Treasurer to be supplied with certain documents

14. Section 10 of the Principal Act is amended by omitting sub-section (4) and substituting the following sub-section:

“(4) Sub-section (3) applies in relation to the Australian Resources Development Bank Limited and the Australian Rural Bank Limited as if they were banks specified in the First Schedule.

Interpretation

15. Section 17 of the Principal Act is amended by inserting in sub-section (2) “or the Australian Rural Bank Limited” after “the Australian Resources Development Bank Limited”.

Advance policy

16. Section 36 of the Principal Act is amended by omitting from sub-section (4) “and the Australian Resources Development Bank Limited” and substituting “, the Australian Resources Development Bank Limited and the Australian Rural Bank Limited”.

Interpretation

17. Section 51 of the Principal Act is amended by omitting “and the Australian Resources Development Bank Limited” and substituting “, the Australian Resources Development Bank Limited and the Australian Rural Bank Limited”.

18. After section 63a of the Principal Act the following section is inserted:

Alterations in structure or ownership of the Australian Rural Bank require consent of Treasurer

“63b. (1) Except with the prior consent in writing of the Treasurer—

(a) an allotment of shares in the capital of the Australian Rural Bank Limited shall not be made;

(b) a transfer of shares in the capital of the Australian Rural Bank Limited shall not be registered;

(c) a reconstruction of the Australian Rural Bank Limited shall not be effected; and

(d) an arrangement or agreement for any sale or disposal of the business of the Australian Rural Bank Limited by amalgamation or otherwise, or for the carrying on of its business in partnership with another person, shall not be entered into.

“(2) If such an allotment is made, such a registration or reconstruction is effected, or such an arrangement or agreement is entered into, without the prior consent of the Treasurer—

(a) the Australian Rural Bank Limited is guilty of an offence punishable, on conviction, by a fine not exceeding Two thousand dollars; and

(b) the allotment, registration, reconstruction, arrangement or agreement, and any such sale or disposal in pursuance of the arrangement or agreement, is void and of no effect.

Unclaimed moneys

19. Section 69 of the Principal Act is amended by omitting from sub-section (12) “and the Australian Resources Development Bank Limited” and substituting “, the Australian Resources Development Bank Limited and the Australian Rural Bank Limited”.

SCHEDULE Section 5

REQUIREMENTS APPLICABLE TO MEMORANDUM AND ARTICLES OF ASSOCIATION OF RURAL BANK

1. (1) The principal object of the Bank is to be the carrying on of banking business in Australia and, in particular, the provision of finance to banks and lenders.

(2) The provision of finance to banks and lenders is to be for the purpose of enabling those banks and lenders to make loans with a view to increasing the availability of loan funds for purposes relating to primary production, being purposes that are commercially sound, to persons who are, or have a reasonable prospect of, successfully carrying on the business of primary production.

(3) The lenders to whom finance is to be provided are to be such lenders as are considered by the Bank to be appropriate having regard to, among other things, any shares in the Bank held by them or any loans made by them to the Bank.

(4) A loan referred to in sub-clause (2) may be for any period up to 30 years.

2. The Treasurer is to have the right, on behalf of the Commonwealth, to subscribe for or acquire shares in the Bank.

3. The directors of the Rural Bank are to include—

(a) A person designated by the Treasurer to be the Chairman;

(b) a person designated by the Treasurer to represent the interests of the Commonwealth; and

(c) 2 persons designated by the Treasurer to represent the interests of primary producers.