The national Parliament then passed the Financial Agreement Enforcement Act to recover the money it had paid.
2.
When NSW Premier Jack Lang refused to pay interest on overseas State debts, the Lyons government stepped in and paid the debts and then passed the Financial Agreement Enforcement Act to recover the money it had paid.
3.
To enforce the State's obligations under the Agreement, the Commonwealth passed the " Financial Agreement Enforcement Act 1932 " to withhold moneys payable to the State and to seize State assets, which the High Court held to be valid.
4.
Since the Commonwealth Government had become responsible for state debts in 1928 under an amendment to the Constitution, the new UAP government of Joseph Lyons paid the interest to the overseas bondholders, and then set about extracting the money from NSW by passing the " Financial Agreement Enforcement Act 1932 ", which the High Court held to be valid.
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