COMMONWEALTH DEBT CONVERSION (No. 2.)

No. 1 of 1932.

An Act for carrying out and giving effect to an Agreement between the Commonwealth of Australia of the First Part and the States of New South Wales, Victoria, Queensland, South Australia, Western Australia and Tasmania of the Second, Third, Fourth, Fifth, Sixth and Seventh Parts respectively, relating to the Conversion of the Internal Public Debts of the Commonwealth and the States, and for other purposes.

[Assented to 15th January, 1932.]

Preamble.

WHEREAS an agreement dated the twenty-first day of July One thousand nine hundred and thirty-one (in this Act referred to as “the Debt Conversion Agreement”) was made between the Commonwealth and the States, relating to the conversion of the internal public debts of the Commonwealth and the States:

And whereas by the Commonwealth Debt Conversion Act 1931 provision was made for carrying out and giving effect to the Debt Conversion Agreement:

And whereas a further agreement dated the twenty-second day of October One thousand nine hundred and thirty-one has been made between the Commonwealth and the States relating to the conversion of the said public debts:

And whereas it is desirable to make provision for carrying out and giving effect to the said further agreement:

Be it therefore enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the Commonwealth Debt Conversion Act (No. 2) 1931.

Commencement.

2. This Act shall commence on a date to be fixed by Proclamation.

Definitions.

3. In this Act, unless the contrary intention appears—

The terms “existing securities” and “new securities” shall have the same meaning as in the Commonwealth Debt Conversion Act 1931.

Certain existing securities deemed to have been converted into new securities.

4. Notwithstanding anything in the Debt Conversion Agreement or in the Commonwealth Debt Conversion Act 1931 contained, every holder of existing securities which have not been converted into new securities in accordance with the provisions of that Act shall, notwithstanding that any holder of those existing securities may have signified or may signify dissent, be deemed to have made an application in accordance with section nine of that Act for their conversion into new securities, and they shall be deemed to be so converted accordingly:

Provided that nothing in this section shall apply to Commonwealth Treasury Bills issued to a Bank in Australia with the approval of the Australian Loan Council or to securities issued with the like approval to such a Bank in exchange for such Bills.

Power of National Debt Commission to purchase new securities.

5.—(1.) The National Debt Commission, if it thinks fit, may purchase new securities at a price in excess of the market price, not being above par, with a view to preventing undue hardship, arising out of conversion under the Commonwealth Debt Conversion Act 1931 or this Act, to persons beneficially interested in the securities.

(2.) This section shall not be construed as limiting in any way the powers of the National Debt Commission under the National Debt Sinking Fund Act 1923–1930.