sec.8-ssec.1) A statutory body’s powers under part 4 — are additional to— its powers under the other parts of this Act; and its powers under its authorising Act or another Act to operate a basic institutional account; and do not affect its express powers under its authorising Act or another Act to operate an overdraft institutional account.\n(sec.8-ssec.2) However, if there is no express power to operate an overdraft institutional account in the body’s authorising Act or another Act, its powers to operate an overdraft institutional account are limited to the powers under this Act even though, for example, its authorising Act or another Act states the body has— the powers of a body corporate or individual; or the power generally to enter into contracts; or the power to do all things necessary or convenient for, or in connection with, the performance of its functions.\n(sec.8-ssec.3) In this section— basic institutional account means a deposit and withdrawal account with a financial institution without an overdraft facility. overdraft institutional account means a deposit and withdrawal account with a financial institution with an overdraft facility.\n- (a) are additional to— (i) its powers under the other parts of this Act; and (ii) its powers under its authorising Act or another Act to operate a basic institutional account; and\n- (i) its powers under the other parts of this Act; and\n- (ii) its powers under its authorising Act or another Act to operate a basic institutional account; and\n- (b) do not affect its express powers under its authorising Act or another Act to operate an overdraft institutional account.\n- (i) its powers under the other parts of this Act; and\n- (ii) its powers under its authorising Act or another Act to operate a basic institutional account; and\n- (a) the powers of a body corporate or individual; or\n- (b) the power generally to enter into contracts; or\n- (c) the power to do all things necessary or convenient for, or in connection with, the performance of its functions.","sortOrder":14},{"sectionNumber":"sec.9","sectionType":"section","heading":"Statutory bodies’ borrowing powers under pt 5 and other Acts","content":"### sec.9 Statutory bodies’ borrowing powers under pt 5 and other Acts\n\nA statutory body’s borrowing powers under part 5 are additional to its powers under the other parts of this Act and its borrowing powers under its authorising Act or another Act.\nHowever, if there is no express power to borrow in the body’s authorising Act or another Act, its powers to borrow are limited to the powers under this Act even though, for example, its authorising Act or another Act states the body has—\nthe powers of a body corporate or individual; or\nthe power generally to enter into contracts; or\nthe power to do all things necessary or convenient for, or in connection with, the performance of its functions.\ns 9 prev s 9 om 1988 No. 55 s 8\npres s 9 ins 1996 No. 54 s 5\namd 2003 No. 12 s 4\n(sec.9-ssec.1) A statutory body’s borrowing powers under part 5 are additional to its powers under the other parts of this Act and its borrowing powers under its authorising Act or another Act.\n(sec.9-ssec.2) However, if there is no express power to borrow in the body’s authorising Act or another Act, its powers to borrow are limited to the powers under this Act even though, for example, its authorising Act or another Act states the body has— the powers of a body corporate or individual; or the power generally to enter into contracts; or the power to do all things necessary or convenient for, or in connection with, the performance of its functions.\n- (a) the powers of a body corporate or individual; or\n- (b) the power generally to enter into contracts; or\n- (c) the power to do all things necessary or convenient for, or in connection with, the performance of its functions.","sortOrder":15},{"sectionNumber":"sec.10","sectionType":"section","heading":"Statutory bodies’ investment powers under pt 6 and other Acts","content":"### sec.10 Statutory bodies’ investment powers under pt 6 and other Acts\n\nA statutory body’s investment powers under part 6 are additional to its powers under the other parts of this Act and its investment powers under its authorising Act or another Act.\nHowever, if there is no express power to invest in the body’s authorising Act or another Act, its powers to invest are limited to the powers under this Act even though, for example, its authorising Act or another Act states the body has—\nthe powers of a body corporate or individual; or\nthe power generally to enter into contracts; or\nthe power to do all things necessary or convenient for, or in connection with, the performance of its functions.\ns 10 prev s 10 om 1988 No. 55 s 8\npres s 10 ins 1996 No. 54 s 5\namd 2003 No. 12 s 5\n(sec.10-ssec.1) A statutory body’s investment powers under part 6 are additional to its powers under the other parts of this Act and its investment powers under its authorising Act or another Act.\n(sec.10-ssec.2) However, if there is no express power to invest in the body’s authorising Act or another Act, its powers to invest are limited to the powers under this Act even though, for example, its authorising Act or another Act states the body has— the powers of a body corporate or individual; or the power generally to enter into contracts; or the power to do all things necessary or convenient for, or in connection with, the performance of its functions.\n- (a) the powers of a body corporate or individual; or\n- (b) the power generally to enter into contracts; or\n- (c) the power to do all things necessary or convenient for, or in connection with, the performance of its functions.","sortOrder":16},{"sectionNumber":"sec.11","sectionType":"section","heading":"Relationship of pt 7 to other parts of Act and other Acts","content":"### sec.11 Relationship of pt 7 to other parts of Act and other Acts\n\nSubject to subsection (5) , a statutory body’s powers under part 7 are additional to its powers under the other parts of this Act, its authorising Act or another Act.\nIf there is no express power in the body’s authorising Act or another Act to enter into a derivative transaction, the body’s power to enter into a derivative transaction is limited to part 7 , division 1 .\nIf there is no express power in the body’s authorising Act or another Act to appoint a funds manager, the body’s power to appoint a funds manager is limited to part 7 , division 2 .\nIf there is no express power in the body’s authorising Act or another Act to enter into a type 1 financial arrangement, the body’s power to enter into the type 1 financial arrangement is limited to part 7 , division 3 .\nSubsections (2) to (4) apply to the body even though its authorising Act or another Act states the body has—\nthe powers of a body corporate or individual; or\nthe power generally to enter into contracts; or\nthe power to do all things necessary or convenient for, or in connection with, the performance of its functions.\nA statutory body’s powers under this Act must not be construed as including—\nthe power to enter into derivative transactions, other than its powers under part 7 , division 1 ; and\nthe power to appoint a funds manager, other than its powers under part 7 , division 2 ; and\nthe power to enter into a type 1 financial arrangement, other than its powers under part 7 , division 3 .\nA statutory body may not enter into a derivative transaction under part 7 , division 1 contrary to a restriction mentioned in this Act, its authorising Act or another Act.\ns 11 prev s 11 om 1988 No. 55 s 8\npres s 11 ins 1996 No. 54 s 5\namd 2003 No. 12 s 6\n(sec.11-ssec.1) Subject to subsection (5) , a statutory body’s powers under part 7 are additional to its powers under the other parts of this Act, its authorising Act or another Act.\n(sec.11-ssec.2) If there is no express power in the body’s authorising Act or another Act to enter into a derivative transaction, the body’s power to enter into a derivative transaction is limited to part 7 , division 1 .\n(sec.11-ssec.3) If there is no express power in the body’s authorising Act or another Act to appoint a funds manager, the body’s power to appoint a funds manager is limited to part 7 , division 2 .\n(sec.11-ssec.4) If there is no express power in the body’s authorising Act or another Act to enter into a type 1 financial arrangement, the body’s power to enter into the type 1 financial arrangement is limited to part 7 , division 3 .\n(sec.11-ssec.5) Subsections (2) to (4) apply to the body even though its authorising Act or another Act states the body has— the powers of a body corporate or individual; or the power generally to enter into contracts; or the power to do all things necessary or convenient for, or in connection with, the performance of its functions.\n(sec.11-ssec.6) A statutory body’s powers under this Act must not be construed as including— the power to enter into derivative transactions, other than its powers under part 7 , division 1 ; and the power to appoint a funds manager, other than its powers under part 7 , division 2 ; and the power to enter into a type 1 financial arrangement, other than its powers under part 7 , division 3 .\n(sec.11-ssec.7) A statutory body may not enter into a derivative transaction under part 7 , division 1 contrary to a restriction mentioned in this Act, its authorising Act or another Act.\n- (a) the powers of a body corporate or individual; or\n- (b) the power generally to enter into contracts; or\n- (c) the power to do all things necessary or convenient for, or in connection with, the performance of its functions.\n- (a) the power to enter into derivative transactions, other than its powers under part 7 , division 1 ; and\n- (b) the power to appoint a funds manager, other than its powers under part 7 , division 2 ; and\n- (c) the power to enter into a type 1 financial arrangement, other than its powers under part 7 , division 3 .","sortOrder":17},{"sectionNumber":"sec.11A","sectionType":"section","heading":"Relationship of pt 7A with other parts of this Act and other Acts","content":"### sec.11A Relationship of pt 7A with other parts of this Act and other Acts\n\nA statutory body’s powers under part 7A are additional to its powers under the other parts of this Act, its authorising Act or another Act.\ns 11A ins 2003 No. 12 s 7","sortOrder":18},{"sectionNumber":"sec.12","sectionType":"section","heading":"Statutory bodies acting as trustees or otherwise holding property","content":"### sec.12 Statutory bodies acting as trustees or otherwise holding property\n\nThis section applies to a statutory body if the body—\nis acting as a trustee of property, whether under a trust or under an Act (a trust-establishing Act ); or\nholds property on a condition but is not acting as a trustee in relation to the property.\nThe statutory body may exercise powers under this Act in relation to the property but the exercise of the powers is subject to—\nif the body is acting as a trustee under a trust—the trust and any directions or restrictions under the trust; and\nif the body is acting as a trustee under a trust-establishing Act—the trust-establishing Act; and\nif the body holds property on a condition but is not acting as a trustee—the condition.\nTo remove any doubt, it is declared that nothing in this Act affects the body’s powers when it is acting as a trustee.\ns 12 prev s 12 amd 1984 No. 92 s 3\nom 1988 No. 55 s 8\npres s 12 ins 1996 No. 54 s 5\n(sec.12-ssec.1) This section applies to a statutory body if the body— is acting as a trustee of property, whether under a trust or under an Act (a trust-establishing Act ); or holds property on a condition but is not acting as a trustee in relation to the property.\n(sec.12-ssec.2) The statutory body may exercise powers under this Act in relation to the property but the exercise of the powers is subject to— if the body is acting as a trustee under a trust—the trust and any directions or restrictions under the trust; and if the body is acting as a trustee under a trust-establishing Act—the trust-establishing Act; and if the body holds property on a condition but is not acting as a trustee—the condition.\n(sec.12-ssec.3) To remove any doubt, it is declared that nothing in this Act affects the body’s powers when it is acting as a trustee.\n- (a) is acting as a trustee of property, whether under a trust or under an Act (a trust-establishing Act ); or\n- (b) holds property on a condition but is not acting as a trustee in relation to the property.\n- (a) if the body is acting as a trustee under a trust—the trust and any directions or restrictions under the trust; and\n- (b) if the body is acting as a trustee under a trust-establishing Act—the trust-establishing Act; and\n- (c) if the body holds property on a condition but is not acting as a trustee—the condition.","sortOrder":19},{"sectionNumber":"sec.13","sectionType":"section","heading":"Application of future laws to statutory bodies","content":"### sec.13 Application of future laws to statutory bodies\n\nThis Act has effect subject to a provision of an Act passed after the commencement that expressly provides that this Act, or a provision of this Act, is subject to it.\ns 13 prev s 13 om 1988 No. 55 s 8\npres s 13 ins 1996 No. 54 s 5","sortOrder":20},{"sectionNumber":"sec.13A","sectionType":"section","heading":"Excluded matter for Corporations legislation","content":"### sec.13A Excluded matter for Corporations legislation\n\nA statutory body is declared to be an excluded matter for the Corporations Act , section 5F , in relation to the following provisions of the Corporations Act —\nparts 2D .1 and 2D.6;\nchapters 2K and 2L;\nparts 5.7 , 5 .7B, 5.9 and 5B.2.\ns 13A ins 2001 No. 45 s 29 sch 3\n- (a) parts 2D .1 and 2D.6;\n- (b) chapters 2K and 2L;\n- (c) parts 5.7 , 5 .7B, 5.9 and 5B.2.","sortOrder":21},{"sectionNumber":"sec.14","sectionType":"section","heading":"Conditions precedent to financial arrangements and other matters","content":"### sec.14 Conditions precedent to financial arrangements and other matters\n\nIf a statutory body’s authorising Act, or another Act other than this Act, provides for it to perform or observe a condition before it may exercise a power to enter into a financial arrangement, the body must perform or observe the condition before it may exercise the power.\nWithout limiting subsection (1) , if the body’s authorising Act or the other Act states the way in which the body must decide to exercise the power, the body must decide, under its authorising Act or the other Act, to exercise the power in that way before exercising it.\nHowever, if the body’s authorising Act or the other Act does not state the way in which the body must decide to exercise the power, the body must decide to exercise the power and make a written record of the decision before exercising it.\nIf, under this Act, the body must obtain the Treasurer’s approval for the exercise of the power, it must decide to enter into the arrangement before it asks for the approval.\ns 14 prev s 14 om 15 July 1991 RA s 40\npres s 14 ins 1996 No. 54 s 5\n(sec.14-ssec.1) If a statutory body’s authorising Act, or another Act other than this Act, provides for it to perform or observe a condition before it may exercise a power to enter into a financial arrangement, the body must perform or observe the condition before it may exercise the power.\n(sec.14-ssec.2) Without limiting subsection (1) , if the body’s authorising Act or the other Act states the way in which the body must decide to exercise the power, the body must decide, under its authorising Act or the other Act, to exercise the power in that way before exercising it.\n(sec.14-ssec.3) However, if the body’s authorising Act or the other Act does not state the way in which the body must decide to exercise the power, the body must decide to exercise the power and make a written record of the decision before exercising it.\n(sec.14-ssec.4) If, under this Act, the body must obtain the Treasurer’s approval for the exercise of the power, it must decide to enter into the arrangement before it asks for the approval.","sortOrder":22},{"sectionNumber":"pt.3","sectionType":"part","heading":"Guarantee of statutory bodies’ financial arrangements","content":"# Guarantee of statutory bodies’ financial arrangements","sortOrder":23},{"sectionNumber":"pt.3-div.1","sectionType":"division","heading":"Guarantees by Treasurer about obligations of statutory bodies","content":"## Guarantees by Treasurer about obligations of statutory bodies","sortOrder":24},{"sectionNumber":"sec.15","sectionType":"section","heading":"State guarantee may only be given under this division","content":"### sec.15 State guarantee may only be given under this division\n\nA guarantee, by or for the State, of the performance of a statutory body’s obligations under a financial arrangement entered into by the body under this Act or another Act may be given only under section 16 .\nA provision in another Act requiring or allowing a Minister to guarantee the performance of a statutory body’s obligations under a financial arrangement entered into by the body under this Act or another Act is taken to be a provision requiring or allowing the Treasurer only to guarantee the performance for the State under section 16 .\nHowever, this section must not be construed as limiting the effect of an Act that itself guarantees anything.\ns 15 prev s 15 om 1994 No. 31 s 6 sch 2\npres s 15 ins 1996 No. 54 s 6\n(sec.15-ssec.1) A guarantee, by or for the State, of the performance of a statutory body’s obligations under a financial arrangement entered into by the body under this Act or another Act may be given only under section 16 .\n(sec.15-ssec.2) A provision in another Act requiring or allowing a Minister to guarantee the performance of a statutory body’s obligations under a financial arrangement entered into by the body under this Act or another Act is taken to be a provision requiring or allowing the Treasurer only to guarantee the performance for the State under section 16 .\n(sec.15-ssec.3) However, this section must not be construed as limiting the effect of an Act that itself guarantees anything.","sortOrder":25},{"sectionNumber":"sec.16","sectionType":"section","heading":"Guarantees for the State","content":"### sec.16 Guarantees for the State\n\nFor the State, the Treasurer may guarantee the performance of obligations of a statutory body under a financial arrangement entered into by the body under this Act or another Act.\nUnder section 76 , the Treasurer may delegate the Treasurer’s powers under this part to another Minister.\nThe guarantee may—\napply generally to all statutory bodies, powers and matters or be limited in its application to—\nparticular bodies, powers or matters; or\nparticular classes of bodies, powers or matters; or\notherwise apply generally or be limited in its application by reference to specified exceptions or factors.\nAlso, the guarantee may—\nmake different provision for different statutory bodies, powers or matters, or different classes of bodies, powers or matters; or\napply differently to stated exceptions or factors.\nThe guarantee must be in writing and, if it applies generally or the Treasurer considers it appropriate, may be given by gazette notice.\nIn giving a guarantee, the Treasurer may do all things necessary for, or incidental to, giving the guarantee.\nTo remove any doubt, it is declared that a guarantee under subsection (1) may apply to a statutory body even though the body was not established when the guarantee was given.\ns 16 amd 1984 No. 92 s 4 ; 1988 No. 55 s 9\nsub 1996 No. 54 s 6\n(sec.16-ssec.1) For the State, the Treasurer may guarantee the performance of obligations of a statutory body under a financial arrangement entered into by the body under this Act or another Act. Under section 76 , the Treasurer may delegate the Treasurer’s powers under this part to another Minister.\n(sec.16-ssec.2) The guarantee may— apply generally to all statutory bodies, powers and matters or be limited in its application to— particular bodies, powers or matters; or particular classes of bodies, powers or matters; or otherwise apply generally or be limited in its application by reference to specified exceptions or factors.\n(sec.16-ssec.3) Also, the guarantee may— make different provision for different statutory bodies, powers or matters, or different classes of bodies, powers or matters; or apply differently to stated exceptions or factors.\n(sec.16-ssec.4) The guarantee must be in writing and, if it applies generally or the Treasurer considers it appropriate, may be given by gazette notice.\n(sec.16-ssec.5) In giving a guarantee, the Treasurer may do all things necessary for, or incidental to, giving the guarantee.\n(sec.16-ssec.6) To remove any doubt, it is declared that a guarantee under subsection (1) may apply to a statutory body even though the body was not established when the guarantee was given.\n- (a) apply generally to all statutory bodies, powers and matters or be limited in its application to— (i) particular bodies, powers or matters; or (ii) particular classes of bodies, powers or matters; or\n- (i) particular bodies, powers or matters; or\n- (ii) particular classes of bodies, powers or matters; or\n- (b) otherwise apply generally or be limited in its application by reference to specified exceptions or factors.\n- (i) particular bodies, powers or matters; or\n- (ii) particular classes of bodies, powers or matters; or\n- (a) make different provision for different statutory bodies, powers or matters, or different classes of bodies, powers or matters; or\n- (b) apply differently to stated exceptions or factors.","sortOrder":26},{"sectionNumber":"sec.16A","sectionType":"section","heading":"Treasurer may charge for a guarantee under s 16","content":"### sec.16A Treasurer may charge for a guarantee under s 16\n\nThe Treasurer may charge a statutory body for providing a guarantee under section 16 , if the guarantee is given other than to QTC, by imposing a fee—\nfor each financial year, or part of a financial year, happening during the period of the guarantee; or\nat the end of the guarantee.\nThe amount a statutory body may be charged under subsection (1) for a guarantee must not be more than the attributed amounts for which the statutory body would have been liable if the financial arrangements to which the guarantee relates were entered into with QTC under the Queensland Treasury Corporation Act 1988 , section 19 (1) .\nThe Treasurer may ask QTC to provide the Treasurer with a certificate about the rate that would have been applied to calculate the attributed amounts mentioned in subsection (2) .