8Capital reserves of
Corporation—special capital notes
(1)
In this section:
security includes a capital note or
other instrument issued by the Corporation, whether secured or not and whether
for a fixed or an indefinite term.
special
arrangement means an agreement or arrangement under
subsection (2).
special
capital note means a security issued by the State Bank or
the Corporation that is the subject of a special
arrangement.
(2)
The Treasurer may, on behalf of the State, enter
into an agreement or arrangement, to which the Corporation is a party or at
the Corporation’s request, in connection with the issue of securities by
the Corporation.
(3)
A special arrangement, and the special capital
notes to which it relates, may:
(a)
require (in specified circumstances) the
Treasurer, on behalf of the State, to pay to the Corporation for crediting to
the capital reserves of the Corporation an amount calculated by reference to
the interest and other amounts paid by the Corporation to the holders of the
notes, and
(b)
require (in specified circumstances) the
Treasurer, on behalf of the State, to purchase all or any of the notes and
release the Corporation from its obligations and liabilities under the notes
so purchased, and
(c)
provide that (in specified circumstances) the
Treasurer may, on behalf of the State, pay all or any of the interest or other
amounts due to the holders of the notes and assume any obligations or
liabilities of the Corporation under the notes, and
(d)
provide that the obligations and liabilities of
the Corporation under the notes may be enforced only against the State in the
case of any default by the Corporation, and
(e)
provide for the redemption of all or any of the
notes by the Corporation, and
(f)
make any other provision that the Treasurer
considers appropriate.
(4)
Any liability of the State arising under a
special arrangement or special capital note is to be met out of the
Consolidated Fund, which is appropriated accordingly.
(5)
Unless the Treasurer otherwise determines, the
principal amount of each special capital note, is, for accounting purposes, to
be treated as a subscription of capital.
(6)
Nothing in this section prevents the State or an
authority of the State from purchasing or otherwise acquiring special capital
notes without releasing the Corporation from its obligations and liabilities
under the notes.
(7)
A certificate signed by the Treasurer and
stating:
(a)
that any specified security or specified class of
securities issued by the Corporation is the subject of a special arrangement,
or
(b)
that any such security has been issued in
accordance with the special arrangement, or
(c)
that a special arrangement does or does not make
provision of a specified kind,
is conclusive evidence, in favour of any person other
than the State or the Corporation, of the matters stated in the
certificate.
(8)
A special arrangement made under section 21A of
the State Bank Act 1981 is to be taken to be
a special arrangement under this section.
s 8: Am 1994 No 73,
Sch 1 (7).