End Date 11 Jun 1978
- Reprinted as at 19 December 1973 (HISTACT CHAP 1972 #DATE 19:12:1973)
COMMONWEALTH BANKS ACT 1959- TABLE OF PROVISIONS
COMMONWEALTH  BANKS  ACT  1959-1973
TABLE  OF  PROVISIONS
PART  I-PRELIMINARY
1.        Short title
2.        Commencement
3.        (Repealed)
4.        Definitions
5.        Application to Territories
5A.       Cessation of application to Territory
6.        This Act subject to Banking Act
PART  II-THE  COMMONWEALTH  BANKING  CORPORATION
7.        The Commonwealth Banking Corporation
8.        Establishment of Commonwealth Banking Corporation Board
9.        Functions of Commonwealth Banking Corporation Board
10.       Executive Committees
11.       Differences of opinion on questions of policy
12.       Management of the Corporation
13.       Managing Director and Secretary to Treasury to establish liaison
PART  III-THE  COMMONWEALTH  BANKING  CORPORATION
14.       Membership of Board
15.       Declaration by members
16.       Disqualifications from membership
17.       Vacation of office
18.       Chairman and Deputy Chairman of the Board
19.       Meetings of Board
20.       Membership of Executive Committees
21.       Meetings of Executive Committees
22.       Vacancies not to invalidate proceedings
23.       Deputy Secretary, Department of Treasury
24.       Disclosure of interest in contracts
25.       Managing Director and Deputy Managing Director of Corporation
PART  IV-THE  COMMONWEALTH  TRADING  BANK
27.       The Commonwealth Trading Bank
28.       General functions of Trading Bank
29.       Powers of Trading Bank
30.       Capital
31.       Reserve Fund
32.       Profits of Trading Bank
33.       General Manager of Trading Bank
35.       Management of Trading Bank
36.       Trading Bank to pay share of expenses of Corporation
37.       Payment for services
38.       Amalgamation of other banks with Trading Bank
39.       Agents, &c.
PART  V-THE  COMMONWEALTH  SAVINGS  BANK
40.       The Commonwealth Savings Bank
41.       General functions of Savings Bank
42.       Powers of Savings Bank
44.       Profits of Savings Bank
45.       General Manager of Savings Bank
47.       Management of Savings Bank
48.       Savings Bank to pay share of expenses of Corporation
50.       Amalgamation of other savings banks with Commonwealth Savings Bank
52.       Interest on deposits
53.       Unclaimed deposits
54.       (Repealed)
PART  VI-HOUSING  LOANS
Division 1-Preliminary
55.       Housing loans
56.       Preference to be given to certain loans
57.       Rates of interest
58.       Part not to limit Banks' powers
Division 2-Loans to  Building  Societies
59.       Terms and conditions of loans
60.       Amount of loan
Division 3-Loans to  Individuals
61.       Loans to individuals
62.       Circumstances in which loans may be made
63.       Loans to be made on mortgage
65.       Period of loans
67.       Loans repayable by periodical instalments
68.       Power to insure homes
69.       Repayment of loans before maturity
70.       Provisions where mortgaged land transferred, &c.
PART  VII-THE  COMMONWEALTH  DEVELOPMENT  BANK
71.       The Commonwealth Development Bank
72.       Functions of Development Bank
73.       Matters to be considered in providing finance
74.       Powers of Development Bank
75.       Capital of Development Bank
77.       Profits of Development Bank
78.       General Manager of Development Bank
80.       Management of Development Bank
81.       Development Bank to pay share of expenses of Corporation
84.       Limitation on borrowing
85.       Loans by Treasurer
86.       Definition
PART  VIII-THE  COMMONWEALTH  BANKING  CORPORATION  SERVICE
87.       Definitions
Division 2-Appointments and Examinations
88.       Appointment of officers
89.       Temporary and casual employees
90.       Requirements for appointment to Service
91.       Admission to examinations
92.       Notice of examinations
93.       Separate examinations
94.       Appointments to be made in order of merit
95.       Appointment of University graduates
96.       Appointment of persons without examination
Division 3-Classification and Promotions
97.       Creation and abolition of positions
98.       Reclassification
99.       Selection of officers for promotion
100.       Appeals against promotions
101.       Promotions Appeal Board
Division 4-Tenure of Office
102.       Tenure of office
103.       Excess officers
104.       (Repealed)
105.       Appointments to be on probation
Division 5-Dismissals and Punishments
106.       Retirement, &c., on grounds of inefficiency, incapacity, &c.
107.       Disciplinary action for misconduct
108.       Appeals
109.       Disciplinary Appeal Board
Division 6-General
110.       Superannuation fund
111.       Borrowing by officers
112.       Officer appointed to a statutory office
113.       List of officers
PART  IX-MISCELLANEOUS
114.       Definition
115.       Head offices
116.       Appointment of attorneys
117.       Guarantee by Commonwealth
118.       Determination of net profits
119.       Taxation
120.       Audit
121.       Annual reports and financial statements
122.       Returns
123.       Power to improve property and carry on business
124.       Execution of contracts
125.       Judicial notice of seals
126.       Investment of trust moneys
127.       Validity of acts and transactions
128.       Preservation of rights
129.       Regulations
COMMONWEALTH BANKS ACT 1959-1973
An Act to establish a Commonwealth Banking Corporation and to make provision
for the conduct of the business of the Commonwealth Trading Bank of Australia,
the Commonwealth Savings Bank of Australia and the Commonwealth Development
Bank of Australia.
COMMONWEALTH BANKS ACT 1959- PART 1
PART I-PRELIMINARY
COMMONWEALTH BANKS ACT 1959- SECT. 1.
Short title amended; No. 32, 1918, s. 2.
1. This Act may be cited as the Commonwealth Banks Act 1959-1973.*
Commencement.
Act 1959 comes into operation.*
Section 3 repealed by No. 117, 1973, s. 3.
*   *   *   *   *   *   *   *
Amended by No. 117, 1973, s. 5.
4. In this Act, unless the contrary intention appears-
''Australia'' includes the Territories;
''bank'' means a person carrying on the business of banking, and includes
the Trading Bank, the Savings Bank and the Development Bank;
''Executive Committee'' means the Executive Committee of the Board for the
Trading Bank, the Executive Committee of the Board for the Savings Bank or the
Executive Committee of the Board for the Development Bank;
''officer'' means an officer of the service;
''repealed Act'' means an Act repealed by the Commonwealth Bank Act 1945 or
by the Reserve Bank Act 1959;
''statutory office'' means the office of Managing Director or Deputy
Managing Director of the Corporation, General Manager of the Trading Bank,
General Manager of the Savings Bank or General Manager of the Development
''the Board'' means the Commonwealth Banking Corporation Board;
''the Commonwealth Bank'' means the Commonwealth Bank of Australia;
''the Corporation'' means the Commonwealth Banking Corporation;
''the Deputy Managing Director'' means the Deputy Managing Director of the
''the Development Bank'' means the Commonwealth Development Bank of
Australia;
''the Managing Director'' means the Managing Director of the Corporation;
''the Reserve Bank'' means the Reserve Bank of Australia;
''the Savings Bank'' means the Commonwealth Savings Bank of Australia;
''the Service'' means the Commonwealth Banking Corporation Service;
''the Trading Bank'' means the Commonwealth Trading Bank of Australia.
Application to Territories.
Substituted by No. 117, 1973, s. 4.
