State Loans to Local Bodies Act 1929

State Loans to Local Bodies Act 1929

An Act to consolidate and amend the law relating to loans by the State to local bodies

Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

1.   Short title

This Act may be cited as the State Loans to Local Bodies Act 1929 .

2.   

[Section 2 Repealed by 25 Geo. V No. 78 ]

3.   Interpretation

[Section 3 Amended by 25 Geo. V No. 78 ][Section 3 Amended by No. 29 of 1984, s. 3 and Sched. 1 ][Section 3 Amended by No. 5 of 1990, s. 3 and Sched. 1 ][Section 3 Amended by No. 30 of 1995, s. 3 and Sched. 1 ]In this Act, unless the contrary intention appears –

authorizing Act means any Act whereby a local body is authorized to borrow from the State for the purposes therein mentioned any sums of money therein specified in accordance with the provisions of this Act or of any Act hereby repealed;

local body means –

(a) a council;

(b) [Section 3 Amended by No. 16 of 1997, Sched. 1, Applied:30 Jul 1997]

(c) the trustees of a water or light district constituted under any Act; or

(d) any board or body constituted for any public purpose under any Act and proclaimed by the Governor to be a local body within the meaning of this Act;

Minister means the Minister administering the Public Works Construction Act 1880 ;

[Section 3 Amended by No. 86 of 2000, Sched. 1, Applied:01 May 2001] officer means a State Service officer or State Service employee or other person instructed by the Minister to carry out any duty as provided by this Act;

rating area means any area specified in an authorizing Act as an area in respect of which any rate or charge may be levied for the purposes of such Act; and, where no such area is specified therein, means the whole of the area over which the local body has jurisdiction;

work means any undertaking for the purposes of which a local body is empowered by the authorizing Act to borrow money under this Act.

4.   Application of Act

[Section 4 Amended by 25 Geo. V No. 78 ][Section 4 Amended by 26 Geo. V No. 11, s. 2 ]

(1)  The provisions of this Act shall apply to every loan granted to any local body under the provisions of any Act hereby repealed and not fully repaid at the commencement of this Act and to the several loans specified in Schedule 3 .

(2)  Where any local body, by virtue of an authorizing Act passed before the commencement of this Act, has a subsisting power to borrow any sum of money under any Act hereby repealed, such power may be exercised by such local body under this Act to the extent to which it might have been exercised if this Act had not been passed.

5.   Incorporation

Except where otherwise provided, the provisions of this Act shall be deemed to be incorporated with every authorizing Act save in so far as the same or any of them may be expressly negatived, modified, or altered by such authorizing Act.

6.   Power of Governor to grant loans to local bodies

[Section 6 Amended by 25 Geo. V No. 78 ]It shall be lawful for the Governor, upon –

(a) the passing of an authorizing Act for that purpose;

(b) the application of the local body therein named in such form as the Treasurer may approve; and

(c) compliance by such local body with all the relevant provisions of this Act and such authorizing Act –

to grant by way of loan to such local body any sums of money not exceeding in the whole the amount specified in such authorizing Act and for the purposes specified therein.

7.   Security for, and payment of, loans

(1)  Every such loan shall be granted upon the security of all the revenues of such local body and such other security as is hereinafter provided.

(2)  Subject to the provisions of this Act, the amount of every such loan shall be paid by the Treasurer to such local body out of moneys to be provided by Parliament for that purpose.

(3)  Except where the Governor otherwise directs, payment of every such loan shall be made in such instalments and at such times as the Treasurer on the recommendation of the Minister may determine according to the progress of the work.

(4)  The aggregate amount of all such instalments shall not exceed in any case the amount found to be required to complete such work as aforesaid, or the amount estimated as nearly as may be to be so required when the last of such instalments is payable, whichever is the greater.

8.   Conditions precedent to granting of loan

(1)  Before any sum of money is advanced by way of loan to a local body under this Act the local body shall submit to the Minister at its own expense plans, specifications, and estimates of the proposed work.

