Statutory Bodies Financial Arrangements Regulation 2007

Statutory Bodies Financial Arrangements Regulation 2007

1Short title

This regulation may be cited as the Statutory Bodies Financial Arrangements Regulation 2007.

2Entities that are not statutory bodies—Act, s 6

(1)For section 6(1)(j) of the Act, the entities stated in schedule 1, column 2, are declared not to be statutory bodies.

(2)The authorising Act for each entity is stated opposite the entity in column 1 of the schedule.

s 2 amd 2015 SL No. 183s 3

3Prescribed rate of interest—Act, s 23

For section 23(b) of the Act, interest is calculated on a daily basis using the Reserve Bank of Australia’s official cash rate for the day.

Editor’s note—

The Reserve Bank of Australia’s official cash rate is published on the bank’s website.

4Financial accommodation—Act, s 32

(1)An operating lease entered into by a local government is a form of financial accommodation for the definition borrow.

(2)Subsection (1) applies whether or not the operating lease is entered into by the local government in the ordinary course of performing its functions.

5Statutory bodies that may borrow under the Act, pt 5—Act, s 33

(1)The statutory bodies stated in schedule 2, column 2, are declared to be statutory bodies that may borrow under the Act, part 5.

(2)The authorising Act for each statutory body is stated opposite the body in column 1 of the schedule.

Note—

If a statutory body does not have a particular name or the name is difficult to locate in the authorising Act for the body, the relevant section in the authorising Act or other reference helpful to the reader is also stated in column 1.

6Allocation of investment powers to statutory bodies—Act, s 42

(1)For part 6 of the Act, this section allocates investment power to statutory bodies.

(2)Category 1 investment power is allocated to the statutory bodies stated in schedule 3, column 2.

(3)Category 2 investment power is allocated to the statutory bodies stated in schedule 4, column 2.

(4)Category 3 investment power is allocated to the statutory bodies stated in schedule 5, column 2.

(5)If section 42(3) of the Act applies to a statutory body, both the body and the relevant fund or funds are stated in column 2 of the relevant schedule.

(6)The authorising Act for each statutory body stated in schedule 3, 4 or 5 is stated opposite the body in column 1 of the schedule.

(7)In schedule 3, column 2, the statutory body called the banker means the banker under the Aboriginal and Torres Strait Islander Communities (Justice, Land and Other Matters) Act 1984, section 57.

s 6 sub 2008 SL No. 55s 4

7Category 1 investment power—Act, s 44(1)(d)

For section 44(1)(d) of the Act, the prescribed investment arrangements are stated in schedule 6.

8Category 1 investment power—Act, s 44(1)(e)

(1)For section 44(1)(e) of the Act, the rating prescribed for an investment arrangement is—

(a)a rating by Fitch Ratings of F1+ or F1; or

(b)a rating by Moody’s Investors Service of Prime-1 (P-1); or

(c)a rating by Standard & Poor’s of A-1+, A-1, AAm or AAAm.

(2)In this section—

Fitch Ratings means Fitch Australia Pty Ltd ACN 081 339 184 or another entity that carries on the business of assigning credit ratings under the trading name Fitch Ratings.

Moody’s Investors Service means Moody’s Investors Service Pty Limited ACN 003 399 657 or another entity that carries on the business of assigning credit ratings under the trading name Moody’s Investors Service.

Standard & Poor’s means Standard & Poor’s (Australia) Pty Ltd ACN 007 324 852 or another entity that carries on the business of assigning credit ratings under the trading name Standard & Poor’s.

s 8 amd 2015 SL No. 183s 4

9Category 2 investment power—Act, s 45(b)(iv)

For section 45(b)(iv) of the Act, the prescribed investment arrangements are stated in schedule 7.

10Category 2 investment power—Act, s 45(c)

(1)For section 45(c) of the Act, the rating prescribed for an investment arrangement is—

(a)a rating by Fitch Ratings of AA, AA+ or AAA; or

(b)a rating by Moody’s Investors Service of Aa2, Aa1 or Aaa; or

(c)a rating by Standard & Poor’s of AA, AA+ or AAA.

(2)However, a rating mentioned in subsection (1)(b) is not prescribed for an investment arrangement if the arrangement applies to a bond mutual fund.

(3)A bond mutual fund is an investment arrangement structured as a unit investment trust—

(a)with underlying assets that are—

(i)in a range of short to medium and long-term securities, with a predominant emphasis on fixed term securities; and

(ii)valued on a mark-to-market basis; and

(b)the units in which are redeemable at a value based on the market valuation of the underlying assets of the fund.

Note—

Bond mutual funds are to be distinguished from cash mutual funds. For cash mutual funds, the underlying assets are predominantly in short-term securities. The units in the relevant unit investment trust are redeemable at par or face value on an at call basis. Income from the investment is a return paid separately as appropriate.

(4)In this section—

Fitch Ratings see section 8(2).

Moody’s Investors Service see section 8(2).

