Commonwealth Numbered Acts

CANNED FRUITS MARKETING AMENDMENT ACT 1984 No. 148 of 1984 - SECT 16

16. After section 45 of the Principal Act the following section is inserted:
Futures contracts

"45A. (1) Subject to sub-section (4), the Corporation may, for the purpose of
the performance of its functions or the exercise of its powers under this Act
or a State Act, in relation to-

   (a)  the sale or proposed sale of canned fruits by the Corporation; or

   (b)  a borrowing or raising of money by the Corporation or a proposed
        borrowing or raising of money by the Corporation (including a
        borrowing or raising of money by the Corporation by dealing with
        securities), enter into and deal with futures contracts for hedging
        purposes at a futures market at a place in Australia.

"(2) Subject to sub-section (4), the Corporation may, for the purpose of the
performance of its functions or the exercise of its powers under this Act or a
State Act in relation to-

   (a)  the sale or proposed sale of canned fruits by the Corporation; or

   (b)  a borrowing or raising of money by the Corporation or a proposed
        borrowing or raising of money by the Corporation (including a
        borrowing or raising of money by the Corporation by dealing with
        securities), enter into and deal with futures contracts for hedging
        purposes at a futures market at a place outside Australia.

"(3) The Minister may, by determination in writing-

   (a)  set guidelines for the purpose of the exercise by the Corporation of
        its powers under sub-sections (1) and (2); and

   (b)  revoke or vary guidelines set for that purpose or set new guidelines
        for that purpose, and shall give to the Corporation a copy of each
        determination made under this sub-section.

"(4) The Corporation shall not enter into or deal with futures contracts
otherwise than in accordance with any guidelines having effect from time to
time under sub-section (3).

"(5) A futures contract shall be taken to be entered into or dealt with for
hedging purposes if, and only if, the contract is entered into or dealt with-

   (a)  for the purpose of minimizing the risks of variations in the return
        for canned fruits under a contract for the sale of canned fruits that
        has been, or is to be, entered into by the Corporation; or

   (b)  for the purpose of minimizing the risks of variations in the costs of
        a borrowing or raising of money by the Corporation or a proposed
        borrowing or raising of money by the Corporation (including a
        borrowing or raising of money or a proposed borrowing or raising of
        money by dealing with securities).



"(6) In this section-
'futures contracts' means a currency futures contract or a financial futures
contract;
'futures market' means a market, exchange or other place at which futures
contracts are regularly made or traded.".