Document ID: chunk:federal_register_of_legislation:C2004A04350:body:0:p3
Version: federal_register_of_legislation:C2004A04350
Segment Type: other
Provision Reference: 
Character Range: 5826–8664

"(2) This section applies to the following contracts:

  (a)     currency contracts;

  (b)     interest rate contracts;

  (c)     futures contracts;

  (d)     contracts relating to:

       (i) dealings known as currency swaps; or

       (ii) dealings known as interest rate swaps; or

      (iii) dealings known as commodity swaps;

    (e) contracts relating to 2 or more of the dealings referred to in paragraph (d);

   (f) options (including futures options);

   (g) contracts of a kind approved by the Minister in writing.

"(3) Subject to subsection (6), the Corporation may enter into and deal with contracts to which this section applies for hedging purposes in relation to:

    (a)     a borrowing or raising, or a proposed borrowing or raising, of money by the Corporation; or

  (b)     an investment of money by the Corporation; or

  (c)     a purchase or sale of wool; or

  (d)     the making by the Corporation of a payment outside Australia

     in relation to the promotion of the use of wool and wool products; or

   (e) a transaction in foreign currency.

"(4) The Minister may, by written determination, set guidelines for the exercise by the Corporation of its powers under subsection (3) and must give the Corporation a copy of each determination made.

"(5) Without limiting subsection (4), the guidelines may provide that:

    (a)     the Corporation is not to enter into or deal with contracts of a particular kind; or

    (b)     the Corporation is to enter into or deal with contracts of a particular kind only if the contract relates to specified matters.

"(6) The Corporation must not enter into or deal with a contract to which this section applies contrary to any guidelines in force under subsection (4).

"(7) A contract is taken to be entered into or dealt with for hedging purposes only if the contract is entered into or dealt with for the purpose of:

  (a) managing the risk of variations in:

         (i) the costs of a borrowing or raising, or a proposed borrowing or raising, of money by the Corporation; or

         (ii) the revenue obtainable by the Corporation from the investment of money by the Corporation; or

         (iii) the amount payable to the Corporation for any wool sold by it; or

         (iv) the amount payable by the Corporation for any wool bought by it; or

         (v) the amount of any payment referred to in paragraph (3)(d); or

         (vi) a payment to or by the Corporation in relation to a transaction in foreign currency; or

    (b) maintaining the value of investments made by the Corporation.".

Interpretation

  8. Section 38 of the Principal Act is amended:

  (a)     by omitting "have been" and substituting "are";

    (b)    by omitting "for the purposes of the general meeting to be held in that financial year" and substituting "on the