5. Subject to section 5A, this Act extends to all the Territories.
COMMONWEALTH BANKS ACT 1959- SECT. 5A.
Cessation of application to Territory.
Inserted by No. 117, 1973, s. 4.
5A. (1) The Treasurer may, by notice published in the Gazette, declare that,
on a date specified in the notice, this Act shall cease to extend to an
external Territory specified in the notice,* and, on and after the date
specified in such a notice, this Act, other than sub-section (2) of this
section, does not extend to the Territory so specified and a reference in this
Act, other than this section, to a Territory does not include a reference to
the Territory so specified.
(2) Section 8 of the Acts Interpretation Act 1901-1973 applies in relation
to a notice published under this section as if the notice were an Act
repealing this Act to the extent that, immediately before the date specified
in the notice, this Act extended to the Territory specified in the notice.
This Act subject to Banking Act.
The Commonwealth Banking Corporation.
(2) The Corporation-
(3) The Corporation shall provide and make available to the Trading Bank,
the Savings Bank and the Development Bank such officers and employees as are
necessary for efficiently conducting the business of each of those banks.
Establishment of Commonwealth Banking Corporation Board.
Functions of Commonwealth Banking Corporation Board.
the Corporation, of the Trading Bank, of the Savings Bank and of the
that the policy of the Corporation, and the banking policy of the Trading
COMMONWEALTH BANKS ACT 1959- SECT. 10.
Executive Committees.
10. (1) There shall be an Executive Committee of the Board for the Trading
Bank, an Executive Committee of the Board for the Savings Bank and an
Executive Committee of the Board for the Development Bank, each of which shall
be constituted as provided by Part III.
(2) It is the duty of the Executive Committee for a bank to take such action
as is necessary to ensure that effect is given by that bank to the policy of
that bank as determined under this Part and to any directions given by the
Board in relation to the affairs of that bank.
Differences of opinion on questions of policy.
11. (1) The Board shall, from time to time, inform the Government of-
(b)  the banking policy of the Trading Bank, the Savings Bank and the
Board whether any policy referred to in the last preceding sub-section is
directed to the greatest advantage of the people of Australia and has due
regard to the stability and balanced development of the Australian economy,
(3) If the Treasurer and the Board are unable to reach agreement, the Board
shall forthwith furnish to the Treasurer a statement in relation to the matter
in respect of which the difference of opinion has arisen.
the Trading Bank, the Savings Bank or the Development Bank, as the case may
be, but so that the policy so determined is not inconsistent with the Banking
Act 1959, with the regulations under that Act or with the monetary and banking
policy of the Reserve Bank.
responsibility for the adoption by the Corporation, the Trading Bank, the
Parliament, within fifteen sitting days of that House after the Treasurer has
informed the Board of the policy determined under sub-section (4)-
Management of the Corporation.
(2) Subject to sub-section (1) of section 9, the Corporation shall be
managed by the Managing Director.
Managing Director and Secretary to Treasury to establish liaison.
Trading Bank, the Savings Bank or the Development Bank and the Department of
the Treasury.
Membership of Board.
PART  III-THE  COMMONWEALTH  BANKING  CORPORATION  BOARD
14. (1) The Commonwealth Banking Corporation Board shall consist of-
(d)  eight other members, who shall be appointed by the Governor-General in
(2) A member of the Board appointed under paragraph (d) of the last
preceding sub-section-
(a)  shall, subject to this section, be appointed for a period of five years
but is eligible for re-appointment; and
Sub-section (3) omitted by No. 216, 1973, s. 3.
(4) In the event of a member of the Board appointed under paragraph (d) of
sub-section (1) ceasing to hold office before the termination of his period of
office, the period of appointment of a person appointed in his place shall be
the remainder of the period of office of the member so ceasing to hold
(5) A member of the Board shall be paid by the Corporation such remuneration
(if any) as the Governor-General determines.*
Declaration by members.
Commissioner for taking Affidavits, an oath or affirmation of allegiance in
accordance with the form in the Schedule to the Constitution and a declaration
of secrecy in accordance with the prescribed form.
Disqualifications from membership.
Sub-section (1) amended by No. 117, 1973, s. 5.
16. (1) A person who is-
(a)  a member of the Reserve Bank Board appointed under paragraph (d) of
sub-section (1) of section 14 of the Reserve Bank Act 1959;
(c)  an officer or employee of the Corporation (other than the Managing
(d)  the General Manager of the Trading Bank, of the Savings Bank or of the
is wholly or mainly that of banking,
is not capable of appointment, or of continuing to act, as a member of the
Added by No. 58, 1966, s. 2.
(2) The last preceding sub-section does not disqualify a person from
appointment, or from continuing to act, as a member of the Board by reason
only that he is a member of the Development Bank Board established by the
Ordinance of the Territory of Papua and New Guinea known as the Papua and New
Guinea Development Bank Ordinance 1965.
Vacation of office.
17. (1) If a member of the Board appointed under paragraph (d) of
sub-section (1) of section 14-
(c)  resigns his office by writing under his hand addressed to the
Governor-General;
(d)  is absent, except on leave granted by the Treasurer, from all meetings
of the Board held during two consecutive months or during any three months in
any period of twelve months; or
(2) In this section, ''month'' means any of the twelve months of the year.
Chairman and Deputy Chairman of the Board.
appointed under paragraph (d) of sub-section (1) of section 14 to be Chairman
of the Board, and another such member to be Deputy Chairman of the Board, for
such period as the Governor-General determines.
Meetings of Board.
(3) Six members, of whom the Chairman or the Deputy Chairman shall be one,
form a quorum at a meeting of the Board.
Membership of Executive Committees.
20. (1) Each Executive Committee shall consist of the Managing Director and
four other members of the Board.
(2) A member of an Executive Committee (other than the Managing Director)
shall be appointed by the Treasurer after consultation with the Board and
shall hold office during the pleasure of the Treasurer or until he ceases to
be a member of the Board.
(3) The Chairman of the Board shall not be appointed as a member of an
Executive Committee but may attend a meeting of an Executive Committee.
(4) The Secretary to the Department of the Treasury shall not be appointed
as a member of the Executive Committee for the Trading Bank or of the
Executive Committee for the Development Bank.
(5) If the Deputy Managing Director is not a member of an Executive
Committee, he may attend a meeting of the Committee at which the Managing
Director is not present as the deputy of the Managing Director and, while so
attending, shall be deemed to be a member of the Committee.
Meetings of Executive Committees.
21. (1) The Board may give such directions as it thinks fit with respect to
the procedure to be followed at and in relation to meetings of an Executive
(2) Directions given by the Board under the last preceding subsection in
relation to an Executive Committee may include directions with respect to-
(a)  the convening of meetings of the Executive Committee;
(b)  the number of members of the Executive Committee to constitute a
quorum;
(c)  the appointment of a member of the Executive Committee to preside at
meetings of the Executive Committee; and
(d)  the manner in which questions arising at a meeting of the Executive
Committee shall be decided.
Vacancies not to invalidate proceedings.
performance of the duties or obligations, of the Board or of an Executive
Committee is not affected by reason only of there being a vacancy in the
office of a member of the Board or of the Executive Committee, as the case may
Deputy Secretary, Department of Treasury.
