LOCAL GOVERNMENT (AMENDMENT) ACT. Act No. 8, 1935.
An Act to declare the priorities of securities for renewal loans raised by councils; to deal with the raising of certain loans by councils and to confer powers in respect of such loans; to amend the Local Government Act, 1919, and certain other Acts in certain respects; and for purposes connected therewith, [Assented to, 6th March, 1935.1
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E it enacted b y t h e K i n g ' s Most Excellent Majesty, b y a n d w i t h t h e advice a n d consent of t h e Legis lative Council a n d Legislative Assembly of New South Wales in P a r l i a m e n t assembled, a n d b y t h e a u t h o r i t y of the same, as follows :-- 1. (1) T h i s A c t m a y be cited a s t h e " Local Govern m e n t ( A m e n d m e n t ) Act, 1935.'' (2) The Local G o v e r n m e n t Act, 1919, as a m e n d e d by subsequent A c t s , is h e r e i n a f t e r r e f e r r e d to as t h e P r i n c i p a l Act. 2 . (1) Section t h i r t y of the S y d n e y C o r p o r a t i o n ( A m e n d m e n t ) Act, 1934, is h e r e b y repealed. (2) Subsection two of section one h u n d r e d a n d eighty-two of the P r i n c i p a l Act is a m e n d e d by o m i t t i n g t h e w o r d s " but a loan r a i s e d for the p u r p o s e of renew i n g a special, o r d i n a r y , or renewal loan shall r a n k in p r i o r i t y in the same o r d e r a s the loan t h e r e b y r e n e w e d . " 3 . Subsection two of section one h u n d r e d a n d eightyeight of the P r i n c i p a l Act is amended by i n s e r t i n g t h e r e i n a t the end the following p r o v i s o : -- P r o v i d e d t h a t a d e b e n t u r e , mortgage-deed or bond given by a council for securing the r e p a y m e n t (with or without i n t e r e s t ) of a renewal loan raised for t h e p u r p o s e of r e p a y i n g or r e n e w i n g (in whole or p a r t ) a special, o r d i n a r y or renewal loan (with or w i t h o u t the i n t e r e s t t h e r e o n ) , which is secured by a deben t u r e , m o r t g a g e - d e e d or bond, shall have t h e same p r i o r i t y as such last-mentioned d e b e n t u r e , m o r t g a g e d e e d or bond, w h e t h e r the r e n e w a l loan is m a d e b y t h e h o l d e r of such d e b e n t u r e , m o r t g a g e - d e e d or bond o r not. 4. Sections two a n d t h r e e of t h i s Act shall be deemed t o h a v e commenced on the t e n t h d a y of A u g u s t , one t h o u s a n d nine h u n d r e d a n d t h i r t y - f o u r . 5. Subsection one of section one h u n d r e d a n d seventysix of t h e P r i n c i p a l Act is amended by i n s e r t i n g t h e r e i n a t t h e end the following w o r d s : " n o t w i t h s t a n d i n g t h a t t h e sum r a i s e d u n d e r the first-mentioned loan w a s to h a v e been or is to be applied by the l e n d e r t o w a r d s t h e dis c h a r g e of the council's indebtedness to the l e n d e r u n d e r the loan to be r e p a i d or renewed a n d w a s n o t or is n o t actually paid to the council."

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6. Section one h u n d r e d a n d seventy-six of the P r i n  cipal A c t is a m e n d e d by i n s e r t i n g t h e r e i n a f t e r sub section one the following new subsection:-- (1A) A r e n e w a l loan m a y h a v e been or m a y be r a i s e d n o t w i t h s t a n d i n g t h a t the p e r i o d for r e p a y  m e n t of the loan renewed or r e p a i d or to be renewed or r e p a i d h a d or h a s n o t a r r i v e d . 7. T h e P r i n c i p a l Act is f u r t h e r a m e n d e d by i n s e r t i n g t h e r e i n after section 192A the following new sections:-- 192B. A s t a t u t o r y body or a u t h o r i t y r e p r e s e n t i n g the C r o w n shall n o t be deemed guilty of a n y b r e a c h of t r u s t b y r e a s o n only of t h e i r or his a g r e e i n g with a council to a reduction of the r a t e of i n t e r e s t p a y  able u n d e r a n y debenture, m o r t g a g e - d e e d or bond held by such s t a t u t o r y body or a u t h o r i t y . 192c. (1) A t r u s t e e shall n o t h a v e been or be guilty of a n y breach of t r u s t b y r e a s o n of h a v i n g entered into or e n t e r i n g into a r e n e w a l loan a t a less r a t e of i n t e r e s t t h a n t h a t p a y a b l e in respect of the loan renewed or r e p a i d or to be renewed or r e p a i d a n d h a v i n g a p e r i o d for r e p a y m e n t extending beyond t h e d a t e a t which the p e r i o d for r e p a y m e n t of t h e loan renewed or r e p a i d or to be r e n e w e d or r e p a i d would have expired. (2) I n this section " t r u s t e e " includes p e r  sonal r e p r e s e n t a t i v e of a deceased p e r s o n , committee of the e s t a t e of a n i n s a n e p e r s o n , m a n a g e r of the e s t a t e of a n incapable person, the M a s t e r in L u n a c y , t h e M a s t e r in E q u i t y , a n d a n y o t h e r p e r s o n acting in a n y fiduciary capacity a n d a n y s t a t u t o r y body or a u t h o r i t y r e p r e s e n t i n g the Crown. S. T h e P r i n c i p a l Act is f u r t h e r a m e n d e d as follows:-- (a) b y o m i t t i n g subsection eleven of section one hundred and eighty; (b) b y i n s e r t i n g in subsection one of section one h u n d r e d a n d eighty-three a t the end thereof the w o r d s " I n respect of renewal loans secured o r to be secured by debenture, m o r t g a g e - d e e d o r bond this subsection shall have applied a n d shall: a p p l y only where the sum b o r r o w e d w a s or is tobe actually p a i d to t h e council." SWINE