\ns 16A ins 1994 No. 31 s 7\namd 1999 No. 29 s 50 sch ; 2013 No. 39 s 43 sch 1\n(sec.16A-ssec.1) The Treasurer may charge a statutory body for providing a guarantee under section 16 , if the guarantee is given other than to QTC, by imposing a fee— for each financial year, or part of a financial year, happening during the period of the guarantee; or at the end of the guarantee.\n(sec.16A-ssec.2) The amount a statutory body may be charged under subsection (1) for a guarantee must not be more than the attributed amounts for which the statutory body would have been liable if the financial arrangements to which the guarantee relates were entered into with QTC under the Queensland Treasury Corporation Act 1988 , section 19 (1) .\n(sec.16A-ssec.3) The Treasurer may ask QTC to provide the Treasurer with a certificate about the rate that would have been applied to calculate the attributed amounts mentioned in subsection (2) .\n- (a) for each financial year, or part of a financial year, happening during the period of the guarantee; or\n- (b) at the end of the guarantee.","sortOrder":27},{"sectionNumber":"sec.17","sectionType":"section","heading":"Appropriation","content":"### sec.17 Appropriation\n\nAll moneys payable by the Treasurer pursuant to a guarantee given under section 16 shall be a charge upon and be paid out of the consolidated fund, which is to the extent necessary appropriated accordingly.","sortOrder":28},{"sectionNumber":"sec.18","sectionType":"section","heading":"Requirement for security","content":"### sec.18 Requirement for security\n\nWithout limiting the power of the Treasurer with respect to the terms and conditions to which the Treasurer’s guarantee may be subject, the Treasurer may require a person with whom a statutory body has entered into or desires to enter into any financial arrangements to take security of a description specified in the guarantee.\nIf a person required to take security pursuant to subsection (1) —\nfails to take security of the description specified; or\nhaving taken such security, releases in whole or in part that security without the Treasurer’s consent in writing first had and obtained; or\nhaving taken such security, waives any right or remedy thereby secured to the person without the Treasurer’s consent in writing first had and obtained;\nthe guarantee in connection with which the security was required shall be void and shall be deemed to have been void ab initio.\ns 18 amd 1996 No. 54 s 7\n(sec.18-ssec.1) Without limiting the power of the Treasurer with respect to the terms and conditions to which the Treasurer’s guarantee may be subject, the Treasurer may require a person with whom a statutory body has entered into or desires to enter into any financial arrangements to take security of a description specified in the guarantee.\n(sec.18-ssec.2) If a person required to take security pursuant to subsection (1) — fails to take security of the description specified; or having taken such security, releases in whole or in part that security without the Treasurer’s consent in writing first had and obtained; or having taken such security, waives any right or remedy thereby secured to the person without the Treasurer’s consent in writing first had and obtained; the guarantee in connection with which the security was required shall be void and shall be deemed to have been void ab initio.\n- (a) fails to take security of the description specified; or\n- (b) having taken such security, releases in whole or in part that security without the Treasurer’s consent in writing first had and obtained; or\n- (c) having taken such security, waives any right or remedy thereby secured to the person without the Treasurer’s consent in writing first had and obtained;","sortOrder":29},{"sectionNumber":"sec.19","sectionType":"section","heading":"Guarantee may include waiver of immunity and other provisions","content":"### sec.19 Guarantee may include waiver of immunity and other provisions\n\nA guarantee under section 16 may include an express provision waiving the State’s or the Treasurer’s immunity, if any, from proceedings under an Act or other law.\nAlso, the guarantee may include provisions that the guarantee continues to be enforceable despite an event that would or might at law—\notherwise end, or permit the ending of, the guarantee; or\nexcuse compliance with, or performance of, the guarantee; or\nprovide a defence to a proceeding to enforce the guarantee.\nA provision mentioned in subsection (1) or (2) operates in accordance with its terms, despite an Act or rule of law to the contrary, but is subject to an express provision in the guarantee.\ns 19 sub 1996 No. 54 s 8\n(sec.19-ssec.1) A guarantee under section 16 may include an express provision waiving the State’s or the Treasurer’s immunity, if any, from proceedings under an Act or other law.\n(sec.19-ssec.2) Also, the guarantee may include provisions that the guarantee continues to be enforceable despite an event that would or might at law— otherwise end, or permit the ending of, the guarantee; or excuse compliance with, or performance of, the guarantee; or provide a defence to a proceeding to enforce the guarantee.\n(sec.19-ssec.3) A provision mentioned in subsection (1) or (2) operates in accordance with its terms, despite an Act or rule of law to the contrary, but is subject to an express provision in the guarantee.\n- (a) otherwise end, or permit the ending of, the guarantee; or\n- (b) excuse compliance with, or performance of, the guarantee; or\n- (c) provide a defence to a proceeding to enforce the guarantee.","sortOrder":30},{"sectionNumber":"pt.3-div.2","sectionType":"division","heading":"Miscellaneous provisions about guarantees","content":"## Miscellaneous provisions about guarantees","sortOrder":31},{"sectionNumber":"sec.20","sectionType":"section","heading":"Guarantee not affected by transfer of liability","content":"### sec.20 Guarantee not affected by transfer of liability\n\nThis section applies if—\nan obligation of a statutory body under a financial arrangement entered into under this Act or another Act is guaranteed under a guarantee section; and\nthe obligation is transferred from one statutory body to another statutory body (the receiving body ).\nThe transfer does not affect the guarantee continuing in force and the guarantee must be construed as a guarantee of the obligation of the receiving body under the financial arrangement to which the guarantee relates.\ns 20 amd 1988 No. 55 s 10 ; 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\namd 1997 No. 57 s 33\n(sec.20-ssec.1) This section applies if— an obligation of a statutory body under a financial arrangement entered into under this Act or another Act is guaranteed under a guarantee section; and the obligation is transferred from one statutory body to another statutory body (the receiving body ).\n(sec.20-ssec.2) The transfer does not affect the guarantee continuing in force and the guarantee must be construed as a guarantee of the obligation of the receiving body under the financial arrangement to which the guarantee relates.\n- (a) an obligation of a statutory body under a financial arrangement entered into under this Act or another Act is guaranteed under a guarantee section; and\n- (b) the obligation is transferred from one statutory body to another statutory body (the receiving body ).","sortOrder":32},{"sectionNumber":"sec.21","sectionType":"section","heading":"Loans from QTC to statutory bodies","content":"### sec.21 Loans from QTC to statutory bodies\n\nIf, under part 5 , a statutory body borrows from QTC, the Treasurer is taken, for the State, to have guaranteed the body’s obligations under the borrowing to make payments.\nThe conditions applicable to the guarantee are the conditions approved by the Treasurer, by gazette notice, for guarantees under subsection (1) at the time the body borrows from QTC.\nHowever for a particular borrowing, the Treasurer may, by gazette notice—\ndirect that the borrowing is not guaranteed; or\nchange the conditions of the guarantee.\ns 21 sub 1996 No. 54 s 8\n(sec.21-ssec.1) If, under part 5 , a statutory body borrows from QTC, the Treasurer is taken, for the State, to have guaranteed the body’s obligations under the borrowing to make payments.\n(sec.21-ssec.2) The conditions applicable to the guarantee are the conditions approved by the Treasurer, by gazette notice, for guarantees under subsection (1) at the time the body borrows from QTC.\n(sec.21-ssec.3) However for a particular borrowing, the Treasurer may, by gazette notice— direct that the borrowing is not guaranteed; or change the conditions of the guarantee.\n- (a) direct that the borrowing is not guaranteed; or\n- (b) change the conditions of the guarantee.","sortOrder":33},{"sectionNumber":"pt.3-div.3","sectionType":"division","heading":"Consequences if payment required under guarantee","content":"## Consequences if payment required under guarantee","sortOrder":34},{"sectionNumber":"sec.22","sectionType":"section","heading":"Application of division","content":"### sec.22 Application of division\n\nThis division applies if, under a guarantee under a guarantee section, the Treasurer—\npays amounts payable under a financial arrangement entered into by a statutory body under this Act or another Act; or\notherwise incurs expenses in performing the obligations of the body under the financial arrangement.\ns 22 amd 1988 No. 55 s 11 ; 1989 No. 53 s 4\nsub 1996 No. 54 s 8\namd 1997 No. 57 s 34\n- (a) pays amounts payable under a financial arrangement entered into by a statutory body under this Act or another Act; or\n- (b) otherwise incurs expenses in performing the obligations of the body under the financial arrangement.","sortOrder":35},{"sectionNumber":"sec.23","sectionType":"section","heading":"Treasurer entitled to recover guarantee amount, interest etc.","content":"### sec.23 Treasurer entitled to recover guarantee amount, interest etc.\n\nThe Treasurer is entitled, under this division, to recover from the statutory body—\nthe guarantee amount; and\ninterest on the guarantee amount at the rate prescribed under a regulation; and\nthe costs and expenses of recovering the guarantee amount and interest.\ns 23 sub 1996 No. 54 s 4\n- (a) the guarantee amount; and\n- (b) interest on the guarantee amount at the rate prescribed under a regulation; and\n- (c) the costs and expenses of recovering the guarantee amount and interest.","sortOrder":36},{"sectionNumber":"sec.24","sectionType":"section","heading":"Appointing a person to recover guarantee amount etc.","content":"### sec.24 Appointing a person to recover guarantee amount etc.\n\nA regulation may appoint a person as an appointee for the statutory body.\nIf the Treasurer considers urgent action in relation to the statutory body is necessary to prevent losses or mismanagement that would limit the recovery of the recovery amounts, the Treasurer may, by gazette notice, appoint a person as an appointee for the body.\nThe Treasurer may only recommend a person to the Governor in Council for appointment under subsection (1) , or appoint a person under subsection (2) , who, in the Treasurer’s opinion, is a suitable person to exercise the powers of an appointee for the statutory body.\nThe appointment by the Treasurer may not be longer than 28 days after the date of the gazette notice.\nHowever, if a regulation is made appointing an appointee for the statutory body before the appointment by the Treasurer ends, the appointment by the Treasurer is taken to have ended immediately before the appointment under the regulation starts.\nThe regulation or notice may provide for the appointee’s remuneration including the way in which the remuneration is to be calculated.\nSubsection (6) and section 25 (3) do not limit the matters a regulation or notice may include.\ns 24 sub 1996 No. 54 s 8\n(sec.24-ssec.1) A regulation may appoint a person as an appointee for the statutory body.\n(sec.24-ssec.2) If the Treasurer considers urgent action in relation to the statutory body is necessary to prevent losses or mismanagement that would limit the recovery of the recovery amounts, the Treasurer may, by gazette notice, appoint a person as an appointee for the body.\n(sec.24-ssec.3) The Treasurer may only recommend a person to the Governor in Council for appointment under subsection (1) , or appoint a person under subsection (2) , who, in the Treasurer’s opinion, is a suitable person to exercise the powers of an appointee for the statutory body.\n(sec.24-ssec.4) The appointment by the Treasurer may not be longer than 28 days after the date of the gazette notice.\n(sec.24-ssec.5) However, if a regulation is made appointing an appointee for the statutory body before the appointment by the Treasurer ends, the appointment by the Treasurer is taken to have ended immediately before the appointment under the regulation starts.\n(sec.24-ssec.6) The regulation or notice may provide for the appointee’s remuneration including the way in which the remuneration is to be calculated.\n(sec.24-ssec.7) Subsection (6) and section 25 (3) do not limit the matters a regulation or notice may include.","sortOrder":37},{"sectionNumber":"sec.25","sectionType":"section","heading":"Purpose of appointment and necessary powers of appointee","content":"### sec.25 Purpose of appointment and necessary powers of appointee\n\nThe purpose of appointing an appointee is to ensure the Treasurer is paid all or part of the recovery amounts.\nAn appointee for a statutory body may collect amounts payable to the statutory body and, for that purpose, is taken to be the body and may exercise the body’s powers.\nHowever, the regulation or notice may provide the appointee is to take over and manage the affairs, or a stated part of the affairs, of the statutory body.\ns 25 amd 1984 No. 92 s 5 ; 1988 No. 55 s 12\nsub 1996 No. 54 s 8\n(sec.25-ssec.1) The purpose of appointing an appointee is to ensure the Treasurer is paid all or part of the recovery amounts.\n(sec.25-ssec.2) An appointee for a statutory body may collect amounts payable to the statutory body and, for that purpose, is taken to be the body and may exercise the body’s powers.\n(sec.25-ssec.3) However, the regulation or notice may provide the appointee is to take over and manage the affairs, or a stated part of the affairs, of the statutory body.","sortOrder":38},{"sectionNumber":"sec.25A","sectionType":"section","heading":null,"content":"### Section sec.25A\n\ns 25A om 1996 No. 54 s 8","sortOrder":39},{"sectionNumber":"sec.25B","sectionType":"section","heading":null,"content":"### Section sec.25B\n\ns 25B om 1996 No. 54 s 8","sortOrder":40},{"sectionNumber":"sec.26","sectionType":"section","heading":"Exercise of powers by members of statutory bodies","content":"### sec.26 Exercise of powers by members of statutory bodies\n\nThe members of a statutory body for which there is an appointee may continue to exercise their powers as members, in the ordinary course of performing the body’s functions, unless the exercise of the powers is inconsistent with the appointee exercising the appointee’s powers.\nAlso, each member of the statutory body must help the appointee in the exercise of the appointee’s powers if the appointee asks for the member’s help.\ns 26 amd 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\n(sec.26-ssec.1) The members of a statutory body for which there is an appointee may continue to exercise their powers as members, in the ordinary course of performing the body’s functions, unless the exercise of the powers is inconsistent with the appointee exercising the appointee’s powers.\n(sec.26-ssec.2) Also, each member of the statutory body must help the appointee in the exercise of the appointee’s powers if the appointee asks for the member’s help.","sortOrder":41},{"sectionNumber":"sec.27","sectionType":"section","heading":"Treasurer may give directions to appointee and members","content":"### sec.27 Treasurer may give directions to appointee and members\n\nThe Treasurer may give written directions to the appointee about the way the appointee may exercise the appointee’s powers, including the powers of the statutory body.\nThe Treasurer may give written directions to the members of a statutory body about the way the members may exercise their powers as members.\nA person to whom a written direction is given must comply with it.\ns 27 amd 1984 No. 92 s 6 ; 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\n(sec.27-ssec.1) The Treasurer may give written directions to the appointee about the way the appointee may exercise the appointee’s powers, including the powers of the statutory body.\n(sec.27-ssec.2) The Treasurer may give written directions to the members of a statutory body about the way the members may exercise their powers as members.\n(sec.27-ssec.3) A person to whom a written direction is given must comply with it.","sortOrder":42},{"sectionNumber":"sec.28","sectionType":"section","heading":"Way amounts collected by appointee are to be dealt with","content":"### sec.28 Way amounts collected by appointee are to be dealt with\n\nThe appointee must pay amounts collected under this division as follows—\nfirstly, in paying the costs and expenses of collecting the recovery amounts and the appointee’s remuneration;\nsecondly, in paying the Treasurer the recovery amounts;\nthirdly, in paying the remainder to the statutory body.\ns 28 sub 1996 No. 54 s 8\n- (a) firstly, in paying the costs and expenses of collecting the recovery amounts and the appointee’s remuneration;\n- (b) secondly, in paying the Treasurer the recovery amounts;\n- (c) thirdly, in paying the remainder to the statutory body.","sortOrder":43},{"sectionNumber":"sec.29","sectionType":"section","heading":"Recovery of amounts as debt from statutory body","content":"### sec.29 Recovery of amounts as debt from statutory body\n\nFor a guarantee under a guarantee section, the Treasurer may recover the recovery amounts as a debt due and owing by the statutory body to the Treasurer by action in a court of competent jurisdiction.\ns 29 sub 1996 No. 54 s 8\namd 1997 No. 57 s 35","sortOrder":44},{"sectionNumber":"sec.30","sectionType":"section","heading":"Treasurer may take security held by person paid guarantee amount","content":"### sec.30 Treasurer may take security held by person paid guarantee amount\n\nThis section applies if—\na statutory body enters into a financial arrangement with a person under this Act or another Act and gives security to the person for the performance of the body’s obligations under the arrangement; and\nthe Treasurer, under a guarantee under a guarantee section for the financial arrangement, pays the person an amount payable by the body under the arrangement.\nThe Treasurer is entitled to the benefit of the security to the extent of the guarantee amount.\nIf the guarantee amount is the same as, or more than, the amount secured by the security—\nthe person must transfer and deliver the security to the Treasurer; and\nthe Treasurer may exercise all the powers conferred on the person by the security.\nIf the guarantee amount is less than the amount secured by the security, the person must, as directed by the Treasurer, realise the security and from the proceeds of the sale—\nfirstly, pay the costs and expenses of realising the security; and\nsecondly, pay to the person other amounts owing to the person under the financial arrangement; and\nthirdly, pay the recovery amounts to the Treasurer; and\nfourthly, pay any balance to the statutory body.\ns 30 sub 1996 No. 54 s 8\namd 1997 No. 57 s 36\n(sec.30-ssec.1) This section applies if— a statutory body enters into a financial arrangement with a person under this Act or another Act and gives security to the person for the performance of the body’s obligations under the arrangement; and the Treasurer, under a guarantee under a guarantee section for the financial arrangement, pays the person an amount payable by the body under the arrangement.\n(sec.30-ssec.2) The Treasurer is entitled to the benefit of the security to the extent of the guarantee amount.\n(sec.30-ssec.3) If the guarantee amount is the same as, or more than, the amount secured by the security— the person must transfer and deliver the security to the Treasurer; and the Treasurer may exercise all the powers conferred on the person by the security.\n(sec.30-ssec.4) If the guarantee amount is less than the amount secured by the security, the person must, as directed by the Treasurer, realise the security and from the proceeds of the sale— firstly, pay the costs and expenses of realising the security; and secondly, pay to the person other amounts owing to the person under the financial arrangement; and thirdly, pay the recovery amounts to the Treasurer; and fourthly, pay any balance to the statutory body.\n- (a) a statutory body enters into a financial arrangement with a person under this Act or another Act and gives security to the person for the performance of the body’s obligations under the arrangement; and\n- (b) the Treasurer, under a guarantee under a guarantee section for the financial arrangement, pays the person an amount payable by the body under the arrangement.\n- (a) the person must transfer and deliver the security to the Treasurer; and\n- (b) the Treasurer may exercise all the powers conferred on the person by the security.\n- (a) firstly, pay the costs and expenses of realising the security; and\n- (b) secondly, pay to the person other amounts owing to the person under the financial arrangement; and\n- (c) thirdly, pay the recovery amounts to the Treasurer; and\n- (d) fourthly, pay any balance to the statutory body.","sortOrder":45},{"sectionNumber":"pt.4","sectionType":"part","heading":"General banking powers","content":"# General banking powers","sortOrder":46},{"sectionNumber":"sec.31","sectionType":"section","heading":"General banking powers for day-to-day operations","content":"### sec.31 General banking powers for day-to-day operations\n\nA statutory body may, to the extent necessary or convenient for its day-to-day operations, operate a deposit and withdrawal account with a financial institution, other than an account with an overdraft facility.\nA statutory body may have a deposit and withdrawal account with a cheque book facility. It may be necessary or convenient for the statutory body’s day-to-day operations to use the facility and pay for items by drawing a cheque.\nHowever, with the Treasurer’s approval, the account may be operated with an overdraft facility.\nThe account must be operated in Australian money.\ns 31 sub 1996 No. 54 s 8\namd 2003 No. 12 s 8\n(sec.31-ssec.1) A statutory body may, to the extent necessary or convenient for its day-to-day operations, operate a deposit and withdrawal account with a financial institution, other than an account with an overdraft facility. A statutory body may have a deposit and withdrawal account with a cheque book facility. It may be necessary or convenient for the statutory body’s day-to-day operations to use the facility and pay for items by drawing a cheque.