23. The Deputy Secretary in the Department of the Treasury may attend a
meeting of the Board at which the Secretary to the Department of the Treasury
is not present and, if the Secretary is a member of the Executive Committee
for the Savings Bank, may attend a meeting of that Executive Committee at
which the Secretary is not present and, in relation to meetings of the Board
or of that Executive Committee which the Deputy Secretary attends in pursuance
of this section, he shall, for the purposes of this Part, be deemed to be a
member of the Board or of that Executive Committee, as the case may be.
Disclosure of interest in contracts.
24. (1) A member of the Board who is directly or indirectly interested in a
contract made or proposed to be made by the Corporation, the Trading Bank, the
Savings Bank or the Development Bank otherwise than as a member, and in common
with the other members, of an incorporated company consisting of not less than
twenty-five persons, shall disclose the nature of his interest at the first
meeting of the Board at which he is present after the relevant facts have come
to his knowledge.
(2) If a member of the Board who is required by the last preceding
sub-section to disclose to the Board the nature of his interest in a contract
is a member of the Executive Committee for the bank by which the contract has
been made or is proposed to be made, he shall, unless he has previously
disclosed the nature of that interest to the Board, disclose the nature of
that interest at the first meeting of that Executive Committee at which he is
present after the relevant facts have come to his knowledge.
(3) A disclosure under this section to the Board or an Executive Committee
shall be recorded in the minutes of the Board or of the Executive Committee,
as the case may be.
(4) After a member of the Board has, in pursuance of this section, disclosed
the nature of his interest in a contract, the member-
(a)  shall not take part in any deliberation or decision of the Board, or of
the Executive Committee for the bank by which the contract has been made or is
proposed to be made, with respect to the contract; and
(b)  shall be disregarded for the purposes of constituting a quorum of the
Board or of that Executive Committee for any such deliberation or decision.
Managing Director and Deputy Managing Director of Corporation.
25. (1) The Managing Director and the Deputy Managing Director-
(a)  shall be appointed by the Governor-General;
(b)  shall be appointed for such period, not exceeding seven years, as the
Governor-General determines but are eligible for re-appointment; and
(c)  hold office subject to good behaviour and in accordance with such other
terms and conditions as, subject to this Act, the Governor-General
determines.
(2) The Managing Director and the Deputy Managing Director shall be paid by
the Corporation such salary and allowances as the Governor-General
26. If the Managing Director or the Deputy Managing Director-
(b)  engages in any paid employment outside the duties of his office;
(c)  becomes bankrupt, applies to take the benefit of any law for the relief
assignment of his salary for their benefit; or
(d)  resigns his office by writing under his hand addressed to the
Governor-General,
The Commonwealth Trading Bank.
27. Notwithstanding the repeal effected by sub-section (1) of section 4 of
the Reserve Bank Act 1959, the Commonwealth Trading Bank of Australia
established under the Commonwealth Bank Act 1945-1953-
Trading Bank of Australia shall not be affected;
General functions of Trading Bank.
28. (1) The Trading Bank shall carry on general banking business.
(2) It is the duty of the Trading Bank to develop and expand its business.
(3) The Trading Bank shall not refuse to conduct banking business for a
person by reason only of the fact that to conduct that business would have the
effect of taking away business from another bank.
Powers of Trading Bank.
29. (1) The Trading Bank has such powers as are necessary for the purpose of
(2) Without limiting the generality of the last preceding sub-section, the
Trading Bank has power, in addition to any other powers conferred on it by
this Act-
(d)  to buy, sell, discount and re-discount bills of exchange, promissory
notes and treasury bills;
(e)  to buy and sell securities issued by the Commonwealth and other
securities;
(f)  to buy, sell and otherwise deal in foreign currency, specie, gold and
other precious metals;
(g)  to establish credits and give guarantees;
(i)  to underwrite loans and issues of capital; and
(j)  to do anything incidental to any of its powers.
30. The capital of the Trading Bank shall be the aggregate of-
(a)  the amount of the capital of the Trading Bank immediately before the
commencement of this Act;
(b)  the sum of Two million pounds, which shall be paid by the Reserve Bank
to the Trading Bank on the date of commencement of this Act; and
(c)  such other sums as are transferred from the Commonwealth Trading Bank
Reserve Fund in pursuance of the next succeeding section.
Reserve Fund.
31. (1) The Trading Bank shall have a reserve fund (to be called the
Commonwealth Trading Bank Reserve Fund), which shall consist of the aggregate
of-
(a)  the amount standing to the credit of the Commonwealth Trading Bank
Reserve Fund existing under the Commonwealth Bank Act 1945-1953 immediately
before the commencement of this Act; and
the next succeeding section.
(2) There may be transferred from time to time from the Commonwealth Trading
Bank Reserve Fund to the capital of the Trading Bank such sums as the Board
Profits of Trading Bank.
32. The net profits of the Trading Bank in each year, after provision for
income tax, shall be dealt with as follows:-
(a)  one-half shall be placed to the credit of the Commonwealth Trading Bank
Reserve Fund; and
(b)  one-half shall be paid to the Commonwealth.
General Manager of Trading Bank.
33. (1) There shall be a General Manager of the Trading Bank, who shall be
appointed by the Governor-General upon the recommendation of the Board.
(2) The General Manager of the Trading Bank-
(a)  shall be appointed for such period, not exceeding seven years, as the
Governor-General determines but is eligible for re- appointment; and
(b)  holds office subject to good behaviour and in accordance with such
other terms and conditions as, subject to this Act, the Governor-General
(3) The General Manager of the Trading Bank shall be paid by the Trading
Bank such salary and allowances as the Governor-General determines.*
34. If the General Manager of the Trading Bank-
Management of Trading Bank.
35. (1) The General Manager of the Trading Bank shall, under the Managing
Director, manage the Trading Bank.
(2) The Managing Director and the General Manager of the Trading Bank shall,
in relation to the management of the Trading Bank, act in accordance with the
policy of the Trading Bank and with any directions of the Board or of the
executive Committee for the Trading Bank.
Trading Bank to pay share of expenses of Corporation.
36. The Trading Bank shall pay to the Corporation an amount determined by
the Board to be the proportion of the expenses of the Corporation attributable
to the Trading Bank.
Payment for services.
37. The Trading Bank shall pay the Savings Bank or the Development Bank for
any services rendered by the Savings Bank or the Development Bank to the
Trading Bank.
Amalgamation of other banks with Trading Bank.
38. The Trading Bank may, with the approval of the Treasurer, enter into an
arrangement with any other bank for the transfer to the Trading Bank, upon
such terms and conditions as are agreed upon between the Trading Bank and that
Agents, &c.
Trading Bank may-
(a)  establish branches and agencies at such places, whether within or
beyond Australia, as the Bank thinks fit;
(b)  arrange with a person to act as agent of the Bank in any place, whether
within or beyond Australia; and
(c)  act as the agent of any bank (including the Reserve Bank, the Savings
Bank or the Development Bank) carrying on business within or beyond
The Commonwealth Savings Bank.
the Reserve Bank Act 1959, the Commonwealth Savings Bank of Australia
established under the Commonwealth Bank Act 1911-1943 and continued in
existence under the Commonwealth Bank Act 1945-1953-
General functions of Savings Bank.
41. (1) The Savings Bank shall carry on the general business of a savings
(2) It is the duty of the Savings Bank, within the limits of its powers, to
encourage saving and to promote the interests of its depositors.
Powers of Savings Bank.
