62Hedging through currency contracts etc.

##### 62 Hedging through currency contracts etc. (1) In this section: > currency contract means: (a) a forward exchange rate contract; or (b) a contract with respect to currency futures. > futures contract means: (a) a deferred delivery contract; or (b) a contract with respect to financial futures; or (c) a contract with respect to commodity futures. (2) This section applies to the following contracts: (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. (3) Subject to subsection (6), the Organisation may enter into and deal with contracts to which this section applies for hedging purposes in relation to: (a) a borrowing or raising, or a proposed borrowing or raising, of money by the Organisation; or (b) an investment of money by the Organisation; or (c) a purchase or sale of wool; or (d) the making by the Organisation of a payment outside Australia in relation to the promotion of the use of wool and wool products; or (e) a transaction in foreign currency. (4) The Minister may determine written guidelines for the exercise by the Organisation of its powers under subsection (3) and must give the Organisation a copy of each determination made. (5) Without limiting subsection (4), the guidelines may provide that: (a) the Organisation is not to enter into or deal with contracts of a particular kind; or (b) the Organisation is to enter into or deal with contracts of a particular kind only in specified circumstances. (6) The Organisation must not enter into or deal with a contract to which this section applies contrary to any guidelines in force under subsection (4). (7) 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 purpose of: (a) managing the risk of variations in: (i) the costs of a borrowing or raising, or a proposed borrowing or raising, of money by the Organisation; or (ii) the revenue obtainable by the Organisation from an investment; or (iii) the amount payable to the Organisation for any wool sold by it; or (iv) the amount payable by the Organisation for any wool bought by it; or (v) the amount of any payment referred to in paragraph (3)(d); or (vi) a payment to or by the Organisation in relation to a transaction in foreign currency; or (b) maintaining the value of investments made by the Organisation.