7Functions of Facility

#### 7 Functions of Facility Grants of financial assistance to the States and Territories (1) The functions of the Facility are: (a) to provide grants of financial assistance to the States and Territories for the development of Northern Australia economic infrastructure; and (b) to determine terms and conditions for the grants of financial assistance; and (c) as agreed between the Facility and the States and Territories, to provide incidental assistance to the States and Territories in relation to financial arrangements and agreements related to the terms and conditions of the grants of financial assistance. Financial assistance to other entities (1A) It is also a function of the Facility to provide financial assistance to entities other than the States and Territories, and determine terms and conditions for the provision of that financial assistance, for the development of Northern Australia economic infrastructure: (a) that is with respect to, or in, a Territory; or (b) that is with respect to benefiting Indigenous persons; or (c) that is with respect to trade and commerce: (i) between Australia and places outside Australia; or (ii) among the States; or (iii) within a Territory, between a State and a Territory, or between 2 Territories; or (d) that is with respect to a postal, telegraphic, telephonic or other like service to which paragraph 51(v) of the Constitution applies; or (e) that is for the purposes of the defence of the Commonwealth and the States; or (f) if the entity is a corporation to which paragraph 51(xx) of the Constitution applies and the financial assistance is not in the form of equity investments; or (g) that is with respect to external affairs, including: (i) giving effect to any international agreement to which Australia is a party; and (ii) addressing matters external to Australia; and (iii) contributing to the achievement of Australia’s greenhouse gas emissions reduction targets; or (h) that is with respect to railway construction or extension to which paragraph 51(xxxiv) of the Constitution applies; or (i) that is with respect to activities that are peculiarly adapted to the government of a nation and cannot otherwise be carried on for the benefit of the nation; or (j) that is with respect to matters incidental to the execution of any of the legislative powers of the Parliament or the executive power of the Commonwealth. Equity investments (1B) The Facility may provide financial assistance in the form of equity investments under subsection (1A) by making investments itself (including as a participant in partnerships, trusts, joint ventures or similar arrangements), through subsidiaries or other investment vehicles, or by any combination of these means. The Facility must not provide financial assistance in any other form under subsection (1A) through subsidiaries. Acquisition of derivatives (1C) The Facility may only acquire a derivative for the purpose of: (a) protecting the value of financial assistance provided by the Facility (other than derivatives acquired by the Facility); or (b) protecting the return on financial assistance provided by the Facility (other than derivatives acquired by the Facility); or (c) achieving indirect exposure to financial assets (other than derivatives) for a purpose in connection with the Facility’s function of providing financial assistance; or (d) achieving transactional efficiency for a purpose in connection with the Facility’s function of providing financial assistance; but must not acquire a derivative for the purpose of: (e) speculation; or (f) leverage. (1D) Subsection (1C) does not apply in relation to guarantees given by the Facility in the ordinary course of providing financial assistance. (2) The Facility has the power to do all things necessary or convenient to be done for or in connection with the performance of its functions.