\n(sec.31-ssec.2) However, with the Treasurer’s approval, the account may be operated with an overdraft facility.\n(sec.31-ssec.3) The account must be operated in Australian money.","sortOrder":47},{"sectionNumber":"pt.5","sectionType":"part","heading":"Borrowing powers","content":"# Borrowing powers","sortOrder":48},{"sectionNumber":"pt.5-div.1","sectionType":"division","heading":"Interpretation","content":"## Interpretation","sortOrder":49},{"sectionNumber":"sec.32","sectionType":"section","heading":"Interpretation","content":"### sec.32 Interpretation\n\nIn this Act—\nborrow includes raise and obtain, in any way, money, credit and other financial accommodation.\nother financial accommodation includes—\nfinance leases primarily to raise amounts to buy, or to finance the purchase of, property the subject of the leases; and\nguarantees, letters of credit and any other form of undertaking, provided by a financial institution or other person to meet the liabilities or obligations of a statutory body.\ns 32 def other financial accommodation amd 1999 No. 19 s 3 sch\nSubject to a regulation under subsection (3) , a statutory body does not borrow merely because, in the ordinary course of performing its functions, it enters into any of the following—\na hire-purchase agreement;\nan operating lease;\na credit card facility.\nA regulation may prescribe that something is, or is not, a form of financial accommodation for the definition borrow , including, for example, a particular type of hire-purchase agreement, operating lease or credit card facility.\ns 32 amd 1984 No. 92 s 7 ; 1994 No. 31 ss 8 , 6 sch 2\nsub 1996 No. 54 s 8\namd 1999 No. 19 s 3 sch\n(sec.32-ssec.1) In this Act— borrow includes raise and obtain, in any way, money, credit and other financial accommodation. other financial accommodation includes— finance leases primarily to raise amounts to buy, or to finance the purchase of, property the subject of the leases; and guarantees, letters of credit and any other form of undertaking, provided by a financial institution or other person to meet the liabilities or obligations of a statutory body. s 32 def other financial accommodation amd 1999 No. 19 s 3 sch\n(sec.32-ssec.2) Subject to a regulation under subsection (3) , a statutory body does not borrow merely because, in the ordinary course of performing its functions, it enters into any of the following— a hire-purchase agreement; an operating lease; a credit card facility.\n(sec.32-ssec.3) A regulation may prescribe that something is, or is not, a form of financial accommodation for the definition borrow , including, for example, a particular type of hire-purchase agreement, operating lease or credit card facility.\n- (a) finance leases primarily to raise amounts to buy, or to finance the purchase of, property the subject of the leases; and\n- (b) guarantees, letters of credit and any other form of undertaking, provided by a financial institution or other person to meet the liabilities or obligations of a statutory body.\n- (a) a hire-purchase agreement;\n- (b) an operating lease;\n- (c) a credit card facility.","sortOrder":50},{"sectionNumber":"pt.5-div.2","sectionType":"division","heading":"Power to borrow","content":"## Power to borrow","sortOrder":51},{"sectionNumber":"sec.33","sectionType":"section","heading":"Application of borrowing power by regulation","content":"### sec.33 Application of borrowing power by regulation\n\nThis part applies to a statutory body declared under a regulation as a statutory body that may borrow under this part.\ns 33 sub 1996 No. 54 s 8","sortOrder":52},{"sectionNumber":"sec.34","sectionType":"section","heading":"Statutory bodies may borrow with the Treasurer’s approval","content":"### sec.34 Statutory bodies may borrow with the Treasurer’s approval\n\nA statutory body may borrow under this part with the Treasurer’s approval.\nThe borrowing must be—\nin Australian money; and\nundertaken in Australia.\ns 34 sub 1994 No. 31 s 6 sch 2 ; 1996 No. 54 s 8\n(sec.34-ssec.1) A statutory body may borrow under this part with the Treasurer’s approval.\n(sec.34-ssec.2) The borrowing must be— in Australian money; and undertaken in Australia.\n- (a) in Australian money; and\n- (b) undertaken in Australia.","sortOrder":53},{"sectionNumber":"pt.5-div.3","sectionType":"division","heading":"Creation of encumbrances over property and income","content":"## Creation of encumbrances over property and income","sortOrder":54},{"sectionNumber":"sec.35","sectionType":"section","heading":"Treasurer’s approval before creating encumbrance etc.","content":"### sec.35 Treasurer’s approval before creating encumbrance etc.\n\nThis section applies to a borrowing by a statutory body under this part.\nAlso, this section applies to—\na derivative transaction entered into by the body under part 7 , division 1 ; and\na financial arrangement entered into by the body under part 7 , division 3 or part 7A .\nFor the borrowing, transaction or arrangement, the statutory body may, with the Treasurer’s approval—\ncreate an encumbrance; or\notherwise transfer its property, or assign its income, by way of security.\ns 35 amd 1988 No. 55 s 13 ; 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\namd 2003 No. 12 s 9\n(sec.35-ssec.1) This section applies to a borrowing by a statutory body under this part.\n(sec.35-ssec.2) Also, this section applies to— a derivative transaction entered into by the body under part 7 , division 1 ; and a financial arrangement entered into by the body under part 7 , division 3 or part 7A .\n(sec.35-ssec.3) For the borrowing, transaction or arrangement, the statutory body may, with the Treasurer’s approval— create an encumbrance; or otherwise transfer its property, or assign its income, by way of security.\n- (a) a derivative transaction entered into by the body under part 7 , division 1 ; and\n- (b) a financial arrangement entered into by the body under part 7 , division 3 or part 7A .\n- (a) create an encumbrance; or\n- (b) otherwise transfer its property, or assign its income, by way of security.","sortOrder":55},{"sectionNumber":"sec.36","sectionType":"section","heading":"Ranking of encumbrances on income and property","content":"### sec.36 Ranking of encumbrances on income and property\n\nThis section applies if a statutory body, under section 35 or another Act creates—\nan encumbrance over all or part of its income (an income encumbrance ) but only income; or\nan encumbrance over all or part of its property (a property encumbrance ), whether or not the property encumbrance also encumbers income.\nThe Treasurer may, by gazette notice, direct that the body’s income encumbrances rank in relation to each other in the way stated in the notice.\nIf there is no gazette notice for the body’s income encumbrances, the encumbrances rank equally with each other.\nA property encumbrance of the statutory body ranks with the body’s other property encumbrances as provided by law.\nA provision of another Act providing for an income encumbrance of a statutory body to rank in a way other than as stated in this section does not apply after the commencement.\ns 36 amd 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\n(sec.36-ssec.1) This section applies if a statutory body, under section 35 or another Act creates— an encumbrance over all or part of its income (an income encumbrance ) but only income; or an encumbrance over all or part of its property (a property encumbrance ), whether or not the property encumbrance also encumbers income.\n(sec.36-ssec.2) The Treasurer may, by gazette notice, direct that the body’s income encumbrances rank in relation to each other in the way stated in the notice.\n(sec.36-ssec.3) If there is no gazette notice for the body’s income encumbrances, the encumbrances rank equally with each other.\n(sec.36-ssec.4) A property encumbrance of the statutory body ranks with the body’s other property encumbrances as provided by law.\n(sec.36-ssec.5) A provision of another Act providing for an income encumbrance of a statutory body to rank in a way other than as stated in this section does not apply after the commencement.\n- (a) an encumbrance over all or part of its income (an income encumbrance ) but only income; or\n- (b) an encumbrance over all or part of its property (a property encumbrance ), whether or not the property encumbrance also encumbers income.","sortOrder":56},{"sectionNumber":"pt.5-div.4","sectionType":"division","heading":"Creditor remedies","content":"## Creditor remedies","sortOrder":57},{"sectionNumber":"sec.37","sectionType":"section","heading":"Creditor may only recover overdue amounts if notice given","content":"### sec.37 Creditor may only recover overdue amounts if notice given\n\nSubject to subsection (5) , this section applies if a statutory body fails to make a payment of principal or interest under a debenture, bond or inscribed stock when it falls due to a person (the creditor ).\nThe creditor may—\napply to the Supreme Court for an order appointing a receiver of the statutory body and for other orders in relation to the powers of the receiver; or\nrecover the amount owing as a debt due and owing by the body to the creditor by action in a court of competent jurisdiction.\nHowever, the creditor may apply for an order under subsection (2) (a) , or recover an amount under subsection (2) (b) , only if—\nthe creditor gives written notice of the default to the statutory body; and\nthe body does not pay the amount owing under the debenture, bond or inscribed stock within 14 days after the day the notice is given to the body; and\nfor a debenture, bond or inscribed stock guaranteed under section 16 —\nthe creditor gives a copy of the notice to the Treasurer after the 14 days after the day the notice is given to the body; and\nthe Treasurer does not pay the amounts owing within 14 days after the day the copy is given to the Treasurer.\nA court-appointed receiver is an officer of the Supreme Court and must act under its direction and may be appointed only for the general, or for specific, revenue of the statutory body.\nThis section does not apply to a statutory body if—\nthe body represents the Crown; or\nthe relevant debenture, bond or inscribed stock provides for an alternative provision as mentioned in section 41 .\ns 37 amd 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\n(sec.37-ssec.1) Subject to subsection (5) , this section applies if a statutory body fails to make a payment of principal or interest under a debenture, bond or inscribed stock when it falls due to a person (the creditor ).\n(sec.37-ssec.2) The creditor may— apply to the Supreme Court for an order appointing a receiver of the statutory body and for other orders in relation to the powers of the receiver; or recover the amount owing as a debt due and owing by the body to the creditor by action in a court of competent jurisdiction.\n(sec.37-ssec.3) However, the creditor may apply for an order under subsection (2) (a) , or recover an amount under subsection (2) (b) , only if— the creditor gives written notice of the default to the statutory body; and the body does not pay the amount owing under the debenture, bond or inscribed stock within 14 days after the day the notice is given to the body; and for a debenture, bond or inscribed stock guaranteed under section 16 — the creditor gives a copy of the notice to the Treasurer after the 14 days after the day the notice is given to the body; and the Treasurer does not pay the amounts owing within 14 days after the day the copy is given to the Treasurer.\n(sec.37-ssec.4) A court-appointed receiver is an officer of the Supreme Court and must act under its direction and may be appointed only for the general, or for specific, revenue of the statutory body.\n(sec.37-ssec.5) This section does not apply to a statutory body if— the body represents the Crown; or the relevant debenture, bond or inscribed stock provides for an alternative provision as mentioned in section 41 .\n- (a) apply to the Supreme Court for an order appointing a receiver of the statutory body and for other orders in relation to the powers of the receiver; or\n- (b) recover the amount owing as a debt due and owing by the body to the creditor by action in a court of competent jurisdiction.\n- (a) the creditor gives written notice of the default to the statutory body; and\n- (b) the body does not pay the amount owing under the debenture, bond or inscribed stock within 14 days after the day the notice is given to the body; and\n- (c) for a debenture, bond or inscribed stock guaranteed under section 16 — (i) the creditor gives a copy of the notice to the Treasurer after the 14 days after the day the notice is given to the body; and (ii) the Treasurer does not pay the amounts owing within 14 days after the day the copy is given to the Treasurer.\n- (i) the creditor gives a copy of the notice to the Treasurer after the 14 days after the day the notice is given to the body; and\n- (ii) the Treasurer does not pay the amounts owing within 14 days after the day the copy is given to the Treasurer.\n- (i) the creditor gives a copy of the notice to the Treasurer after the 14 days after the day the notice is given to the body; and\n- (ii) the Treasurer does not pay the amounts owing within 14 days after the day the copy is given to the Treasurer.\n- (a) the body represents the Crown; or\n- (b) the relevant debenture, bond or inscribed stock provides for an alternative provision as mentioned in section 41 .","sortOrder":58},{"sectionNumber":"sec.38","sectionType":"section","heading":"Remuneration of receiver","content":"### sec.38 Remuneration of receiver\n\nA court-appointed receiver is entitled to remuneration as ordered by the Supreme Court.\ns 38 amd 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8","sortOrder":59},{"sectionNumber":"sec.39","sectionType":"section","heading":"Receiver to collect revenue and may exercise powers of statutory body","content":"### sec.39 Receiver to collect revenue and may exercise powers of statutory body\n\nA court-appointed receiver may collect all amounts paid to, or all amounts payable to, the statutory body for which the receiver was appointed.\nFor the purpose of collecting the amounts, the receiver is taken to be the statutory body and may exercise the body’s powers to the extent necessary or convenient for the purpose.\nThe receiver’s powers under this section are subject to a direction under section 37 (4) .\ns 39 sub 1996 No. 54 s 8\n(sec.39-ssec.1) A court-appointed receiver may collect all amounts paid to, or all amounts payable to, the statutory body for which the receiver was appointed.\n(sec.39-ssec.2) For the purpose of collecting the amounts, the receiver is taken to be the statutory body and may exercise the body’s powers to the extent necessary or convenient for the purpose.\n(sec.39-ssec.3) The receiver’s powers under this section are subject to a direction under section 37 (4) .","sortOrder":60},{"sectionNumber":"sec.40","sectionType":"section","heading":"Way amounts collected by receiver are to be dealt with","content":"### sec.40 Way amounts collected by receiver are to be dealt with\n\nA court-appointed receiver must pay all amounts collected as follows—\nfirstly, in paying the costs and expenses of collecting the amounts and the receiver’s remuneration;\nsecondly, subject to an order of the Supreme Court, in paying the person with whom the statutory body entered into the debenture, bond or inscribed stock and to other persons generally, in the order of priority as the court orders;\nthirdly, in paying the remainder to the statutory body.\ns 40 amd 1988 No. 55 s 14 ; 1989 No. 53 s 5\nsub 1996 No. 54 s 8\n- (a) firstly, in paying the costs and expenses of collecting the amounts and the receiver’s remuneration;\n- (b) secondly, subject to an order of the Supreme Court, in paying the person with whom the statutory body entered into the debenture, bond or inscribed stock and to other persons generally, in the order of priority as the court orders;\n- (c) thirdly, in paying the remainder to the statutory body.","sortOrder":61},{"sectionNumber":"sec.41","sectionType":"section","heading":"Debentures, bonds or inscribed stock may include alternative remedies","content":"### sec.41 Debentures, bonds or inscribed stock may include alternative remedies\n\nA debenture, bond or inscribed stock may include a provision (an alternative provision ) that applies if a statutory body does not fulfil an obligation under the debenture, bond or inscribed stock, including, for example, provisions about the appointment of a receiver of the body and the receiver’s functions, powers and remuneration.\nThe alternative provision has effect under its terms in place of sections 37 to 40 , or the provisions of another Act that provide a remedy if the statutory body does not fulfil the obligation.\ns 41 sub 1996 No. 54 s 8\n(sec.41-ssec.1) A debenture, bond or inscribed stock may include a provision (an alternative provision ) that applies if a statutory body does not fulfil an obligation under the debenture, bond or inscribed stock, including, for example, provisions about the appointment of a receiver of the body and the receiver’s functions, powers and remuneration.\n(sec.41-ssec.2) The alternative provision has effect under its terms in place of sections 37 to 40 , or the provisions of another Act that provide a remedy if the statutory body does not fulfil the obligation.","sortOrder":62},{"sectionNumber":"pt.6","sectionType":"part","heading":"Investment powers","content":"# Investment powers","sortOrder":63},{"sectionNumber":"pt.6-div.1","sectionType":"division","heading":"Categories of investment powers","content":"## Categories of investment powers","sortOrder":64},{"sectionNumber":"sec.42","sectionType":"section","heading":"Investment power depends on allocation under regulation","content":"### sec.42 Investment power depends on allocation under regulation\n\nA statutory body may invest under this part depending on whether a category 1, 2 or 3 investment power is allocated to the body.\nA regulation may allocate to a statutory body 1 of the following powers—\ncategory 1 investment power\ncategory 2 investment power\ncategory 3 investment power.\nHowever, if a statutory body has control of more than 1 fund (including, for example, as a trustee), a different category of investment power for each fund may be allocated to it.\nAlso, if no category of investment power is allocated under a regulation to a statutory body, the body does not have power to invest under this part.\ns 42 sub 1996 No. 54 s 8\n(sec.42-ssec.1) A statutory body may invest under this part depending on whether a category 1, 2 or 3 investment power is allocated to the body.\n(sec.42-ssec.2) A regulation may allocate to a statutory body 1 of the following powers— category 1 investment power category 2 investment power category 3 investment power.\n(sec.42-ssec.3) However, if a statutory body has control of more than 1 fund (including, for example, as a trustee), a different category of investment power for each fund may be allocated to it.\n(sec.42-ssec.4) Also, if no category of investment power is allocated under a regulation to a statutory body, the body does not have power to invest under this part.\n- • category 1 investment power\n- • category 2 investment power\n- • category 3 investment power.","sortOrder":65},{"sectionNumber":"sec.43","sectionType":"section","heading":"Limitation on investment power","content":"### sec.43 Limitation on investment power\n\nAn investment under this part must be—\nin Australian money; and\nundertaken in Australia.\ns 43 sub 1996 No. 54 s 8\n- (a) in Australian money; and\n- (b) undertaken in Australia.","sortOrder":66},{"sectionNumber":"pt.6-div.2","sectionType":"division","heading":"Particulars of categories","content":"## Particulars of categories","sortOrder":67},{"sectionNumber":"sec.44","sectionType":"section","heading":"Category 1 investment power","content":"### sec.44 Category 1 investment power\n\nCategory 1 investment power is the power to invest in all or any of the following—\ndeposits with a financial institution;\ninvestment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution;\nother investment arrangements secured by investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution;\ninvestment arrangements, managed or offered by QIC or QTC, prescribed under a regulation for this paragraph;\nan investment arrangement with a rating prescribed under a regulation for this paragraph;\nother investment arrangements prescribed under a regulation for this paragraph.\nHowever, the investment must be—\nat call; or\nfor a fixed time of not more than 1 year.\ns 44 amd 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\namd 2003 No. 12 s 10\n(sec.44-ssec.1) Category 1 investment power is the power to invest in all or any of the following— deposits with a financial institution; investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution; other investment arrangements secured by investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution; investment arrangements, managed or offered by QIC or QTC, prescribed under a regulation for this paragraph; an investment arrangement with a rating prescribed under a regulation for this paragraph; other investment arrangements prescribed under a regulation for this paragraph.\n(sec.44-ssec.2) However, the investment must be— at call; or for a fixed time of not more than 1 year.\n- (a) deposits with a financial institution;\n- (b) investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution;\n- (c) other investment arrangements secured by investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution;\n- (d) investment arrangements, managed or offered by QIC or QTC, prescribed under a regulation for this paragraph;\n- (e) an investment arrangement with a rating prescribed under a regulation for this paragraph;\n- (f) other investment arrangements prescribed under a regulation for this paragraph.\n- (a) at call; or\n- (b) for a fixed time of not more than 1 year.","sortOrder":68},{"sectionNumber":"sec.45","sectionType":"section","heading":"Category 2 investment power","content":"### sec.45 Category 2 investment power\n\nCategory 2 investment power is the power to invest in all or any of the following—\nif the investment is at call or for a fixed time of not more than 1 year—an investment arrangement with a rating prescribed under a regulation for section 44 (1) (e) ;\nif the investment is at call or for a fixed time of not more than 3 years—\ndeposits with a financial institution; or\ninvestment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution; or\nother investment arrangements secured by investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution; or\ninvestment arrangements, managed or offered by QIC or QTC, prescribed under a regulation for this subparagraph;\nif the investment is for a fixed time of not less than 1 year and not more than 3 years—an investment arrangement with a rating prescribed under a regulation for this paragraph;\nother investment arrangements prescribed under a regulation for this paragraph.