Commonwealth Numbered Acts

PRIMARY INDUSTRIES AND ENERGY LEGISLATION AMENDMENT ACT (No. 2) 1992 No. 59, 1992 - SECT 7

7. Section 27 of the Principal Act is repealed and the following section is
substituted: Hedging through currency contracts etc.

"27.(1) In this section: '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.

"(2) This section 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; or

        (iii)  dealings known as commodity swaps;

   (e)  contracts relating to 2 or more of the dealings referred to in
        paragraph (d);

   (f)  options (including futures options);

   (g)  contracts of a kind approved by the Minister in writing.

"(3) Subject to subsection (6), the Corporation may enter into and deal with
contracts to which this section applies for hedging purposes in relation to:

   (a)  a borrowing or raising, or a proposed borrowing or raising, of money
        by the Corporation; or

   (b)  an investment of money by the Corporation; or

   (c)  a purchase or sale of wool; or

   (d)  the making by the Corporation of a payment outside Australia in
        relation to the promotion of the use of wool and wool products; or

   (e)  a transaction in foreign currency.

"(4) The Minister may, by written determination, set guidelines for the
exercise by the Corporation of its powers under subsection (3) and must give
the Corporation a copy of each determination made.

"(5) Without limiting subsection (4), the guidelines may provide that:

   (a)  the Corporation is not to enter into or deal with contracts of a
        particular kind; or

   (b)  the Corporation is to enter into or deal with contracts of a
        particular kind only if the contract relates to specified matters.

"(6) The Corporation must not enter into or deal with a contract to which this
section applies contrary to any guidelines in force under subsection (4).

"(7) 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:

   (a)  managing the risk of variations in:

        (i)    the costs of a borrowing or raising, or a proposed borrowing or
               raising, of money by the Corporation; or

        (ii)   the revenue obtainable by the Corporation from the investment
               of money by the Corporation; or

        (iii)  the amount payable to the Corporation for any wool sold by it;
               or

        (iv)   the amount payable by the Corporation for any wool bought by
               it; or

        (v)    the amount of any payment referred to in paragraph (3)(d); or

        (vi)   a payment to or by the Corporation in relation to a transaction
               in foreign currency; or

   (b)  maintaining the value of investments made by the Corporation.".