Document ID: chunk:federal_register_of_legislation:C2004A04350:body:0:p9
Version: federal_register_of_legislation:C2004A04350
Segment Type: other
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Character Range: 21211–24124

of the sale value of that shorn wool as is applicable under the determination.";

  (c) by inserting in subsection (3) ", (1A)" after "(1)".

Commission may charge for services

20.     Section 26 of the Principal Act is amended by omitting "(g)" and substituting "(h)".

21.     Section 29 of the Principal Act is repealed and the following section is substituted:

Hedging through currency contracts etc.

  "29.(1) In this section:

'currency contract' means:

  (a)     a forward exchange rate contract; or

  (b)     a contract with respect to currency futures;

'futures contract' means:

   (a)     a deferred delivery contract; or

   (b)     a contract with respect to financial futures; or

   (c)     a contract with respect to commodity futures.

  "(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 Commission 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 Commission; or

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

   (c)     a sale of wool from the wool stockpile; or

   (d)     a transaction in foreign currency.

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

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

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

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

"(6) The Commission 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 Commission; or

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

         (iii) the amount payable to the Commission for any wool sold from the wool stockpile; or

         (iv)