(1) In this Division, unless the contrary intention appears—
“overseas investment transaction” means—
(a) the acquisition of shares or stock, or any other interest, in a corporation incorporated in a country outside Australia, being a corporation that, either alone or with other persons, carries on or proposes to carry on a business in that country;
(b) the acquisition of a right to share in the income or assets, or the income and assets, of a business carried on, or proposed to be carried on, in a country outside Australia, whether under a partnership or otherwise;
(c) the lending of moneys to a person for use by him in or in connexion with a business carried on, or proposed to be carried on, by him in a country outside Australia; or
(d) the transferring of moneys to, or the importing of equipment or other goods into, a country outside Australia for use in or in connexion with a business carried on, or proposed to be carried on, in that country by the person transferring the moneys or importing the equipment or other goods;
“war-like operation” includes any operation in the course of any war (including civil war), riot, civil commotion, revolution, insurrection, rebellion or any similar happening.
(2) This Division has effect in relation to Papua New Guinea as if, on 22 January 1974, Papua New Guinea had ceased to be an external territory and had become a country outside Australia.
Approved cause of loss.
For the purposes of this Division, each of the following is an approved cause of loss:—
(a) expropriation of property;
(b) damage to or destruction of property caused by a war-like operation;
(c) inability to transfer money to Australia from another country.
Applications for insurance.
Where a person carrying on business in Australia has, on or after 22 January 1974 and before the commencement of this Act, entered upon, or, after the commencement of this Act proposes to enter upon, an overseas investment transaction, he may, by application in writing made to the Corporation, request the Corporation to enter into a contract of insurance insuring him against monetary loss or other monetary detriment in respect of the transaction, being loss or detriment resulting from such approved cause of loss as is, or such approved causes of loss as are, specified in the application.
Reference of applications to Minister.
(1) Subject to sub-section (2), where the Corporation receives an application under section 29, the Board shall refer the application to the Minister for consideration under sub-section (3).
(2) The Minister may give directions to the Board with respect to the circumstances or cases in which applications are, or are not, to be referred to him under sub-section (1), and the Board shall comply with any such direction.
(3) Where an application has been referred to the Minister under sub-section (1) and the Minister is of the opinion that—
(a) the overseas investment transaction to which the application relates will assist in the social and economic development of a country outside Australia; and
(b) it is in the national interest that the Corporation should enter into a contract of insurance in respect of the matter the subject of the application,
the Minister may, by writing under his hand, approve the entering into by the Corporation of such a contract.
Minister may give directions with respect to insurance to be provided under insurance contracts.
(1) An approval under sub-section 30(3) may contain conditions or directions in relation to the proposed contract of insurance (including conditions or directions with respect to the amount of the premium to be charged or the percentage of the amount of the loss to which the insurance is to extend).
(2) Without limiting the generality of sub-section (1), the Minister, in an approval given under sub-section 30(3) in relation to a contract of insurance insuring a person against monetary loss or other monetary detriment resulting from expropriation of property—
(a) may direct that the insurance shall apply only in relation to expropriation of such kind or kinds, or expropriation of such property or property of such kind or kinds, or expropriation occurring in or as a result of such circumstances, as is or are specified in the approval; and
(b) may direct that the insurance shall extend to monetary loss or other monetary detriment resulting from—
(i) such acts similar to expropriation as are specified in the approval; or
(ii) any substantial interference with the rights of the owner of the business to which the contract relates to control or carry on the business or to dispose of the business or any of its assets, being interference of such kind, or interference occurring in or as a result of such circumstances, as is or are specified in the approval.
(3) Without limiting the generality of sub-section (1), the Minister, in an approval given under sub-section 30(3) in relation to a contract of insurance insuring a person against monetary loss or other monetary
detriment resulting from damage to or destruction of property caused by a war-like operation, may direct that the insurance shall apply only in relation to damage or destruction of such kind or kinds, or damage to or destruction of such property or property of such kind or kinds, or damage or destruction occurring in or as a result of such circumstances, as is or are specified in the approval.
(4) Without limiting the generality of sub-section (1), the Minister, in an approval given under sub-section 30(3) in relation to a contract of insurance insuring a person against monetary loss or other monetary detriment resulting from inability to transfer money to Australia from another country—
(a) may direct that the insurance shall apply only where the inability is of such a kind, or occurs in or as a result of such circumstances, as is or are specified in the approval; and
(b) may direct that the insurance shall extend to monetary loss or other monetary detriment resulting from such other causes related to the transfer of moneys as are specified in the approval.
Corporation to enter into insurance contracts in accordance with Minister’s approval.
(1) Where, under sub-section 30(3), the Minister approves the Corporation entering into a contract of insurance, the Corporation is empowered to enter into a contract in accordance with the approval and, unless the approval is revoked, shall not decline to do so.
(2) The Board may, before the Corporation enters into a contract of insurance in accordance with an approval given under sub-section 30(3), inform the Minister, by notice in writing, that the Corporation will bear the whole of the liability of the Corporation under the contract or such proportion of that liability as is specified in the notice.
(3) Where a contract of insurance is entered into in accordance with an approval under sub-section 30 (3), the Minister shall notify the fact in the Gazette (without reference to the names of the parties to the overseas investment transaction to which the contract relates), together with particulars of the nature and extent of the liability under the contract.
Insurance to be restricted to noncommercial risks, &c.
The Minister shall not approve the entering into by the Corporation of a contract of insurance under this Division under which a person is insured—
(a) in respect of risks that are normally insured with commercial insurers or, in the opinion of the Minister, are normal commercial risks; or
(b) against loss or other detriment attributable to circumstances within the control of that person.
Division Div 4 - Export Finance and Insurance Corporation Act 1974 - Overseas Investment Insurance. | Zoe