\ns 45 sub 1996 No. 54 s 8\namd 2003 No. 12 s 11\n- (a) if the investment is at call or for a fixed time of not more than 1 year—an investment arrangement with a rating prescribed under a regulation for section 44 (1) (e) ;\n- (b) if the investment is at call or for a fixed time of not more than 3 years— (i) deposits with a financial institution; or (ii) investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution; or (iii) other investment arrangements secured by investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution; or (iv) investment arrangements, managed or offered by QIC or QTC, prescribed under a regulation for this subparagraph;\n- (i) deposits with a financial institution; or\n- (ii) investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution; or\n- (iii) other investment arrangements secured by investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution; or\n- (iv) investment arrangements, managed or offered by QIC or QTC, prescribed under a regulation for this subparagraph;\n- (c) if the investment is for a fixed time of not less than 1 year and not more than 3 years—an investment arrangement with a rating prescribed under a regulation for this paragraph;\n- (d) other investment arrangements prescribed under a regulation for this paragraph.\n- (i) deposits with a financial institution; or\n- (ii) investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution; or\n- (iii) other investment arrangements secured by investment arrangements accepted, guaranteed or issued by or for the Commonwealth or a State or a financial institution; or\n- (iv) investment arrangements, managed or offered by QIC or QTC, prescribed under a regulation for this subparagraph;","sortOrder":69},{"sectionNumber":"sec.46","sectionType":"section","heading":"Category 3 investment power","content":"### sec.46 Category 3 investment power\n\nCategory 3 investment power includes category 2 investment power and the power to invest in all or any of the following, regardless of the period of the investment—\nthe first legal or first statutory mortgage of an estate in fee simple in land in any State;\nthe purchase of—\nland in fee simple in any State; or\nleasehold land in the State held under a lease that is for a term of 40 years or more and that is unexpired at the time of the purchase; or\nsubject to the Land Act 1994 , a freeholding lease of land held from the State under that Act;\ndebentures or other securities charged on the funds or property of a local government;\nan investment arrangement prescribed under a regulation for this paragraph.\nIn this section—\nfreeholding lease means—\na pre-Wolfe freeholding lease, or post-Wolfe freeholding lease, that was an agricultural farm under the repealed Land Act 1962 ; or\na grazing homestead freeholding lease.\ngrazing homestead freeholding lease see Land Act 1994 , schedule 6 .\npost-Wolfe freeholding lease see Land Act 1994 , schedule 6 .\npre-Wolfe freeholding lease see Land Act 1994 , schedule 6 .\ns 46 prev s 46 om 1988 No. 55 s 15\npres s 46 ins 1996 No. 54 s 8\nsub 1999 No. 69 s 7 sch\n(sec.46-ssec.1) Category 3 investment power includes category 2 investment power and the power to invest in all or any of the following, regardless of the period of the investment— the first legal or first statutory mortgage of an estate in fee simple in land in any State; the purchase of— land in fee simple in any State; or leasehold land in the State held under a lease that is for a term of 40 years or more and that is unexpired at the time of the purchase; or subject to the Land Act 1994 , a freeholding lease of land held from the State under that Act; debentures or other securities charged on the funds or property of a local government; an investment arrangement prescribed under a regulation for this paragraph.\n(sec.46-ssec.2) In this section— freeholding lease means— a pre-Wolfe freeholding lease, or post-Wolfe freeholding lease, that was an agricultural farm under the repealed Land Act 1962 ; or a grazing homestead freeholding lease. grazing homestead freeholding lease see Land Act 1994 , schedule 6 . post-Wolfe freeholding lease see Land Act 1994 , schedule 6 . pre-Wolfe freeholding lease see Land Act 1994 , schedule 6 .\n- (a) the first legal or first statutory mortgage of an estate in fee simple in land in any State;\n- (b) the purchase of— (i) land in fee simple in any State; or (ii) leasehold land in the State held under a lease that is for a term of 40 years or more and that is unexpired at the time of the purchase; or (iii) subject to the Land Act 1994 , a freeholding lease of land held from the State under that Act;\n- (i) land in fee simple in any State; or\n- (ii) leasehold land in the State held under a lease that is for a term of 40 years or more and that is unexpired at the time of the purchase; or\n- (iii) subject to the Land Act 1994 , a freeholding lease of land held from the State under that Act;\n- (c) debentures or other securities charged on the funds or property of a local government;\n- (d) an investment arrangement prescribed under a regulation for this paragraph.\n- (i) land in fee simple in any State; or\n- (ii) leasehold land in the State held under a lease that is for a term of 40 years or more and that is unexpired at the time of the purchase; or\n- (iii) subject to the Land Act 1994 , a freeholding lease of land held from the State under that Act;\n- (a) a pre-Wolfe freeholding lease, or post-Wolfe freeholding lease, that was an agricultural farm under the repealed Land Act 1962 ; or\n- (b) a grazing homestead freeholding lease.","sortOrder":70},{"sectionNumber":"pt.6-div.3","sectionType":"division","heading":"Duties of statutory body when investing","content":"## Duties of statutory body when investing","sortOrder":71},{"sectionNumber":"sec.47","sectionType":"section","heading":"Statutory body to try to invest at most advantageous rate","content":"### sec.47 Statutory body to try to invest at most advantageous rate\n\nA statutory body must use its best efforts to invest its funds—\nat the most advantageous interest rate available to it at the time of the investment for an investment of the proposed type; and\nin a way it considers is most appropriate in all the circumstances.\nThe statutory body must keep records that show it has invested in the way most appropriate in all the circumstances.\ns 47 amd 1984 No. 92 s 8 ; 1988 No. 55 s 16 ; 1990 No. 88 s 3 sch ; 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\n(sec.47-ssec.1) A statutory body must use its best efforts to invest its funds— at the most advantageous interest rate available to it at the time of the investment for an investment of the proposed type; and in a way it considers is most appropriate in all the circumstances.\n(sec.47-ssec.2) The statutory body must keep records that show it has invested in the way most appropriate in all the circumstances.\n- (a) at the most advantageous interest rate available to it at the time of the investment for an investment of the proposed type; and\n- (b) in a way it considers is most appropriate in all the circumstances.","sortOrder":72},{"sectionNumber":"sec.48","sectionType":"section","heading":"Investment documents to be held by statutory body or as approved","content":"### sec.48 Investment documents to be held by statutory body or as approved\n\nA security, safe custody acknowledgment or other document evidencing title accepted, guaranteed or issued for an investment arrangement must be held by the statutory body or in another way approved by the Treasurer.\ns 48 amd 1984 No. 92 s 9 ; 1994 No. 31 s 6 sch 2 ; 1995 No. 51 s 4 sch\nsub 1996 No. 54 s 8","sortOrder":73},{"sectionNumber":"pt.6-div.4","sectionType":"division","heading":"Secured investments","content":"## Secured investments","sortOrder":74},{"sectionNumber":"sec.49","sectionType":"section","heading":"Division applies to secured investments","content":"### sec.49 Division applies to secured investments\n\nThis division applies if a statutory body has invested in an investment arrangement as mentioned in section 44 (1) (c) , 45 (b) (iii) or 46 (1) (a) or (c) .\ns 49 prev s 49 om 1988 No. 55 s 17\npres s 49 ins 1996 No. 54 s 8\namd 2003 No. 12 s 12","sortOrder":75},{"sectionNumber":"sec.50","sectionType":"section","heading":"Security for investment arrangement at time of investment","content":"### sec.50 Security for investment arrangement at time of investment\n\nThe security for the investment arrangement must, when the arrangement is entered into—\nbe unencumbered; and\nhave a value at least equal to the amount of the investment.\ns 50 amd 1984 No. 92 s 10 ; 1988 No. 55 s 18 ; 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\n- (a) be unencumbered; and\n- (b) have a value at least equal to the amount of the investment.","sortOrder":76},{"sectionNumber":"sec.51","sectionType":"section","heading":"Regulations about valuations","content":"### sec.51 Regulations about valuations\n\nA regulation may provide for—\nthe way in which a statutory body must work out the value of a security when the investment arrangement is entered into; and\nthe way in which the body must decide whether the security continues to have a value equal to, or more than, the amount of the investment; and\nthe action the body must take if the security does not continue to have the value mentioned in paragraph (b) .\ns 51 amd 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\n- (a) the way in which a statutory body must work out the value of a security when the investment arrangement is entered into; and\n- (b) the way in which the body must decide whether the security continues to have a value equal to, or more than, the amount of the investment; and\n- (c) the action the body must take if the security does not continue to have the value mentioned in paragraph (b) .","sortOrder":77},{"sectionNumber":"pt.6-div.5","sectionType":"division","heading":"Rated investment arrangements","content":"## Rated investment arrangements","sortOrder":78},{"sectionNumber":"sec.52","sectionType":"section","heading":"Requirements if an investment arrangement’s rating changes","content":"### sec.52 Requirements if an investment arrangement’s rating changes\n\nThis section applies if a statutory body has invested in an investment arrangement as mentioned in section 44 (1) (e) or 45 (c) and the rating of the investment arrangement is changed so it is no longer a rating prescribed under a regulation for the investment arrangement.\nAs soon as practicable, but no later than 28 days, after the change becomes known to the statutory body, it must—\nobtain the Treasurer’s approval for continuing with the investment arrangement; or\nliquidate the investment arrangement, including, for example, withdrawing a deposit.\ns 52 sub 1994 No. 31 s 6 sch 2 ; 1996 No. 54 s 8\n(sec.52-ssec.1) This section applies if a statutory body has invested in an investment arrangement as mentioned in section 44 (1) (e) or 45 (c) and the rating of the investment arrangement is changed so it is no longer a rating prescribed under a regulation for the investment arrangement.\n(sec.52-ssec.2) As soon as practicable, but no later than 28 days, after the change becomes known to the statutory body, it must— obtain the Treasurer’s approval for continuing with the investment arrangement; or liquidate the investment arrangement, including, for example, withdrawing a deposit.\n- (a) obtain the Treasurer’s approval for continuing with the investment arrangement; or\n- (b) liquidate the investment arrangement, including, for example, withdrawing a deposit.","sortOrder":79},{"sectionNumber":"pt.7","sectionType":"part","heading":"Derivative transactions, funds managers and type 1 financial arrangements","content":"# Derivative transactions, funds managers and type 1 financial arrangements","sortOrder":80},{"sectionNumber":"pt.7-div.1","sectionType":"division","heading":"Derivative transactions","content":"## Derivative transactions","sortOrder":81},{"sectionNumber":"sec.53","sectionType":"section","heading":"Derivative transactions permitted only for certain statutory bodies","content":"### sec.53 Derivative transactions permitted only for certain statutory bodies\n\nA statutory body may enter into a derivative transaction under this division—\nin its own name; or\nin the name of a person who, with the Treasurer’s approval, has been appointed in writing by the body as its agent for this division.\nThe statutory body may enter into the derivative transaction only if—\nthe body is prescribed, under a regulation, as a statutory body that may enter into derivative transactions; and\nthe Treasurer’s approval has been given for the body to enter into the derivative transaction, or derivative transactions of the type concerned.\ns 53 ins 1994 No. 31 s 6 sch 2\nsub 1996 No. 54 s 8\namd 1999 No. 19 s 3 sch\n(sec.53-ssec.1) A statutory body may enter into a derivative transaction under this division— in its own name; or in the name of a person who, with the Treasurer’s approval, has been appointed in writing by the body as its agent for this division.\n(sec.53-ssec.2) The statutory body may enter into the derivative transaction only if— the body is prescribed, under a regulation, as a statutory body that may enter into derivative transactions; and the Treasurer’s approval has been given for the body to enter into the derivative transaction, or derivative transactions of the type concerned.\n- (a) in its own name; or\n- (b) in the name of a person who, with the Treasurer’s approval, has been appointed in writing by the body as its agent for this division.\n- (a) the body is prescribed, under a regulation, as a statutory body that may enter into derivative transactions; and\n- (b) the Treasurer’s approval has been given for the body to enter into the derivative transaction, or derivative transactions of the type concerned.","sortOrder":82},{"sectionNumber":"sec.54","sectionType":"section","heading":"Body to enter into derivative transaction only for hedging purposes","content":"### sec.54 Body to enter into derivative transaction only for hedging purposes\n\nAlso, the statutory body may enter into the derivative transaction only if the body does so to hedge against a risk to which the body is or will be exposed.\ns 54 ins 1996 No. 54 s 8","sortOrder":83},{"sectionNumber":"sec.55","sectionType":"section","heading":"Requirement to report to Treasurer about derivatives","content":"### sec.55 Requirement to report to Treasurer about derivatives\n\nFor each derivative transaction entered into under this division by a statutory body, the body must give the Treasurer a report about the transaction at the times prescribed under a regulation.\nEach report must contain the following—\ndetails sufficient to identify the derivative transaction;\na statement about the underlying exposure against which the statutory body is trying to hedge;\nthe stated purpose of the derivative transaction, including details of the Treasurer’s approval under which the transaction was entered into and verification of compliance with the conditions of the approval;\ndetails of any realised or unrealised gains or losses from the derivative transaction.\nHowever, if a statutory body satisfies the Treasurer that, because of the number of derivative transactions entered into by the body, it is an undue burden on it to prepare a report under subsection (2) for each transaction, the report for subsection (1) may be a statement summarising the matters mentioned in subsection (2) for all of the body’s derivative transactions.\ns 55 ins 1996 No. 54 s 8\n(sec.55-ssec.1) For each derivative transaction entered into under this division by a statutory body, the body must give the Treasurer a report about the transaction at the times prescribed under a regulation.\n(sec.55-ssec.2) Each report must contain the following— details sufficient to identify the derivative transaction; a statement about the underlying exposure against which the statutory body is trying to hedge; the stated purpose of the derivative transaction, including details of the Treasurer’s approval under which the transaction was entered into and verification of compliance with the conditions of the approval; details of any realised or unrealised gains or losses from the derivative transaction.\n(sec.55-ssec.3) However, if a statutory body satisfies the Treasurer that, because of the number of derivative transactions entered into by the body, it is an undue burden on it to prepare a report under subsection (2) for each transaction, the report for subsection (1) may be a statement summarising the matters mentioned in subsection (2) for all of the body’s derivative transactions.\n- (a) details sufficient to identify the derivative transaction;\n- (b) a statement about the underlying exposure against which the statutory body is trying to hedge;\n- (c) the stated purpose of the derivative transaction, including details of the Treasurer’s approval under which the transaction was entered into and verification of compliance with the conditions of the approval;\n- (d) details of any realised or unrealised gains or losses from the derivative transaction.","sortOrder":84},{"sectionNumber":"sec.56","sectionType":"section","heading":"Requirement to report to relevant Minister about derivative","content":"### sec.56 Requirement to report to relevant Minister about derivative\n\nOn the day a statutory body must give the Treasurer a report about a derivative transaction, it must also give a copy of the report to the Minister who administers the body’s authorising Act.\nIf the Minister is the Treasurer, subsection (1) does not apply.\ns 56 ins 1996 No. 54 s 8\n(sec.56-ssec.1) On the day a statutory body must give the Treasurer a report about a derivative transaction, it must also give a copy of the report to the Minister who administers the body’s authorising Act.\n(sec.56-ssec.2) If the Minister is the Treasurer, subsection (1) does not apply.","sortOrder":85},{"sectionNumber":"sec.57","sectionType":"section","heading":"Statutory bodies’ Minister must monitor derivative transactions","content":"### sec.57 Statutory bodies’ Minister must monitor derivative transactions\n\nThe Minister who administers the authorising Act of a statutory body that has entered into a derivative transaction must monitor the transaction.\nSubsection (1) applies whether the derivative transaction is entered into under this division or otherwise.\ns 57 ins 1996 No. 54 s 8\n(sec.57-ssec.1) The Minister who administers the authorising Act of a statutory body that has entered into a derivative transaction must monitor the transaction.\n(sec.57-ssec.2) Subsection (1) applies whether the derivative transaction is entered into under this division or otherwise.","sortOrder":86},{"sectionNumber":"pt.7-div.2","sectionType":"division","heading":"Appointment of funds managers","content":"## Appointment of funds managers","sortOrder":87},{"sectionNumber":"sec.58","sectionType":"section","heading":"Application of division","content":"### sec.58 Application of division\n\nThis division applies to a statutory body allocated a category of investment power under part 6 .\ns 58 ins 1996 No. 54 s 8","sortOrder":88},{"sectionNumber":"sec.59","sectionType":"section","heading":"Appointment of funds managers with Treasurer’s approval","content":"### sec.59 Appointment of funds managers with Treasurer’s approval\n\nThe statutory body may, in writing, appoint a person (the funds manager ) to manage the investment of all or part of its funds if—\nthe body is satisfied, on reasonable grounds, the person is suitable to manage the investment of all or part of its funds; and\nbefore appointing the person, the body obtains the Treasurer’s approval of the appointment.\nThe statutory body must ensure its appointment of the funds manager is subject to—\na condition to which the Treasurer’s approval is subject (however expressed); and\na subsequent amendment or repeal of the approval.\nUnder the Acts Interpretation Act 1954 , section 24AA , the power to make an instrument or decision includes power to amend or repeal the instrument or decision.\nThe appointment is subject to the conditions of the Treasurer’s approval, and a subsequent amendment or repeal of the approval, despite a contrary provision of the appointment.\ns 59 ins 1996 No. 54 s 8\n(sec.59-ssec.1) The statutory body may, in writing, appoint a person (the funds manager ) to manage the investment of all or part of its funds if— the body is satisfied, on reasonable grounds, the person is suitable to manage the investment of all or part of its funds; and before appointing the person, the body obtains the Treasurer’s approval of the appointment.\n(sec.59-ssec.2) The statutory body must ensure its appointment of the funds manager is subject to— a condition to which the Treasurer’s approval is subject (however expressed); and a subsequent amendment or repeal of the approval. Under the Acts Interpretation Act 1954 , section 24AA , the power to make an instrument or decision includes power to amend or repeal the instrument or decision.\n(sec.59-ssec.3) The appointment is subject to the conditions of the Treasurer’s approval, and a subsequent amendment or repeal of the approval, despite a contrary provision of the appointment.\n- (a) the body is satisfied, on reasonable grounds, the person is suitable to manage the investment of all or part of its funds; and\n- (b) before appointing the person, the body obtains the Treasurer’s approval of the appointment.\n- (a) a condition to which the Treasurer’s approval is subject (however expressed); and\n- (b) a subsequent amendment or repeal of the approval. Editor’s note— Under the Acts Interpretation Act 1954 , section 24AA , the power to make an instrument or decision includes power to amend or repeal the instrument or decision.","sortOrder":89},{"sectionNumber":"sec.60","sectionType":"section","heading":"Management of statutory body’s funds by funds manager","content":"### sec.60 Management of statutory body’s funds by funds manager\n\nSubject to a condition of the appointment, the funds manager may, for managing the investment of the statutory body’s funds, enter into a type 1 financial arrangement, type 2 financial arrangement or derivative transaction.\nSubsection (1) does not authorise a funds manager to enter into a financial arrangement that the manager may not lawfully enter into, including, for example, under the manager’s trust deed or memorandum or articles of association.