(2)  The Minister shall refer such plans, specifications, and estimates to an officer, who shall examine the same and furnish a report to the Minister as to –

(a) the necessity or expediency of the work proposed;

(b) the accuracy and sufficiency of the plans, specifications, and estimates thereof;

(c) the competency of the officers of the local body to undertake, carry out, and complete the work satisfactorily;

(d) the net revenue, if any, which may be reasonably expected to be yielded as the result of such work;

(e) the probable life of such work; and

(f) such other matters as the Minister may direct or such officer may think necessary.

(3)  The Minister, if not satisfied with any such report, may –

(a) refer such plans, specifications, and estimates to the local body for alteration or revision; or

(b) instruct an officer to alter, revise, or remodel such plans, specifications, and estimates at the expense of the local body –

in such manner as the Minister may think necessary for ensuring the proper execution of the work proposed.

(4)  If satisfied with such report as aforesaid or upon the plans, specifications, and estimates being altered, revised, or remodelled as aforesaid to his satisfaction, the Minister shall submit the report to the Treasurer, with such explanation, if any, as may be required and with such recommendation as to the proposed loan as the Minister may think fit.

(5)  The Minister may recommend, in respect of any proposed loan, that the work shall be supervised by an officer at the expense of the local body and that payment of any instalment of the loan be made only on the certificate of such officer that the same is satisfactory.

9.   Procedure on consideration of recommendation for loan

(1)  The Treasurer shall consider every such recommendation of the Minister in respect of any such loan as aforesaid and submit the proposal therefor to the Governor with such recommendation thereon as the Treasurer may think fit.

(2)  The Governor may grant the proposed loan or may alter the amount or conditions thereof, either in accordance with the recommendation of the Treasurer or otherwise, as he may think fit.

10.   Power of Minister to cause works to be inspected

[Section 10 Amended by 25 Geo. V No. 78 ]

(1)  At any time during the progress of any work, the Minister may direct an officer to make an inspection thereof at the cost of the local body and to report to him as to the progress of the work and any other matter relating thereto which the Minister may require.

(2)  If on receipt of any such report as aforesaid the Minister is dissatisfied with any matter relating to such work, he may inform the Treasurer thereof.

(3)  On receipt of such information from the Minister and on the Minister's recommendation, the Treasurer may withhold any further payments to such local body on account, or for the purposes, of such work until the Minister shall have reported to him that such work is being carried on satisfactorily, or has been satisfactorily completed, as the case may be.

11.   Local body to take poll if required

[Section 11 Amended by 25 Geo. V No. 78 ]

(1)  Where an authorizing Act provides that the local body therein named shall not proceed to borrow any sum of money for the purposes thereof until such borrowing has been sanctioned by a poll of electors, such poll shall be taken accordingly by such local body and such borrowing be so sanctioned before the granting of any loan under this Act for the purposes aforesaid.

(2)  Except as otherwise expressly provided by such authorizing Act, every such poll shall be taken in accordance with, and be subject to, the provisions set forth in Schedule 2 .

12.   Dealing by local body with loan moneys

(1)  [Section 12 Subsection (1) amended by No. 74 of 1999, Sched. 2, Applied:01 Jan 2000] Every local body to whom a loan is granted under this Act shall pay all moneys received by it in respect of such loan to the credit of a separate authorised deposit-taking institution account opened and kept for the purposes of such loan only.

(2)  [Section 12 Subsection (2) amended by No. 74 of 1999, Sched. 2, Applied:01 Jan 2000] Except where otherwise expressly provided, the local body shall not draw upon any such account as aforesaid except –

(a) for the particular purpose for which the loan was obtained, as specified in the Act authorizing such loan; or

(b) for the purpose of repayment of the whole or any portion of the principal moneys of the loan.

(3)  If any balance of the loan moneys remains unexpended after completion of the work for which the loan was obtained, the local body shall pay such balance to the Treasurer forthwith, and the same shall be applied as hereinafter provided.

