Div 4Mobilization of Foreign Currency.

Division 4.—Mobilization of Foreign Currency. Transfer of foreign currency to Commonwealth Bank 23.—(1.) The Commonwealth Bank may, from time to time, by notice in writing, require each bank to transfer to the Commonwealth Bank an amount of sterling equivalent to such proportion as is specified in the notice of that bank’s excess receipts of foreign currency as at the close of business on a date specified in the notice, not being more than twenty-one days before the date on which the notice is given. (2.) The proportion specified in any notice under the last preceding sub-section shall be the same in respect of each bank. (3.) Where, as at the close of business on a date specified in a notice under sub-section (1.) of this section, a bank has not transferred an amount of sterling which it has been required to transfer in pursuance of any previous notice under that sub-section, the excess receipts of foreign currency to which that amount of sterling is equivalent shall not, for the purpose of calculating the amount of sterling required to be transferred in pursuance of the first-mentioned notice, be taken into account as part of the excess receipts of foreign currency of that bank. (4.) Each bank shall comply with the requirements of any notice under sub-section (1.) of this section within seven days after the receipt of the notice by the bank or within such further period as is specified by the Commonwealth Bank. (5.) A bank shall be deemed to have complied with the requirements of any notice under sub-section (1.) of this section if it transfers to the Commonwealth Bank an amount of sterling equivalent to the specified proportion of that bank’s excess receipts of foreign currency, as shown in that bank’s books of account, as at the close of business on the date in question. (6.) Where any bank’s assets outside Australia attributable to, or acquired by virtue of, its Australian business include foreign currency which is not freely convertible into sterling, the Commonwealth Bank shall make such adjustment in the amount of sterling required to be transferred by that bank to the Commonwealth Bank under this section as appears to the Commonwealth Bank to be necessary in the circumstances. Payment for transferred foreign currency. 24. The Commonwealth Bank shall pay to any bank transferring any sterling in compliance with a notice under the last preceding section, such amount in Australian currency as is agreed upon between the Commonwealth Bank and the bank transferring the sterling or, in default of agreement, as is determined in an action for compensation by that bank against the Commonwealth Bank. Sale of foreign currency by Commonwealth Bank. 25. The Commonwealth Bank may sell foreign currency to a bank— (a) where the Commonwealth Bank is satisfied that that bank has complied with the provisions of this Division and is likely to suffer a shortage of foreign currency; or (b) if the Commonwealth Bank considers that, for any other reason, it is desirable to do so. Interpretation. 26. In this Division— “excess receipts of foreign currency”, in relation to any bank as at any date, means the amount by which the amount of that bank’s surplus foreign currency as at that date exceeds the amount of its surplus foreign currency as at the date of commencement of this Division; “sterling” means currency which is legal tender in the United Kingdom; “surplus foreign currency”, in relation to any bank, means the amount by which the amount of that bank’s assets outside Australia attributable to, or acquired by virtue of, its Australian business exceeds the amount of its liabilities outside Australia attributable to, or incurred by virtue of, its Australian business.