Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698752441739.pdf (New Zealand)
Reprint as at 1 December 2014 Local Government Borrowing Act 2011 Public Act Date of assent Commencement 2011 No 77 19 September 2011 see section 2 Contents Title Commencement Preliminary provisions Purpose Interpretation Application Act binds the Crown Application of Non-bank Deposit Takers Act 2013 Funding Agency not a non-bank deposit taker Application of Financial Markets Conduct Act 2013 Financial Markets Conduct Act 2013 applies to Funding Agency as if it were local authority Page 2 2 2 3 3 3 4 4 Note Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.
Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Department of Internal Affairs.
1 s 1 Local Government Borrowing Act 2011 Reprinted as at 1 December 2014 Application of Local Government Act 2002 Exemption from prohibitions and restrictions applying to council-controlled trading organisations Additional requirements to be specified in local authority’s financial strategy Exemption from prohibition on borrowing in foreign currency Certain arrangements and transactions to be treated as incidental arrangements and protected transactions under Local Government Act 2002 Amendments to Income Tax Act 2007 Principal Act amended Definitions Crown relationship with Funding Agency Crown may lend money to Funding Agency No Crown guarantee for debts of Funding Agency 4 5 5 5 6 6 6 7 The Parliament of New Zealand enacts as follows: 1 2 (1) Title This Act is the Local Government Borrowing Act 2011.
Commencement This Act comes into force on the day after the Funding Agency is registered under the Companies Act 1993.

(2) However, this Act is repealed on the day that is 12 months after the date on which it receives the Royal assent if the Funding Agency has not been registered by that date.

Section 2(1): this Act brought into force, on 2 December 2011, being the day after the Funding Agency was registered under the Companies Act 1993.
Preliminary provisions Purpose The purpose of this Act is to facilitate the operation of the New Zealand Local Government Funding Agency Limited.
To this end, this Act— 3 (1) (2) 2 Reprinted as at 1 December 2014 Local Government Borrowing Act 2011 s 6 (a) (b) (c) (d) exempts the Funding Agency from certain regulatory or taxation criteria that would otherwise apply to it; and applies certain regulatory or taxation criteria to the Funding Agency that would otherwise not apply to it; and authorises local authorities to deal with the Funding Agency in a manner in which they would otherwise not be authorised to do so; and authorises or requires local authorities, in certain situ- ations, to act in a manner in which they would otherwise not be authorised or required to act.
4 (1) Interpretation In this Act, unless the context requires another meaning,— Funding Agency means the New Zealand Local Government Funding Agency Limited, a limited liability company regis- tered under Part 2 of the Companies Act 1993 Minister has the meaning given by section 2(1) of the Public Finance Act 1989.

(2) A term defined in the Local Government Act 2002 that is used but not defined in this Act has the same meaning as in the Local Government Act 2002.
5 6 Application This Act applies to the Funding Agency only while the Fund- ing Agency is a council-controlled organisation.

Act binds the Crown This Act binds the Crown.

Application of Non-bank Deposit Takers Act 2013 Heading: replaced, on 1 May 2014, by section 92(2) of the Non-bank Deposit Takers Act 2013 (2013 No 104).
3 s 7 7 8 Local Government Borrowing Act 2011 Reprinted as at 1 December 2014 Funding Agency not a non-bank deposit taker The Funding Agency is not an NBDT (a non-bank deposit taker) for the purposes of the Non-bank Deposit Takers Act 2013.

Section 7: replaced, on 1 May 2014, by section 92(2) of the Non-bank Deposit Takers Act 2013 (2013 No 104).

Application of Financial Markets Conduct Act 2013 Heading: Markets (Repeals and Amendments) Act 2013 (2013 No 70).
replaced, on 1 December 2014, by section 150 of the Financial Financial Markets Conduct Act 2013 applies to Funding Agency as if it were local authority The Financial Markets Conduct Act 2013 applies to the Fund- ing Agency as if it were a local authority.

Section 8: replaced, on 1 December 2014, by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
Application of Local Government Act 2002 9 (1) Exemption from prohibitions and restrictions applying to council-controlled trading organisations This section applies only if the Funding Agency is also a coun- cil-controlled trading organisation.

