Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698752537564.pdf (New Zealand)
Reprint as at 2 December 2011 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 Reserve Bank of New Zealand Act 1989 Part 5D of Reserve Bank of New Zealand Act 1989 does not apply to Funding Agency Application of Securities Act 1978 Securities Act 1978 applies to Funding Agency as if it were local authority Page 2 2 2 3 3 3 3 4 Note Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.
A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

This Act is administered by the Department of Internal Affairs.
1 s 1 Local Government Borrowing Act 2011 Reprinted as at 2 December 2011 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 6 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(2) However, this Act is repealed on the day that is 12 months after the date on which it receives the Royal assent if the Funding Agency has not been registered by that date.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 2 December 2011 Local Government Borrowing Act 2011 s 7 (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 7 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 Reserve Bank of New Zealand Act 1989 Part 5D of Reserve Bank of New Zealand Act 1989 does not apply to Funding Agency Part 5D of the Reserve Bank of New Zealand Act 1989 does not apply to the Funding Agency.
3 s 8 8 Local Government Borrowing Act 2011 Reprinted as at 2 December 2011 Application of Securities Act 1978 Securities Act 1978 applies to Funding Agency as if it were local authority The Securities Act 1978 applies to the Funding Agency as if it were a local authority.
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.
(4) (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 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.
(5) 4 Reprinted as at 2 December 2011 Local Government Borrowing Act 2011 s 12 10 (1) (2) 11 12 (1) (2) 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.
(c) (b) 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.
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) (d) 5 s 13 Local Government Borrowing Act 2011 Reprinted as at 2 December 2011 13 14 (1) (2) 15 (1) (2) 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.

16 No Crown guarantee for debts of Funding Agency (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.
6 Reprinted as at 2 December 2011 Local Government Borrowing Act 2011 s 16 (3) 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.
7 Notes Local Government Borrowing Act 2011 Reprinted as at 2 December 2011 Contents 1 2 3 4 General Status of reprints How reprints are prepared Changes made under section 17C of the Acts and Regulations Publication Act 1989 List of amendments incorporated in this reprint (most recent first) General This is a reprint of the Local Government Borrowing Act 2011.

The reprint incorporates all the amendments to the Act as at 2 December 2011, as specified in the list of amendments at the end of these notes.
Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the reprint are also included, after the principal enactment, in chronological order.

For more information, see http://www.pco.parliament.govt.nz/reprints/.
Status of reprints Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment.

This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.
This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.

How reprints are prepared editorial A number in the preparation of enacting words are of conventions reprints.

not included are For example, in Acts, followed the and 5 Notes 1 2 3 8 Reprinted as at 2 December 2011 Local Government Borrowing Act 2011 Notes that are repealed or revoked are omitted.
provisions For a detailed list of see http://www.pco.parliament.govt.nz/editorial-conventions/ or Part 8 of the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.
the editorial conventions, 4 Changes made under section 17C of the Acts and Regulations Publication Act 1989 Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice.

Changes that would alter the effect of the legislation are not permitted.
A new format of legislation was introduced on 1 January 2000.

Changes to legislative drafting style have also been made since 1997, and are ongoing.

To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.
In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint: • omission of unnecessary referential words (such as “of this section” and “of this Act”) typeface and type size (Times Roman, generally in 11.5 point) layout of provisions, including: • • indentation position of section headings (eg, the number and heading now appear above the section) format of definitions (eg, the defined term now appears in bold type, without quotation marks) format of dates (eg, a date formerly expressed as “the 1st day of January 1999” is now expressed as “1 January 1999”) 9 • • • • Notes Local Government Borrowing Act 2011 Reprinted as at 2 December 2011 • • • • • • • position of the date of assent (it now appears on the front page of each Act) punctuation (eg, colons are not used after definitions) Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly case and appearance of letters and words, including: • followed by small capital format of headings (eg, headings where each word formerly appeared with an initial capital letter letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter) small capital letters in section and subsection references are now capital letters • schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accordingly running heads (the information that appears at the top of each page) format of amendments, and schedules of are rearranged into alphabetical order, chronological).
two-column schedules of consequential they rather than repeals (eg, List of amendments incorporated in this reprint (most recent first) Wellington, New Zealand: Published under the authority of the New Zealand Government—2011 5 12 10