The repayment of principal and the payment of interest on all inscribed stock issued by QTC is unconditionally guaranteed by the Treasurer on behalf of the Government of Queensland pursuant to section 32 of the Queensland Treasury Corporation Act.

In respect of such guarantees, funds are appropriated automatically out of the Consolidated Fund pursuant to section 34 of the Act.

Furthermore, section 29 of the Act provides that all inscribed stock issued by QTC shall rank pari passu, one with the other, unless QTC expressly determines otherwise in respect of particular inscribed stock.

In relation to all liabilities of QTC other than inscribed stock, section 33 of the Act provides that the Treasurer on behalf of the Government of Queensland may guarantee with the approval of the Governor in Council the performance of QTC’s obligations under any financial arrangement entered into by QTC.

In this regard, the Treasurer has guaranteed all foreign currency public bond issues, commercial paper programs, medium-term note programs and private loan arrangements undertaken by QTC.

Notwithstanding that such bond issues and other borrowings have been guaranteed by the Treasurer, it has not been the practice of the Treasurer to guarantee the obligations of QTC in respect of risk management instruments executed by QTC. These instruments include obligations such as swaps, options, futures contracts and foreign exchange contracts.

It should also be noted that section 15 of the Act provides that, except to the extent that it is otherwise provided by the Governor in Council, all profits made by QTC shall accrue to the benefit of the Consolidated Fund and any losses of QTC shall be the responsibility of the Consolidated Fund.

Pursuant to section 7 of the Act, QTC represents the Crown and may exercise and claim all powers, privileges, rights and remedies of the Crown.