Document ID: chunk:federal_register_of_legislation:C2004A02061:section:5
Version: federal_register_of_legislation:C2004A02061
Segment Type: section
Provision Reference: s 5
Character Range: 1954–2949

5  Conditions of guarantees
  For the purpose of the protection of the financial interests of the Commonwealth, the Treasurer shall not give a guarantee under section 4 unless:
 (a) the moneys are borrowed on terms and conditions that the Treasurer is satisfied are reasonable;
 (b) proper security to the satisfaction of the Treasurer is, or is to be, given to the Commonwealth over the aircraft, spare parts and equipment to which the borrowing relates;
 (c) undertakings to the satisfaction of the Treasurer are given that the aircraft, spare parts and equipment over which security is to be taken in accordance with paragraph (b):
 (i) will be insured, and kept insured, against all risks that it is customary to insure, and to their full insurable value; and
 (ii) will not be sold or made the subject of a mortgage or charge having priority over the security to the Commonwealth in respect of the guarantee; and
 (d) such other conditions as the Treasurer thinks necessary are fulfilled.