\ns 60 ins 1996 No. 54 s 8\namd 2003 No. 12 s 14\n(sec.60-ssec.1) Subject to a condition of the appointment, the funds manager may, for managing the investment of the statutory body’s funds, enter into a type 1 financial arrangement, type 2 financial arrangement or derivative transaction.\n(sec.60-ssec.2) Subsection (1) does not authorise a funds manager to enter into a financial arrangement that the manager may not lawfully enter into, including, for example, under the manager’s trust deed or memorandum or articles of association.","sortOrder":90},{"sectionNumber":"pt.7-div.3","sectionType":"division","heading":"Type 1 financial arrangements","content":"## Type 1 financial arrangements","sortOrder":91},{"sectionNumber":"sec.60A","sectionType":"section","heading":"Statutory body may enter into a type 1 financial arrangement","content":"### sec.60A Statutory body may enter into a type 1 financial arrangement\n\nA statutory body may, with the Treasurer’s approval, enter into a type 1 financial arrangement.\ns 60A ins 2003 No. 12 s 15","sortOrder":92},{"sectionNumber":"pt.7A","sectionType":"part","heading":"Power for type 2 financial arrangements","content":"# Power for type 2 financial arrangements","sortOrder":93},{"sectionNumber":"sec.61","sectionType":"section","heading":"Application of pt 7A","content":"### sec.61 Application of pt 7A\n\nThis part applies to a statutory body if the statutory body does not have power to enter into a particular type 2 financial arrangement under another part of this Act, its authorising Act or another Act.\ns 61 ins 1996 No. 54 s 8\namd 2000 No. 49 s 11\nsub 2003 No. 12 s 15","sortOrder":94},{"sectionNumber":"sec.61A","sectionType":"section","heading":"Statutory body may enter into a type 2 financial arrangement with Treasurer’s approval","content":"### sec.61A Statutory body may enter into a type 2 financial arrangement with Treasurer’s approval\n\nThe statutory body may, with the Treasurer’s approval, enter into a type 2 financial arrangement.\nWithout limiting subsection (1) , the type 2 financial arrangement that the statutory body may be approved to enter into may include—\na type 2 financial arrangement necessary for, or incidental to, the exercise of another power under this Act; and\na type 2 financial arrangement not otherwise allowed under this Act, including, for example—\nan investment for more than 3 years; and\nan investment other than in Australian money; and\nan investment undertaken outside Australia; and\na loan by a statutory body.\nParts 4 , 5 and 6 do not limit the type 2 financial arrangements for which the Treasurer’s approval may be given for subsection (1) .\nThe Treasurer may approve of a statutory body borrowing money even though the body is not prescribed under a regulation as a body that may borrow money under part 5 .\ns 61A ins 2003 No. 12 s 15\n(sec.61A-ssec.1) The statutory body may, with the Treasurer’s approval, enter into a type 2 financial arrangement.\n(sec.61A-ssec.2) Without limiting subsection (1) , the type 2 financial arrangement that the statutory body may be approved to enter into may include— a type 2 financial arrangement necessary for, or incidental to, the exercise of another power under this Act; and a type 2 financial arrangement not otherwise allowed under this Act, including, for example— an investment for more than 3 years; and an investment other than in Australian money; and an investment undertaken outside Australia; and a loan by a statutory body.\n(sec.61A-ssec.3) Parts 4 , 5 and 6 do not limit the type 2 financial arrangements for which the Treasurer’s approval may be given for subsection (1) . The Treasurer may approve of a statutory body borrowing money even though the body is not prescribed under a regulation as a body that may borrow money under part 5 .\n- (a) a type 2 financial arrangement necessary for, or incidental to, the exercise of another power under this Act; and\n- (b) a type 2 financial arrangement not otherwise allowed under this Act, including, for example— (i) an investment for more than 3 years; and (ii) an investment other than in Australian money; and (iii) an investment undertaken outside Australia; and (iv) a loan by a statutory body.\n- (i) an investment for more than 3 years; and\n- (ii) an investment other than in Australian money; and\n- (iii) an investment undertaken outside Australia; and\n- (iv) a loan by a statutory body.\n- (i) an investment for more than 3 years; and\n- (ii) an investment other than in Australian money; and\n- (iii) an investment undertaken outside Australia; and\n- (iv) a loan by a statutory body.","sortOrder":95},{"sectionNumber":"pt.8","sectionType":"part","heading":"Other provisions about financial arrangements","content":"# Other provisions about financial arrangements","sortOrder":96},{"sectionNumber":"pt.8-div.1","sectionType":"division","heading":"Documents for financial arrangements under this Act","content":"## Documents for financial arrangements under this Act","sortOrder":97},{"sectionNumber":"sec.62","sectionType":"section","heading":"Statutory body may sign necessary documents","content":"### sec.62 Statutory body may sign necessary documents\n\nA statutory body may sign documents necessary for a financial arrangement that it may enter into under this Act.\nHowever, a statutory body may not sign a document that—\ncreates an encumbrance; or\notherwise transfers its property, or assigns its income, by way of security;\nunless the Treasurer approves the creation of the encumbrance, transfer of the property or assignment of the income.\nBefore signing a document mentioned in subsection (2) , the statutory body must satisfy itself, on reasonable grounds, that the encumbrance, transfer or assignment does not prevent it from dealing with its property or income in the ordinary course of performing its functions.\nHowever, subsection (3) does not prevent a statutory body signing a document that states the rights of other parties to the arrangement in relation to the body’s income or property if the body breaches an express condition of the document.\ns 62 ins 1996 No. 54 s 8\n(sec.62-ssec.1) A statutory body may sign documents necessary for a financial arrangement that it may enter into under this Act.\n(sec.62-ssec.2) However, a statutory body may not sign a document that— creates an encumbrance; or otherwise transfers its property, or assigns its income, by way of security; unless the Treasurer approves the creation of the encumbrance, transfer of the property or assignment of the income.\n(sec.62-ssec.3) Before signing a document mentioned in subsection (2) , the statutory body must satisfy itself, on reasonable grounds, that the encumbrance, transfer or assignment does not prevent it from dealing with its property or income in the ordinary course of performing its functions.\n(sec.62-ssec.4) However, subsection (3) does not prevent a statutory body signing a document that states the rights of other parties to the arrangement in relation to the body’s income or property if the body breaches an express condition of the document.\n- (a) creates an encumbrance; or\n- (b) otherwise transfers its property, or assigns its income, by way of security;","sortOrder":98},{"sectionNumber":"sec.63","sectionType":"section","heading":"Conditions waiving immunity, rules of contract etc.","content":"### sec.63 Conditions waiving immunity, rules of contract etc.\n\nA document forming part of a financial arrangement entered into under this Act by a statutory body may include a provision—\nwaiving an immunity of the body, if any, from proceedings under an Act or rule of law; and\ncontinuing in force a condition requiring the body to make a payment, despite an event that would or might at law—\notherwise end, or permit the ending of, the arrangement; or\nexcuse compliance with, or performance of, the arrangement; or\nprovide a defence to a proceeding to enforce the arrangement.\nAlso, the document may include a provision that the financial arrangement must not be ended because of a matter or thing, or is enforceable despite a matter or thing, including, for example, a default, an event amounting to an irresistible compulsion or coercion or another event that would, or might at law—\notherwise end, or permit the ending of, the arrangement; or\nexcuse compliance with, or performance of, the arrangement; or\nprovide a defence to a proceeding to enforce the arrangement.\nThe provisions mentioned in subsections (1) and (2) operate in accordance with their terms, despite an Act or rule of law to the contrary, but are subject to an express provision of the arrangement.\ns 63 ins 1996 No. 54 s 8\namd 1999 No. 19 s 3 sch\n(sec.63-ssec.1) A document forming part of a financial arrangement entered into under this Act by a statutory body may include a provision— waiving an immunity of the body, if any, from proceedings under an Act or rule of law; and continuing in force a condition requiring the body to make a payment, despite an event that would or might at law— otherwise end, or permit the ending of, the arrangement; or excuse compliance with, or performance of, the arrangement; or provide a defence to a proceeding to enforce the arrangement.\n(sec.63-ssec.2) Also, the document may include a provision that the financial arrangement must not be ended because of a matter or thing, or is enforceable despite a matter or thing, including, for example, a default, an event amounting to an irresistible compulsion or coercion or another event that would, or might at law— otherwise end, or permit the ending of, the arrangement; or excuse compliance with, or performance of, the arrangement; or provide a defence to a proceeding to enforce the arrangement.\n(sec.63-ssec.3) The provisions mentioned in subsections (1) and (2) operate in accordance with their terms, despite an Act or rule of law to the contrary, but are subject to an express provision of the arrangement.\n- (a) waiving an immunity of the body, if any, from proceedings under an Act or rule of law; and\n- (b) continuing in force a condition requiring the body to make a payment, despite an event that would or might at law— (i) otherwise end, or permit the ending of, the arrangement; or (ii) excuse compliance with, or performance of, the arrangement; or (iii) provide a defence to a proceeding to enforce the arrangement.\n- (i) otherwise end, or permit the ending of, the arrangement; or\n- (ii) excuse compliance with, or performance of, the arrangement; or\n- (iii) provide a defence to a proceeding to enforce the arrangement.\n- (i) otherwise end, or permit the ending of, the arrangement; or\n- (ii) excuse compliance with, or performance of, the arrangement; or\n- (iii) provide a defence to a proceeding to enforce the arrangement.\n- (a) otherwise end, or permit the ending of, the arrangement; or\n- (b) excuse compliance with, or performance of, the arrangement; or\n- (c) provide a defence to a proceeding to enforce the arrangement.","sortOrder":99},{"sectionNumber":"sec.64","sectionType":"section","heading":"Conditions about buildings, structures or other fixtures","content":"### sec.64 Conditions about buildings, structures or other fixtures\n\nA document forming part of a financial arrangement entered into under this Act by a statutory body may provide that in relation to buildings, structures or other fixtures stated in the arrangement—\ntheir ownership does not vest in the owner of the land on which they are situated; and\nthey are not realty; and\nthey are transferable to a person under the arrangement or another financial arrangement under this Act or another Act.\nA provision mentioned in subsection (1) operates in accordance with its terms, despite an Act or rule of law to the contrary, but is subject to an express provision of the arrangement.\ns 64 ins 1996 No. 54 s 8\n(sec.64-ssec.1) A document forming part of a financial arrangement entered into under this Act by a statutory body may provide that in relation to buildings, structures or other fixtures stated in the arrangement— their ownership does not vest in the owner of the land on which they are situated; and they are not realty; and they are transferable to a person under the arrangement or another financial arrangement under this Act or another Act.\n(sec.64-ssec.2) A provision mentioned in subsection (1) operates in accordance with its terms, despite an Act or rule of law to the contrary, but is subject to an express provision of the arrangement.\n- (a) their ownership does not vest in the owner of the land on which they are situated; and\n- (b) they are not realty; and\n- (c) they are transferable to a person under the arrangement or another financial arrangement under this Act or another Act.","sortOrder":100},{"sectionNumber":"sec.65","sectionType":"section","heading":null,"content":"### Section sec.65\n\ns 65 ins 1996 No. 54 s 8\nom 1999 No. 69 s 7 sch","sortOrder":101},{"sectionNumber":"pt.8-div.2","sectionType":"division","heading":"Matters about trusts","content":"## Matters about trusts","sortOrder":102},{"sectionNumber":"sec.66","sectionType":"section","heading":"Notice of trusts not to be received","content":"### sec.66 Notice of trusts not to be received\n\nA statutory body—\nmust not receive, and must be taken to have not received, notice of a trust (whether express, implied or constructive) in relation to a financial arrangement entered into by the body under this Act or another Act; and\nis not bound to see to the execution of a trust that may affect the financial arrangement.\nSubsection (1) applies to a person acting for a statutory body in relation to the financial arrangement.\ns 66 ins 1996 No. 54 s 8\n(sec.66-ssec.1) A statutory body— must not receive, and must be taken to have not received, notice of a trust (whether express, implied or constructive) in relation to a financial arrangement entered into by the body under this Act or another Act; and is not bound to see to the execution of a trust that may affect the financial arrangement.\n(sec.66-ssec.2) Subsection (1) applies to a person acting for a statutory body in relation to the financial arrangement.\n- (a) must not receive, and must be taken to have not received, notice of a trust (whether express, implied or constructive) in relation to a financial arrangement entered into by the body under this Act or another Act; and\n- (b) is not bound to see to the execution of a trust that may affect the financial arrangement.","sortOrder":103},{"sectionNumber":"pt.8-div.3","sectionType":"division","heading":"Other parties to financial arrangements","content":"## Other parties to financial arrangements","sortOrder":104},{"sectionNumber":"sec.67","sectionType":"section","heading":"Protection of persons who enter into financial arrangements with statutory bodies","content":"### sec.67 Protection of persons who enter into financial arrangements with statutory bodies\n\nA person (the other party ) who enters into a financial arrangement under this Act with a statutory body—\nis not bound to inquire into the application of the money, credit or other financial accommodation provided by the other party to the body; and\nis not responsible for the non-application or misapplication of the money, credit or other financial accommodation by the body; and\nif the other party receives, in consideration for entering into the financial arrangement, a document creating an encumbrance that is apparently properly signed by the body—is not bound to inquire whether the body properly decided to authorise the signing of the document.\ns 67 ins 1996 No. 54 s 8\n- (a) is not bound to inquire into the application of the money, credit or other financial accommodation provided by the other party to the body; and\n- (b) is not responsible for the non-application or misapplication of the money, credit or other financial accommodation by the body; and\n- (c) if the other party receives, in consideration for entering into the financial arrangement, a document creating an encumbrance that is apparently properly signed by the body—is not bound to inquire whether the body properly decided to authorise the signing of the document.","sortOrder":105},{"sectionNumber":"sec.68","sectionType":"section","heading":"Illegal financial arrangements","content":"### sec.68 Illegal financial arrangements\n\nA person does not have a remedy or right to recover an amount from a statutory body in relation to a financial arrangement (the illegal financial arrangement ) that the body entered into with the person otherwise than under—\nthis Act; or\nanother Act that applies to the body in relation to the arrangement.\nSubsection (1) does not limit the person’s remedies or rights to recover from any other person, including, for example, the right to recover under another Act that provides that a member of a statutory body may be liable for an illegal financial arrangement.\nAlso, subsection (1) does not apply to a person who entered into a financial arrangement with a statutory body, including an arrangement under which the body created an encumbrance of its property or income, if the person received from the body a document stating that—\nif the arrangement was entered into under this Act—the Treasurer has approved the body entering into the arrangement and, if an encumbrance was created, creating the encumbrance; or\nif the arrangement was entered into under another Act that applied to the body—the body has obtained all approvals required under that Act for the body to enter into the arrangement and, if an encumbrance is created, to create the encumbrance.\ns 68 ins 1996 No. 54 s 8\n(sec.68-ssec.1) A person does not have a remedy or right to recover an amount from a statutory body in relation to a financial arrangement (the illegal financial arrangement ) that the body entered into with the person otherwise than under— this Act; or another Act that applies to the body in relation to the arrangement.\n(sec.68-ssec.2) Subsection (1) does not limit the person’s remedies or rights to recover from any other person, including, for example, the right to recover under another Act that provides that a member of a statutory body may be liable for an illegal financial arrangement.\n(sec.68-ssec.3) Also, subsection (1) does not apply to a person who entered into a financial arrangement with a statutory body, including an arrangement under which the body created an encumbrance of its property or income, if the person received from the body a document stating that— if the arrangement was entered into under this Act—the Treasurer has approved the body entering into the arrangement and, if an encumbrance was created, creating the encumbrance; or if the arrangement was entered into under another Act that applied to the body—the body has obtained all approvals required under that Act for the body to enter into the arrangement and, if an encumbrance is created, to create the encumbrance.\n- (a) this Act; or\n- (b) another Act that applies to the body in relation to the arrangement.\n- (a) if the arrangement was entered into under this Act—the Treasurer has approved the body entering into the arrangement and, if an encumbrance was created, creating the encumbrance; or\n- (b) if the arrangement was entered into under another Act that applied to the body—the body has obtained all approvals required under that Act for the body to enter into the arrangement and, if an encumbrance is created, to create the encumbrance.","sortOrder":106},{"sectionNumber":"pt.9","sectionType":"part","heading":"Approvals by Treasurer","content":"# Approvals by Treasurer","sortOrder":107},{"sectionNumber":"pt.9-div.1","sectionType":"division","heading":"Application","content":"## Application","sortOrder":108},{"sectionNumber":"sec.69","sectionType":"section","heading":"Application of part","content":"### sec.69 Application of part\n\nThis part applies if a power under this Act may be exercised by a statutory body only with the Treasurer’s approval.\nA statutory body may exercise the power only if—\nan approval under division 2 applies to the body; or\nthe exercise is the subject of an approval under division 3 .\ns 69 ins 1996 No. 54 s 8\n(sec.69-ssec.1) This part applies if a power under this Act may be exercised by a statutory body only with the Treasurer’s approval.\n(sec.69-ssec.2) A statutory body may exercise the power only if— an approval under division 2 applies to the body; or the exercise is the subject of an approval under division 3 .\n- (a) an approval under division 2 applies to the body; or\n- (b) the exercise is the subject of an approval under division 3 .","sortOrder":109},{"sectionNumber":"pt.9-div.2","sectionType":"division","heading":"General approvals","content":"## General approvals","sortOrder":110},{"sectionNumber":"sec.70","sectionType":"section","heading":"Approval may be general in nature","content":"### sec.70 Approval may be general in nature\n\nThe Treasurer may, by gazette notice, approve the exercise of powers under this Act by statutory bodies.\nThe approval may—\napply generally to all statutory bodies, powers and matters or be limited in its application to—\nparticular bodies, powers or matters; or\nparticular classes of bodies, powers or matters; or\notherwise apply generally or be limited in its application by reference to specified exceptions or factors.\nAlso, the approval may—\nmake different provision for different statutory bodies, powers or matters, or different classes of bodies, powers or matters; or\napply differently to stated exceptions or factors.\nThe approval may be on conditions the Treasurer considers necessary or desirable.\nTo remove any doubt, it is declared that an approval may apply to a statutory body even though the body was not established when the approval was given.\ns 70 ins 1996 No. 54 s 8\namd 2003 No. 12 s 16\n(sec.70-ssec.1) The Treasurer may, by gazette notice, approve the exercise of powers under this Act by statutory bodies.\n(sec.70-ssec.2) The approval may— apply generally to all statutory bodies, powers and matters or be limited in its application to— particular bodies, powers or matters; or particular classes of bodies, powers or matters; or otherwise apply generally or be limited in its application by reference to specified exceptions or factors.\n(sec.70-ssec.3) Also, the approval may— make different provision for different statutory bodies, powers or matters, or different classes of bodies, powers or matters; or apply differently to stated exceptions or factors.\n(sec.70-ssec.4) The approval may be on conditions the Treasurer considers necessary or desirable.\n(sec.70-ssec.5) To remove any doubt, it is declared that an approval may apply to a statutory body even though the body was not established when the approval was given.