Commonwealth Consolidated Acts Commonwealth Consolidated ActsPreamble
WHEREAS by clause 1 of Part III of the Agreement set forth in the Schedule to the Financial Agreement Validation Act 1929 it was agreed that, subject to the provisions of that Part of the Agreement, the Commonwealth would take over on the first day of July One thousand nine hundred and twenty-nine:
(a) the balance then unpaid of the gross public debt of each State existing on the thirtieth day of June One thousand nine hundred and twenty-seven; and
(b) all other debts of each State existing on the first day of July One thousand nine hundred and twenty-nine for moneys borrowed by that State which by that Agreement were deemed to be moneys borrowed by the Commonwealth for and on behalf of that State;
and would in respect of debts so taken over assume as between the Commonwealth and the States the liabilities of the States to bondholders:
AND WHEREAS doubts have arisen as to the direct liability of the Commonwealth to bondholders in certain debts of the States so taken over by the Commonwealth:
AND WHEREAS it is desirable that those doubts should be resolved and that the Commonwealth should accept direct liability to those bondholders and should have the right to sue the State concerned for the amount of payments made in satisfaction of such liability:
BE it therefore enacted by the King's Most Excellent Majesty, the Senate, and the house of Representives of the Commonwealth of Australia, as follows: