PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974 NO. 88, 1974 

PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974 NO. 88, 1974 
- TABLE OF PROVISIONS

1. Short title.  
2. Commencement.  
3. Application of Act.  
4. Interpretation.  
5. Approval of guarantees.  
6. Appropriation.  
7. Moneys to be paid free of taxes, &c.  

PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974 No. 88, 1974
- SECT 1
Short title.

                PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974
                                 No. 88 of 1974

An Act to provide for the Giving of Guarantees by Australia with respect to
Loans to be raised Overseas by Papua New Guinea, and for purposes connected
therewith.

  BE IT ENACTED by the Queen, the Senate and the House of Representatives of
Australia, as follows:-
  1. This Act may be cited as the Papua New Guinea Loans Guarantee Act 1974.*

PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974 No. 88, 1974
- SECT 2
Commencement.

  2. This Act shall come into operation on the day on which it receives the
Royal Assent.*

PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974 No. 88, 1974
- SECT 3
Application of Act.

  3. This Act extends to Papua New Guinea.

PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974 No. 88, 1974
- SECT 4
Interpretation.

  4. (1) In this Act, unless the contrary intention appears-

  "guarantee" means a guarantee under sub-section 5 (1), and includes any
agreement entered into for the purposes of a guarantee;

  "Papua New Guinea" means the Government of Papua New Guinea.
  (2) For the purposes of this Act, where an amount in foreign currency is
borrowed under an agreement, the equivalent of that amount in Australian
currency is the amount determined by the Reserve Bank of Australia to be so
equivalent at the time when the agreement is entered into.

PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974 No. 88, 1974
- SECT 5
Approval of guarantees.

  5. (1) Subject to this section, if Papua New Guinea enters into an agreement
under which Papua New Guinea is to, or may, borrow, by way of the sale of
bonds or otherwise, an amount in a foreign currency, the Treasurer, or a
person authorized by him, may, on behalf of Australia, give a guarantee in
respect of the payment of all moneys, including interest, payable by Papua New
Guinea under the agreement and may, for the purposes of the guarantee, enter
into an agreement containing such terms as are approved by the Treasurer and
the Minister for Foreign Affairs.
  (2) A guarantee or guarantees shall not be given under sub-section (1) in
relation to the borrowing, whether under 1 agreement or 2 or more agreements,
of foreign currency the equivalent of which in Australian currency exceeds
$20,000,000.
  (3) For the purposes of sub-section (1), any form of undertaking of
liability to pay any moneys shall be deemed to be a guarantee in respect of
the payment of those moneys.
  (4) A guarantee, when given, constitutes a valid and binding obligation of
Australia in accordance with its terms.
  (5) The power conferred by sub-section (1) shall not be exercised on or
after the date on which Papua New Guinea becomes an independent sovereign
state.

PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974 No. 88, 1974
- SECT 6
Appropriation.

  6. Any payments by Australia under a guarantee are payable out of the
Consolidated Revenue Fund, which is appropriated accordingly.

PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974 No. 88, 1974
- SECT 7
Moneys to be paid free of taxes, &c.

  7. A provision of a guarantee or of an agreement to which a guarantee
relates providing for-

  (a)  payments to be made without deduction for, or to be free from, taxes,
imposts or duties;

  (b)  documents to be free from taxes or duties; or

  (c)  payments to be free from restrictions, regulations, controls or
moratoria,
has effect as if enacted by this Act and operates notwithstanding anything in
any law of Australia or of a State or Territory, whether passed or made before
or after the commencement of this Act.
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PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974 No. 88, 1974 - NOTE

                                      NOTE
1.  Act No. 88, 1974; assented to 24 October 1974.