Commonwealth Numbered Acts

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 No. 78, 1993 - SECT 95

95.(1) Except with the approval of the Commissioner under subsection (2) or
except as provided by subsection (3), the trustee of an approved deposit fund
must not borrow money.

(2) The Commissioner may approve a borrowing by the trustee of an approved
deposit fund if the trustee satisfies the Commissioner that special
circumstances exist that justify the borrowing.

(3) Subsection (1) does not prohibit the trustee of an approved deposit fund
from borrowing money if:

   (a)  the purpose of the borrowing is to enable the trustee to cover
        settlement of a transaction for the acquisition of any of the
        following:

        (i)    bonds, debentures, stock, bills of exchange or other
               securities;

        (ii)   shares in a company;

        (iii)  units in a unit trust;

        (iv)   futures contracts;

        (v)    forward contracts;

        (vi)   interest rates swap contracts;

        (vii)  currency swap contracts;

        (viii) forward exchange rate contracts;

        (ix)   forward interest rate contracts;

        (x)    a right or option in respect of such a security, share, unit,
               contract or policy;

        (xi)   any similar financial instrument;

        (xii)  foreign currency; and

   (b)  both:

        (i)    at the time the relevant investment decision was made, it was
               likely that the borrowing would not be needed; and

        (ii)   the borrowing is not taken, under a written determination made
               by the Commissioner, to be exempt from this paragraph; and

   (c)  the period of the borrowing does not exceed 7 days; and

   (d)  if the borrowing were to take place, the total amount borrowed by the
        trustee would not exceed 10% of the value of the assets of the fund.

(4) A determination made by the Commissioner under subsection (3) is a
disallowable instrument for the purposes of section 46A of the Acts 
Interpretation Act 1901 .

(5) Subsection (1) is a civil penalty provision as defined by section 193, and
Part 21 therefore provides for civil and criminal consequences of
contravening, or of being involved in a contravention of, that subsection.