New South Wales Consolidated Acts

GOVERNMENT SECTOR FINANCE ACT 2018 - SECT 6.22

6.22 Financial arrangements for GSF agencies

(1) When financial arrangements can be entered A GSF agency is permitted to enter into a financial arrangement for the agency only if--

(a) the arrangement for the agency is authorised, and

(b) the terms and conditions of the authorisation are complied with.

(2) A financial arrangement for a GSF agency is
"authorised" if--

(a) a provision of this Act, the regulations or the Treasurer's directions requires or permits the arrangement (or the kind of arrangement), or

(b) the arrangement (or the kind of arrangement) is required or permitted under a financial arrangement approval.

(3) Persons who can enter financial arrangements for GSF agency Without limiting section 6.2, the accountable authority for a GSF agency may enter into a financial arrangement for or on behalf of the agency that the agency is authorised to enter into and has all of the functions of the agency for that purpose (including under subsection (5)).

(4) The New South Wales Treasury Corporation may enter into derivative arrangements for or on behalf of a GSF agency as provided by section 6.25 and has all of the functions of the agency for that purpose (including under subsection (5)).

(5) Powers to enter financial arrangements To avoid doubt, a GSF agency may do all things that are necessary or convenient to be done in connection with entering into authorised financial arrangements for the agency, including (without limitation) doing the following--

(a) entering into any contract, agreement or other transaction,

(b) incurring any obligations under a contract, agreement or other transaction,

(c) making any payment (including in advance) under a contract, agreement or other transaction,

(d) providing or making any covenants or promises (including absolute and unconditional ones),

(e) using a controlled entity of the GSF agency to do things the GSF agency can do under this Act,

(f) in addition, for a joint financing arrangement--

(i) delegating any function of the GSF agency to a participant in the arrangement, and

(ii) agreeing to the exercise of any function of the GSF agency by a participant in the arrangement, and

(iii) agreeing not to exercise any function of the GSF agency to the extent that an agreement for its exercise by a participant in the arrangement is in force,

(g) exercising any other functions specified in a financial arrangement approval.

(6) Exercise of powers under joint financing arrangements by parties that are not GSF agencies Despite the provisions of any other law, a party to a joint financing arrangement that is not a GSF agency may exercise any function of the GSF agency (in accordance with the joint financing arrangement and in accordance with any financial arrangement approval for the arrangement) as if the party were a GSF agency.

(7) Protection for parties that are not GSF agencies An entity that is a party to a financial arrangement for a GSF agency is not bound to inquire into the application of anything provided under the arrangement and is not responsible for any non-application or misapplication of anything provided.

(8) Role of accountable authority for agency The accountable authority for a GSF agency--

(a) is responsible for administering the financial arrangements for the agency (including those entered into by the Treasurer for or on behalf of the agency), and

(b) must keep records, in accordance with any requirements of the Treasurer's directions, in respect of the financial arrangements for the agency (including any financial arrangement approvals for them).

(9) Relationship with other laws This section does not--

(a) authorise or permit a financial arrangement to be entered into for a GSF agency if other legislation expressly prohibits the agency from entering into that arrangement (or arrangements of that kind), or

(b) limit any power of the Treasurer to enter financial arrangements for or on behalf of a GSF agency.