Document ID: chunk:federal_register_of_legislation:C2004A00031:section:5
Version: federal_register_of_legislation:C2004A00031
Segment Type: section
Provision Reference: s 5
Character Range: 2132–3690

5  Approval of guarantee
 (1) Subject to this section, if the Administration enters into an agreement under which the Administration is to, or may, borrow, by way of the sale of bonds or otherwise, an amount in a foreign currency that does not exceed:
 (a) where the foreign currency is the currency of the United States of America—Twenty million dollars in that currency; or
 (b) where the foreign currency is not the currency of the United States of America—an amount in that foreign currency that is, when the agreement is entered into, equivalent to Twenty million dollars in the currency of the United States of America,
the Treasurer, or a person authorized by him, may, on behalf of the Commonwealth, give a guarantee in respect of the payment of all moneys, including interest, payable by the Administration under the agreement and may, for the purposes of the guarantee, enter into an agreement containing such terms as are approved by the Treasurer and the Minister for External Territories.
 (2) For the purposes of subsection (1), any form of undertaking of liability to pay any moneys shall be deemed to be a guarantee in respect of the payment of those moneys.
 (3) The guarantee, when given, constitutes a valid and binding obligation of the Commonwealth in accordance with its terms.
 (4) The power conferred by subsection (1):
 (a) is limited to the giving of a guarantee in respect of one agreement only; and
 (b) shall not be exercised after the expiration of the period of four months commencing on the date of commencement of this Act.