Document ID: chunk:federal_register_of_legislation:C2024C00824:section:23
Version: federal_register_of_legislation:C2024C00824
Segment Type: section
Provision Reference: s 23
Character Range: 41172–43439

23  Loans to finance eligible export transactions
 (1) Where an eligible export transaction has been entered into, or is proposed to be entered into, EFIC may lend money for the purpose of financing the transaction in whole or in part.
Note: EFIC's power under subsection (1) to lend money includes the power to provide finance, to provide a financial accommodation or to make an equity investment, in any form: see subsection 3(2).
 (2) The money may be lent to such person or persons as EFIC thinks appropriate, whether or not the person or persons are, or will be, party to the transaction or proposed transaction.
 (3) However, EFIC must not lend money (other than in the form of an equity investment) under this section for the purpose of financing a transaction whose dominant purpose is direct investment outside Australia by a person carrying on business in Australia unless the requirements in subsection (4) are satisfied.
 (4) For the purposes of subsection (3), the requirements are the following:
 (a) a person to whom the money is lent must certify, by writing given to EFIC, that the person reasonably believes that the loan will result in a net increase in the number of people employed in Australia by the business, or a related party of the business, during the term of the loan;
 (b) at the completion of the loan, the person carrying on the business must certify to EFIC whether the loan has resulted in a net increase in the number of people employed in Australia by the business, or a related party of the business;
 (c) if the business is a large business—the person who carries on the business must certify, by writing given to EFIC, that the loan will not be used to move the whole or a substantial part of the business, or of a related party of the business, overseas; and
 (d) EFIC must ensure that it publicly discloses copies of the certification it receives under subsection (4)(b).
 (5) In addition, EFIC must not lend money in the form of an equity investment under this section unless an application for the loan has been referred to the Minister under section 25.
Note: A direction under section 26 may prevent such applications from being referred to the Minister. EFIC cannot lend money under this section in those circumstances.