64AHedging through currency contracts etc.

#### 64A Hedging through currency contracts etc. (1) Subject to subsection (4), the Commission may enter into and deal with contracts to which this section applies for hedging purposes in relation to: (a) a borrowing, or a proposed borrowing, of money by the Commission; or (b) an investment of money by the Commission; or (c) commodity purchases by the Commission. > Note: for contracts to which this section applies see subsection (6). (2) The Minister may, by written determination, set guidelines for the exercise by the Commission of its power under subsection (1) and must give the Commission a copy of each determination made. (3) Without limiting subsection (2), the guidelines may provide that: (a) the Commission is not to enter into or deal with contracts of a particular kind; or (b) the Commission is to enter into or deal with contracts of a particular kind only if the contract relates to specified matters. > Note: Examples of paragraph (3)(b) guidelines: > Note: guidelines that provided the Commission is to enter into commodity futures only if the commodity is a specified commodity or a commodity that has a specified link with the Commission’s operations. (4) The Commission must not enter into or deal with a contract to which this section applies contrary to any guidelines in force under subsection (2). (5) A contract is taken to be entered into or dealt with for hedging purposes only if the contract is entered into or dealt with for the purposes of: (a) reducing the risk of adverse variations in: (i) the costs of a borrowing, or a proposed borrowing, of money by the Commission; or (ii) the revenue obtainable by the Commission from the investment of money of the Commission; or (iii) the costs of commodities purchased by the Commission; or (b) maintaining the value of: (i) investments made by the Commission; or (ii) property used as security for a borrowing, or a proposed borrowing, by the Commission. (6) This section applies to contracts of the following kinds: (a) currency contracts; (b) interest rate contracts; (c) futures contracts; (d) contracts relating to: (i) dealings known as currency swaps; or (ii) dealings known as interest rate swaps; or (iii) dealings known as commodity swaps; (e) contracts relating to 2 or more of the dealings referred to in paragraph (d); (f) options (including futures options); (g) contracts of a kind approved by the Minister in writing.