Savings Bank has power, in addition to any other powers conferred on it by
(c)  to invest any money held by it-
(i)  in securities issued by the Commonwealth, including Treasury
Bills;
(ii)  in securities issued by a State;
(iii)  in securities issued by the Government of the United Kingdom or of
any part of the Queen's dominions;
(iv)  in securities issued or guaranteed by an authority constituted by
or under an Act or State Act;
(v)  in loans to building societies, being loans the repayment of which
is guaranteed by the Commonwealth or a State;
(vi)  in loans for housing or other purposes on the security of land;
(vii)  in loans to or deposits with the Reserve Bank or any other bank;
(viii)  in any other prescribed manner; and
(d)  to do anything incidental to any of its powers.
existing under the Commonwealth Bank Act 1945-1953 immediately before the
Profits of Savings Bank.
44. The net profits of the Savings Bank in each year shall be dealt with as
follows:-
(a)  one-half shall be placed to the credit of the Commonwealth Savings Bank
General Manager of Savings Bank.
45. (1) There shall be a General Manager of the Savings Bank, who shall be
(2) The General Manager of the Savings Bank-
(3) The General Manager of the Savings Bank shall be paid by the Savings
46. If the General Manager of the Savings Bank-
Management of Savings Bank.
47. (1) The General Manager of the Savings Bank shall, under the Managing
Director, manage the Savings Bank.
(2) The Managing Director and the General Manager of the Savings Bank shall,
in relation to the management of the Savings Bank, act in accordance with the
policy of the Savings Bank and with any directions of the Board or of the
Executive Committee for the Savings Bank.
Savings Bank to pay share of expenses of Corporation.
48. The Savings Bank shall pay to the Corporation an amount determined by
to the Savings Bank.
49. The Savings Bank shall pay the Trading Bank or the Development Bank for
any services rendered by the Trading Bank or the Development Bank to the
Savings Bank.
Amalgamation of other savings banks with Commonwealth Savings Bank.
arrangement with any other savings bank for the transfer to the Savings Bank,
upon such terms and conditions as are agreed upon between the Savings Bank and
the other savings bank, of the whole or any part of the assets, liabilities
and business of that other savings bank.
Savings Bank may-
within or beyond Australia;
(c)  arrange with the Minister administering any Department of the
Commonwealth for an officer of the Department to act as agent of the Bank for
the transaction of the business of the Bank; and
(d)  act as the agent of any bank (including the Reserve Bank, the Trading
Interest on deposits.
52. (1) The Savings Bank may allow on any sum, not being less than One
dollar, to the credit of a depositor interest at such rate as the Board from
time to time determines.
(2) The Board may determine different rates of interest according to the
amount to the credit of the depositor.
(3) The Board may determine that different rates of interest be paid in
respect of different classes of depositors.
(4) The Board may determine that interest shall not be payable in respect of
so much of the amount to the credit of a depositor as exceeds an amount fixed
by the Board.
Unclaimed deposits.
53. (1) Where, in respect of a depositor's account (not being an account in
the name of an infant) there has not, for a period of not less than seven
years, been any operation upon the account by deposit or withdrawal and the
pass book has not been presented to the Savings Bank, all money standing to
the credit of the account may be credited to a fund to be called the
Depositors' Unclaimed Fund and shall thereupon cease to bear interest.
(2) The Savings Bank may, on being satisfied that a person is entitled to
money which has been credited to the Depositors' Unclaimed Fund, make payment
of the money to him, and the receipt by him of the money is a good discharge
(3) A list of the amounts of not less than the prescribed amount credited in
any year to the Depositors' Unclaimed Fund and not claimed shall be published
in the Gazette within six months after the end of the year to which the list
(4) All moneys in respect of which a claim is not established within ten
years after having been credited to the Depositors' Unclaimed Fund cease to be
claimable and become the absolute property of the Savings Bank, but the
Savings Bank may allow any claim after the expiration of that period if it is
satified that special reasons exist for the payment of the claim.
Section 54 repealed by No. 144, 1968, s. 6.
Housing loans.
55. Subject to this Part, loans may be made by the Trading Bank or the
Savings Bank to building societies and to individuals, for the erection or
purchase of homes or for the discharge of mortgages on homes.
Preference to be given to certain loans.
56. In making loans under this Part, the Trading Bank and the Savings Bank
shall give preference to loans for the erection of homes and for the purchase
of newly erected homes.
Rates of interest.
57. Loans under this Part shall be made at the lowest practicable rates of
Part not to limit Banks' powers.
58. This Part does not limit the powers of the Trading Bank or of the
Savings Bank under any other provision of this Act.
Terms and conditions of loans.
Division 2-Loans to Building Societies
59. Loans to building societies under this Division shall be made on such
terms and conditions as the Trading Bank or the Savings Bank determines.
Amount of loan.
60. Except in the case of a loan the repayment of which is guaranteed by the
Commonwealth or a State, the amount of a loan under this Division shall not
exceed ninety per centum of the value (as determined by the Trading Bank or
the Savings Bank) of the security upon which the loan is made.
Loans to individuals.
Division 3-Loans to Individuals
61. Loans to individuals under this Division shall be made on cre'dit
foncier terms.
Circumstances in which loans may be made.
62. A loan shall not be made under this Division unless the Trading Bank or
the Savings Bank is satisfied that the borrower is residing in the home or
will reside in the home within a reasonable time.
Loans to be made on mortgage.
63. (1) A loan under this Division shall be made upon the security of a
mortgage to the Trading Bank or the Savings Bank of an estate or interest in
land in Australia owned by the borrower.
(2) A loan shall not be made under this Division upon the security of a
mortgage of an estate or interest in land which is subject to a prior mortgage
or charge (other than a statutory charge to the Commonwealth, a State, the
Administration of a Territory, or to a statutory authority of the Commonwealth
or of a State or Territory) unless the prior mortgage or charge is discharged
out of the money lent or otherwise.
(3) The owner of an estate or interest in land upon the security of which a
loan has been made under this Division shall not, without the consent in
writing of the Trading Bank or of the Savings Bank, mortgage or charge the
estate or interest in land upon the security of which the loan was made.
64. Subject to this Part, a loan made under this Division shall be on such
Period of loans.
65. A loan under this Division shall not be made for a period of less than
five years or for a period of more than thirty-five years.
Section 66 repealed by No. 18, 1973, s. 3.
*    *    *    *    *    *    *    *
Loans repayable by periodical instalments.
67. A mortgage given as security for repayment of a loan under this Division
shall provide for the payment of monthly or, at the option of the Trading Bank
or of the Savings Bank, quarterly, instalments of principal and interest and
for the payment, at the end of the period of the loan, of the balance (if any)
then outstanding.
Power to insure homes.
68. The Trading Bank or the Savings Bank may undertake the insurance of a
home in respect of which a loan is made by it under this Division.
Repayment of loans before maturity.
69. (1) A person indebted to the Trading Bank or the Savings Bank in respect
of a loan made under this Division may, at any time after the expiration of
five years from the date of the mortgage, repay the balance of the loan then
outstanding and such a person may, at any time before the expiration of that
period, but subject to compliance with such terms and conditions as the
Trading Bank or the Savings Bank thinks fit, repay the balance of the loan
Amended by No. 93, 1966, s. 3.
(2) A person indebted to the Trading Bank or the Savings Bank in respect of
a loan made under this Division may, at any time, pay to the Trading Bank or
the Savings Bank any portion of the loan (being not less than Twenty dollars)
and the Trading Bank or the Savings Bank shall credit to that person,
half-yearly, interest on the amounts so paid at the rate of interest payable
under the mortgage.
(3) Interest so credited shall bear interest in the same manner as payments
made under the last preceding sub-section.
(4) A payment made under sub-section (2) does not affect the liability of
the person concerned to pay the instalments of principal and interest or other
payments to be made under the mortgage.
(5) The Trading Bank or the Savings Bank may, in its discretion, and from
time to time, apply any money paid under sub-section (2), or any interest
credited under this section, in reduction of the loan or in or towards payment
of any money due under the mortgage.
(6) A person is not, during the currency of the loan, entitled to receive
from the Trading Bank or the Savings Bank payment of any amount paid under
sub-section (2), or of any interest credited under this section, but when the
amounts so paid, together with interest so credited, after deduction of any
amount applied under the last preceding subsection, are sufficient to pay the
amount owing to the Trading Bank or the Savings Bank under the mortgage, the
Trading Bank or the Savings Bank shall apply so much thereof as is necessary
in payment of the last-mentioned amount and shall account to the mortgagor for
any surplus.
Provisions where mortgaged land transferred, &c.
70. (1) Where an estate or interest in land which is the subject of a
mortgage given in respect of a loan under this Division-
(a)  is, without the consent in writing of the Trading Bank or the Savings
Bank, transferred, conveyed, assigned, surrendered or otherwise dealt with or
disposed of to a person other than the mortgagor; or
(b)  becomes, by operation of law or otherwise, vested in a person other
than the mortgagor,
the balance of the loan then remaining unpaid shall, at the option of the
Trading Bank or the Savings Bank, which may be exercised at any time, become
due and payable immediately upon the exercise of the option and be recoverable
with the interest thereon and that interest shall accrue thereafter from day
to day.
(2) Any consent of the Trading Bank or the Savings Bank under paragraph (a)
of the last preceding sub-section may be either unconditional or subject to
such conditions as the Trading Bank or the Savings Bank thinks fit, and, where
any condition subject to which consent was given is not complied with, the
balance of the loan then remaining unpaid shall, at the option of the Trading
Bank or the Savings Bank, which may be exercised at any time, become due and
payable immediately upon the exercise of the option and be recoverable with
interest thereon and that interest shall accrue thereafter from day to day.
The Commonwealth Development Bank.
(2) The Development Bank-
Functions of Development Bank.
72. The functions of the Development Bank are-
(a)  to provide finance for persons-
(i)  for the purposes of primary production; or
(ii)  for the establishment or development of industrial undertakings,
particularly small undertakings,
in cases where, in the opinion of the Development Bank, the provision of
the finance is desirable and the finance would not otherwise be available on
reasonable and suitable terms and conditions; and
(b)  to provide advice and assistance with a view to promoting the efficient
organization and conduct of primary production or of industrial undertakings.
Matters to be considered in providing finance.
Powers of Development Bank.
Development Bank has power, in addition to any other powers conferred on it by
(f)  to establish credits and give guarantees;
(g)  to issue bills and drafts and effect transfers of money;
(h)  to underwrite loans and issues of capital; and
(i)  to do anything incidental to any of its powers.
Capital of Development Bank.
Amended by No. 75, 1961, s. 3; No. 3, 1962, s. 3; and No. 57, 1963, s. 3.
75. The capital of the Development Bank shall be the aggregate of-
(a)  the amount of the capital of the Mortgage Bank Department of the
Bank Reserve Fund in pursuance of the next succeeding section.
Commonwealth Development Bank Reserve Fund), which shall consist of-
before the commencement of this Act;
Profits of Development Bank.
77. The net profits of the Development Bank in each year shall be placed to
the credit of the Commonwealth Development Bank Reserve Fund.
General Manager of Development Bank.
78. (1) There shall be a General Manager of the Development Bank, who shall
be appointed by the Governor-General upon the recommendation of the Board.
(2) The General Manager of the Development Bank-
Governor-General determines but is eligible for re-appointment; and
(3) The General Manager of the Development Bank shall be paid by the
Development Bank such salary and allowances as the Governor-General
determines.*
79. If the General Manager of the Development Bank-
Management of Development Bank.
80. (1) The General Manager of the Development Bank shall, under the
Managing Director, manage the Development Bank.
(2) The Managing Director and the General Manager of the Development Bank
shall, in relation to the management of the Development Bank, act in
accordance with the policy of the Development Bank and with any directions of
the Board or of the Executive Committee for the Development Bank.
Development Bank to pay share of expenses of Corporation.
81. The Development Bank shall pay to the Corporation an amount determined
by the Board to be the proportion of the expenses of the Corporation
attributable to the Development Bank.
82. The Development Bank shall pay the Trading Bank or the Savings Bank for
any services rendered by the Trading Bank or the Savings Bank to the
Development Bank-
specified in Part I of the First Schedule to the Banking Act 1959, appoint
that bank to be an agent of the Development Bank for the receipt and
transmission of applications for the provision of finance by the Development
Trading Bank or the Savings Bank) carrying on business within or beyond
Limitation on borrowing.
84. Except with the consent of the Treasurer-
(a)  the total amount of moneys borrowed by the Development Bank from the
Reserve Bank and not repaid shall not at any time exceed Four million dollars;
(b)  the Development Bank shall not borrow moneys repayable in a currency
other than Australian currency.
Loans by Treasurer.
Definition.
86. In this Part, ''finance'' includes financial assistance.
87. In this Part-
''the Disciplinary Appeal Board'' means the Disciplinary Appeal Board
referred to in section 109;
''the Promotions Appeal Board'' means the Promotions Appeal Board referred
to in section 101.
Appointment of officers.
(2) The officers appointed under this Part shall constitute the Commonwealth
(3) Subject to this Part, officers shall hold office on such terms and
conditions as the Corporation determines.
Temporary and casual employees.
89. (1) The Corporation may appoint such temporary and casual employees as
are necessary for the purposes of this Act.
(2) Employees so appointed shall be employed on such terms and conditions as
the Corporation determines.
Requirements for appointment to Service.
90. (1) Subject to this Part, a person shall not be appointed to the Service
unless-
(a)  he is a British subject;
(b)  he makes and subscribes, before a Justice of the Peace or a
accordance with the form in the Schedule to the Constitution;
(c)  the Corporation is satisfied as to his health and physical fitness;
(d)  he has in open competition passed a prescribed entrance examination.
(2) The Corporation may appoint persons who have not passed a prescribed
entrance examination to such positions, or to positions of such classes, as
are prescribed.
(3) Where the Trading Bank enters into an arrangement under section 38, or
the Savings Bank enters into an arrangement under section 50, the Corporation
may appoint to the Service officers of the bank or savings bank with or in
respect of which the arrangement is made although they have not passed a
prescribed examination.
Admission to examinations.
91. A person shall not be admitted to a prescribed entrance examination
unless that person is of the required sex and age and the Corporation is
satisfied, upon the certificate of a person included in a prescribed class of
persons, as to his good character.
Notice of examinations.
92. Adequate notice and particulars of each prescribed entrance examination
shall be given by the Corporation to the public by advertisement in the
Gazette and in the daily newspapers.
Separate examinations.
93. Separate entrance examinations may be held for separate parts of
Appointments to be made in order of merit.
94. (1) The appointments to the Service of persons who have passed a
prescribed entrance examination shall be made in the order of merit in which
those persons passed that examination.
