Commonwealth Numbered Acts

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 No. 78, 1993 - SECT 97

97.(1) Subject to subsection (2), the trustee of a pooled superannuation trust
must not borrow money.

(2) Subsection (1) does not prohibit the trustee of a pooled superannuation
trust from borrowing money if:

   (a)  the purpose of the borrowing is to enable the trustee to make a
        payment to a beneficiary in the trust which the trustee is required to
        make by law or by the governing rules and which, apart from the
        borrowing, the trustee would not be able to make; and

   (b)  the period of the borrowing does not exceed 90 days; and

   (c)  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 trust.

(3) Subsection (1) does not prohibit the trustee of a pooled superannuation
trust 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 trust.

(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 .