Australian Capital Territory Current Acts

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FINANCIAL MANAGEMENT ACT 1996 - SECT 59

Borrowing by territory authorities

    (1)     The Treasurer may, on the terms and conditions the Treasurer considers appropriate—

        (a)     borrow money for a territory authority; or

        (b)     lend public money to a territory authority.

    (2)     A borrowing may be secured by the territory authority's assets approved by the Treasurer for this section.

    (3)     A territory authority may arrange an overdraft or credit facility only with the written approval of the Treasurer.

    (4)     A loan under subsection (1) (b) may be made only from—

        (a)     money appropriated for the purpose of making the loan; or

        (b)     money appropriated for purposes that include the purpose of making the loan.

    (5)     However, subsection (4) does not apply to an overdraft or credit facility for a territory authority from the territory banking account that is approved by the Treasurer for the authority.

    (6)     The Treasurer may approve an overdraft or credit facility for a territory authority under subsection (5) only if satisfied that it is for a purpose consistent with a function of the authority.

    (7)     An approval under subsection (5) must state, for the overdraft or credit facility—

        (a)     each purpose for which it may be used; and

        (b)     the maximum amount that may be outstanding at any time; and

        (c)     conditions about—

              (i)     the repayment of principal; and

              (ii)     the interest rate; and

              (iii)     the repayment of interest.

    (8)     An approval under subsection (5) may also state any other condition that the Treasurer requires.

    (9)     An approval under subsection (5) is a disallowable instrument.

Note     A disallowable instrument must be notified, and presented to the Legislative Assembly, under the Legislation Act

.

    (10)     An overdraft or credit facility approved under subsection (5) must be reviewed annually by the Treasurer.



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