(2) Nothing in the last preceding sub-section requires the Corporation to
appoint a person-
(a)  who has previously refused appointment; or
(b)  who passed the prescribed entrance examination more than twelve months
Appointment of University graduates.
95. (1) The Corporation may appoint to the Service a person who has not
passed a prescribed entrance examination but is-
(a)  a graduate of, or qualified for admission to a degree of, a University
in Australia; and
(b)  not more than twenty-five years of age.
(2) The number of persons appointed to the Service under the last preceding
sub-section in any year shall not exceed one-ninth of the number of male
persons appointed to the Service during that year after having passed a
prescribed entrance examination.
(3) In this section, ''year'' means any period commencing on 1 January and
ending on the following 31 December.
Appointment of persons without examination.
96. (1) If at any time in any special case it appears expedient or desirable
to appoint to the Service a person who has not passed a prescribed entrance
examination, the Corporation may appoint that person without examination.
(2) An appointment shall not be made under the last preceding sub-section
unless the Managing Director or the Deputy Managing Director certifies that,
in his opinion, there is no officer available who is as capable of filling the
position to which it is proposed that the appointment shall be made.
(3) A copy of every certificate under the last preceding sub-section shall
be laid before each House of the Parliament within fifteen sitting days of
that House after the appointment is made.
Creation and abolition of positions.
97. The Corporation may create positions in the Service and may abolish
positions in the Service.
Reclassifiction.
98. (1) The Corporation may, from time to time, reclassify a position in the
Service by raising or lowering the salary, or the range of salary, applicable
to the position.
(2) Whenever a position is reclassified, the position shall be deemed to be
vacant.
(3) Where-
(a)  the Corporation makes alterations of the classifications of all the
positions in the Service or of a substantial proportion of the positions in
the Service; and
(b)  the Corporation declares, in writing, that those alterations are
related to each other,
the last preceding sub-section does not apply in relation to any of those
alterations.
(4) A declaration made by the Corporation under the last preceding
sub-section shall be made known to the officers as prescribed.
Selection of officers for promotion.
99. (1) In the selection of an officer for promotion to a vacant position,
consideration shall be given first to the relative efficiency of the officers
available for promotion and, in the event of equality of efficiency of two or
more officers, then to the relative seniority of those officers.
Amended by No. 144, 1968, s. 9; and No. 117, 1973, s. 5.
(2) For the purposes of this section-
(a)  ''efficiency'' means special qualifications and aptitude for the
discharge of the duties of the position to be filled, together with merit,
diligence and good conduct, and, in the case of an officer who has at any time
been engaged on war service, includes such efficiency as, in the opinion of
the Corporation, the officer would have attained but for his absence on war
service;
(aa)  ''war service'' includes ''Defence service'' as defined by sub-section
(1) of section 6 of the Defence (Re-establishment) Act 1965-1968; and
(b)  the seniority of officers shall be determined as prescribed.
(3) Notwithstanding anything contained in the last preceding sub-section,
''efficiency'', in relation to promotions to such senior executive positions
in the Service as are prescribed, includes not only special qualifications and
aptitude for the discharge of the duties of the position to be filled but also
for the discharge of the duties of positions of higher status in the Service.
COMMONWEALTH BANKS ACT 1959- SECT. 100.
Appeals against promotions.
100. (1) The promotion of an officer to a vacant position-
(a)  is provisional and without increased salary pending confirmation of the
promotion;
(b)  shall be made known to the officers as prescribed; and
(c)  is subject to appeal as provided by this section.
(2) An officer who considers that he should have been promoted to a vacant
position in preference to the officer provisionally promoted may appeal to the
Promotions Appeal Board on the ground of superior efficiency or equal
efficiency and seniority.
(3) The regulations may prescribe the manner in which, and the time within
which, appeals may be made under this section.
(4) Upon an appeal being made, the Promotions Appeal Board shall make full
inquiry into the claims of the appellant and those of the officer
provisionally promoted and shall determine the appeal.
(5) Where the appeal is upheld, the appellant shall be promoted to the
vacant position and the provisional promotion shall be cancelled.
(6) Where the appeal is disallowed, or an appeal is not lodged within the
prescribed time, the provisional promotion shall be confirmed.
(7) Notwithstanding anything contained in this section, the Corporation may,
at any time after notification has been made of a provisional promotion to a
vacant position and before the promotion has been confirmed, cancel the
provisional promotion if the Corporation is satisfied-
(a)  that the position is unnecessary or can be filled by the transfer of
another officer; or
(b)  that, in the circumstances, notification or further notification of the
vacant position is desirable.
(8) The powers of the Corporation under the last preceding subsection may be
exercised whether an appeal has been made or not.
Promotions Appeal Board.
101. (1) For the purposes of this Division, there shall be a Promotions
Appeal Board.
(2) The Promotions Appeal Board shall consist of-
(a)  a Chairman, who shall be appointed by the Governor-General;
(b)  an officer appointed by the Managing Director; and
(c)  an officer elected in the prescribed manner by the officers of the
(3) The Chairman of the Promotions Appeal Board shall hold office on such
terms and conditions, and shall be paid by the Corporation such remuneration,
as the Governor-General determines.
(4) The officers' representative holds office for such period as is
prescribed, but is eligible for re-election.
(5) The officers of the Service may, in the prescribed manner, elect a
deputy of the officers' representative and the deputy so elected holds office
for such period as is prescribed, but is eligible for re-election.
(6) A deputy so elected may, in the event of there being a vacancy in the
office of officers' representative or of the officers' representative being
absent (whether in pursuance of a direction given under the next succeeding
sub-section or through illness or otherwise), attend and vote at meetings of
the Promotions Appeal Board and, when so attending and voting at a meeting,
shall, for the purposes of sub-section (8), be deemed to be a member of the
Promotions Appeal Board in lieu of the officers' representative.
(7) Where the Chairman of the Promotions Appeal Board is of opinion that the
officers' representative is personally interested in, or affected by, a
question to be considered at a meeting of the Promotions Appeal Board, the
Chairman may direct that the officers' representative shall absent himself
from that meeting while that question is considered and decided.
(8) Where, at a meeting of the Promotions Appeal Board, the members are
divided in opinion on a question, that question shall be decided according to
the decision of the majority.
(9) In this section, ''officers' representative'' means the elected officer
referred to in paragraph (c) of sub-section (2).
Tenure of office.
102. (1) An officer who has attained the age of sixty years is entitled to
retire from the Service if the officer desires to do so, but may, subject to
this Part, continue in the Service until he attains the age of sixty-five
(2) If an officer continues in the Service after he has attained the age of
sixty years, the officer may at any time before attaining the age of
sixty-five years be retired by the Corporation from the Service.
(3) An officer shall, on attaining the age of sixty-five years, be retired
by the Corporation from the Service.
(4) In this section, a reference to the age of sixty years shall, in the
case of a female officer, be read as a reference to the age of fifty-five
years and a reference to the age of sixty-five years shall, in the case of a
female officer, be read as a reference to the age of sixty years.
Excess officers.
103. (1) If, at any time, the Corporation finds that a greater number of
officers is employed than is necessary for efficient working, an officer whom
the Corporation finds to be in excess may be transferred to such other
position of equal classification as the officer is competent to fill, and, if
no such position is available, the officer may be transferred to a position of
lower classification.
(2) If no position is available for the officer, the Corporation may retire
him from the Service.
(3) An officer shall not be retired from the Service under this section
unless he has been given at least one month's notice or is paid salary in lieu
of notice.
Section 104 repealed by No. 144, 1968, s. 10.
Appointments to be on probation.
105. Unless the Corporation, in any particular case, otherwise directs, the
appointment of an officer shall be on probation for a period not exceeding
twelve months and the appointment may be terminated by the Corporation at any
time during that period.
Retirement, &c., on grounds of inefficiency, incapacity, &c.
Sub-section (1) substituted by No. 144, 1968, s. 11.
106. (1) If an officer appears to the Corporation to be inefficient or
incompetent, or unfit to discharge or incapable of discharging the duties of
his position, the Corporation may-
(a)  retire him from the Service; or
(b)  do any one or more of the following things:-
(i)  transfer him to some other position in the Service;
(ii)  reduce his salary;
(iii)  determine that he be not granted, or be not granted until the
expiration of a specified period, the whole, or such part as the Corporation
specifies, of a specified increase in salary (including an increase by way of
an increment in a range of salary applicable in relation to his position) that
would otherwise be granted to him.
Disciplinary action for misconduct.
Substituted by No. 144, 1968, s. 12.
107. (1) Where, after inquiry as directed by the Corporation, it is found
that an officer has been guilty of misconduct, the Corporation may-
(a)  dismiss him from the Service; or
(2) In an inquiry for the purposes of the last preceding sub-section, a
formal hearing is not required but the officer shall be informed of the nature
of the alleged misconduct and given an opportunity of furnishing a statement
in relation to the matters alleged to constitute the misconduct.
Amended by No. 117,1973, s. 5.
(a)  the Corporation is inquiring into alleged misconduct by an officer; or
(b)  an officer has been charged with having committed an offence against
the law of the Commonwealth, of a State or of a Territory, punishable either
on indictment or on summary conviction, and it appears to the Corporation that
the act or omission alleged to constitute the offence is such as to constitute
misconduct by the officer,
the Corporation may suspend the officer from duty.
(4) Subject to the next succeeding sub-section, where the Corporation
suspends an officer from duty under the last preceding sub-section, the
officer shall not be paid his salary during the period of the suspension.
(5) The Corporation may, in its discretion, determine that the officer-
(a)  be paid his salary during the period of the suspension;
(b)  be paid his salary during such part of the period of the suspension as
the Corporation specifies; or
(c)  be paid such part of his salary as the Corporation specifies during the
period of the suspension or during such part of that period as the Corporation
specifies.
(6) Where the Corporation has suspended an officer from duty under
sub-section (3), the Corporation may at any time remove the suspension.
(a)  after inquiring into alleged misconduct by an officer who has been
suspended from duty under sub-section (3), the Corporation is not satisfied
that the officer has been guilty of misconduct; or
(b)  upon the hearing by a court of the charge against an officer referred
to in paragraph (b) of sub-section (3) who has been suspended from duty under
that sub-section the officer does not plead guilty, and is not found guilty,
of the offence with which he was charged or of another offence that appears to
the Corporation to be such as to constitute misconduct by the officer, or the
charge against such an officer is not proceeded with,
the Corporation shall, if it has not already done so, remove the suspension.
(a)  an officer has been suspended from duty under sub-section (3);
(b)  an amount of salary that would otherwise have been paid to the officer
during the period of the suspension was not paid to him; and
(c)  the Corporation removes the suspension,
the officer shall, subject to the next succeeding sub-section, be paid that
amount of salary.
(9) Where the Corporation is satisfied that an officer to whom the last
preceding sub-section applies has engaged in paid employment or work during
the period of his suspension, the amount payable to him under that sub-section
shall be reduced by an amount equal to the total amount of the earnings that
the Corporation is satisfied were received or are receivable by him in respect
of that employment or work.
(10) For the purposes of this section, an officer shall be taken to have
been guilty of misconduct if, and only if-
(a)  he has wilfully disobeyed or disregarded an order applicable to him as
an officer and given by a person having authority to give the order;
(b)  he has been negligent or careless in the discharge of his duties;
(c)  he has been inefficient or incompetent by reason of causes within his
own control;
(d)  he has used intoxicating liquor or drugs to excess;
(e)  he has been guilty of any disgraceful or improper conduct, whether as
an officer or otherwise;
(f)  he has committed a breach of the terms and conditions upon which he
holds office;
(g)  having made and subscribed an oath or affirmation under sub- section
(1) of section 90, he has done or said anything in violation of that oath or
affirmation; or
(h)  he has, whether before or after becoming an officer, wilfully supplied
to the Corporation, to an officer of the Corporation or to any other person
acting on behalf of the Corporation incorrect or misleading information in
connexion with his appointment to the Service.
Appeals.
Sub-section (1) substituted by No. 144, 1968, s. 13; amended by No. 117, 1973,
s. 5.
108. (1) Where, under section 106 or sub-section (1) of section 107-
(a)  an officer is retired, dismissed or transferred or has his salary
reduced; or
(b)  the Corporation determines that an officer be not granted, or be not
granted until the expiration of a specified period, the whole or a part of an
increase in salary,
the officer may appeal to the Disciplinary Appeal Board.
which, appeals may be made under this section and the manner in which the
hearing of appeals so made shall be conducted and may include provision for or
in relation to the summoning of witnesses, the production of documents, the
taking of evidence on oath or affirmation and the administering of oaths or
affirmations.
(3) The Disciplinary Appeal Board shall hear each appeal submitted to it
under this section and may confirm, vary or set aside the decision of the
(4) The decision of the Disciplinary Appeal Board shall be final and the
Corporation shall take such action as is necessary to give effect to the
decision.
(5) On the hearing of an appeal under this section, the Disciplinary Appeal
Board may take evidence on oath.
Disciplinary Appeal Board.
109. (1) For the purposes of this Division, there shall be a Disciplinary
(2) The Disciplinary Appeal Board shall consist of-
(3) The Chairman of the Disciplinary Appeal Board shall hold office on such
absent (whether in pursuance of a direction under the next succeeding
the Disciplinary Appeal Board, and, when so attending and voting at a meeting,
Disciplinary Appeal Board in lieu of the officers' representative.
(7) Where the Chairman of the Disciplinary Appeal Board is of opinion that
the officers' representative is personally interested in, or affected by, a
question to be considered at a meeting of the Disciplinary Appeal Board, the
(8) Where, at a meeting of the Disciplinary Appeal Board, the members are
Superannuation fund.
(2) The Corporation may, with the approval of the Treasurer, make rules, not
inconsistent with this Act or the regulations, for or in relation to the
Borrowing by officers.
111. (1) Subject to this section, the Trading Bank, the Savings Bank or the
Development Bank shall not lend money to an officer.
(2) The Trading Bank or the Savings Bank may lend money to an officer-
(a)  for the purchase, erection, alteration, renovation or enlargement of a
home in which he resides or intends to reside; or
(b)  to discharge a mortgage, charge or encumbrance on such a home.
Amended by No. 93, 1966, s. 3; and No. 144, 1968, s. 14.
(3) The Trading Bank may, where the Managing Director is satisfied that
special circumstances exist, lend to an officer upon such terms and conditions
as the Managing Director thinks fit, money not exceeding at any one time One
thousand five hundred dollars.
Officer appointed to a statutory office.
