Document ID: chunk:federal_register_of_legislation:C2016C00809:section:41:p1
Version: federal_register_of_legislation:C2016C00809
Segment Type: section
Provision Reference: s 41 (pt 1/3)
Character Range: 30803–33489

41  Guarantee of borrowings and raisings by wholly owned subsidiaries
 (1) Where:
 (a) a body corporate that is a wholly owned subsidiary of DHA:
 (i) borrows money otherwise than from the Commonwealth; or
 (ii) raises money otherwise than by borrowing; and
 (b) the money has been, or is to be, expended in connection with the objects of the body corporate;
then, whether the money is borrowed or raised by dealing in securities or otherwise, and whether or not the money is borrowed or raised, in whole or in part, in a currency other than Australian currency, this section applies to the borrowing or raising.
 (2) Subject to subsection (4), the Finance Minister may, on behalf of the Commonwealth, enter into a contract in relation to a borrowing or raising by a body corporate, being a borrowing or raising to which this section applies:
 (a) guaranteeing the repayment by the body corporate of the money borrowed and the payment by the body corporate of interest (including any interest on that interest) on the money borrowed; or
 (b) guaranteeing the payment by the body corporate of such amounts (which may be interest) that the body corporate is liable to pay with respect to the money raised as are specified in the contract.
 (3) Subject to subsection (4) the Finance Minister may, in writing, determine in relation to a borrowing or raising by a body corporate, being a borrowing or raising to which this section applies:
 (a) that the repayment by the body corporate of the money borrowed, and the payment by the body corporate of interest (including any interest on that interest) on the money so borrowed, are guaranteed by the Commonwealth; or
 (b) that the payment by the body corporate of such money (which may be interest) that the body corporate is liable to pay with respect to the money raised as is specified in the determination is guaranteed by the Commonwealth;
and, where the Finance Minister makes such a determination, the repayment of that money and the payment of that interest are, or the payment of that money is, by force of this subsection, guaranteed by the Commonwealth.
 (4) The Finance Minister shall not enter into a contract under subsection (2), or make a determination under subsection (3), in relation to a borrowing or raising by a body corporate unless:
 (a) the Finance Minister is satisfied that the terms and conditions of the borrowing or raising are reasonable;
 (b) if the borrowing or raising consists of, or includes, the issue of instruments—the issue of those instruments, and the form of those instruments, have been approved, in writing, by the Finance Minister;
 (c) the Finance Minister is satisfied that appropriate security