Commonwealth Authorities and Companies Act 1997 — Approval of Manners of Investment 2008/01
I, LINDSAY TANNER, Minister for Finance and Deregulation, under paragraph
18 (3) (d) of the Commonwealth Authorities and Companies Act 1997:
(a) revoke all previous investment approvals made under paragraph 18 (3) (d); and
(b) approve the manners of investment specified in the Investment Approvals in Schedules 1 to 10.
Dated 2 June 2008
Lindsay Tanner
Minister for Finance and Deregulation
Schedule 1
Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Dematerialised equivalents
Part 1 Name of Investment Approval
This Investment Approval is the Commonwealth Authorities and Companies Act 1997 – Investment Approval 2008/01 — Dematerialised equivalents.
Note This Investment Approval is Schedule 1 to the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01.
Part 2 Commencement
This Investment Approval commences at the time at which the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01 is signed.
Part 3 Approval of manner of investment
For paragraph 18 (3) (d) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), all Commonwealth authorities are authorised to invest surplus money:
(i) in a manner specified in Part 5 of this approval; and
(ii) subject to the conditions specified in Part 6.
Part 4 Definitions
In this Investment Approval:
Dematerialised Security means a debt obligation that is registered on Austraclear.
Note The Austraclear settlement system is operated in accordance with the Austraclear System Regulations and Operating Manual.
Part 5 Approved manners
In addition to the manners of investment specified in paragraphs 18 (3) (a) to (c) of the CAC Act, the approved manners of investment are:
(i) Dematerialised Securities that are the equivalent of securities of the Commonwealth or of a State or Territory mentioned in paragraph 18 (3) (b); and
(ii) Dematerialised Securities that are the equivalent of securities guaranteed by the Commonwealth, a State or a Territory mentioned in paragraph 18 (3) (c).
Part 6 Conditions
The following conditions are imposed on the approved investments listed in Part 5:
(i) all investments need to be in the name of the respective Commonwealth Authority; and
(ii) all investments must be denominated in Australian currency.
Schedule 2
Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Australian Broadcasting Corporation
Part 1 Name of Investment Approval
This Investment Approval is the Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Australian Broadcasting Corporation.
Note This Investment Approval is Schedule 2 to the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01.
Part 2 Commencement
This Investment Approval commences at the time at which the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01 is signed.
Part 3 Approval of manner of investment
For paragraph 18 (3) (d) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Australian Broadcasting Corporation (the ABC) is authorised to invest surplus money:
(i) in a manner specified in Part 5 of this approval; and
(ii) subject to the conditions specified in Part 6.
Note 1 The ABC is responsible for any decision to proceed with investments under subsection 18 (3) of the CAC Act. In the case of poor returns, the Commonwealth is not obliged to make up any losses and the ABC will have to adjust its activities accordingly.
Note 2 The directors of the ABC, consistent with their CAC Act duties, are responsible for ensuring that the ABC complies with the CAC Act. The directors therefore need to satisfy themselves that the ABC is complying with the investment restrictions under subsection 18 (3) of the CAC Act.
Part 4 Definitions
In this Investment Approval:
Approved Bank means a person that carries on the business of banking in Australia; and
(i) the operations of which are subject to prudential supervision or regulation under a law of the Commonwealth, a State or a Territory; and
(ii) the business of which has a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, of A- or better.
Dematerialised Security means a debt obligation that is registered on Austraclear.
Note The Austraclear settlement system is operated in accordance with the Austraclear System Regulations and Operating Manual.
Part 5 Approved manners
In addition to the manners of investment specified in paragraphs 18 (3) (a) to (c) of the CAC Act, the approved manners of investment are:
(i) bills of exchange accepted or endorsed by an Approved Bank; and
(ii) Dematerialised Securities that are the equivalent of the bills of exchange mentioned in paragraph (i); and
(iii) certificates of deposit with an Approved Bank; and
(iv) Dematerialised Securities that are the equivalent of the certificates of deposit mentioned in paragraph (iii).
Part 6 Conditions
The following conditions are imposed on the approved manner of investment listed in Part 5:
(i) all investments must be in the name of the Australian Broadcasting Corporation; and
(ii) all investments must be denominated in Australian currency.
Schedule 3
Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Export Finance and Insurance Corporation
Part 1 Name of Investment Approval
This Investment Approval is the Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Export Finance and Insurance Corporation.
Note This Investment Approval is Schedule 3 to the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01.
Part 2 Commencement
This Investment Approval commences at the time at which the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01 is signed.