13.   Security for loans

[Section 13 Amended by 25 Geo. V No. 78 ]

(1)  The amount of all moneys due by any local body in respect of any loan granted under this Act, including all interest payable in respect thereof, shall be a first charge, in priority to all other liabilities of such local body, other than any prior loan subject to this Act, upon the real and personal property and assets of such local body until such amount has been fully repaid.

(2)  Every loan under this Act shall be granted upon and subject to such conditions as the Governor in each case may impose, and such conditions may provide for the insurance of buildings or other works in relation to which such loan or any part thereof is granted.

14.   Interest in respect of loans

[Section 14 Amended by 22 Geo. V No. 39, s. 2 ][Section 14 Amended by 25 Geo. V No. 78 ]

(1)  [Section 14 Subsection (1) amended by No. 55 of 1965, s. 3 and Sched. 1 ]Except where otherwise expressly provided by any future Act –

(a) interest shall be charged by the Treasurer and paid by the local body in respect of every loan granted to such local body under this Act at the rate of four and one-half per centum per annum, and the same shall be payable as hereinafter provided;

(b) such interest shall be calculated in each case on the amount of the loan owing by the local body from time to time during the half-year in respect of which it is payable;

(c) all such interest as aforesaid, and all interest in respect of loans granted under any Act hereby repealed, shall be payable to the Treasurer by half-yearly payments on the first day of January and the first day of July in every year, and except as hereinafter provided there shall be included with every such payment by the local body a payment by way of sinking fund as hereinafter provided, and the total half-yearly payments so payable shall be of equal amounts each half-year;

(d) the sinking fund payment so to be included with the payment of interest shall be in respect of the half-year for which such interest payment is made, and shall be an amount calculated as hereinafter provided;

(e) every such sinking fund payment at the commencement thereof as hereinafter provided shall be at the rate prescribed by the authorizing Act, and the total charge payable by the local body in respect of each loan shall comprise a half-year's interest at the rate then payable in respect thereof, together with the sinking fund payment at the rate aforesaid;

(f) whenever by reason of any reduction of the amount of loan outstanding the interest payment for any half-year is reduced, the amount payable by way of sinking fund shall be increased correspondingly so that the total charge mentioned in paragraph (e) hereof shall remain the same in respect of each loan for each half-year until redemption of each loan.

(2)  Interest shall be payable in respect of the several loans enumerated in Schedule 3 at the respective rates payable in respect of such loans at the commencement of this Act, and, except as otherwise provided, there shall be added to every payment of such interest the appropriate sinking fund payment making the aggregate annual rate of the total charge which is set opposite each such loan in the appropriate column of the said schedule, and, subject to the provisions of this subsection, interest and sinking fund payments in respect of all loans granted under any Act hereby repealed shall be made in accordance with the provisions of subsection (1) hereof.

(3)  The first interest payment as hereinbefore provided shall be payable on the first day of January 1930.

(4)  Sinking fund payments as hereinbefore provided shall be first payable –

(a) on the first day of July 1930, in respect of loans on which sinking fund payments were being made prior to the commencement of this Act; and

(b) on a date to be determined by the Treasurer and notified by him to the local body concerned in respect of each loan to which paragraph (a) hereof does not apply.

(5)  Where any sinking fund payment as herein provided would be more than the amount required to complete the redemption of the loan in respect of which the same is payable, it shall be reduced to the amount so required.

(6)  All moneys received by the Treasurer by way of sinking fund in respect of any loan as hereinbefore provided and all balances repaid as provided by section twelve shall be applied by him for or towards the redemption of such loan.

(7)  The provisions of this section shall not apply in respect of the loans specified in the Burnie Marine Board Loans Act 1929 .

(8)  The loan of one hundred thousand pounds granted to the Municipality of Glenorchy under the provisions of the Glenorchy Water Act 1923 , shall be subject to the provisions of this Act to the same extent as if the same had been granted thereunder.

