Document ID: chunk:federal_register_of_legislation:C2025C00105:section:193n
Version: federal_register_of_legislation:C2025C00105
Segment Type: section
Provision Reference: s 193N
Character Range: 204280–205249

193N  Limit on guarantees

Limit
 (1) The Indigenous Land and Sea Corporation must not guarantee a loan in a financial year if the sum of:
 (a) the contingent liabilities to which it would be subject if the proposed guarantee were to be given; and
 (b) its current borrowings; and
 (c) the total of its liabilities (whether actual or contingent) in respect of guarantees; and
 (d) the current borrowings of its subsidiaries; and
 (e) the total of the liabilities (whether actual or contingent) of its subsidiaries in respect of guarantees;
is more than the guarantee limit for the financial year.

Guarantee limit
 (2) For the purposes of this section, the guarantee limit for a financial year is the amount worked out using the formula:

where:
indexation factor means the indexation factor for the financial year worked out under section 192Y.

Validity of transactions
 (8) A failure to comply with subsection (1) does not affect the validity of any transaction.