Commonwealth Consolidated Acts

FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997 - SECT 8

             (1)  The Finance Minister may, on behalf of the Commonwealth, enter into an agreement with any bank:

                     (a)  for the receipt, custody, payment or transmission of public money, either inside or outside Australia; or

                     (b)  for any other matter relating to the conduct of the banking business of the Commonwealth.

             (2)  An agreement under this section may provide for the payment of interest and other charges by the Commonwealth.

             (3)  An agreement under this section may not provide for overdraft drawings by the Commonwealth unless it provides for each drawing to be repaid within 30 days.

Note:          An overdraft drawing consists of the bank meeting the payment of a cheque, or making an "electronic payment" to another account, and in each case debiting the payment against an account that has an insufficient balance. Section 38 deals with overdrafts that arise in respect of advances that are paid to the Commonwealth.

             (4)  An agreement for an overdraft on an official account must not be made except under this section.

             (5)  An agreement under this section may not be made for a period of more than one year unless the agreement can be terminated by the Commonwealth at any time after giving notice of not more than 6 months.