15.   Transfer of existing sinking funds

(1)  [Section 15 Subsection (1) amended by No. 55 of 1965, s. 3 and Sched. 1 ]The Commissioners of the State Sinking Fund shall pay or transfer, as hereinafter provided, to the Treasurer as at the first day of January 1930 –

(a) the amount standing in their books, as at the first day of July 1929, to the credit of each sinking fund established in respect of any loan granted under any Act hereby repealed;

(b) interest thereon from the date aforesaid to the thirty-first day of December 1929, at the rate of five and one-half per centum per annum; and

(c) the amount of every contribution made to such fund since the said first day of July with interest thereon, at the rate aforesaid, from the date on which such contribution was received by them to the said thirty-first day of December.

(2)  The said Commissioners may transfer to the Treasurer any securities held by them in lieu of, and in satisfaction for, the payment of any such amount as aforesaid, or any part thereof, to the value of such securities at the time of such transfer.

(3)  The Treasurer may make such entries and adjustments in his books as may be necessary for giving effect to the provisions of this section.

16.   Application of existing sinking funds

(1)  The Treasurer shall apply every amount paid or transferred to, and received by, him as provided by section fifteen and also the amount standing to the credit of each sinking fund held by him, alone or jointly with any person or body, in respect of loans subject to this Act, for or towards –

(a) the liquidation of any arrears of interest payable by the local body and unpaid at the date of such receipt in respect of the loan; and

(b) the redemption of the loan –

in respect of which such sinking fund was established, and all such amounts shall be so applied as at the thirty-first day of December 1929.

(2)  Where any such sinking fund as aforesaid was established in respect of several loans authorized under different Acts, the same shall be applied by the Treasurer first in or towards the redemption of the earliest of such loans and so on according to the priority of such loans.

17.   Interest on overdue payments

(1)  Where any moneys payable to the Treasurer by any local body as provided by section fourteen are in arrear and unpaid for the space of one month after the same became due, such local body shall pay interest thereon as hereinafter provided.

(2)  [Section 17 Subsection (2) amended by No. 55 of 1965, s. 3 and Sched. 1 ]Such interest as aforesaid shall be calculated on the amount of the moneys so in arrear from time to time from the date on which the same became due until payment thereof, and shall be at the rate of six and one-half per centum per annum.

(3)  The provisions of this section shall apply in respect of all interest and sinking fund moneys payable by any local body under the provisions of any Act hereby repealed and in arrear at the commencement of this Act.

18.   Application of interest payments

[Section 18 Amended by 25 Geo. V No. 78 ][Section 18 Amended by No. 68 of 1994, s. 3 and Sched. 1 ]All moneys received by the Treasurer by way of interest payments under this Act shall be paid into the Consolidated Fund.

19.   Right to redeem

(1)  Any local body may pay to the Treasurer at any time the whole or any portion of the unpaid balance owing by such local body in respect of any loan under this Act, with all interest on the amount of such payment up to the date on which the same is made.

(2)  No such payment as aforesaid shall have the effect of extending the period within which the loan is repayable under the terms on which the same was granted.

(3)  The Treasurer may make such adjustments as may be necessary to give effect to the provisions of this section.

20.   Procedure on default by local body

(1)  The Treasurer shall publish in the Gazette in the months of February and August in every year a statement of all moneys payable under this Act which are overdue and unpaid.

(2)  Every such statement shall contain particulars of the several amounts overdue, the local body by which each is owing, and the loan in respect of which it is payable.

(3)  After the expiration of ten days after publication of such notice as aforesaid, the Treasurer may give public notification of his intention to enforce payment of any such moneys as aforesaid then overdue.

(4)  After the expiration of fifty days after such public notification the Governor may appoint a receiver of the rates and other income of any local body responsible for the payment of any of such moneys or any part thereof still remaining unpaid.

(5)  Any such receiver may be appointed in respect of the rates and other income of a local body generally or in respect of specified rates and income.

