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This is a Bill, not an Act. For current law, see the Acts databases.
2019-2020-2021
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Export Finance and Insurance
Corporation Amendment (Equity
Investments and Other Measures) Bill
2021
No. , 2021
(Foreign Affairs and Trade)
A Bill for an Act to amend the
Export Finance and
Insurance Corporation Act 1991
, and for related
purposes
No. , 2021
Export Finance and Insurance Corporation Amendment (Equity
Investments and Other Measures) Bill 2021
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Equity investments
3
Export Finance and Insurance Corporation Act 1991
3
Schedule 2--Guarantees for overseas infrastructure
development
7
Export Finance and Insurance Corporation Act 1991
7
No. , 2021
Export Finance and Insurance Corporation Amendment (Equity
Investments and Other Measures) Bill 2021
1
A Bill for an Act to amend the
Export Finance and
1
Insurance Corporation Act 1991
, and for related
2
purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act is the
Export Finance and Insurance Corporation
6
Amendment (Equity Investments and Other Measures) Act 2021
.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
2
Export Finance and Insurance Corporation Amendment (Equity
Investments and Other Measures) Bill 2021
No. , 2021
1
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
The day this Act receives the Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
2
enacted. It will not be amended to deal with any later amendments of
3
this Act.
4
(2) Any information in column 3 of the table is not part of this Act.
5
Information may be inserted in this column, or information in it
6
may be edited, in any published version of this Act.
7
3 Schedules
8
Legislation that is specified in a Schedule to this Act is amended or
9
repealed as set out in the applicable items in the Schedule
10
concerned, and any other item in a Schedule to this Act has effect
11
according to its terms.
12
Equity investments
Schedule 1
No. , 2021
Export Finance and Insurance Corporation Amendment (Equity
Investments and Other Measures) Bill 2021
3
Schedule 1--Equity investments
1
2
Export Finance and Insurance Corporation Act 1991
3
1 Subsection 3(1) (note to the definition of
overseas
4
infrastructure financing
)
5
Omit "or providing a financial accommodation", substitute "providing a
6
financial accommodation or making an equity investment".
7
2 Subsection 3(2)
8
Omit "or to the provision of a financial accommodation", substitute "the
9
provision of a financial accommodation or the making of equity
10
investments".
11
3 At the end of subsection 7(3)
12
Add:
13
Note:
The provision of loans includes providing finance, providing a
14
financial accommodation or making an equity investment, in any
15
form: see subsection 3(2).
16
4 Paragraph 16(1)(a)
17
After "has lent, or proposes to lend,", insert "other than in the form of
18
an equity investment,".
19
5 Subsection 17(1)
20
After "has lent, or proposes to lend,", insert "other than in the form of
21
an equity investment,".
22
6 Paragraph 18(a)
23
After "has lent, or proposes to lend,", insert "other than in the form of
24
an equity investment,".
25
7 Paragraph 18(b)
26
After "has also lent, or proposes to lend,", insert "other than in the form
27
of an equity investment,".
28
Schedule 1
Equity investments
4
Export Finance and Insurance Corporation Amendment (Equity
Investments and Other Measures) Bill 2021
No. , 2021
8 Subsection 23(1) (note)
1
Omit "or to provide a financial accommodation", substitute "to provide
2
a financial accommodation or to make an equity investment".
3
9 Subsection 23(3)
4
After "must not lend money", insert "(other than in the form of an
5
equity investment)".
6
10 At the end of section 23
7
Add:
8
(5) In addition, EFIC must not lend money in the form of an equity
9
investment under this section unless an application for the loan has
10
been referred to the Minister under section 25.
11
Note:
A direction under section 26 may prevent such applications from
12
being referred to the Minister. EFIC cannot lend money under this
13
section in those circumstances.
14
11 Subsection 23A(1) (note)
15
Omit "or to provide a financial accommodation", substitute "to provide
16
a financial accommodation or to make an equity investment".
17
12 At the end of section 23A
18
Add:
19
(4) In addition, EFIC must not lend money in the form of an equity
20
investment under this section unless the application for the loan has
21
been referred to the Minister under section 25.
22
Note:
A direction under section 26 may prevent such applications from
23
being referred to the Minister. EFIC cannot lend money under this
24
section in those circumstances.
25
13 At the end of subsection 27(4)
26
Add:
27
Note:
The provision of loans includes providing finance, providing a
28
financial accommodation or making an equity investment, in any
29
form: see subsection 3(2).
30
Equity investments
Schedule 1
No. , 2021
Export Finance and Insurance Corporation Amendment (Equity
Investments and Other Measures) Bill 2021
5
14 At the end of subsection 27(4A)
1
Add:
2
Note:
The provision of loans includes providing finance, providing a
3
financial accommodation or making an equity investment, in any
4
form: see subsection 3(2).
5
15 Paragraph 28(c)
6
After "the rate of interest to be charged", insert "(if applicable)".
7
16 Paragraph 29(5)(c)
8
After "the rate of interest to be charged", insert "(if applicable)".
9
17 Paragraph 30(2)(c)
10
After "the rate of interest to be charged", insert "(if applicable)".
11
18 At the end of subsection 56(1)
12
Add:
13
; and (c) to make adequate provision for losses in relation to loans
14
made in the form of equity investments made by EFIC.
15
19 Paragraph 56(2)(b)
16
After "in relation to a loan made by EFIC,", insert "or a likely loss of a
17
kind referred to in paragraph (1)(c) to a loan made by EFIC in the form
18
of an equity investment,".
19
20 Paragraph 66(6)(b)
20
After "in respect of which default", insert "or loss".
21
21 After subsection 66(10)
22
Insert:
23
(10A) For the purpose of subsection (10), the expenses of EFIC in
24
relation to a loan made in the form of an equity investment include
25
expenses incurred by EFIC in relation to the acquisition,
26
management or sale of its equity interest.
27
Schedule 1
Equity investments
6
Export Finance and Insurance Corporation Amendment (Equity
Investments and Other Measures) Bill 2021
No. , 2021
22 Application of amendments
1
The amendments of sections 23 and 23A of the
Export Finance and
2
Insurance Corporation Act 1991
made by this Schedule apply in
3
relation to money lent after the commencement of this item.
4
Guarantees for overseas infrastructure development
Schedule 2
No. , 2021
Export Finance and Insurance Corporation Amendment (Equity
Investments and Other Measures) Bill 2021
7
Schedule 2--Guarantees for overseas
1
infrastructure development
2
3
Export Finance and Insurance Corporation Act 1991
4
1 Section 18A
5
Repeal the section, substitute:
6
18A Guarantees in relation to overseas infrastructure development
7
If a person (in this section called
the lender
) has lent, or proposes
8
to lend (other than in the form of an equity investment) money to a
9
person for the purpose of supporting overseas infrastructure
10
development, EFIC may guarantee to the lender:
11
(a) the repayment of the whole, or any part, of the money lent, or
12
to be lent; and
13
(b) the payment of the whole or a part of any interest or other
14
charges that may become payable to the lender in respect of
15
the money lent, or to be lent.
16