Commonwealth Numbered Acts

EXPORT FINANCE AND INSURANCE CORPORATION ACT 1974 No. 122 of 1974 - SECT 21

21. (1) Subject to sub-section (2), where an application is made to the
Corporation for the giving of a guarantee in relation to a contract of
insurance or contract of indemnity entered into, or proposed to be entered
into, by the Corporation in accordance with an approval given under
sub-section 20 (3), 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 give a guarantee in respect of the matter
the subject of the application, the Minister may, by writing under his hand,
approve the giving by the Corporation of such a guarantee.

(4) An approval under sub-section (3) may contain conditions or directions in
relation to the proposed guarantee (including conditions or directions with
respect to the amount to be charged by the Corporation for the giving of the
guarantee or the percentage of the relevant loan to which the guarantee 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 16 (2) or 19 (2), to give a guarantee in
accordance with the approval and, unless the approval is revoked, shall not
decline to do so.

(6) The Board may, before the Corporation gives a guarantee 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 guarantee as is specified in the notice.

(7) Where a guarantee is given 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
guarantee relates) together with particulars of the nature and extent of the
liability under the guarantee.

(8) The Corporation shall not give a guarantee in relation to a contract of
insurance or contract of indemnity entered into by the Corporation in
accordance with an approval given under sub-section 20 (3) except in
accordance with an approval given under sub-section (3) of this section.

(9) For the purposes of this section, a guarantee shall be deemed to relate to
a contract of insurance or contract of indemnity, as the case may be, entered
into by the Corporation in accordance with an approval given under sub-section
20 (3) if it is given in respect of moneys lent for the purpose of financing,
whether in whole or in part, the acts or transactions to which that contract
relates.