Part 3 Approval of manner of investment
For paragraph 18 (3) (d) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Export Finance and Insurance Corporation (EFIC) is authorised to invest surplus money:
(i) in a manner specified in Part 5 of this approval; and
(ii) subject to the conditions specified in Part 6.
Note 1 EFIC is responsible for any decision to proceed with investments under subsection 18 (3) of the CAC Act.
Note 2 The directors of EFIC, consistent with their CAC Act duties, are responsible for ensuring that EFIC complies with the CAC Act. The directors therefore need to satisfy themselves that EFIC is complying with the investment restrictions under subsection 18 (3) of the CAC Act.
Part 4 Definitions
In this Investment Approval:
Approved Bank means a person that carries on the business of banking in Australia; and
(i) the operations of which are subject to prudential supervision or regulation under a law of the Commonwealth, a State or a Territory; and
(ii) the business of which has a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, of BBB- or better.
Approved Entity means an entity that operates inside or outside Australia and has a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, of AA- or better.
Securities means debentures, bonds, promissory notes, commercial paper, bills of exchange, certificates of deposit and fixed and floating rate notes issued under a senior debt program, and their dematerialised equivalents. Securities do not include any instrument or document that is in the nature of equity, subordinate debt or hybrid equity.
Part 5 Approved manners
In addition to the manners of investment specified in paragraphs 18 (3) (a) to (c) of the CAC Act, the approved manners of investment are:
(i) in Securities issued by an Approved Bank; and
(ii) on deposit with, or Securities issued or guaranteed by, an Approved Entity.
Part 6 Conditions
The following conditions are imposed on the approved manners of investment listed in Part 5:
(i) all investments must be in the name of the Export Finance and Insurance Corporation; and
(ii) investments in an Approved Bank under Part 5 (i) that have a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, lower than A- must not exceed 25% of EFIC’s total investments; and
(iii) investments in an Approved Bank under Part 5 (i) with a term longer than 6 months and which have a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, lower than A- must be able to be traded in the secondary market and must not exceed a term of 3 years; and
(iv) investments in any individual Approved Bank under Part 5 (i) with a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, lower than A- must not exceed 10% of EFIC’s total investments.
Schedule 4
Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Grains Research and Development Corporation
Part 1 Name of Investment Approval
This Investment Approval is the Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Grains Research and Development Corporation.
Note This Investment Approval is Schedule 4 to the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01.
Part 2 Commencement
This Investment Approval commences at the time at which the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01 is signed.
Part 3 Approval of manner of investment
For paragraph 18 (3) (d) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Grains Research and Development Corporation (GRDC) is authorised to invest surplus money:
(i) in a manner specified in Part 5 of this approval; and
(ii) subject to the conditions specified in Part 6.
Note 1 GRDC is responsible for any decision to proceed with investments under subsection 18 (3) of the CAC Act. In the case of poor returns, the Commonwealth is not obliged to make up any losses and GRDC will have to adjust its activities accordingly.
Note 2 The directors of GRDC, consistent with their CAC Act duties, are responsible for ensuring that GRDC complies with the CAC Act. The directors therefore need to satisfy themselves that GRDC is complying with the investment restrictions under subsection 18 (3) of the CAC Act.
Part 4 Definitions
In this Investment Approval:
Approved Bank means a person that carries on the business of banking in Australia; and
(i) the operations of which are subject to prudential supervision or regulation under a law of the Commonwealth, a State or a Territory; and
(ii) the business of which has a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, of A- or better.
Dematerialised Security means a debt obligation that is registered on Austraclear.
Note The Austraclear settlement system is operated in accordance with the Austraclear System Regulations and Operating Manual.
Senior Debt Programme means debt that is issued and ranked ahead of other debt. It has priority if debt has to be redeemed in cases of liquidation.
Part 5 Approved manners
In addition to the manners of investment specified in paragraphs 18 (3) (a) to (c) of the CAC Act, the approved manners of investment are:
(i) bills of exchange accepted or endorsed by an Approved Bank; and
(ii) Dematerialised Securities that are the equivalent of the bills of exchange mentioned in paragraph (i); and
(iii) certificates of deposit with an Approved Bank; and
(iv) Dematerialised Securities that are the equivalent of the certificates of deposit mentioned in paragraph (iii); and
(v) floating rate notes issued by an Approved Bank under a Senior Debt Programme; and
(vi) Dematerialised Securities that are the equivalent of the floating rate notes mentioned in paragraph (v); and
(vii) 11am call deposits with an Approved Bank.
