Commonwealth Numbered Acts

Housing Loans Insurance Amendment Act 1985 No. 34 of 1985 - SECT 9

9. Section 17 of the Principal Act is amended-

   (a)  by omitting sub-section (2) and substituting the following
        sub-section:



"(2) Subject to this Act, the Corporation is empowered to enter into a
contract of insurance-

   (a)  insuring a lender against the whole or part of any loss in respect of
        an insurable loan made, or proposed to be made, by the lender; or

   (b)  insuring an approved dealer against the whole or part of any loss of a
        kind specified in the regulations, being loss that is directly or
        indirectly connected with one or more approved securities relating to
        negotiable mortgage securities issued, or proposed to be issued, by
        the dealer.";

   (b)  by omitting from sub-section (2A) "sub-section (2)" and substituting
        "paragraph (2) (a)";

   (c)  by inserting after sub-section (3) the following sub-sections:



"(3A) Sub-section (3) shall not be taken to limit the generality of paragraph
(2) (b).



"(3B) Subject to this Act, the Corporation is empowered to enter, as the agent
of an insurer, into a contract of insurance insuring a person against the
whole or part of any loss arising from the person having to perform
obligations of a mortgagor under an approved security over a prescribed
interest in land.



"(3C) The Minister may, from time to time, by instrument in writing, direct
the Corporation to enter, under sub-section (2), into contracts in respect of
loans included in a class of loans specified in the direction, being loans-

   (a)  made for purposes that accord with the policies of the Government of
        the Commonwealth in relation to housing; and

   (b)  in respect of which the Corporation would not so enter into contracts
        in the ordinary course of business,
and, subject to sub-section (2A), the Corporation shall comply with the
direction.



"(3D) The Minister shall not give a direction under sub-section (3C) unless he
has given the Corporation a reasonable opportunity to furnish advice to him on
the matter and has had regard to any advice so furnished.



"(3E) The Minister shall cause a copy of a direction given under sub-section
(3C) to be laid before each House of the Parliament within 15 sitting days of
that House after the giving of the direction."; and

   (d)  by adding at the end the following sub-section:



"(6) The Corporation shall ensure as far as practicable that a substantial
part of its business relates to loans made for purposes of enabling persons to
acquire or construct residential accommodation.".