Commonwealth Numbered Acts

HOUSING LOANS INSURANCE AMENDMENT ACT 1977 No. 39 of 1977 - SECT 18

18. Section 30 of the Principal Act is amended by inserting after the words
''the Corporation'' (first occurring) the words ''other than moneys due in
respect of moneys borrowed under section 31D''.

19. Section 31 of the Principal Act is repealed and the following sections are
substituted:- Capital of the Corporation.
''31. The capital of the Corporation at any time is the sum of-

   (a)  an amount of $5,000,000 transferred to the capital account of the
        Corporation in pursuance of sub-section (2) of section 31A;

   (b)  any amounts paid to the Corporation by the Treasurer after the
        commencement of this section out of moneys appropriated by the
        Parliament for the purpose of providing further capital for
        the Corporation; and

   (c)  any amounts transferred from the General Reserve to the capital
        account of the Corporation in pursuance of directions given under
        sub-section (4) of section 31A, less the sum of any amounts of capital
        repaid to the Commonwealth by the Corporation after the commencement
        of this section. General Reserve.
''31A. (1) The reserve referred to in section 35 of the Housing Loans
Insurance Act 1965 as amended and in force immediately before the date of
commencement of this section continues in existence, on and after that date,
by force of this section, as a general reserve under the name ''Housing Loans
Insurance Corporation General Reserve''.

''(2) As soon as practicable after the commencement of this section, the
Corporation shall-

   (a)  pay to the Commonwealth, out of the General Reserve, an amount of
        $4,500,000; and

   (b)  transfer to the capital account of the Corporation, out of the General
        Reserve, an amount of $5,000,000.

''(3) There shall be transferred to the General Reserve the balance (if any)
of the profits of the Corporation for a financial year after the payment by
the Corporation to the Commonwealth of such amounts out of those profits as
the Minister determines under sub-section (1) of section 31B.

''(4) The Minister may from time to time direct the Corporation to transfer a
specified amount from the General Reserve to the capital account of the
Corporation, and the Corporation shall comply with such a direction.

''(5) In giving a direction under sub-section (4), the Minister shall have
regard to any advice that the Corporation has furnished to him in relation to
the financial affairs of the Corporation. Payments to the Commonwealth.
''31B. (1) Interest is not payable to the Commonwealth on the capital of the
Corporation but the Corporation shall pay to the Commonwealth, out of the
profits of the Corporation for the financial year that commenced on 1 July
1976 and for each succeeding year, such amount as the Minister determines.

''(2) The capital of the Corporation is repayable to the Commonwealth at such
times and in such amounts as the Minister determines.

''(3) In the making of a determination under sub-section (1) or (2), regard
shall be had to any advice that the Corporation has furnished to the Minister
in relation to the financial affairs of the Corporation. Interim dividends.
''31C. (1) The Corporation shall, from time to time during a financial year,
pay to the Commonwealth such an amount, or such amounts, as the Minister
directs on account of the amount that is expected to become payable by the
Corporation in respect of that financial year in accordance with a
determination of the Minister under sub-section (1) of section 31B.

''(2) The Minister shall not make a direction under sub-section (1) during a
financial year unless he has given the Corporation a reasonable opportunity to
furnish to him particulars of its estimated profits for that financial year
and any advice that the Corporation wishes to furnish to him concerning its
financial affairs and has had regard to any particulars and advice so
furnished to him.

''(3) Where the amount, or the total of the amounts, paid by the Corporation
to the Commonwealth during a financial year under sub-section (1) of this
section exceeds the amount (if any) determined by the Minister under
sub-section (1) of section 31B to be payable by the Corporation to the
Commonwealth in respect of that year, the amount of the excess shall be
treated as having been paid by the Corporation to the Commonwealth under
sub-section (1) of this section during the next succeeding financial year.
Borrowing by the Corporation.
''31D. (1) The Corporation may, with the approval of the Treasurer, borrow
moneys that are from time to time necessary for the exercise of its powers or
the performance of its duties or functions under this Act.

''(2) The Treasurer may, on behalf of the Commonwealth, out of moneys
appropriated by the Parliament for the purpose, lend to the Corporation, at
such rate of interest and on such other terms and conditions as he determines,
moneys that the Corporation is authorized to borrow under sub-section (1).

''(3) The Corporation may give security over the whole or any part of its
assets for the repayment of amounts borrowed under this section and the
payment of interest on amounts so borrowed.

''(4) The Treasurer may, on behalf of the Commonwealth, guarantee the
repayment by the Corporation of amounts borrowed under this section otherwise
than from the Commonwealth and the payment of interest on amounts so borrowed.

''(5) The Corporation shall not borrow moneys except in accordance with this
section.''.