Document ID: chunk:federal_register_of_legislation:C2024C00824:section:66:p1
Version: federal_register_of_legislation:C2024C00824
Segment Type: section
Provision Reference: s 66 (pt 1/2)
Character Range: 84178–86729

66  Loans made in the national interest
 (1) Subject to subsection (2), this section applies to loans made by EFIC in accordance with approvals under section 27 or directions under section 29.
 (2) This section does not apply to a loan in relation to which EFIC has given the Minister notice, under section 64, that EFIC will bear the whole of the risk associated with the loan.
 (3) EFIC is required to keep separate accounts of so much of its receipts and disbursements relating to loans to which this section applies as relates to the proportion of the risk associated with such loans that is to be borne by the Commonwealth.
 (4) Subject to subsections (9) and (10), EFIC is required to pay to the Commonwealth, from time to time, as directed by the Finance Minister, so much of the receipts by EFIC from loans to which this section applies as relates to the proportion of the risk associated with those loans that is to be borne by the Commonwealth.
 (5) For the purpose of subsection (4), net receipts from a loan are calculated by deducting from the total of the amounts received by EFIC in relation to the loan all amounts paid or payable by EFIC in relation to the loan, including amounts payable in respect of borrowings made by EFIC to enable it to make the loan.
 (6) Subject to subsections (8) and (9), the Commonwealth is liable:
 (a) to reimburse EFIC the amount of all costs (including interest) incurred by EFIC in connection with the borrowing of money needed to finance a loan to which this section applies; and
 (b) to pay to EFIC an amount equal to any amount in respect of which default or loss is made under a loan to which this section applies.
 (7) Instead of the Commonwealth paying the amount due under subsection (6) when the liability of the Commonwealth arises, the Minister may, on behalf of the Commonwealth, direct EFIC to seek approval under section 59 for EFIC to borrow an amount equal to the amount due by the Commonwealth.
 (8) If the Finance Minister gives approval under section 59, the Commonwealth's liability under subsection (6) is replaced by a liability to pay EFIC the amount needed to discharge the borrowing by EFIC and to pay all costs (including interest) incurred by EFIC in connection with the borrowing.
 (9) Where EFIC has given the Minister notice, under section 64, that EFIC will bear a proportion of the risk associated with a loan to which this section applies:
 (a) if EFIC would be required by subsection (4) to pay an amount to the Commonwealth in respect of the loan—EFIC may deduct from