\n- (a) apply generally to all statutory bodies, powers and matters or be limited in its application to— (i) particular bodies, powers or matters; or (ii) particular classes of bodies, powers or matters; or\n- (i) particular bodies, powers or matters; or\n- (ii) particular classes of bodies, powers or matters; or\n- (b) otherwise apply generally or be limited in its application by reference to specified exceptions or factors.\n- (i) particular bodies, powers or matters; or\n- (ii) particular classes of bodies, powers or matters; or\n- (a) make different provision for different statutory bodies, powers or matters, or different classes of bodies, powers or matters; or\n- (b) apply differently to stated exceptions or factors.","sortOrder":111},{"sectionNumber":"pt.9-div.3","sectionType":"division","heading":"Specific approvals","content":"## Specific approvals","sortOrder":112},{"sectionNumber":"sec.71","sectionType":"section","heading":"Way statutory body may apply for approval","content":"### sec.71 Way statutory body may apply for approval\n\nA statutory body may apply, in writing, for the Treasurer’s approval of the exercise of a power under this Act.\nThe application may relate to the exercise of the power generally or in relation to a particular matter.\nIf the Treasurer considers the approval should be given under division 2 for all statutory bodies, particular bodies or particular classes of bodies, the Treasurer may deal with the application by giving an approval under the division that applies to the applicant.\nThe Treasurer may exercise the power to amend or repeal an approval under this division even if the statutory body does not apply for the amendment or repeal.\nUnder the Acts Interpretation Act 1954 , section 24AA , the power to make an instrument or decision includes power to amend or repeal the instrument or decision.\nHowever, the amendment or repeal of an approval under this division does not affect its previous operation.\ns 71 ins 1996 No. 54 s 8\n(sec.71-ssec.1) A statutory body may apply, in writing, for the Treasurer’s approval of the exercise of a power under this Act.\n(sec.71-ssec.2) The application may relate to the exercise of the power generally or in relation to a particular matter.\n(sec.71-ssec.3) If the Treasurer considers the approval should be given under division 2 for all statutory bodies, particular bodies or particular classes of bodies, the Treasurer may deal with the application by giving an approval under the division that applies to the applicant.\n(sec.71-ssec.4) The Treasurer may exercise the power to amend or repeal an approval under this division even if the statutory body does not apply for the amendment or repeal. Under the Acts Interpretation Act 1954 , section 24AA , the power to make an instrument or decision includes power to amend or repeal the instrument or decision.\n(sec.71-ssec.5) However, the amendment or repeal of an approval under this division does not affect its previous operation.","sortOrder":113},{"sectionNumber":"sec.72","sectionType":"section","heading":"Treasurer may ask for documents","content":"### sec.72 Treasurer may ask for documents\n\nThe Treasurer may, by written notice to the statutory body, require it to give the Treasurer a document or information the Treasurer considers necessary for considering the body’s application.\ns 72 ins 1996 No. 54 s 8","sortOrder":114},{"sectionNumber":"sec.73","sectionType":"section","heading":"Approval to state conditions","content":"### sec.73 Approval to state conditions\n\nThe Treasurer may approve the application, entirely or partly, or refuse the application.\nAn approval may be on written conditions the Treasurer considers necessary or desirable.\nThe Treasurer must inform the applicant, in writing, of the decision and, if the application is approved, the conditions of the approval.\ns 73 ins 1996 No. 54 s 8\n(sec.73-ssec.1) The Treasurer may approve the application, entirely or partly, or refuse the application.\n(sec.73-ssec.2) An approval may be on written conditions the Treasurer considers necessary or desirable.\n(sec.73-ssec.3) The Treasurer must inform the applicant, in writing, of the decision and, if the application is approved, the conditions of the approval.","sortOrder":115},{"sectionNumber":"sec.74","sectionType":"section","heading":"Register about approvals for a statutory body","content":"### sec.74 Register about approvals for a statutory body\n\nA statutory body must keep a register of the Treasurer’s approvals under this division for the body’s exercise of a power.\ns 74 ins 1996 No. 54 s 8","sortOrder":116},{"sectionNumber":"pt.9-div.4","sectionType":"division","heading":"Offences in relation to certain documents","content":"## Offences in relation to certain documents","sortOrder":117},{"sectionNumber":"sec.75","sectionType":"section","heading":"False or misleading documents","content":"### sec.75 False or misleading documents\n\nA person must not give a document under section 71 or 72 to the Treasurer containing information the person knows is false or misleading in a material particular.\nMaximum penalty—50 penalty units.\nSubsection (1) does not apply to a person if the person, when giving the document—\nadvises the Treasurer, in writing, to the best of the person’s ability, how it is false or misleading; and\nif the person has, or can reasonably obtain, the correct information—gives the correct information.\nIt is enough for a complaint against a person for an offence against subsection (1) to state that the document was to the person’s knowledge false or misleading, without stating which.\ns 75 ins 1996 No. 54 s 8\n(sec.75-ssec.1) A person must not give a document under section 71 or 72 to the Treasurer containing information the person knows is false or misleading in a material particular. Maximum penalty—50 penalty units.\n(sec.75-ssec.2) Subsection (1) does not apply to a person if the person, when giving the document— advises the Treasurer, in writing, to the best of the person’s ability, how it is false or misleading; and if the person has, or can reasonably obtain, the correct information—gives the correct information.\n(sec.75-ssec.3) It is enough for a complaint against a person for an offence against subsection (1) to state that the document was to the person’s knowledge false or misleading, without stating which.\n- (a) advises the Treasurer, in writing, to the best of the person’s ability, how it is false or misleading; and\n- (b) if the person has, or can reasonably obtain, the correct information—gives the correct information.","sortOrder":118},{"sectionNumber":"pt.10","sectionType":"part","heading":"Miscellaneous","content":"# Miscellaneous","sortOrder":119},{"sectionNumber":"sec.76","sectionType":"section","heading":"Delegations by Treasurer","content":"### sec.76 Delegations by Treasurer\n\nThe Treasurer may delegate the Treasurer’s powers under this Act to another Minister.\nAlso, the Treasurer may delegate the Treasurer’s powers under this Act to the chief executive of a department, other than the Treasurer’s power to give a guarantee under section 16 .\ns 76 ins 1996 No. 54 s 8\n(sec.76-ssec.1) The Treasurer may delegate the Treasurer’s powers under this Act to another Minister.\n(sec.76-ssec.2) Also, the Treasurer may delegate the Treasurer’s powers under this Act to the chief executive of a department, other than the Treasurer’s power to give a guarantee under section 16 .","sortOrder":120},{"sectionNumber":"sec.77","sectionType":"section","heading":null,"content":"### Section sec.77\n\ns 77 ins 1996 No. 54 s 8\nom 2001 No. 71 s 551 sch 1","sortOrder":121},{"sectionNumber":"sec.78","sectionType":"section","heading":"Regulation-making power","content":"### sec.78 Regulation-making power\n\nThe Governor in Council may make regulations under this Act.\ns 78 ins 1996 No. 54 s 8","sortOrder":122},{"sectionNumber":"pt.11","sectionType":"part","heading":"Transitional provisions","content":"# Transitional provisions","sortOrder":123},{"sectionNumber":"pt.11-div.1","sectionType":"division","heading":"Transitional provisions for Statutory Bodies Financial Arrangements Amendment Act 1996","content":"## Transitional provisions for Statutory Bodies Financial Arrangements Amendment Act 1996","sortOrder":124},{"sectionNumber":"sec.79","sectionType":"section","heading":"Interpretation for div 1","content":"### sec.79 Interpretation for div 1\n\nIn this division—\namended provision means a provision as in force from time to time before the commencement, that is amended by the schedule of the Statutory Bodies Financial Arrangements Amendment Act 1996 .\ncommencement means the commencement of this section.\nentity means an entity that—\nwas a statutory body under this Act as in force immediately before the commencement; or\nunder an amended provision—was able to exercise powers under this Act as in force immediately before the commencement;\nwhether or not the entity is a statutory body under the post-amended Act.\nexisting arrangement means an arrangement entered into by an entity under the pre-amended Act, or an amended provision, and in effect immediately before the commencement, including, for example, a borrowing, financial arrangement, guarantee given by the entity, investment and overdraft facility.\nexisting authority means an authority under the pre-amended Act, or an amended provision, relating to the entity for a financial arrangement entered into by the entity, that is an authority in force immediately before the commencement including, for example, an approval, direction, exemption from stamp duty and sanction.\nexisting guarantee means a guarantee under the pre-amended Act, that applied to the obligations of an entity immediately before the commencement, and includes a guarantee made under the Local Bodies’ Loans Guarantee Act 1923 if it applied to the obligations of an entity immediately before the commencement.\nguarantee under another Act , in relation to an entity, means a guarantee under an amended provision, that was given by or for the State and applied to the obligations of the entity immediately before the commencement.\npost-amended Act means this Act after the commencement.\npre-amended Act means this Act as in force, from time to time, before the commencement.\nunchanged Act , in relation to an amended provision, means the Act of which the provision is or was part, as in force immediately before the amendment of the provision commences.\nA reference to an existing arrangement or authority includes an arrangement or authority that was, under the pre-amended Act or an amended provision, the subject of a savings, transitional or validating provision in relation to a financial arrangement (whether or not the provision is expressed to be made for a purpose of that type) if the savings, transitional or validating provision applied to the arrangement or authority immediately before the commencement.\nsections 25A, 27(2), (4) and (5), 28(4) and (5) and 40(4) of this Act as in force immediately before the commencement\ns 79 ins 1996 No. 54 s 8\namd 2003 No. 12 s 18\n(sec.79-ssec.1) In this division— amended provision means a provision as in force from time to time before the commencement, that is amended by the schedule of the Statutory Bodies Financial Arrangements Amendment Act 1996 . commencement means the commencement of this section. entity means an entity that— was a statutory body under this Act as in force immediately before the commencement; or under an amended provision—was able to exercise powers under this Act as in force immediately before the commencement; whether or not the entity is a statutory body under the post-amended Act. existing arrangement means an arrangement entered into by an entity under the pre-amended Act, or an amended provision, and in effect immediately before the commencement, including, for example, a borrowing, financial arrangement, guarantee given by the entity, investment and overdraft facility. existing authority means an authority under the pre-amended Act, or an amended provision, relating to the entity for a financial arrangement entered into by the entity, that is an authority in force immediately before the commencement including, for example, an approval, direction, exemption from stamp duty and sanction. existing guarantee means a guarantee under the pre-amended Act, that applied to the obligations of an entity immediately before the commencement, and includes a guarantee made under the Local Bodies’ Loans Guarantee Act 1923 if it applied to the obligations of an entity immediately before the commencement. guarantee under another Act , in relation to an entity, means a guarantee under an amended provision, that was given by or for the State and applied to the obligations of the entity immediately before the commencement. post-amended Act means this Act after the commencement. pre-amended Act means this Act as in force, from time to time, before the commencement. unchanged Act , in relation to an amended provision, means the Act of which the provision is or was part, as in force immediately before the amendment of the provision commences.\n(sec.79-ssec.2) A reference to an existing arrangement or authority includes an arrangement or authority that was, under the pre-amended Act or an amended provision, the subject of a savings, transitional or validating provision in relation to a financial arrangement (whether or not the provision is expressed to be made for a purpose of that type) if the savings, transitional or validating provision applied to the arrangement or authority immediately before the commencement. sections 25A, 27(2), (4) and (5), 28(4) and (5) and 40(4) of this Act as in force immediately before the commencement\n- (a) was a statutory body under this Act as in force immediately before the commencement; or\n- (b) under an amended provision—was able to exercise powers under this Act as in force immediately before the commencement;","sortOrder":125},{"sectionNumber":"sec.80","sectionType":"section","heading":"Existing arrangements, existing authorities and guarantees under other Acts","content":"### sec.80 Existing arrangements, existing authorities and guarantees under other Acts\n\nThis section applies to the following—\nan existing arrangement entered into by an entity;\nan existing authority in relation to an entity;\na guarantee under another Act in relation to an entity.\nThe arrangement, authority or guarantee continues to have effect after the commencement.\nIf the arrangement or authority was under the pre-amended Act, this Act as in force immediately before the commencement continues to apply to the arrangement or authority.\nIf the arrangement, authority or guarantee was under an amended provision, the unchanged Act continues to apply to the arrangement, authority or guarantee.\nDespite subsections (2) to (4), the arrangement, authority or guarantee may not be amended under this Act as in force immediately before the commencement or under the unchanged Act.\nHowever, the arrangement, authority or guarantee may be dealt with as if it were—\nfor the arrangement—another financial arrangement approved by the Treasurer for part 7, division 3; or\nfor the authority—an approval by the Treasurer under part 9, division 3; or\nfor the guarantee—a guarantee under section 16;\neven if the arrangement, authority or guarantee is not a type of matter that, except for this division, may be dealt with under this Act, or the entity is not a statutory body under this Act.\nAlso, this section is subject to a specific provision under this division about an existing arrangement, existing authority or guarantee under another Act.\ns 80 ins 1996 No. 54 s 8\namd 2003 No. 12 s 19\n(sec.80-ssec.1) This section applies to the following— an existing arrangement entered into by an entity; an existing authority in relation to an entity; a guarantee under another Act in relation to an entity.\n(sec.80-ssec.2) The arrangement, authority or guarantee continues to have effect after the commencement.\n(sec.80-ssec.3) If the arrangement or authority was under the pre-amended Act, this Act as in force immediately before the commencement continues to apply to the arrangement or authority.\n(sec.80-ssec.4) If the arrangement, authority or guarantee was under an amended provision, the unchanged Act continues to apply to the arrangement, authority or guarantee.\n(sec.80-ssec.5) Despite subsections (2) to (4), the arrangement, authority or guarantee may not be amended under this Act as in force immediately before the commencement or under the unchanged Act.\n(sec.80-ssec.6) However, the arrangement, authority or guarantee may be dealt with as if it were— for the arrangement—another financial arrangement approved by the Treasurer for part 7, division 3; or for the authority—an approval by the Treasurer under part 9, division 3; or for the guarantee—a guarantee under section 16; even if the arrangement, authority or guarantee is not a type of matter that, except for this division, may be dealt with under this Act, or the entity is not a statutory body under this Act.\n(sec.80-ssec.7) Also, this section is subject to a specific provision under this division about an existing arrangement, existing authority or guarantee under another Act.\n- (a) an existing arrangement entered into by an entity;\n- (b) an existing authority in relation to an entity;\n- (c) a guarantee under another Act in relation to an entity.\n- (a) for the arrangement—another financial arrangement approved by the Treasurer for part 7, division 3; or\n- (b) for the authority—an approval by the Treasurer under part 9, division 3; or\n- (c) for the guarantee—a guarantee under section 16;","sortOrder":126},{"sectionNumber":"sec.81","sectionType":"section","heading":"Existing guarantees","content":"### sec.81 Existing guarantees\n\nAn existing guarantee applicable to the obligations of an entity under a financial arrangement entered into by the entity is taken to be a guarantee given under section 16 for the obligations of the entity under the arrangement.\nThe conditions of the guarantee include the conditions expressed in a document relating to the guarantee and to which it was subject immediately before the commencement, even if the conditions are contrary to a provision of this Act applying to guarantees under section 16.\nIf an existing guarantee is in relation to the obligations of an entity that is not a statutory body under the post-amended Act, the entity is taken to be a statutory body for part 3.\nDespite subsection (1), the Treasurer has the rights, powers and entitlements as stated in this Act as in force immediately before the commencement for an existing guarantee if, before the commencement, the Treasurer has—\npaid money under the guarantee; and\nexercised a power of the Treasurer under section 20 (1) of the Act as in force immediately before the commencement in relation to the payment.\nFor subsection (4), this Act, as in force immediately before the commencement, continues to apply to the guarantee and matters in relation to the guarantee, including, for example, the powers of a receiver appointed by the Treasurer.\ns 81 ins 1996 No. 54 s 8\n(sec.81-ssec.1) An existing guarantee applicable to the obligations of an entity under a financial arrangement entered into by the entity is taken to be a guarantee given under section 16 for the obligations of the entity under the arrangement.\n(sec.81-ssec.2) The conditions of the guarantee include the conditions expressed in a document relating to the guarantee and to which it was subject immediately before the commencement, even if the conditions are contrary to a provision of this Act applying to guarantees under section 16.\n(sec.81-ssec.3) If an existing guarantee is in relation to the obligations of an entity that is not a statutory body under the post-amended Act, the entity is taken to be a statutory body for part 3.\n(sec.81-ssec.4) Despite subsection (1), the Treasurer has the rights, powers and entitlements as stated in this Act as in force immediately before the commencement for an existing guarantee if, before the commencement, the Treasurer has— paid money under the guarantee; and exercised a power of the Treasurer under section 20 (1) of the Act as in force immediately before the commencement in relation to the payment.\n(sec.81-ssec.5) For subsection (4), this Act, as in force immediately before the commencement, continues to apply to the guarantee and matters in relation to the guarantee, including, for example, the powers of a receiver appointed by the Treasurer.\n- (a) paid money under the guarantee; and\n- (b) exercised a power of the Treasurer under section 20 (1) of the Act as in force immediately before the commencement in relation to the payment.","sortOrder":127},{"sectionNumber":"sec.82","sectionType":"section","heading":"Certain loans by QTC taken to be guaranteed","content":"### sec.82 Certain loans by QTC taken to be guaranteed\n\nThis section applies to a loan made before the commencement by QTC to an entity if, at the commencement—\nthe loan has not been discharged; and\nthere is no existing guarantee, or no guarantee under another Act, in relation to the entity’s obligations under the loan.\nOn the commencement, the Treasurer is taken, for the State, to have guaranteed (a special guarantee ) the entity’s obligations under the loan to make payments.\nThe conditions of the special guarantee are the conditions prescribed under a regulation under section 78 for special guarantees.\nHowever subsection (2), and the conditions prescribed for a special guarantee, are subject to an express provision in a document relating to the loan and signed before the commencement.\ns 82 ins 1996 No. 54 s 8\n(sec.82-ssec.1) This section applies to a loan made before the commencement by QTC to an entity if, at the commencement— the loan has not been discharged; and there is no existing guarantee, or no guarantee under another Act, in relation to the entity’s obligations under the loan.\n(sec.82-ssec.2) On the commencement, the Treasurer is taken, for the State, to have guaranteed (a special guarantee ) the entity’s obligations under the loan to make payments.\n(sec.82-ssec.3) The conditions of the special guarantee are the conditions prescribed under a regulation under section 78 for special guarantees.\n(sec.82-ssec.4) However subsection (2), and the conditions prescribed for a special guarantee, are subject to an express provision in a document relating to the loan and signed before the commencement.\n- (a) the loan has not been discharged; and\n- (b) there is no existing guarantee, or no guarantee under another Act, in relation to the entity’s obligations under the loan.","sortOrder":128},{"sectionNumber":"sec.83","sectionType":"section","heading":"Debentures, bonds and inscribed stock issued, and charges over income created, before commencement","content":"### sec.83 Debentures, bonds and inscribed stock issued, and charges over income created, before commencement\n\nSection 36(2) and (3) do not apply to, or otherwise affect—\ndebentures, bonds or inscribed stock issued by an entity before the commencement; or\ncharges over an entity’s income created by the entity before the commencement.