21.   Powers and duties of receiver

(1)  Every receiver appointed as aforesaid shall have power to –

(a) collect and receive all income of; and

(b) make, levy, demand, collect, and recover all rates and charges payable to or leviable by –

the local body in respect of which he was appointed, either generally or as specified in the terms of his appointment.

(2)  Every such receiver for the purposes aforesaid shall have and may exercise all the powers of such local body (including the powers mentioned in section twenty-three ) and of every executive officer and servant thereof, and, to such extent as may be necessary for any of such purposes, shall be deemed for the time being to be the local body.

(3)  The receiver shall exercise such of the powers and duties of the local body and of any executive officer or servant thereof as the Treasurer may direct or require.

(4)  For any of the purposes aforesaid, an order in writing signed by the receiver shall have the force of a resolution of the council of such local body.

(5)  The receiver shall be entitled to such remuneration by way of salary, commission, or otherwise, for his services as the Treasurer may direct, and the same shall be payable out of the moneys in respect of which he is appointed receiver.

(6)  Every receiver appointed under this Act, before entering on his office, shall give such security for the faithful discharge of the duties thereof as the Treasurer may require.

(7)  [Section 21 Subsection (7) amended by No. 68 of 1994, s. 3 and Sched. 1 ]In respect of all moneys received or disbursed by him by virtue of his office, every such receiver shall be subject to the provisions of the Financial Management and Audit Act 1990 .

22.   Application of moneys received

All moneys received by a receiver under this Act shall be applied by him –

(a) first, in payment of all costs, charges, and expenses properly incurred in relation to the discharge of his duties, including his own remuneration;

(b) secondly, in payment of all moneys due and payable to the Treasurer by the local body in respect of which he was appointed; and

(c) thirdly, in payment to such local body of the balance then remaining of such moneys.

23.   Local body to levy rates in certain cases

(1)  Every local body to which a loan has been granted under this Act and which is authorized by any Act to levy rates or charges shall have power, and, if and when required by the Governor so to do, shall exercise the power, to levy, in the manner so authorized, a sum sufficient to provide –

(a) for the maintenance and management of all works in relation to which any money is owing by such local body to the Treasurer; and

(b) for the payment of all interest and other amounts payable to the Treasurer in respect of the moneys so owing to him.

(2)  The Governor, by proclamation, may direct what shall be the minimum rate in the pound or the minimum charge, as the case may be, so to be levied as aforesaid, and such local body shall levy a rate or charge which is not less than such minimum respectively.

(3)  Every such rate or charge shall be payable in respect of all property in the rating area in respect of which it is levied at such times and in such manner as may be declared in the public notification by the local body of the making thereof.

(4)  Every such rate and charge shall be made and be recoverable and shall be payable by the like persons, in respect of property within the rating area, as any other rate or charge made by such local body is made or payable or recoverable respectively.

24.   Special remedy where local body in default

(1)  The Treasurer may –

(a) if any local body makes default in payment of any interest or other moneys payable by it under this or any other Act to him; or

(b) on the recommendation of the Minister, where a local body has –

(i) failed on demand to pay any costs or expenses reasonably incurred by the Minister in relation to the supervision or inspection of any work or the alteration, remodelling, or revision of any plans, specifications, or estimates; or

(ii) refused to allow the inspection of any work by an officer –

as provided by this Act –

withhold the payment to such local body of the whole or any portion of any moneys due or accruing to such local body under the provisions of any Act.

(2)  In any case where the Treasurer may think fit so to do, he may apply any moneys so withheld by him as aforesaid in or towards the liquidation of any amount owing to the State by such local body and then in arrear and unpaid.

25.   Limitation of time for borrowing

(1)  Except where otherwise expressly provided by the authorizing Act, the power conferred on the local body by such Act to borrow moneys for the purposes thereof under this Act shall cease upon the expiration of two years after the commencement of the authorizing Act.

(2)  The Treasurer shall not advance to any such local body any such moneys as aforesaid or any part thereof after the expiration of such period of two years, or, where some other period is prescribed in that behalf by the authorizing Act, after the expiration of such other period.

