Document ID: chunk:federal_register_of_legislation:C2004C00484:section:4
Version: federal_register_of_legislation:C2004C00484
Segment Type: section
Provision Reference: s 4
Character Range: 3562–5145

4  Assumption of liability by Commonwealth to bondholders

 (1) The Commonwealth will pay to bondholders from time to time interest payable on the Public Debts taken over by the Commonwealth from the States in pursuance of clause 1 of Part III of the Agreement contained in the Schedule to the Financial Agreement Validation Act 1929, other than debts due by the States to the Commonwealth, and, upon the maturity of any securities issued in respect of any such Public Debts, will pay to bondholders the principal moneys secured by those securities.

 (2) Any such bondholder may bring a suit against the Commonwealth in the Supreme Court of a State or Territory for payment of interest due to him at any time on any portion of any such Public Debts of a State, and, upon the maturity of any securities issued in respect of any such public debts, for payment of the principal moneys secured by those securities.

 (3) The Consolidated Revenue Fund is hereby appropriated accordingly for the purpose of payments of principal moneys and interest for which in pursuance of the foregoing provisions of this section the Commonwealth is liable.

 (4) In addition to and without prejudice to any other remedy or relief, the Commonwealth shall be entitled to recover from a State, by suit in the High Court, any moneys (due and payable and unpaid by the State by virtue of the Financial Agreements or this Act) for which the Commonwealth has become liable by virtue of the Financial Agreements or this Act, or which the Commonwealth has paid in pursuance of those Agreements or this Act.