Standard & Poor’s see section 8(2).

s 10 amd 2015 SL No. 183s 5

11Statutory bodies that may enter into derivative transactions—Act, s 53

(1)For section 53(2) of the Act, the statutory bodies stated in schedule 8, column 2, are prescribed as statutory bodies that may enter into derivative transactions.

(2)The authorising Act for each statutory body is stated opposite the body in column 1 of the schedule.

12Periodic reports to Treasurer about derivative transactions—Act, s 55

(1)This section prescribes, for section 55(1) of the Act, the times at which a statutory body must give the Treasurer a report about a derivative transaction.

(2)If the duration of the derivative transaction is 90 days or more, the statutory body must give a report—

(a)for the duration of the transaction—

(i)at the intervals, of not more than 3 months, decided by the Treasurer and stated in the Treasurer’s approval for the transaction; or

(ii)if subparagraph (i) does not apply—on the first day of each quarter; and

(b)on the first day of the calendar month immediately after completion of the transaction.

(3)However, if, under subsection (2)(a)(ii), the statutory body would be required to give a report on a day that is less than 14 days after the day the derivative transaction was entered into, the statutory body is not required to give the report.

(4)If the duration of the derivative transaction is less than 90 days, the statutory body must give a report on the first day of the calendar month immediately after completion of the transaction.

(5)In this section—

quarter means a period of 3 months starting on 1 January, 1 April, 1 July or 1 October.

Treasurer’s approval, for a derivative transaction, means the approval given by the Treasurer under part 9, division 2 or 3 of the Act for a statutory body to enter into the transaction.

s 12 amd 2015 SL No. 183s 6

13Prescribed conditions of special guarantee—Act, s 82

For section 82(3) of the Act, the conditions prescribed for special guarantees are stated in schedule 9.

14Repeal

The Statutory Bodies Financial Arrangements Regulation 1997, SL No. 129 is repealed.

15Transitional provision for Statutory Bodies Financial Arrangements Amendment Regulation (No. 1) 2015

(1)This section applies in relation to a derivative transaction entered into by a statutory body under part 7, division 1 of the Act before the commencement.

(2)Despite the Statutory Bodies Financial Arrangements Amendment Regulation (No. 1) 2015, section 6, previous section 12 continues to apply in relation to the derivative transaction.

(3)In this section—

previous section 12 means section 12 as in force immediately before the commencement.

s 15 ins 2015 SL No. 183s 7

section 2

section 5

sch 2 amd 2007 Act No. 58 s 117sch 2; 2008 SL No. 55 s 5; 2008 SL No. 81 s 37; 2008 SL No. 183 s 11; 2008 SL No. 210 s 5; 2009 Act No. 46 s 123; 2010 SL No. 335 s 3; 2011 SL No. 68 s 3; 2012 SL No. 217 s 11; 2012 SL No. 240 s 3(2) sch; 2013 SL No. 2 s 23; 2013 Act No. 19 s 120sch 1; 2013 SL No. 109 s 16 sch 1 pt 2; 2014 SL No. 112 s 13; 2014 SL No. 126 s 193; 2014 SL No. 141 s 14; 2014 Act No. 40 s 154 sch 1 pt 4; 2015 SL No. 183 s 8; 2016 SL No. 89 s 33; 2016 SL No. 96 s 23; 2016 SL No. 136 s 4; 2017 SL No.55 s 4

section 6(2)

sch 3 amd 2008 SL No. 55 s 6; 2008 SL No. 81 s 38; 2008 SL No. 179 s 3; 2008 SL No. 183 s 12; 2008 SL No. 308 s 3; 2010 SL No. 335 s 4; 2010 Act No. 41 s 25; 2013 SL No. 109 s 16 sch 1 pt 2; 2013 SL No. 228 s 13; 2014 Act No. 21 s 94(2)sch 2; 2014 SL No. 105 s 26; 2014 SL No. 112 s 14; 2014 SL No. 126 s 194; 2014 Act No. 40 s 154 sch 1 pt 4; 2015 SL No. 183 s 9; 2016 SL No. 75 s 129sch 12; 2016 SL No. 96 s 24; 2016 SL No. 136 s 5

section 6(3)

sch 4 amd 2008 SL No. 55 s 7; 2008 SL No. 210 s 6; 2008 Act No. 73 s 554sch 1; 2009 Act No. 46 s 124; 2010 SL No. 108 s 64; 2010 SL No. 335 s 5; 2012 SL No. 82 s 16; 2012 SL No. 90 s 40; 2012 SL No. 217 s 12; 2015 SL No. 183 s 10; 2016 SL No. 89 s 34

section 6(4)

sch 5 amd 2010 SL No. 335 s 6; 2011 SL No. 68 s 4; 2012 SL No. 240 s 3(2) sch; 2013 SL No. 2 s 24; 2013 Act No. 19 s 120sch 1; 2013 SL No. 109 s 16 sch 1 pt 2; 2014 SL No. 141 s 15; 2015 SL No. 183 s 11; 2017 SL No. 55 s 5

section 7

•QIC Cash Fund

•QTC Capital Guaranteed Cash Fund

•QTC Debt Offset Facility

•QTC Fixed Rate Deposit (up to 12 months)

