Commonwealth Numbered Acts

EXPORT FINANCE AND INSURANCE CORPORATION ACT 1974 No. 122 of 1974 - SECT 20

20. (1) Subject to sub-section (2), where-

   (a)  an application is made to the Corporation for a contract of insurance
        of a kind referred to in section 13 or 14 or a contract of indemnity
        of a kind referred to in section 17 or 18; and

   (b)  the proposed contract would impose upon the Corporation a liability
        that the Corporation is not authorized to undertake, or would not
        undertake in the ordinary course of business, the Board may refer the
        application to the Minister for consideration under sub-section (3).

(2) The Minister may give directions to the Board with respect to the
circumstances or cases in which applications are, or are not, to be referred
to him under sub-section (1), and the Board shall comply with any such
direction.

(3) Where, in relation to an application referred to the Minister under
sub-section (1), the Minister is of opinion that it is in the national
interest that the Corporation should enter into a contract of insurance or
contract of indemnity, as the case may be, in respect of the matter the
subject of the application, the Minister may, by writing under his hand,
approve the entering into by the Corporation of such a contract.

(4) An approval under sub-section (3) may contain conditions or directions in
relation to the proposed contract (including conditions or directions with
respect to the amount of the premium to be charged or the percentage of the
amount of the loss to which the insurance or indemnity is to extend).

(5) Where an approval is given under sub-section (3), the Corporation is
empowered, notwithstanding anything contained in section 11 or regulations
made for the purposes of sub-section 15 (3), to enter into a contract in
accordance with the approval and, unless the approval is revoked, shall not
decline to do so.

(6) The Board may, before the Corporation enters into a contract in accordance
with an approval given under sub-section (3), inform the Minister, by notice
in writing, that the Corporation will bear such proportion of the liability of
the Corporation under the contract as is specified in the notice.

(7) Where a contract is entered into in accordance with an approval under
sub-section (3), the Minister shall notify the fact in the Gazette (without
reference to the names of the parties to the transaction to which the contract
relates), together with particulars of the nature and extent of the liability
under the contract.