Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to this section, AA may enter into and deal with approved contracts for hedging purposes in relation to the following:
(b) investment of money by AA;
(c) acquisition by AA of goods or services;
(d) a transaction in foreign currency.
(2) The Minister may give written guidelines to AA for the exercise of AA's power under subsection ( 1). AA must comply with the guidelines.
(3) Without limiting subsection ( 2), the guidelines may provide that:
(a) AA is not to enter into or deal with contracts of a particular kind; or
(b) AA is to enter into or deal with contracts of a particular kind only if the contract relates to specified matters.
"approved contract" means a contract of any of the following kinds:
(a) a forward exchange rate contract;
(b) a contract with respect to currency futures;
(c) an interest rate contract;
(d) a deferred delivery contract;
(e) a contract with respect to financial futures;
(f) a contract with respect to commodity futures;
(i) dealings known as currency swaps; or
(ii) dealings known as interest rate swaps; or
(iii) dealings known as commodity swaps;
(h) a contract relating to 2 or more of the dealings referred to in paragraph ( g);
(i) options (including futures options);
(j) a contract of a kind approved in writing by the Minister .
"hedging purposes" means reducing or eliminating risks of adverse financial consequences to AA, and includes the following:
(a) reducing or eliminating the risk of adverse variations in:
(i) the costs in relation to money raising by AA; or
(ii) the revenue obtainable by AA; or
(iii) the costs in relation to acquiring goods or services by AA;
(i) investments made by AA; or
(ii) property used as security for money raising, or proposed
money raising, by AA.