Commonwealth Numbered Acts

LAND COMMISSIONS (FINANCIAL ASSISTANCE) ACT 1973 No. 192 of 1973 - SECT 10

10. (1) Where a payment or advance under this Act is made to a State in
respect of expenditure for the purposes of acquiring land referred to in
paragraph 4 (2) (a), the payment or advance shall be made by way of a loan,
and the succeeding provisions of this section apply.

(2) Subject to sub-section (3), the loan is subject to the following
conditions:-

   (a)  interest shall accrue in respect of each payment or advance,
        calculated from the date on which the payment or advance was made, on
        so much of the payment or advance as for the time being has not been
        repaid by the State;

   (b)  the rate at which interest shall accrue under paragraph (a) shall be
        the long-term bond rate or such lower rate as the Treasurer, with the
        concurrence of the Minister, determines;

   (c)  interest so accrued shall be paid by the State to Australia on 15 June
        and 15 December in each year;

   (d)  the State shall repay to Australia each payment or advance (not being
        an advance repaid under section 7) by instalments in such manner, and
        within such period, not exceeding 30 years, after the date on which
        the payment or advance is made to the State, as is agreed between
        Australia and the State, the first instalment in each case to be paid
        on 15 June or 15 December next occurring after the expiration of 12
        months after that date.

(3) Commencement of repayments of principal, and payments of interest, by a
State in respect of payments and advances made to the State in relation to an
approved program may be deferred for such period, not exceeding 10 years (in
this section referred to as ''the period of deferment''), as is agreed between
Australia and the State and, in that event, sub-section (2) does not apply,
but the loan is subject to the following conditions:-

   (a)  interest shall accrue in respect of each payment or advance,
        calculated from the date on which the payment or advance was made, on
        so much of the payment or advance as for the time being has not been
        repaid by the State;

   (b)  the amount of interest that has accrued under paragraph (a), together
        with interest that has accrued under paragraph (c), shall be
        calculated as at 15 June and 15 December in each year;

   (c)  each amount calculated under paragraph (b) as at a date before the
        expiration of the period of deferment shall be payable by the State to
        Australia in accordance with paragraph (f) as if that amount had been
        a payment made to the State under section 5 on the date on which the
        payment or advance was made, and interest shall accrue in respect of
        that amount, calculated from the date as at which that amount was
        calculated, on so much of that amount as for the time being has not
        been paid by the State;

   (d)  an amount calculated under paragraph (b) as at a date after the
        expiration of the period of deferment shall be paid by the State to
        Australia upon that date;

   (e)  the rate at which interest shall accrue under paragraphs (a) and (c)
        shall be the long-term bond rate or such lower rate as the Treasurer,
        with the concurrence of the Minister, determines;

   (f)  the State shall repay to Australia each payment or advance (not being
        an advance repaid under section 7) by instalments in such manner, and
        within such period, not exceeding 30 years, after the date on which
        the payment or advance is made to the State, as is agreed between
        Australia and the State.

(4) An agreement fixing a period in accordance with this section may include
provision for the variation of that period before the expiration of that
period and for the consequential variation of other matters.

(5) A reference in this section to the long-term bond rate, in relation to
interest in respect of a payment or advance made to a State or in respect of
an amount referred to in paragraph (3) (c), is a reference to the rate that is
equivalent to the rate of yield to maturity of the long-term loan of the last
loan-raising by the Australian Government in Australia for public subscription
prior to the date on which that payment or advance was made or that amount was
calculated, as the case may be.

(6) The preceding provisions of this section shall not be taken to prevent the
inclusion of additional conditions in an agreement relating to a loan referred
to in this section.