•QTC Working Capital Facility

section 9

•QIC Australian Fixed Interest Fund

•QIC Cash Fund

•QIC Growth Fund

•QIC Bond Plus Fund

•QIC Cash Enhanced Fund

•QIC GFI Inflation Plus Fund

•QTC Capital Guaranteed Cash Fund

•QTC Debt Offset Facility

•QTC Fixed Rate Deposit (up to 3 years)

•QTC Working Capital Facility

sch 7 amd 2015 SL No. 183 s 12

section 11

sch 8 amd 2007 Act No. 58 s 117sch 2; 2008 SL No. 210 s 7; 2008 Act No. 73 s 554sch 1; 2009 Act No. 46 s 125; 2010 SL No. 335 s 7; 2010 SL No. 350 s 3; 2011 SL No. 6 s 3; 2012 SL No. 217 s 13; 2012 SL No. 240 s 3(2) sch; 2013 SL No. 4 s 3; 2013 Act No. 19 s 120sch 1; 2014 SL No. 141 s 16; 2014 SL No. 234 s 3; 2015 SL No. 183 s 13; 2016 SL No. 89 s 35; 2017 SL No. 13 s 3; 2017 SL No. 55 s 6

section 13

For section 82(3) of the Act, this schedule sets out the conditions of a special guarantee for a loan by QTC to an entity.

1In this guarantee—

default amount means the amount of the guaranteed moneys the Treasurer is requested to pay to QTC in a notice under clause 2(4).

guaranteed moneys means all moneys which are payable, owing but not payable or contingently owing, by the entity to QTC under the loan.

this guarantee means these conditions.

2(1)If the entity defaults in the due and punctual payment of the whole or part of the guaranteed moneys, QTC may serve a notice (a default notice) upon the entity.

(2)If QTC serves a default notice upon the entity, QTC must within 3 days of the service give a copy of the notice to the Treasurer.

(3)In the default notice, QTC must—

(a)specify the default; and

(b)require the entity to remedy the default.

(4)If the entity does not remedy the default within 14 days after receiving the default notice, QTC may serve a written notice upon the Treasurer.

(5)In the notice, QTC must—

(a)certify the default has occurred and remains unremedied; and

(b)request the Treasurer to pay the amount of the unremedied default to QTC.

3(1)As soon as practicable after receiving a notice from QTC under clause 2(4), the Treasurer must pay the default amount to QTC from funds or reserves that the Treasurer considers appropriate.

(2)If the Treasurer is obliged or elects to seek an appropriation from Parliament before paying the whole or part of the default amount out of a particular fund or reserve, the Treasurer must promptly seek the appropriation.

4The Treasurer may at any time direct QTC not to provide—

(a)any further financial accommodation to the entity; or

(b)financial accommodation to the entity in excess of a specified aggregate amount.

5If QTC provides financial accommodation to the entity contrary to the Treasurer’s direction under clause 4—

(a)the financial accommodation is not part of the loan, or another loan to which section 82 of the Statutory Bodies Financial Arrangements Act 1982 applies, and the Treasurer has no obligation to QTC under this guarantee for the financial accommodation; and

(b)any payments made by or for the entity to QTC must be applied by QTC firstly in reduction of the loan for which the Treasurer (for the State) is liable under this guarantee.

6The Treasurer is under no obligation to pay the default amount to QTC if—

(a)QTC or the entity materially contravened the Statutory Bodies Financial Arrangements Act 1982, the Queensland Treasury Corporation Act 1988 or the entity’s authorising Act in relation to the loan; or

(b)the approvals required under the Statutory Bodies Financial Arrangements Act 1982, the Queensland Treasury Corporation Act 1988 or the entity’s authorising Act to enter into the loan were not obtained or any conditions of the approval were not materially complied with; or

(c)QTC has materially contravened this guarantee.

7(1)QTC may, from time to time, grant the entity any time, waiver forbearance or other concession without discharging or limiting the rights of QTC under this guarantee.

(2)On each occasion QTC grants any time, waiver, forbearance or other concession to the entity, QTC must give the Treasurer notice of—

(a)the time, waiver, forbearance or other concession; and

(b)particulars of the default by the entity which resulted in the granting of the time, waiver, forbearance or other concession.

8(1)A failure to exercise, or any delay by QTC in exercising, any right or remedy under this guarantee does not operate as a waiver of the right or remedy.

(2)The exercise or partial exercise by QTC of a right or remedy does not prevent any further or other exercise of the right or remedy.

9QTC may not assign or transfer all or any part of its rights or obligations under this guarantee to a third party.

10The Treasurer does not incur any personal liability under this guarantee.

11On request by the Treasurer, QTC must give to the Treasurer any information about its transactions and dealings with the entity.

12A notice, communication, consent or direction that may be given by or to the Treasurer may be given by or to the Under Treasurer or a person acting in the position of the Under Treasurer.