Local Government Borrowing Act 2011

1: Title
This Act is the Local Government Borrowing Act 2011.
2: Commencement
1: 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2: However, this Act is repealed on the day that is 12 months after the date on which it receives the Royal assent if the Funding Agency has not been registered by that date.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) brought into force 2 December 2011 Companies Act 1993 Preliminary provisions
3: Purpose
1: The purpose of this Act is to facilitate the operation of the New Zealand Local Government Funding Agency Limited.
2: To this end, this Act—
a: exempts the Funding Agency from certain regulatory or taxation criteria that would otherwise apply to it; and
b: applies certain regulatory or taxation criteria to the Funding Agency that would otherwise not apply to it; and
c: authorises local authorities to deal with the Funding Agency in a manner in which they would otherwise not be authorised to do so; and
d: authorises or requires local authorities, in certain situations, to act in a manner in which they would otherwise not be authorised or required to act.
4: Interpretation
1: In this Act, unless the context requires another meaning,— Funding Agency Part 2 Minister section 2(1)
2: A term defined in the Local Government Act 2002
5: Application
This Act applies to the Funding Agency only while the Funding Agency is a council-controlled organisation.
6: Act binds the Crown
This Act binds the Crown. Application of Non-bank Deposit Takers Act 2013 Heading replaced 1 May 2014 section 92(2) Non-bank Deposit Takers Act 2013
7: 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 1 May 2014 section 92(2) Non-bank Deposit Takers Act 2013 Application of Financial Markets Conduct Act 2013 Heading replaced 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
8: Financial Markets Conduct Act 2013 applies to Funding Agency as if it were local authority
The Financial Markets Conduct Act 2013 Section 8 replaced 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Application of Local Government Act 2002
9: Exemption from prohibitions and restrictions applying to council-controlled trading organisations
1: This section applies only if the Funding Agency is also a council-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
4: Subsection (5) subsection (2) or (3)
5: The guarantee, indemnity, security, loan, or other financial accommodation continues subject to its terms, and the obligations and rights of the local authority in respect of the guarantee, indemnity, security, loan, or other financial accommodation continue to apply, despite the Funding Agency no longer being a council-controlled trading organisation.
10: Additional requirements to be specified in local authority's financial strategy
1: This section applies to a local authority if it has adopted a financial strategy under section 101A
a: any indebtedness of the Funding Agency:
b: another local authority's indebtedness to the Funding Agency.
2: The local authority must specify in its financial strategy its policy on the giving of any securities that secure obligations under the guarantee.
11: Exemption from prohibition on borrowing in foreign currency
Section 113(1)
12: Certain arrangements and transactions to be treated as incidental arrangements and protected transactions under Local Government Act 2002
1: 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:
b: a guarantee by a local authority of any indebtedness of the Funding Agency:
c: a commitment by a local authority to contribute equity to the Funding Agency:
d: a commitment by a local authority to lend money to the Funding Agency.
2: The arrangements are—
a: incidental arrangements for the purposes of sections 114 115
b: protected transactions for the purposes of sections 117 to 120 Amendments to Income Tax Act 2007
13: Principal Act amended
Section 14 2011-12-02 Income Tax Act 2007 This Act comes into force on the day after the Funding Agency is registered under the Companies Act 1993. 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. Note: Certificate of Incorporation received from Leeanne to Michelle in email of 1/12/11. (Doreen)
14: Definitions
1: Paragraph (b) of the definition of council-controlled organisation section YA 1 or the New Zealand Local Government Funding Agency Limited
2: The definition of local authority section YA 1
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
15: Crown may lend money to Funding Agency
1: 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
ii: it is necessary to meet an exceptional and temporary liquidity shortfall affecting the Funding Agency; and
b: the money is lent on commercial terms.
2: The Minister may lend money under subsection (1)
16: No Crown guarantee for debts of Funding Agency
1: No debt of the Funding Agency is guaranteed by the Crown.
2: If the Funding Agency enters into any loan agreement or incidental arrangement, the agreement or arrangement must include a statement that the loan or liability under the agreement or arrangement is not guaranteed by the Crown.
3: In this section, incidental arrangement section 112