(3)  [Section 25 Subsection (3) amended by 25 Geo. V No. 78 ]All moneys which the Treasurer may have been authorized to raise for the purposes of such authorizing Act, and which have not been borrowed by such local body as hereinbefore provided, may be reappropriated to such other purposes as Parliament may direct.

26.   Effect of granting of loan

For the purposes of any security in respect of any loan under this Act, the granting of such loan by the Governor shall be conclusive evidence of compliance with all the conditions under this Act precedent to such grant.

27.   Regulations

[Section 27 Amended by 25 Geo. V No. 78 ]The Governor may make regulations for the purposes of this Act.

SCHEDULE 1 - Acts Repealed

[Schedule 1 Amended by 25 Geo. V No. 78 ]

Section 2

SCHEDULE 2 - Provisions relating to polls

[Schedule 2 Amended by 25 Geo. V No. 78 ][Schedule 2 Amended by No. 99 of 1982, s. 3 and Sched. 2 ][Schedule 2 Amended by No. 30 of 1995, s. 3 and Sched. 1 ]

Section 11 (2)

Where in any authorizing Act it is provided that no moneys shall be borrowed thereunder by the local body until a poll has been taken, the local body may take such poll as hereinafter provided.

(a) The returning officer for the purposes of such poll shall be, in the case of –

(i) a council, the mayor;

(ii) .  .  .  .  .  .  .  .  

(iii) a marine board, the master-warden of such marine board;

(iv) the trustees of a water, or light, or harbour district, the chairman of such trustees;

(v) any other public body, such person as the Governor, on the application of such body, may appoint for the purpose;

(b) The local body shall appoint a time and place for taking the poll, and fourteen days before the day so appointed the returning officer shall cause public notice of such poll to be advertised in a newspaper, and a copy of such notice to be affixed on or near the door of every police office or police station in such municipal area, district, or area; such notice shall contain the following particulars:

(i) The name of the local body;

(ii) The time and place of such poll;

(iii) The nature of the proposed work; and

(iv) The amount of the proposed loan;

(c) The electors qualified to vote at the poll shall be –

(i) [Schedule 2 Amended by No. 27 of 2000, s. 7, Applied:01 Feb 1997] in the case of a council, the persons entitled to vote at an election of councillors for the council;

(ii) [Schedule 2 Amended by No. 27 of 2000, s. 7, Applied:01 Feb 1997] .  .  .  .  .  .  .  .  

(iii) in the case of a marine board, the persons qualified to vote at an election of wardens of such marine board;

(iv) in the case of a water, or light, or harbour district, the persons qualified to vote at an election of trustees of such district; and

(v) in any other case as provided in the authorizing Act;

(d) Each elector qualified to vote at the poll under paragraph (c) (i) , (iii) and (iv) has the same number of votes as he or she has at an election of councillors for the council, marine board, or district (as the case may be) concerned or affected, and each of the electors referred to in paragraph (v) thereof shall have such number of votes at the poll as shall be provided in the authorizing Act;

(e) The returning officer shall make all such arrangements and provisions as are necessary to carry out the poll, and the proceedings generally shall, with any necessary changes, be the same as far as practicable as those provided or prescribed in the case of an election of councillors under the Local Government Act 1993 ;

(f) The voting papers to be used in the taking of the poll shall be according to the following form:

Form

(g) If at the taking of the poll the number of votes recorded in favour of the proposed loan shall amount to such a proportion of the total number of valid votes recorded at such poll, as shall be provided in the Act as necessary to give the local body authority to borrow, the local body may proceed to borrow the amount mentioned in the special Act in the manner and for the purposes therein mentioned, but otherwise the local body shall not so proceed;

(h) The returning officer, after the taking of the poll, shall forthwith notify the Treasurer in writing of the result thereof.

SCHEDULE 3 - Loans

[Schedule 3 Amended by 22 Geo. V No. 39, s. 2 ][Schedule 3 Amended by 25 Geo. V No. 78 ]

Sections 4 , 14 (2)