South Australian Current Acts South Australian Current Acts134—Borrowing and related financial arrangements
(1) A council may
borrow money and obtain other forms of financial accommodation.
(2) A borrowing may
take any form considered appropriate by the council, including through the use
of an overdraft or finance lease.
(3) A council may
enter into financial arrangements for the purpose of managing, hedging or
protecting against movements in interest rates or other costs of borrowing
money, including—
(a)
interest rate swaps;
(b)
forward interest rate agreements;
(c)
interest rate options;
(d)
other prescribed arrangements.
(4) However, a council
must not enter into a financial arrangement under subsection (3) unless
or until—
(a) the
council has obtained and considered independent and impartial advice about the
proposed financial arrangements and the appropriate risk-management policies,
controls and systems that should be in place from a person whom the council
reasonably believes to be competent to give the advice; and
(b) the
council has adopted risk-management policies, controls and systems by a
resolution passed by at least a two-thirds majority of the members of the
council.