112. Where-
(a)  immediately before the commencement of a period during which a person
has been continuously the holder of a statutory office or offices, that person
was an officer of the Commonwealth Bank Service under the Commonwealth Bank
Act 1945-1953 or of the Commonwealth Banking Corporation Service;
(b)  at the end of that period that person ceases to be the holder of a
statutory office by reason of his resignation from that office or the
expiration of the period for which he was appointed to that office and is not
re-appointed or appointed to that office or any other statutory office; and
(c)  that person desires to be appointed to the Commonwealth Banking
Corporation Service under this section,
the Corporation shall, if that person has not attained the age of sixty years
at the end of that first-mentioned period, and may, if that person has
attained that age but has not attained the age of sixty-five years at the end
of that period, appoint that person to a position in the Commonwealth Banking
Corporation Service of such status and salary as are determined by the Board
having regard-
(d)  to the position in the Commonwealth Bank Service or the Commonwealth
Banking Corporation Service, as the case may be, occupied by that person
immediately before the commencement of that period; and
(e)  to-
(i)  service by him as an officer of the Commonwealth Bank of Australia,
or service by him in the Commonwealth Bank Service, under any repealed Act;
(ii)  service by him in the Commonwealth Banking Corporation Service;
(iii)  service by him as the holder of a statutory office.
List of officers.
113. (1) The Corporation shall, from time to time and whenever the Treasurer
so directs, prepare a list of all officers, together with particulars of the
classification and salary of each officer, and shall circulate copies of the
list among the officers.
(2) The Corporation shall forward a copy of the list to the Treasurer for
presentation to the Parliament.
PART IX-MISCELLANEOUS
114. In this Part, ''a body to which this Part applies'' means the
Corporation, the Trading Bank, the Savings Bank or the Development Bank.
Head offices.
115. A body to which this Part applies shall have a head office, which shall
be at Sydney in the State of New South Wales.
(2) After the expiration of a reasonable time after the commencement of this
Act, no such head office shall be in the same building as the head office of
the Reserve Bank.
Appointment of attorneys.
Guarantee by Commonwealth.
117. The Commonwealth is responsible for the payment of all moneys due by a
body to which this Part applies but nothing in this section authorizes a
creditor or other person claiming against such a body to sue the Commonwealth
in respect of his claim.
Determination of net profits.
118. In determining the net profits of the Trading Bank, the Savings Bank or
the Development Bank for the purposes of this Act, any amounts written off
bank premises or provided for contingencies are subject to the approval of the
Taxation.
119. (1) Subject to the next succeeding sub-section, a body to which this
Part applies is not liable to taxation under any law of a State or of a
Territory to which the Commonwealth is not subject and the income of a body to
which this Part applies is not liable to income tax under a law of the
Commonwealth.
(2) The last preceding sub-section does not operate so as to exempt the
income of the Trading Bank from liability to income tax under a law of the
Commonwealth or of a Territory.
Audit.
Treasurer the results of the inspection and audit carried out under the last
preceding sub-section.
(6) In this section, ''prescribed person'' means the Managing Director, the
Deputy Managing Director or other member of the Board, the General Manager of
the Trading Bank, of the Savings Bank or of the Development Bank or an officer
of the Commonwealth Banking Corporation Service.
Annual reports and financial statements.
121. (1) The Board shall, as soon as practicable after each thirtieth day of
June, in respect of each body to which this Part applies, prepare-
(b)  financial statements, in accordance with the prescribed forms, in
respect of that year,
prepared in pursuance of the last preceding sub-section in respect of a body
to which this Part applies-
Returns.
Power to improve property and carry on business.
123. Where the Trading Bank, the Savings Bank or the Development Bank holds
any property (whether real or personal) or business as security for a loan or
advance, and the property or business falls into the hands of the Trading
Bank, the Savings Bank or the Development Bank, the Trading Bank, the Savings
Bank or the Development Bank may maintain, repair or improve the property, or
carry on the business, until the Trading Bank, the Savings Bank or the
Development Bank can, in its discretion, dispose of the property or business
in the best interests of the Trading Bank, the Savings Bank or the Development
Execution of contracts.
Judicial notice of seals.
Investment of trust moneys.
hands on deposit with the Trading Bank, the Savings Bank or the Development
Validity of acts and transactions.
Preservation of rights.
128. Where the holder of a statutory office or an officer was, immediately
before his appointment under this Act or under a repealed Act, an officer of
the Public Service of the Commonwealth-
(a)  he retains his existing and accruing rights; and
(b)  his service under this Act and under any repealed Act shall, for the
purpose of determining those rights, be taken into account as if it were
service in the Public Service of the Commonwealth.
129. The Governor-General may make regulations, not inconsistent with this
Corporation, the Trading Bank, the Savings Bank or the Development Bank and,
in particular-
(a)  relating to the deposit of money with, or the withdrawal of money from,
the Savings Bank;
(b)  relating to the calculation of interest on deposits with the Savings
(c)  relating to-
(i)  the payment out of moneys to the credit of a deceased depositor;
(ii)  the delivery of bonds or securities held on behalf of a deceased
without production of probate of his will or of letters of administration
of his estate;
(d)  relating to the payment out of money to the credit of a person under a
legal incapacity; and
(e)  prescribing penalties not exceeding One hundred dollars for offences
against the regulations.
COMMONWEALTH BANKS ACT 1959- NOTES
1.  The Commonwealth Banks Act 1959-1973 comprises the Commonwealth Banks Act
1959 as amended by the other Acts specified in the following table:
Number                       Date of
Act                         and year        Date of
Assent       commencement
Commonwealth Banks Act
1959                        No. 5, 1959     23 Apr 1959  14 Jan 1960(a)
1961                        No. 75, 1961    27 Oct 1961  27 Oct 1961
1962                        No. 3, 1962     23 Mar 1962  23 Mar 1962
1965                        No. 132, 1965   18 Dec 1965  14 Feb 1966
1966                        No. 58, 1966    29 Oct 1966  26 Nov 1966
Statute Law Revision
(Decimal Currency) Act
1966                        No. 93, 1966    29 Oct 1966  1 Dec 1966
1968                        No. 144, 1968   9 Dec 1968   S.6: 1 Jan 1969
Remainder: Royal
1973                        No. 18, 1973    11 Apr 1973  11 Apr 1973
(No. 2) 1973                No. 117, 1973   26 Oct 1973  26 Oct 1973
Statute Law Revision Act
1973                       No. 216, 1973   19 Dec 1973  31 Dec 1973
(a)  The Reserve Bank Act 1959 came into operation on 14 January 1960 (see
Gazette 1960, p. 47).
2.-S. 5A (1)-On 22 April 1974, the Commonwealth Banks Act 1959-1973 ceased to
extend to Papua New Guinea; see Gazette 1974, No. 31c, p. 1.
3.-Ss. 14 (5), 33 (3), 45 (3), 78 (3)-By section 15 of, and Schedule 4 to, the
Remuneration and Allowances Acts 1973, the rate per annum of the salary
applicable to the office of Managing Director of the Commonwealth Banking
Corporation is $30,950, that of Deputy Managing Director $26,700, that of
General Manager of the Commonwealth Trading Bank of Australia $25,000, that of
General Manager of the Commonwealth Savings Bank of Australia $25,000, and
that of General Manager of the Commonwealth Development Bank of Australia
$25,000 with an annual allowance applicable to the office of Managing Director
of the Commonwealth Banking Corporation of $1,750 and to each of the remaining
offices $1,200.