54ABHedging through currency contracts etc.

##### 54AB Hedging through currency contracts etc. (1) Subject to subsection (4), the Corporation 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 Corporation; or (b) an investment of money by the Corporation; or (c) commodity purchases by the Corporation. > 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 Corporation of its power under subsection (1) and must give the Corporation a copy of each determination made. (3) Without limiting subsection (2), the guidelines may provide that: (a) the Corporation is not to enter into or deal with contracts of a particular kind; or (b) the Corporation is to enter into or deal with contracts of a particular kind only if the contract relates to specified matters. (4) The Corporation 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 Corporation; or (ii) the revenue obtainable by the Corporation from the investment of money of the Corporation; or (iii) the cost of commodities purchased by the Corporation; or (b) maintaining the value of: (i) investments made by the Corporation; or (ii) property used as security for a borrowing, or a proposed borrowing by the Corporation. (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 two or more of the dealings referred to in paragraph (d); (f) options (including futures options); (g) contracts of a kind approved in writing by the Minister.