Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 20D

  (1)   The moneys in the Common Fund not immediately required for the purposes of this Act may be invested by the Official Trustee:

  (a)   in public securities; or

  (b)   in a loan the repayment of which is guaranteed by the Commonwealth, a State or a Territory; or

  (c)   in a loan to a municipal corporation or other local governing body in Australia; or

  (d)   in a loan to, or on deposit with, an ADI; or

  (e)   in bank bills accepted or endorsed by an ADI.

  (4)   The Official Trustee:

  (a)   shall endeavour to ensure that the moneys in the Common Fund lodged in accounts at call with an ADI or ADIs are, as far as practicable, at all times sufficient to meet the payments that under this Act are to be made out of moneys in the Common Fund; and

  (b)   will ensure that moneys in the Common Fund that, in the opinion of the Official Trustee, are not required to be kept in accounts at call with an ADI or ADIs in accordance with paragraph   (a) are, as far as practicable, invested in accordance with subsection   (1).

  (6)   Interest derived from the investment of moneys in the Common Fund is not subject to taxation under a law of the Commonwealth, a State or a Territory.

  (7)   The Common Fund is not subject to taxation under a law of the Commonwealth, or to taxation under a law of a State or Territory to which the Commonwealth is not subject, and the Official Trustee is not otherwise subject to taxation under such a law in respect of anything done in the exercise of powers conferred on it by subsection   (1).

  (8)   In this section, public securities means:

  (a)   bonds, debentures, stock and other securities issued under an Act;

  (b)   bonds, debentures, stock and other securities issued by:

  (i)   a State;

  (ii)   a Territory;

  (iii)   a municipal corporation or other local governing body; or

  (iv)   a public authority constituted by or under a law of a State or Territory;

  (c)   securities issued in respect of a loan to a body (whether incorporated or not) whose principal business is the supply and distribution, by a system of reticulation, in Australia or in a Territory, of water, gas or electricity; and

  (d)   other securities specified in the regulations as public securities for the purposes of this section;

but does not include:

  (e)   securities referred to in paragraph   (a) or (b) that are issued in respect of a loan raised outside Australia and the Territories unless the securities are public securities for the purposes of the Income Tax Assessment Act 1936 ; or

  (f)   securities issued after 12   April 1976 by an ADI .