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DAIRY PRODUCE AMENDMENT ACT 2004 NO. 32, 2004 - SCHEDULE 2

- Application of the Dairy Structural Adjustment Fund

Dairy Produce Act 1986

1 Subclause 77C(1) of Schedule 2

Repeal the subclause, substitute:

(1)
The industry services body may:

(a) borrow money; or
(b) raise money otherwise than by borrowing;

for the purpose of making payments for which money of the Dairy Structural Adjustment Fund may be expended.

Note: The meaning of raise money otherwise than by borrowing is affected by clause 77CC.

Note: The heading to clause 77C of Schedule 2 is altered by inserting "or raise money" after "borrow".

2 Subclause 77C(2) of Schedule 2

After "borrowing", insert "or other raising of money".

3 After clause 77C of Schedule 2

Insert:

77CA Borrowing or raising money by dealing in securities

(1)
Without limiting subclause 77C(1), the industry services body may, under that subclause, borrow money, or raise money otherwise than by borrowing, by dealing with securities.

(2)
In this clause:

"dealing with securities" includes:

(a) creating, executing, entering into, drawing, making, accepting, endorsing, issuing, discounting, selling, purchasing or re-selling securities; and
(b) creating, selling, purchasing or re-selling rights or options in respect of securities; and
(c) entering into agreements or other arrangements relating to securities.

"securities" includes stocks, debentures, debenture stocks, notes, bonds, promissory notes, bills of exchange and similar instruments or documents.

77CB Hedging through currency contracts etc.

(1)
This clause applies to the following contracts:

(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;
(e) contracts relating to both of the dealings referred to in paragraph (d);
(f) options (including futures options).

(2)
The industry services body may enter into and deal with contracts to which this clause applies for hedging purposes in relation to a borrowing or raising, or a proposed borrowing or raising, of money under subclause 77C(1).

(3)
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 purpose of managing the risk of variations in the costs of a borrowing or raising, or a proposed borrowing or raising, of money under subclause 77C(1).

(4)
In this clause:

"currency contract means":

(a) a forward exchange rate contract; or
(b) a contract with respect to currency futures.

"futures contract means":

(a) a deferred delivery contract; or
(b) a contract with respect to financial futures; or
(c) a contract with respect to commodity futures.
77CC Obtaining credit etc. taken to be raising of an amount of money, otherwise than by borrowing

(1)
This clause applies if the industry services body:

(a) does a thing mentioned in the table in subclause (2); and
(b) does not do that thing in relation to a transaction that is in the ordinary course of its day-to-day operations.

(2)
By doing that thing, the industry services body is taken, for the purposes of this Part and subclause 94(2), to raise the relevant amount of money mentioned in the following table, otherwise than by borrowing:


Circumstances where the industry services body is taken to raise an amount of money, otherwise than by borrowing


Item


If the industry services body...


by doing so, it is taken to raise this amount of money, otherwise than by borrowing...


1


issues an instrument acknowledging a debt in consideration of the payment or deposit of money


the amount of the money paid or deposited


2


issues an instrument acknowledging a debt in consideration of the provision of credit


the value of the credit provided


3


obtains credit


the value of the credit obtained


4 Paragraph 78(h) of Schedule 2

After "borrowed", insert "or otherwise raised".

5 After paragraph 78(h) of Schedule 2

Insert:

(ha) money received by the industry services body in respect of contracts entered into or dealt with by it under clause 77CB;
6 Paragraph 79(m) of Schedule 2

After "borrowed", insert "or otherwise raised".

7 Paragraph 79(n) of Schedule 2

After "borrowing", insert "or otherwise raising".

8 After paragraph 79(n) of Schedule 2

Insert:

(na) in meeting the obligations and liabilities of the industry services body in respect of contracts entered into or dealt with by it under clause 77CB; and
(nb) in meeting the expenses of the industry services body incurred in respect of contracts entered into or dealt with by it under clause 77CB; and
9 Paragraph 94(2)(c) of Schedule 2

After "borrowed", insert "or otherwise raised".

10 Paragraph 94(2)(d) of Schedule 2

After "borrowing", insert "or otherwise raising".

11 Paragraph 94(2)(d) of Schedule 2

Omit "expanded.", substitute "expanded;".

12 At the end of subclause 94(2) of Schedule 2

Add:

(e) in meeting the obligations and liabilities of the industry services body in respect of contracts entered into or dealt with by it under clause 77CB;
(f) in meeting the expenses of the industry services body incurred in respect of contracts entered into or dealt with by it under clause 77CB.


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