Part 6 Conditions
The following conditions are imposed on the approved manners of investment listed in Part 5:
(i) all investments must be in the name of the Grains Research and Development Corporation; and
(ii) all investments must be denominated in Australian currency; and
(iii) investments under Part 5 (v) and 5 (vi) must not exceed 20% of GRDC’s total investments.
Schedule 5
Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Rural Industries Research and Development Corporation
Part 1 Name of Investment Approval
This Investment Approval is the Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Rural Industries Research and Development Corporation.
Note This Investment Approval is Schedule 5 to the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01.
Part 2 Commencement
This Investment Approval commences at the time at which the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01 is signed.
Part 3 Approval of manner of investment
For paragraph 18 (3) (d) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Rural Industries Research and Development Corporation (RIRDC) is authorised to invest surplus money:
(i) in a manner specified in Part 5 of this approval; and
(ii) subject to the conditions specified in Part 6.
Note 1 RIRDC is responsible for any decision to proceed with investments under subsection 18 (3) of the CAC Act. In the case of poor returns, the Commonwealth is not obliged to make up any losses and RIRDC will have to adjust its activities accordingly.
Note 2 The directors of RIRDC, consistent with their CAC Act duties, are responsible for ensuring that RIRDC complies with the CAC Act. The directors therefore need to satisfy themselves that RIRDC is complying with the investment restrictions under subsection 18 (3) of the CAC Act.
Part 4 Definitions
In this Investment Approval:
Approved Bank means a person that carries on the business of banking in Australia; and
(i) the operations of which are subject to prudential supervision or regulation under a law of the Commonwealth, a State or a Territory; and
(ii) the business of which has a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, of A- or better.
Dematerialised Security means a debt obligation that is registered on Austraclear.
Note The Austraclear settlement system is operated in accordance with the Austraclear System Regulations and Operating Manual.
Part 5 Approved manners
In addition to the manners of investment specified in paragraphs 18 (3) (a) to (c) of the CAC Act, the approved manners of investment are:
(i) bills of exchange accepted or endorsed by an Approved Bank; and
(ii) Dematerialised Securities that are the equivalent of the bills of exchange mentioned in paragraph (i).
Part 6 Conditions
The following conditions are imposed on the approved manners of investment listed in Part 5:
(i) all investments must be in the name of the Rural Industries Research and Development Corporation; and
(ii) all investments must be denominated in Australian currency.
Schedule 6
Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Commonwealth Scientific and Industrial Research Organisation
Part 1 Name of Investment Approval
This Investment Approval is the Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Commonwealth Scientific and Industrial Research Organisation.
Note This Investment Approval is Schedule 6 to the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01.
Part 2 Commencement
This Investment Approval commences at the time at which the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01 is signed.
Part 3 Approval of manner of investment
For paragraph 18 (3) (d) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Commonwealth Scientific and Industrial Research Organisation (the CSIRO) is authorised to invest surplus money:
(i) in a manner specified in Part 5 of this approval; and
(ii) subject to the conditions specified in Part 6.
Note 1 The CSIRO is responsible for any decision to proceed with investments under subsection 18 (3) of the CAC Act. In the case of poor returns, the Commonwealth is not obliged to make up any losses and the CSIRO will have to adjust its activities accordingly.
Note 2 The directors of the CSIRO, consistent with their CAC Act duties, are responsible for ensuring that the CSIRO complies with the CAC Act. The directors therefore need to satisfy themselves that the CSIRO is complying with the investment restrictions under subsection 18 (3) of the CAC Act.
Part 4 Definitions
In this Investment Approval:
Approved Bank means a person that carries on the business of banking in Australia; and
(i) the operations of which are subject to prudential supervision or regulation under a law of the Commonwealth, a State or a Territory; and
(ii) the business of which has a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, of A- or better.
Dematerialised Security means a debt obligation that is registered on Austraclear.
Note The Austraclear settlement system is operated in accordance with the Austraclear System Regulations and Operating Manual.
Part 5 Approved manners
In addition to the manners of investment specified in paragraphs 18 (3) (a) to (c) of the CAC Act, the approved manners of investment are:
(i) bills of exchange accepted or endorsed by an Approved Bank; and
(ii) Dematerialised Securities that are the equivalent of the bills of exchange mentioned in paragraph (i); and
(iii) certificates of deposit with an Approved Bank; and
(iv) Dematerialised Securities that are the equivalent of the certificates of deposits mentioned in paragraph (iii).
