VPRS 14613 Investment Register

Full description

This series consists of the investment register for the City of Mordialloc (VA 2473).

The Local Government Act 1958 (Act No. 6299) Section 248 authorised municipal councils to invest any part of its municipal or town fund in stock, Treasury bonds or other public securities of the Government of the Commonwealth of Australia issued under the authority of any Commonwealth Act with the consent of the Governor-in-Council.

Municipal councils could invest in sinking funds in order to liquidate loans under the Local Government Act 1958 (Act No. 6299/1958) Section 432. Sinking funds were a means of repaying borrowed funds by setting aside a pool of money each year to repay a loan or bond issue by purchasing a portion of the bonds each year, which lessened the principal to be paid back at the end of the loan. This meant that every year, until the complete liquidation of the loan or until the Auditor-General certified in writing that the amount of the sinking fund was sufficient to liquidate the loan, money was to be invested by the municipal council in Victorian Government Five Percent Stock or in stock bearing an interest rate not less than three per cent per annum as directed by the Governor-in-Council and indicated by publication in the Victorian Government Gazette. Stock so obtained was to be placed into a special liquidation loan account and recorded in stock ledgers under the names of the Treasurer of Victoria and of the Municipality.

Under section 143 of the Local Government Act 1989 (Act No. 11/1989) Councils could also invest money in Government securities of the Commonwealth, securities guaranteed by the Government of Victoria, an authorised deposit-taking institution, any financial institution guaranteed by the Government of Victoria, eligible money market dealers within the meaning of the Corporations Act, or any other manner approved by the Minister after consultation with the Treasurer either generally or specifically, to be an authorised manner of investment for the purposes of section 143.