Document ID: chunk:federal_register_of_legislation:F2006L03540:body:0:p2
Version: federal_register_of_legislation:F2006L03540
Segment Type: other
Provision Reference: 
Character Range: 2826–5696

where the Custodian is complying with subsection 123(1)(b)(iii) of the Act.>>

    (b)  beneficiary has the meaning given in section 10 of the Act.

    (c) custodian has the meaning given in section 10 of the Act.

        (d) custodian agreement means a written agreement pursuant to which the Custodian acts or has acted as custodian in respect of a superannuation entity.

      (e)       liability means either:
          (i)  an amount payable by the Custodian pursuant to a judgment or order of any court or tribunal; or
        (ii) an amount which the Custodian has agreed in writing to pay,

       in respect of a failure to perform the duties or obligations (express or implied) arising under or pursuant to a custodian agreement;

       (f)        principal contract means any agreement or arrangement between the Guarantor and the Custodian which secures or is intended to secure this Guarantee.

        (g) RSE licence has the meaning given in section 10 of the Act.

        (h) security means any mortgage, charge, assignment, title retention arrangement, or other interest, agreement or arrangement the purpose of which is to secure the meeting of a liability, and includes a guarantee or indemnity given in relation to a liability.

        (i) superannuation entity includes a superannuation entity and a registrable superannuation entity as respectively defined in section 10 of the Act.

        (k) superannuation fund has the meaning given in section 10 of the Act.

    (l)  trustee has the meaning given in section 10 of the Act.

     Guarantee

    2. The Guarantor unconditionally guarantees to pay
     (i) all liabilities of the Custodian; and
     (ii) all written demands for payment under this Guarantee made by the Custodian,

     up to the agreed amount in the aggregate, and the Guarantor must pay upon demand made in accordance with Clause 5 of this Guarantee.

  No requirement to proceed

   3. A Trustee is not required to claim or enforce any remedies it may have against the Custodian or any other person in relation to a liability of the Custodian under a custodian agreement.

 Term of the Guarantee

   4. Except as provided in Clause 10 below, this Guarantee shall be for a period of five years commencing on the date this Guarantee is signed.

    Written demand and time for payment

   5. Written demand under this Guarantee must be made during the term of this Guarantee (whether or not the liability arose during the term of this Guarantee) and the Guarantor shall make cash payment under this Guarantee without set-off, whether legal or equitable, counter claims, conditions, deductions or withholdings, no later than 30 days after such demand is made:

       (a) by a Trustee of a superannuation entity in respect of which there is a liability; or

       (b) by any acting trustee or other trustee appointed in