Part 6 Conditions
The following conditions are imposed on the approved manners of investment listed in Part 5:
(i) all investments must be in the name of the Commonwealth Scientific and Industrial Research Organisation; and
(ii) all investments must be denominated in Australian currency.
Schedule 7
Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Civil Aviation Safety Authority
Part 1 Name of Investment Approval
This Investment Approval is the Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Civil Aviation Safety Authority.
Note This Investment Approval is Schedule 7 to the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01.
Part 2 Commencement
This Investment Approval commences at the time at which the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01 is signed.
Part 3 Approval of manner of investment
For paragraph 18 (3) (d) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Civil Aviation Safety Authority (CASA) is authorised to invest surplus money:
(i) in a manner specified in Part 5 of this approval; and
(ii) subject to the conditions specified in Part 6.
Note 1 CASA is responsible for any decision to proceed with investments under subsection 18 (3) of the CAC Act. In the case of poor returns, the Commonwealth is not obliged to make up any losses and CASA will have to adjust its activities accordingly.
Note 2 The directors of CASA, consistent with their CAC Act duties, are responsible for ensuring that CASA complies with the CAC Act. The directors therefore need to satisfy themselves that CASA is complying with the investment restrictions under subsection 18 (3) of the CAC Act.
Part 4 Definitions
In this Investment Approval:
Approved Bank means a person that carries on the business of banking in Australia; and
(i) the operations of which are subject to prudential supervision or regulation under a law of the Commonwealth, a State or a Territory; and
(ii) the business of which has a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, of A- or better.
Dematerialised Security means a debt obligation that is registered on Austraclear.
Note The Austraclear settlement system is operated in accordance with the Austraclear System Regulations and Operating Manual.
Part 5 Approved manners
In addition to the manners of investment specified in paragraphs 18 (3) (a) to (c) of the CAC Act, the approved manners of investment are:
(i) bills of exchange accepted or endorsed by an Approved Bank; and
(ii) Dematerialised Securities that are the equivalent of the bills of exchange mentioned in paragraph (i); and
(iii) certificates of deposit with an Approved Bank; and
(iv) Dematerialised Securities that are the equivalent of the certificates of deposits mentioned in paragraph (iii).
Part 6 Conditions
The following conditions are imposed on the approved manners of investment listed in Part 5:
(i) all investments must be in the name of the Civil Aviation Safety Authority; and
(ii) all investments must be denominated in Australian currency.
Schedule 8
Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Australian Hearing Services
Part 1 Name of Investment Approval
This Investment Approval is the Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Australian Hearing Services.
Note This Investment Approval is Schedule 8 to the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01.
Part 2 Commencement
This Investment Approval commences at the time at which the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01 is signed.
Part 3 Approval of manner of investment
For paragraph 18 (3) (d) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Australian Hearing Services (AHS) is authorised to invest surplus money:
(i) in a manner specified in Part 5 of this approval; and
(ii) subject to the conditions specified in Part 6.
Note 1 AHS is responsible for any decision to proceed with investments under subsection 18 (3) of the CAC Act. In the case of poor returns, the Commonwealth is not obliged to make up any losses and AHS will have to adjust its activities accordingly.
Note 2 The directors of AHS, consistent with their CAC Act duties, are responsible for ensuring that AHS complies with the CAC Act. The directors therefore need to satisfy themselves that AHS is complying with the investment restrictions under subsection 18 (3) of the CAC Act.
Part 4 Definitions
In this Investment Approval:
Approved Bank means a person that carries on the business of banking in Australia; and
(i) the operations of which are subject to prudential supervision or regulation under a law of the Commonwealth, a State or a Territory; and
(ii) the business of which has a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, of A- or better.
Dematerialised Security means a debt obligation that is registered on Austraclear.
Note The Austraclear settlement system is operated in accordance with the Austraclear System Regulations and Operating Manual.
Part 5 Approved manners
In addition to the manners of investment specified in paragraphs 18 (3) (a) to (c) of the CAC Act, the approved manners of investment are:
(i) bills of exchange accepted or endorsed by an Approved Bank; and
(ii) Dematerialised Securities that are the equivalent of the bills of exchange mentioned in paragraph (i).
Part 6 Conditions
The following conditions are imposed on the approved manners of investment listed in Part 5:
(i) all investments must be in the name of the Australian Hearing Services; and
(ii) all investments must be denominated in Australian currency.
Schedule 9
Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Australian Nuclear Science and Technology Organisation
Part 1 Name of Investment Approval
This Investment Approval is the Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Australian Nuclear Science and Technology Organisation.
Note This Investment Approval is Schedule 9 to the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01.
