Document ID: chunk:federal_register_of_legislation:C2014C00610:section:5ba
Version: federal_register_of_legislation:C2014C00610
Segment Type: section
Provision Reference: s 5BA
Character Range: 6948–8573

5BA  Power to enter into securities lending arrangements
 (1) The Treasurer may, from time to time, enter into securities lending arrangements, on behalf of the Commonwealth, by lending stock and securities issued under the Commonwealth Inscribed Stock Act 1911, and denominated in Australian currency.
 (2) The total face value of stock and securities on loan by the Treasurer at any time under securities lending arrangements entered into under subsection (1) must not exceed $5 billion.
 (3) The Treasurer must not lend stock or securities under securities lending arrangements entered into under subsection (1) unless the Treasurer receives collateral of one or more of the following kinds:
 (a) cash;
 (b) debt instruments denominated in Australian currency with an investment grade credit rating;
 (c) collateral of the kind mentioned in paragraph (b), where the instrument is in electronic form;
 (d) a deposit with a bank, including a deposit evidenced by a certificate of deposit;
 (e) any other collateral prescribed by the regulations.
 (4) The Treasurer must take sufficient collateral of one or more of the kinds mentioned in subsection (3) to cover the market value of the security on loan at all times.
 (5) Lending stock or a security is taken to include an arrangement under which it is sold and repurchased.
 (6) The Consolidated Revenue Fund is appropriated as necessary for the purposes of this section.
 (7) Nothing in this section affects the power to make investments under section 58 of the Public Governance, Performance and Accountability Act 2013 (which deals with investment by the Commonwealth.