\nDebentures, bonds, inscribed stock and charges over income, as mentioned in subsection (1), rank in accordance with the law applicable to them at their date of issue or creation.\ns 83 ins 1996 No. 54 s 8\n(sec.83-ssec.1) Section 36(2) and (3) do not apply to, or otherwise affect— debentures, bonds or inscribed stock issued by an entity before the commencement; or charges over an entity’s income created by the entity before the commencement.\n(sec.83-ssec.2) Debentures, bonds, inscribed stock and charges over income, as mentioned in subsection (1), rank in accordance with the law applicable to them at their date of issue or creation.\n- (a) debentures, bonds or inscribed stock issued by an entity before the commencement; or\n- (b) charges over an entity’s income created by the entity before the commencement.","sortOrder":129},{"sectionNumber":"sec.84","sectionType":"section","heading":null,"content":"### Section sec.84\n\ns 84 ins 1996 No. 54 s 8\nexp 1 June 1998 (see s 84(3))","sortOrder":130},{"sectionNumber":"sec.85","sectionType":"section","heading":"No automatic default for existing arrangements","content":"### sec.85 No automatic default for existing arrangements\n\nThe amendment of a provision of this Act as in force immediately before the commencement or an unchanged Act—\ndoes not place the entity in breach of contract or otherwise make it guilty of a civil wrong; and\nis taken not to fulfil a condition—\nallowing a person to end a contract or obligation or change the operation or effect of a contract or obligation; or\nrequiring an amount to be paid before its stated maturity; and\ndoes not release a surety or other obligee from an obligation.\nIf, apart from this subsection, obtaining the consent of, or giving notice to, a person would be necessary under a financial arrangement to give effect to a matter dealt with under this division, the consent is taken to have been obtained or the notice is taken to have been given.\ns 85 ins 1996 No. 54 s 8\namd 2003 No. 12 s 20\n(sec.85-ssec.1) The amendment of a provision of this Act as in force immediately before the commencement or an unchanged Act— does not place the entity in breach of contract or otherwise make it guilty of a civil wrong; and is taken not to fulfil a condition— allowing a person to end a contract or obligation or change the operation or effect of a contract or obligation; or requiring an amount to be paid before its stated maturity; and does not release a surety or other obligee from an obligation.\n(sec.85-ssec.2) If, apart from this subsection, obtaining the consent of, or giving notice to, a person would be necessary under a financial arrangement to give effect to a matter dealt with under this division, the consent is taken to have been obtained or the notice is taken to have been given.\n- (a) does not place the entity in breach of contract or otherwise make it guilty of a civil wrong; and\n- (b) is taken not to fulfil a condition— (i) allowing a person to end a contract or obligation or change the operation or effect of a contract or obligation; or (ii) requiring an amount to be paid before its stated maturity; and\n- (i) allowing a person to end a contract or obligation or change the operation or effect of a contract or obligation; or\n- (ii) requiring an amount to be paid before its stated maturity; and\n- (c) does not release a surety or other obligee from an obligation.\n- (i) allowing a person to end a contract or obligation or change the operation or effect of a contract or obligation; or\n- (ii) requiring an amount to be paid before its stated maturity; and","sortOrder":131},{"sectionNumber":"pt.11-div.2","sectionType":"division","heading":"Transitional provisions for Statutory Bodies Financial Arrangements Amendment Act 2003","content":"## Transitional provisions for Statutory Bodies Financial Arrangements Amendment Act 2003","sortOrder":132},{"sectionNumber":"sec.86","sectionType":"section","heading":"Definitions for div 2","content":"### sec.86 Definitions for div 2\n\nIn this division—\ncommencement means the commencement of this section.\npre-amended Act means the Statutory Bodies Financial Arrangements Act 1982 before the commencement.\ns 86 prev s 86 ins 1996 No. 54 s 8\nexp 1 June 2000 (see s 86(5))\npres s 86 ins 2003 No. 12 s 21","sortOrder":133},{"sectionNumber":"sec.87","sectionType":"section","heading":"Approval before commencement for arrangement that is a type 1 financial arrangement","content":"### sec.87 Approval before commencement for arrangement that is a type 1 financial arrangement\n\nThis section applies to a Treasurer’s approval for section 61 of the pre-amended Act, as that approval was in force immediately before the commencement, to the extent the approval authorised a statutory body to enter into an arrangement that, if the statutory body were to enter into the arrangement after the commencement, would be a type 1 financial arrangement.\nThe approval continues to have effect, and may be dealt with, after the commencement as if it were a Treasurer’s approval for section 60A.\nAn arrangement entered into before the commencement under the approval continues to have effect, and may be dealt with, after the commencement as if it were a type 1 financial arrangement.\nIf the approval provided that a further arrangement may be entered into that is a type 1 financial arrangement, the further arrangement—\nmay be entered into under the approval after the commencement; and\nis to be dealt with as if it were a type 1 financial arrangement.\ns 87 ins 2003 No. 12 s 21\n(sec.87-ssec.1) This section applies to a Treasurer’s approval for section 61 of the pre-amended Act, as that approval was in force immediately before the commencement, to the extent the approval authorised a statutory body to enter into an arrangement that, if the statutory body were to enter into the arrangement after the commencement, would be a type 1 financial arrangement.\n(sec.87-ssec.2) The approval continues to have effect, and may be dealt with, after the commencement as if it were a Treasurer’s approval for section 60A.\n(sec.87-ssec.3) An arrangement entered into before the commencement under the approval continues to have effect, and may be dealt with, after the commencement as if it were a type 1 financial arrangement.\n(sec.87-ssec.4) If the approval provided that a further arrangement may be entered into that is a type 1 financial arrangement, the further arrangement— may be entered into under the approval after the commencement; and is to be dealt with as if it were a type 1 financial arrangement.\n- (a) may be entered into under the approval after the commencement; and\n- (b) is to be dealt with as if it were a type 1 financial arrangement.","sortOrder":134},{"sectionNumber":"sec.88","sectionType":"section","heading":"Approval before commencement for arrangement that is a type 2 financial arrangement","content":"### sec.88 Approval before commencement for arrangement that is a type 2 financial arrangement\n\nThis section applies to a Treasurer’s approval for section 61 of the pre-amended Act, as that approval was in force immediately before the commencement, to the extent the approval authorised a statutory body to enter into an arrangement that, if the statutory body were to enter into the arrangement after the commencement, would be an arrangement that is not a type 1 financial arrangement.\nThe approval continues to have effect, and may be dealt with, after the commencement as if it were a Treasurer’s approval for section 61A.\nAn arrangement entered into before the commencement under the approval continues to have effect, and may be dealt with, after the commencement as if it were a type 2 financial arrangement.\nIf the approval provided that a further arrangement may be entered into, other than an arrangement that would be a type 1 financial arrangement, the further arrangement—\nmay be entered into under the approval after the commencement; and\nis to be dealt with as if it were a type 2 financial arrangement.\nSubsections (3) and (4) apply even if the arrangement mentioned in either of those subsections is not a financial arrangement under this Act.\ns 88 ins 2003 No. 12 s 21\n(sec.88-ssec.1) This section applies to a Treasurer’s approval for section 61 of the pre-amended Act, as that approval was in force immediately before the commencement, to the extent the approval authorised a statutory body to enter into an arrangement that, if the statutory body were to enter into the arrangement after the commencement, would be an arrangement that is not a type 1 financial arrangement.\n(sec.88-ssec.2) The approval continues to have effect, and may be dealt with, after the commencement as if it were a Treasurer’s approval for section 61A.\n(sec.88-ssec.3) An arrangement entered into before the commencement under the approval continues to have effect, and may be dealt with, after the commencement as if it were a type 2 financial arrangement.\n(sec.88-ssec.4) If the approval provided that a further arrangement may be entered into, other than an arrangement that would be a type 1 financial arrangement, the further arrangement— may be entered into under the approval after the commencement; and is to be dealt with as if it were a type 2 financial arrangement.\n(sec.88-ssec.5) Subsections (3) and (4) apply even if the arrangement mentioned in either of those subsections is not a financial arrangement under this Act.\n- (a) may be entered into under the approval after the commencement; and\n- (b) is to be dealt with as if it were a type 2 financial arrangement.","sortOrder":135},{"sectionNumber":"sec.89","sectionType":"section","heading":"Approval on condition under s 70 before commencement","content":"### sec.89 Approval on condition under s 70 before commencement\n\nAn approval under, or purportedly under, section 70 that was given before the commencement and stated it was subject to a condition is, and always was, as valid as if it had been given after the commencement.\ns 89 ins 2003 No. 12 s 21","sortOrder":136}],"analysis":{"kimi_summary":{"_metrics":{"provider":"moonshot","completionTokens":2438},"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":true,"description":"The legislation has significantly expanded beyond its original 1982 focus on basic State guarantees and borrowing powers. Through major amendments (particularly in 1996 and 2003), it now governs sophisticated modern financial activities including derivative transactions (hedging), the appointment of external funds managers, and complex categorised investment powers (Categories 1-3). It has evolved from a simple debt management statute into a comprehensive financial governance framework covering diverse financial instruments."},"complexity_factors":["Multiple defined terms including 'statutory body', 'financial arrangement', 'type 1/type 2 financial arrangement', 'category 1/2/3 investment power', and 'derivative transaction', many of which rely on external regulations for their full meaning.","Extensive cross-referencing between Parts (e.g., Part 2B defines how powers in Parts 4, 5, 6, and 7 interact with each other and with other Acts).","Layered conditional logic: many powers are only available if 'prescribed by regulation' AND 'approved by the Treasurer', creating dual thresholds.","Nested exceptions: Section 6 excludes certain entities from being statutory bodies, but subsection 6(3) subjects this exclusion to declarations under section 5(2)(f) or (3).","Multiple transitional provisions (Part 11) preserving arrangements made under previous versions of the Act, including distinctions between 'pre-amended Act', 'post-amended Act', and 'unchanged Act'.","Complex hierarchical structure: 11 Parts, multiple Divisions within Parts, and sections with up to 6 subsections containing nested paragraphs and sub-paragraphs (e.g., section 5(2)(c)(ii))."],"plain_english_summary":"**What this is:**\nThis is a Queensland law that sets the rules for how government statutory bodies (agencies, boards, and other entities created by legislation) can handle money, borrow funds, and make investments. It essentially acts as a financial rulebook to protect the State’s credit rating and ensure public money is managed prudently.\n\n**Who it affects:**\n*   **Statutory bodies** – This includes a wide range of government entities that control funds, from single-person offices to local councils, but specifically excludes departments, Government Owned Corporations (GOCs), and companies incorporated under the Corporations Act.\n*   **The Treasurer** – Who acts as the gatekeeper for most significant financial decisions.\n*   **Banks and lenders** – Who deal with these bodies and rely on State guarantees.\n\n**What it does (the key rules):**\n\n*   **State Guarantees:** If a statutory body borrows money or enters into a financial arrangement, the Treasurer can give a formal guarantee (a State-backed promise to pay if the body defaults). This makes lenders more willing to lend to government entities at better rates. If the State has to pay out under a guarantee, it can appoint someone to take over the body’s revenue to get the money back.\n\n*   **Basic Banking (Part 4):**\n    *   Bodies can open bank accounts for day-to-day operations.\n    *   Overdraft facilities (spending more than is in the account) require the Treasurer’s approval.\n\n*   **Borrowing (Part 5):**\n    *   Statutory bodies can only borrow money if specifically declared by regulation and approved by the Treasurer.\n    *   Borrowing must be in Australian dollars and undertaken in Australia (unless special approval is given).\n    *   Creating a mortgage or security (an *encumbrance*) over property or income also needs Treasurer approval.\n\n*   **Investing (Part 6):**\n    *   Bodies are allocated one of three investment categories by regulation:\n        *   **Category 1:** Safest options only (bank deposits, short-term government bonds, investments with Queensland Treasury Corporation or Queensland Investment Corporation). Maximum term: 1 year.\n        *   **Category 2:** Medium risk. Can include slightly longer terms (up to 3 years) and certain rated investments.\n        *   **Category 3:** Broadest power. Includes real property (land), mortgages, and longer-term investments.\n    *   Bodies must try to get the best interest rate possible and keep proper records.\n\n*   **Complex Financial Deals (Parts 7 & 7A):**\n    *   **Derivative transactions** (complex financial contracts used to hedge against risks like interest rate changes) are only allowed for bodies prescribed by regulation and only with Treasurer approval. They must be used for hedging, not speculation.\n    *   **Funds managers** can be appointed to manage investments, but only with Treasurer approval.\n    *   **Type 1 and Type 2 financial arrangements** act as catch-all categories for financial deals that don’t fit neatly into borrowing or investing. Type 1 requires Treasurer approval; Type 2 is a broader power for arrangements not otherwise allowed (like foreign investments or loans *by* the body).\n\n*   **Protection for Lenders:**\n    *   If a lender enters into a deal with a statutory body in good faith, they generally don’t have to check that the body had permission to sign the contract (section 67).\n    *   However, if a body enters into an illegal arrangement (one not authorised by this Act or its own creating legislation), the other party usually cannot sue the body to recover money (section 68).\n\n**Why it matters:**\nThis Act prevents government bodies from taking on hidden debts or making risky investments that could blow out the State budget. By centralising control with the Treasurer for guarantees, borrowing, and high-risk activities, it ensures that the Queensland Government’s overall financial position remains stable and creditworthy."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"The Act’s operational scope has been broadened and made flexible by later amendments and by the Act’s own delegation to regulation and Treasurer approvals. The Act permits regulations to declare which entities are statutory bodies and which may borrow or hold particular investment categories (s.5, s.33, s.42). The Treasurer may give wide general or specific approvals by gazette notice (s.16, s.70) and may treat pre‑existing guarantees and QTC loans as guarantees under the Act (s.21, s.81, s.82). Transitional provisions preserve and convert prior arrangements and guarantees into the current framework (pt.11, s.80–89). Those features mean the set of entities covered and the financial powers available under the Act can differ from the Act’s original baseline through delegated instruments and transitional treatment (s.5, s.70, pt.11)."},"complexity_factors":["Extensive cross‑references to other parts of the Act and to other legislation (e.g. definitions, Corporations Act exclusions) (s.5, s.13A)","Large amount of rule‑making and operational discretion vested in the Treasurer (approvals by gazette, specific approvals, conditions, delegations) (s.16, s.70–73, s.76)","Regulation dependence for key thresholds and allocations (which entities may borrow, investment category allocations, rated instruments, special guarantee conditions) (s.33, s.42, s.44–46, s.52, s.82, s.78)","Multiple interacting recovery and enforcement regimes (guarantee recovery, appointee powers, court receivers, security transfer and realisation) with priority ordering (s.23–30, s.37–40)","Three distinct investment categories with differing permitted instruments and temporal limits that must be allocated by regulation (s.42–46)","Reporting and record‑keeping requirements across different functions (derivatives reports, approvals register, investment records) (s.55, s.74, s.47)","Detailed transitional provisions and savings clauses that preserve or modify pre‑existing guarantees and arrangements (pt.11, s.80–89)","Provisions allowing commercial contract terms (waivers, enforceability despite legal events) that override ordinary legal principles subject to express terms (s.19, s.63, s.64)","Definitions and exclusions of 'statutory body' which are multi‑layered and allow regulation to add or remove entities (s.5–6)"],"plain_english_summary":"What this law does, who it affects, and how it works\n\n- Purpose and overall effect: The Act sets out how \"statutory bodies\" can manage money, borrow, invest and enter financial contracts, and how the State (through the Treasurer) may guarantee those obligations (s.2, s.16). It creates a single, regulated framework for guarantees, banking, borrowing, investments, derivatives and the appointment of funds managers.\n\n- Who is covered: The Act applies to entities that are statutory bodies as defined in the Act (s.5). The definition is by reference to how an entity is established under an Act and whether it controls funds or has appointed members; the Act also lists categories of entities that are excluded (s.6). A regulation may add or remove entities from coverage (s.5(3)).\n\n- Guarantees and who pays: The Treasurer may guarantee a statutory body’s obligations for the State (s.16). Money the Treasurer pays under such a guarantee is charged to the consolidated fund (s.17). The Treasurer can recover any amounts paid under a guarantee (the \"recovery amounts\") from the statutory body, with interest and recovery costs (s.23). The Treasurer may require security as a condition of a guarantee (s.18). The Treasurer may also charge the statutory body a fee for a guarantee (s.16A).\n\n- Borrowing and banking rules: A statutory body may operate ordinary (non‑overdraft) bank accounts as needed for day‑to‑day business; overdraft facilities require the Treasurer’s approval (s.31). Borrowing under the Act requires Treasurer approval and must be in Australian currency and undertaken in Australia (s.34). A regulation can declare which statutory bodies may borrow under the part (s.33).\n\n- Investments: A statutory body may invest only if a regulation allocates one of three investment categories to it (category 1, 2 or 3) (s.42). Each category defines what instruments and terms are permitted (s.44–46). Investment must be in Australian money and undertaken in Australia (s.43). The body must try to obtain the most advantageous rate and keep records of its reasoning (s.47). If a rated investment’s credit rating falls below the regulated threshold, the body must either get Treasurer approval to continue or liquidate the investment within 28 days (s.52).\n\n- Derivatives and funds managers: A statutory body can use derivatives only if it is prescribed by regulation to be able to do so, has Treasurer approval, and uses derivatives only to hedge an exposure (s.53–54). Reporting obligations apply for every derivative transaction (s.55–56). A statutory body may appoint a funds manager to invest its funds, but only after satisfying itself the manager is suitable and obtaining Treasurer approval; the manager acts under conditions set by the Treasurer (s.59–60).\n\n- Security and creditor remedies: Encumbrances (security over property or income) require Treasurer approval unless provided elsewhere (s.35). The Treasurer can rank income encumbrances by gazette notice (s.36). Creditors seeking remedies for overdue debentures/bonds must give written notice and wait specified periods before applying for receivership or suing; the Treasurer gets notice where the debt is guaranteed (s.37). Debentures can include alternative remedies that replace the Act’s default remedies (s.41).\n\n- What happens if the Treasurer pays under a guarantee: The Treasurer may recover payment amounts from the statutory body as a debt (s.23, s.29). The Treasurer may appoint a temporary appointee to protect recovery prospects, and may later have a regulation appoint an appointee with broader powers; appointees collect the body’s receipts and must pay costs first, then the Treasurer, then the body (s.24–28). If the Treasurer steps into the creditor’s place after payment, the Treasurer is entitled to the benefit of any security (s.30).\n\n- Protections and limits for third parties and trusts: Persons who enter into financial arrangements with statutory bodies are not required to investigate how the money will be applied and are not responsible for its misapplication (s.67). The statutory body is taken not to have notice of any trust affecting the arrangement (s.66). But a person generally has no remedy against a statutory body for an arrangement the body entered into outside the Act, unless the person received a document showing Treasurer approval or other required approvals (s.68).