Part 2 Commencement
This Investment Approval commences at the time at which the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01 is signed.
Part 3 Approval of manner of investment
For paragraph 18 (3) (d) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), the Australian Nuclear Science and Technology Organisation (ANSTO) is authorised to invest surplus money:
(i) in a manner specified in Part 5 of this approval; and
(ii) subject to the conditions specified in Part 6.
Note 1 ANSTO is responsible for any decision to proceed with investments under subsection 18 (3) of the CAC Act. In the case of poor returns, the Commonwealth is not obliged to make up any losses and ANSTO will have to adjust its activities accordingly.
Note 2 The directors of ANSTO, consistent with their CAC Act duties, are responsible for ensuring that ANSTO complies with the CAC Act. The Directors therefore need to satisfy themselves that ANSTO is complying with the investment restrictions under subsection 18 (3) of the CAC Act.
Part 4 Definitions
In this Investment Approval:
Approved Bank means a person that carries on the business of banking in Australia; and
(i) the operations of which are subject to prudential supervision or regulation under a law of the Commonwealth, a State or a Territory; and
(ii) the business of which has a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, of A- or better.
Dematerialised Security means a debt obligation that is registered on Austraclear.
Note The Austraclear settlement system is operated in accordance with the Austraclear System Regulations and Operating Manual.
Part 5 Approved manners
In addition to the manners of investment specified in paragraphs 18 (3) (a) to (c) of the CAC Act, the approved manners of investment are:
(i) bills of exchange accepted or endorsed by an Approved Bank; and
(ii) Dematerialised Securities that are the equivalent of the bills of exchange mentioned in paragraph (i); and
(iii) certificates of deposit with an Approved Bank; and
(iv) Dematerialised Securities that are the equivalent of the certificates of deposit mentioned in paragraph (iii).
Part 6 Conditions
The following conditions are imposed on the approved manners of investment listed in Part 5:
(i) all investments must be in the name of the Australian Nuclear Science and Technology Organisation; and
(ii) all investments must be denominated in Australian currency.
Schedule 10
Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Airservices Australia
Part 1 Name of Investment Approval
This Investment Approval is the Commonwealth Authorities and Companies Act 1997 — Investment Approval 2008/01 — Airservices Australia.
Note This Investment Approval is Schedule 10 to the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01.
Part 2 Commencement
This Investment Approval commences at the time at which the Commonwealth Authorities and Companies Act 1997 – Approval of Manners of Investment 2008/01 is signed.
Part 3 Approval of manner of investment
For paragraph 18 (3) (d) of the Commonwealth Authorities and Companies Act 1997 (the CAC Act), Airservices Australia (Airservices) is authorised to invest surplus money:
(i) in a manner specified in Part 5 of this approval; and
(ii) subject to the conditions specified in Part 6.
Note 1 Airservices is responsible for any decision to proceed with investments under subsection 18 (3) of the CAC Act. In the case of poor returns, the Commonwealth is not obliged to make up any losses and Airservices will have to adjust its activities accordingly.
Note 2 The directors of Airservices, consistent with their CAC Act duties, are responsible for ensuring that Airservices complies with the CAC Act. The directors therefore need to satisfy themselves that Airservices is complying with the investment restrictions under subsection 18 (3) of the CAC Act.
Part 4 Definitions
In this Investment Approval:
Approved Bank means a person that carries on the business of banking in Australia; and
(i) the operations of which are subject to prudential supervision or regulation under a law of the Commonwealth, a State or a Territory; and
(ii) the business of which has a Standard and Poor’s long-term rating, or the equivalent Moody’s or Fitch’s rating, of A- or better.
Dematerialised Security means a debt obligation that is registered on Austraclear.
Note The Austraclear settlement system is operated in accordance with the Austraclear System Regulations and Operating Manual.
Senior Debt Programme means debt that is issued and ranked ahead of other debt. It has priority if debt has to be redeemed in cases of liquidation.
Part 5 Approved manners
In addition to the manners of investment specified in paragraphs 18 (3) (a) to (c) of the CAC Act, the approved manners of investment are:
(i) floating rate notes issued by an Approved Bank under a Senior Debt Programme; and
(ii) Dematerialised Securities that are the equivalent of the floating rate notes mentioned in paragraph (i).
Part 6 Conditions
The following conditions are imposed on the approved manners of investment listed in Part 5:
(i) all investments must be in the name of Airservices Australia; and
(ii) all investments must be denominated in Australian currency; and
(iii) investments under Part 5 (i) and 5 (ii) must not exceed $20 million.