(2) Despite section 62 of the Local Government Act 2002, a local authority may give a guarantee, an indemnity, or a security in respect of the performance of any obligation by the Funding Agency.
(3) Despite section 63 of the Local Government Act 2002, a local authority may lend money, or provide any other financial ac- commodation, to the Funding Agency on terms and conditions that are more favourable to the Funding Agency than those that would apply if the local authority were (without charging any rate or rate revenue as security) borrowing the money or ob- taining the financial accommodation.
Subsection (5) applies if a local authority gives a guarantee, an indemnity, or a security, or lends money or provides any other financial accommodation, under subsection (2) or (3) while the Funding Agency is a council-controlled trading organisation (4) 4 Reprinted as at 1 December 2014 Local Government Borrowing Act 2011 s 12 (5) 10 (1) (2) 11 12 (1) and, subsequently, the Funding Agency ceases to be a council- controlled trading organisation.
The guarantee, indemnity, security, loan, or other financial ac- commodation continues subject to its terms, and the obliga- tions and rights of the local authority in respect of the guaran- tee, indemnity, security, loan, or other financial accommoda- tion continue to apply, despite the Funding Agency no longer being a council-controlled trading organisation.
Additional requirements to be specified in local authority’s financial strategy This section applies to a local authority if it has adopted a fi- nancial strategy under section 101A of the Local Government Act 2002 and it gives a guarantee in relation to— (a) (b) any indebtedness of the Funding Agency: another local authority’s indebtedness to the Funding Agency.
The local authority must specify in its financial strategy its policy on the giving of any securities that secure obligations under the guarantee.

Exemption from prohibition on borrowing in foreign currency Section 113(1) of the Local Government Act 2002 does not apply in relation to a guarantee by a local authority of any indebtedness of the Funding Agency.
Certain arrangements and transactions to be treated as incidental arrangements and protected transactions under Local Government Act 2002 This section applies to the following arrangements: (a) a guarantee by a local authority of any indebtedness owed by another local authority to the Funding Agency: a guarantee by a local authority of any indebtedness of the Funding Agency: a commitment by a local authority to contribute equity to the Funding Agency: a commitment by a local authority to lend money to the Funding Agency.
(b) (c) (d) 5 Local Government Borrowing Act 2011 Reprinted as at 1 December 2014 The arrangements are— (a) incidental arrangements for the purposes of sections 114 and 115 of the Local Government Act 2002; and protected transactions for the purposes of sections 117 to 120 of the Local Government Act 2002.

(b) Amendments to Income Tax Act 2007 Principal Act amended Section 14 amends the Income Tax Act 2007.
Definitions Paragraph (b) of the definition of council-controlled organ- isation in section YA 1 is amended by adding “or the New Zealand Local Government Funding Agency Limited”.

The definition of local authority in section YA 1 is amended by adding the following subparagraph: “(ix) the New Zealand Local Government Funding Agency Limited while it is a council-controlled organisation within the meaning of section 6(1) of the Local Government Act 2002”.
Crown relationship with Funding Agency Crown may lend money to Funding Agency The Minister, on behalf of the Crown, may lend money to the Funding Agency if— (a) the Minister considers that— (i) it is necessary or expedient in the public interest to do so; and it is necessary to meet an exceptional and tem- porary liquidity shortfall affecting the Funding Agency; and (ii) the money is lent on commercial terms.
(b) The Minister may lend money under subsection (1) without further appropriation than this section as long as the lending occurs not later than 10 years after the commencement of this Act.

s 13 (2) 13 14 (1) (2) 15 (1) (2) 6 Reprinted as at 1 December 2014 Local Government Borrowing Act 2011 s 16 No Crown guarantee for debts of Funding Agency 16 (1) No debt of the Funding Agency is guaranteed by the Crown.
If the Funding Agency enters into any loan agreement or in- (2) cidental arrangement, the agreement or arrangement must in- clude a statement that the loan or liability under the agreement or arrangement is not guaranteed by the Crown.

In this section, incidental arrangement means an arrange- ment that would, if the Funding Agency were a local author- ity, come within the meaning of that term in section 112 of the Local Government Act 2002.
(3) 7 Notes Local Government Borrowing Act 2011 Reprinted as at 1 December 2014 Reprints notes 1 2 3 General This is a reprint of the Local Government Borrowing Act 2011 that incorporates all the amendments to that Act as at the date of the last amendment to it.

Legal status Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment.
Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act.

A printed version of the reprint produced directly from this official electronic version also has official status.

Editorial and format changes and Editorial made 26 http://www.pco.parliament.govt.nz/editorial-conventions/.
the Legislation Act to sections changes reprints powers format under 2012. using See the 24 of are to also 4 Amendments incorporated in this reprint Non-bank Deposit Takers Act 2013 (2013 No 104): section 92(2) Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70): section 150 12 8 Wellington, New Zealand: Published under the authority of the New Zealand Government—2014