\n\n- Decision‑making, approvals and administrative control: Many activities under the Act require the Treasurer’s approval; the Treasurer may give general approvals by gazette notice or specific approvals on conditions (s.70–73). The Treasurer has broad discretion, can delegate many powers to another Minister or a chief executive (except the power to give guarantees under s.16) (s.76), and may issue directions to appointees and members (s.27). The Governor in Council can make regulations under the Act (s.78).\n\nOfficial rationale (how the Act says it achieves its object) and practical trade‑offs\n\n- Officially stated object: To provide efficient, effective management of statutory bodies’ powers to enter into financial arrangements by coordinating guarantees, banking, borrowing and investment powers and controlling derivatives, funds managers and other arrangements (s.2). That is the Act’s stated purpose.\n\n- Who pays and fiscal exposure: Guarantees create potential fiscal exposure for the consolidated fund because the Treasurer may be required to pay guaranteed obligations (s.16, s.17). The Act gives the Treasurer tools to limit that exposure — requiring security (s.18), charging fees for guarantees (s.16A), and recovering amounts paid from the statutory body (s.23). These are the direct mechanisms that allocate cost between State and statutory body.\n\n- Incentives and private risk allocation: The Act shifts some risk from private counterparties to the State when a guarantee exists (s.16) but also gives the Treasurer powers to preserve security value and recover payments (s.18, s.30). For private parties, the Act reduces the need for some enquiries into internal authority and application of funds (s.67), which lowers transaction costs for counterparties but relies on the Treasurer’s approval processes to protect the public purse (s.70–73).\n\n- Compliance and administrative burdens: Bodies face compliance tasks including: deciding and recording decisions before seeking Treasurer approval (s.14), keeping a register of Treasurer approvals (s.74), meeting reporting obligations on derivatives (s.55), and keeping investment records showing best efforts to secure the most advantageous rate (s.47). These create staff time and record‑keeping costs concentrated on the statutory bodies.\n\n- Bureaucratic discretion and implementation risk: Much turns on the Treasurer’s discretion — who is covered; which bodies may borrow or use derivatives; what approval conditions apply; whether to require security or appoint appointees; and how to charge for guarantees (s.5, s.33, s.53, s.16, s.18, s.24, s.16A, s.70–73). That discretion concentrates decision rights and operational risk in a small number of public officers and in regulation‑making (s.78).\n\n- Effects on private enterprise and markets: The Act makes some transactions with statutory bodies easier for private counterparties by limiting their duty to investigate (s.67). At the same time, the need for Treasurer approvals, restrictions on permitted investments (s.42–46), and the possibility that an arrangement without required approvals gives the counterparty no remedy (s.68) affect contract design, pricing and risk allocation in markets dealing with statutory bodies. The Act also allows financial documents to include waiver provisions and enforceability clauses that alter ordinary contract defences (s.63).\n\n- Concentrated benefits and diffuse costs: The Act lets particular statutory bodies gain access to borrowing, investment types, guarantees or derivative use by regulation or Treasurer approval (s.33, s.42, s.53, s.61A, s.70). The direct benefit accrues to the specific statutory body; the fiscal cost, if guarantees are called, falls on the consolidated fund unless fully recovered (s.17, s.23). The Act builds mechanisms for recovering costs but leaves timing and completeness of recovery to enforcement and the Treasurer’s decisions (s.23, s.24–30).\n\nKey implementation points to watch in practice (sections cited): Treasurer approvals and conditions (s.16, s.70–73); guarantee charging and recovery (s.16A, s.23); security and ranking (s.18, s.36, s.30); investment categories and record‑keeping (s.42–47); derivative permissions, hedging limit and reporting (s.53–55); protections for third parties and limits where approval is missing (s.66–68); delegation limits (s.76)."},"summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act has expanded considerably beyond its original 1982 scope. It began as a relatively straightforward framework for statutory body borrowing and State guarantees. Through successive amendments — particularly the major 1996 rewrite (No. 54) and 2003 amendments (No. 12) — it now encompasses a comprehensive financial arrangements regime including derivative transactions, tiered investment powers, funds manager appointments, Type 1 financial arrangements (Part 7A), and detailed creditor remedy procedures. The creation of the Queensland Government Development Authority (later the Queensland Treasury Corporation) was also embedded in the Act, and the exclusions in section 6 have grown significantly over time to reflect the evolving Queensland government corporate structure."},"complexity_factors":["Multi-layered legislative architecture: the Act operates alongside and subject to numerous other Acts (authorising Acts, Financial Accountability Act, Corporations Act, Land Act, Queensland Treasury Corporation Act, etc.), requiring readers to cross-reference multiple pieces of legislation","Tiered investment power system (Category 1, 2, and 3) with different permitted investments, time limits, and regulatory conditions for each tier","Complex definition of 'statutory body' with multiple inclusion and exclusion criteria spread across sections 5 and 6, including carve-outs that can be overridden by regulation","Extensive Treasurer approval mechanisms with varying conditions, delegation rules, and gazette notice requirements throughout","Derivative transactions framework with specific hedging-only restrictions, dual reporting obligations (to Treasurer and relevant Minister), and ministerial monitoring duties","Guarantee provisions with nuanced conditions including waiver of Crown immunity, survival clauses, security requirements that if breached void the guarantee ab initio (from the beginning), and recovery mechanisms","Appointee/receiver system with complex priority waterfall provisions for distribution of recovered funds","Significant amendment history (1984, 1988, 1989, 1990, 1994, 1996, 1997, 1999, 2001, 2003, 2006, 2009, 2010, 2013) creating potential for inconsistency and requiring careful reading of transitional provisions","Interaction with Corporations Act exclusions (section 13A) requiring knowledge of federal corporate law","Trust and conditional property provisions in section 12 that overlay trust law concepts onto the statutory framework"],"plain_english_summary":"## What This Law Does\n\nThe *Statutory Bodies Financial Arrangements Act 1982* (Queensland) is a framework law that controls how **government-created organisations** (called \"statutory bodies\") manage their money. Think of statutory bodies as the many arms of government that aren't departments themselves — things like local councils, government boards, authorities, and similar entities created by Queensland legislation.\n\n## Who Does It Affect?\n\n- **Statutory bodies** (government-created entities like local governments, boards, and authorities set up under Queensland Acts)\n- **The Queensland Treasurer**, who holds significant oversight and approval powers\n- **Creditors and financial institutions** who deal with statutory bodies\n- **Queensland taxpayers**, because the State can guarantee (promise to pay) these bodies' debts if they can't pay\n\n## What Does It Actually Do?\n\n### 1. 🏦 Banking\nStatutory bodies can operate basic bank accounts for day-to-day operations. If they want an overdraft (spending more than they have), they need the Treasurer's permission.\n\n### 2. 💰 Borrowing\nStatutory bodies can only borrow money if:\n- They are specifically declared in regulations as being allowed to borrow\n- The Treasurer approves it\n- The borrowing is in Australian dollars and done in Australia\n\n### 3. 📈 Investing\nThere are **three tiers of investment power** (Category 1, 2, and 3) — each allowing progressively broader types of investments. A regulation assigns each statutory body its tier. Category 1 is the most conservative (short-term deposits, government-backed instruments). Category 3 is the broadest and includes things like property mortgages and land purchases.\n\n### 4. 🔄 Derivative Transactions\n(A \"derivative\" is a financial contract whose value depends on something else, like interest rates or currencies — used here only as protection against financial risk, not for speculation.) Statutory bodies can only do this if specifically permitted by regulation AND the Treasurer approves. They must report on every derivative transaction.\n\n### 5. 👔 Funds Managers\nA statutory body can hire a professional fund manager to invest its money, but only with the Treasurer's approval.\n\n### 6. 🛡️ State Guarantees\nThe Treasurer can **guarantee** (promise to pay on behalf of) a statutory body's financial obligations. This is essentially the Queensland Government backing the body's debts. If the State has to pay out under a guarantee, it can recover that money from the statutory body — and can even appoint someone to take over running the body's finances to get the money back.\n\n### 7. ✅ Accountability\nStatutory bodies must comply with conditions set by their own authorising Acts AND this Act. They must keep written records of financial decisions. Ministers must monitor derivative transactions made by bodies they oversee.\n\n## What's NOT Covered\nPrivate companies, government departments proper, the Queensland Treasury Corporation (QTC), and entities that are directly funded through the State's main budget (\"consolidated fund\") are generally excluded."},"issue_detection":{"absurdities":[{"type":"circular_definition","section":"sec.3B","severity":"medium","reasoning":"Section 3B(1) defines 'members' for bodies without members by reference to section 5(2)(c), but section 3B(2) then excludes this definition from applying to section 5 itself. This means the definition is crafted specifically to apply everywhere except the section that gives it meaning, creating a circularity: the definition points to s.5(2)(c) for its content, but cannot be used when reading s.5(2)(c).","confidence":0.72,"description":"Self-referential definition of 'members' that excludes itself from the very provision it references"},{"type":"other","section":"sec.4 and sec.4A","severity":"low","reasoning":"Section 4 constitutes the Under Treasurer as a corporation sole called 'The Queensland Government Development Authority' with perpetual succession. Section 4A then immediately provides that upon commencement of the Queensland Treasury Corporation Act 1988, this entity was renamed 'Queensland Treasury Corporation' and continues under that Act. Section 4 therefore creates an entity that has never actually operated under the name given to it in the 1982 Act, making its ongoing presence in the legislation a historical artefact with no operative content.","confidence":0.65,"description":"The Queensland Government Development Authority is constituted and then immediately superseded, rendering section 4 a constitutional zombie"},{"type":"self_contradicting","section":"sec.6(2) and sec.6(3)","severity":"medium","reasoning":"Section 6(2) says an entity is not a statutory body if any of its income goes into or any of its expenses come from the consolidated fund. Section 6(3) says s.6(2) is subject to a declaration under s.5(2)(f) or s.5(3). This means a regulation or an Act can declare such an entity to be a statutory body, directly contradicting the exclusion in s.6(2). The override mechanism is partially valid but creates a structural contradiction: the same Act simultaneously says the entity 'is not a statutory body' and permits it to be declared one, with no guidance on which provision takes precedence without a declaration.","confidence":0.7,"description":"An entity can simultaneously be excluded from being a statutory body under s.6(2) yet declared to be one under s.5(2)(f) or s.5(3), but s.6(3) only partially resolves this"},{"type":"impossible_compliance","section":"sec.14(3) and sec.14(4)","severity":"medium","reasoning":"Section 14(3) requires a statutory body to decide to exercise the power AND make a written record of that decision before exercising it. Section 14(4) requires the body to decide to enter the arrangement before asking for the Treasurer's approval. Read together, the body must: (1) decide and record in writing, then (2) seek approval, then (3) exercise the power. However, s.14(4) says the decision must precede the approval request, implying the body can validly decide (step 1) and then seek approval (step 2) before the power is exercised (step 3). The absurdity arises if the Treasurer refuses approval after the body has already formally decided and recorded: the decision exists but the power cannot be exercised, raising questions about whether the written record must be rescinded or is simply inoperative.","confidence":0.58,"description":"Impossibly sequenced preconditions: a body must decide to enter an arrangement before seeking Treasurer approval, yet must record the decision in writing before exercising the power, creating a temporal paradox"},{"type":"retroactive_impossibility","section":"sec.18(2)","severity":"high","reasoning":"Section 18(2) provides that if the person with whom the statutory body contracted fails to take the required security, or releases or waives that security without the Treasurer's written consent, the guarantee 'shall be void and shall be deemed to have been void ab initio.' This means a third-party creditor's unilateral action (releasing security) retroactively voids a guarantee from inception. A statutory body cannot compel a third party to maintain security. This creates an absurdity where a body acting in full compliance with the Act can find its guarantee retrospectively nullified by another party's conduct, potentially destabilising financial arrangements already settled and creating retroactive State liability gaps.","confidence":0.8,"description":"A guarantee is voided ab initio by conduct of a third party outside the statutory body's control, potentially rendering past financial arrangements retrospectively invalid"},{"type":"other","section":"sec.24(1) and sec.24(3)","severity":"low","reasoning":"Section 24(1) says a regulation may appoint an appointee, while s.24(3) says the Treasurer may only 'recommend a person to the Governor in Council for appointment under subsection (1)'. A regulation is made by the Governor in Council, not by the Treasurer recommending to the Governor in Council. The Treasurer recommends to Cabinet/GIC as part of the normal regulation-making process, so this is not strictly impossible but creates an odd implication that the Treasurer has a special role beyond the ordinary regulation-making process, which is not provided for elsewhere.","confidence":0.45,"description":"The Treasurer is required to recommend to the Governor in Council (for regulation) yet the subsection says 'a regulation may appoint', implying it is the Governor in Council acting on advice, not the Treasurer recommending — conflating two distinct constitutional processes"},{"type":"self_contradicting","section":"sec.47(1)(a) and sec.47(1)(b)","severity":"medium","reasoning":"Section 47(1)(a) mandates use of best efforts to invest at 'the most advantageous interest rate available' for the investment type. Section 47(1)(b) requires investment 'in a way it considers is most appropriate in all the circumstances.' These obligations conflict: the highest interest rate is not always the most appropriate choice (e.g., where counterparty risk is elevated, liquidity is limited, or prudential considerations favour a lower-yielding but safer instrument). Complying strictly with (a) may breach (b) and vice versa. The provision offers no hierarchy between the two duties.","confidence":0.75,"description":"Statutory body is simultaneously required to invest at the most advantageous interest rate AND in the way it considers most appropriate in all circumstances — these duties may be irreconcilable"},{"type":"other","section":"sec.52(2)","severity":"low","reasoning":"The 28-day clock runs from when the rating change 'becomes known to the statutory body.' This is an entirely subjective standard. A body could plausibly claim ignorance of a publicly available rating downgrade for extended periods. There is no objective trigger (e.g., date of the rating agency's public announcement) and no mechanism to establish when knowledge was or should have been acquired, making compliance and enforcement uncertain.","confidence":0.62,"description":"A statutory body must act 'as soon as practicable, but no later than 28 days' after a rating change 'becomes known' — the trigger is subjective knowledge, creating potential gaming of the provision"},{"type":"self_contradicting","section":"sec.6(1)(f) and sec.6(1)(h)","severity":"medium","reasoning":"Sections 4 and 4A of this Act constitute and preserve the corporation sole that became QTC. Section 6(1)(f) then expressly excludes QTC from being a statutory body under this Act. This means the Act itself creates (or preserves) the entity but simultaneously declares it outside the Act's scope. While this may be a deliberate policy choice, it creates a logical inconsistency: Part 2 of this Act is devoted to constituting an entity that Part 2A then excludes from the Act's application.","confidence":0.78,"description":"QTC is listed as a non-statutory body in s.6(1)(f), yet QTC is the Queensland Treasury Corporation — itself the renamed continuation of the corporation sole under sections 4 and 4A, creating an entity that is simultaneously constituted by and excluded from this Act"}],"contradictions":[{"severity":"medium","section_a":"sec.9(1)","section_b":"sec.9(2)","confidence":0.72,"description":"Section 9(1) states borrowing powers under Part 5 are 'additional to' powers under other Acts, but s.9(2) limits Part 5 powers to this Act alone where there is no express power elsewhere — the 'additional to' framing is contradicted by the limiting operation"},{"severity":"medium","section_a":"sec.8(1)(a)","section_b":"sec.8(2)","confidence":0.68,"description":"Same structural contradiction as ss.9(1)-(2): s.8(1)(a) says Part 4 powers are 'additional to' powers under other Acts to operate a basic institutional account, but s.8(2) limits overdraft account powers to this Act where no express power exists — the additive framing in (1) is qualified into a restrictive regime by (2) without clear reconciliation"},{"severity":"medium","section_a":"sec.15(1)","section_b":"sec.15(3)","confidence":0.76,"description":"Section 15(1) declares that a State guarantee may 'only' be given under section 16, but s.15(3) carves out Acts that 'themselves guarantee' things — meaning guarantees can arise outside s.16 despite the 'only' in s.15(1)"},{"severity":"high","section_a":"sec.16(6)","section_b":"sec.14(1)-(2)","confidence":0.8,"description":"Section 16(6) allows a guarantee to apply to a statutory body not yet established at the time of the guarantee. Section 14 requires a statutory body to perform conditions precedent and make a written decision before exercising a power to enter a financial arrangement. A body not yet established cannot perform these preconditions, creating an irreconcilable conflict for guaranteed arrangements entered into by not-yet-existing bodies."},{"severity":"high","section_a":"sec.21(1)","section_b":"sec.21(3)(a)","confidence":0.82,"description":"Section 21(1) provides that when a statutory body borrows from QTC, the Treasurer is 'taken to have guaranteed' the obligations — an automatic, deemed guarantee. Section 21(3)(a) then allows the Treasurer to direct by gazette notice that 'the borrowing is not guaranteed.' This means a guarantee that has already been deemed to exist by operation of law can be retroactively negated by gazette notice, potentially after the borrowing has occurred."},{"severity":"medium","section_a":"sec.26(1)","section_b":"sec.27(2)-(3)","confidence":0.65,"description":"Section 26(1) allows members of a statutory body to continue exercising their powers unless inconsistent with the appointee's powers. Section 27(2)-(3) allows the Treasurer to give written directions to members about how they may exercise their powers, and members must comply. The Treasurer's directions under s.27 could restrict members further than the 'inconsistency' test in s.26(1) permits, or could purport to expand powers in ways the inconsistency test would otherwise curtail, creating competing constraints with no hierarchy."},{"severity":"medium","section_a":"sec.36(2)","section_b":"sec.36(3)","confidence":0.63,"description":"Section 36(2) empowers the Treasurer to direct by gazette notice how income encumbrances rank. Section 36(3) provides a default of equal ranking if there is no gazette notice. These are not contradictory in themselves, but s.36(5) overrides contrary provisions in other Acts 'after the commencement.' This means pre-commencement encumbrance rankings in other Acts are overridden, but the Treasurer may then restore differential rankings via gazette notice under s.36(2), effectively allowing subordinate executive action (gazette notice) to reinstate what primary legislation has removed — an inversion of normal legislative hierarchy."},{"severity":"low","section_a":"sec.11(1)","section_b":"sec.11(6)","confidence":0.6,"description":"Section 11(1) states Part 7 powers are 'additional to' powers under other parts and other Acts (subject to s.11(5)). Section 11(6) then states a statutory body's powers under 'this Act' must not be construed as including derivative transaction, funds manager appointment, or type 1 financial arrangement powers except under Part 7. This means Part 7 grants additive powers, but simultaneously strips those powers from the rest of the Act — creating an asymmetric additive/subtractive structure where the 'addition' in s.11(1) is partially negated by the exclusion in s.11(6)."}]}},"importantCases":[],"_links":{"self":"/api/acts/statutory-bodies-financial-arrangements-act-1982","history":"/api/acts/statutory-bodies-financial-arrangements-act-1982/history","analysis":"/api/acts/statutory-bodies-financial-arrangements-act-1982/analysis","conflicts":"/api/acts/statutory-bodies-financial-arrangements-act-1982/conflicts","importantCases":"/api/acts/statutory-bodies-financial-arrangements-act-1982/important-cases","documents":"/api/acts/statutory-bodies-financial-arrangements-act-1982/documents"}}