Commonwealth Numbered Acts

EXPORT FINANCE AND INSURANCE CORPORATION ACT 1974 No. 122 of 1974 - SECT 23

23. (1) Where-

(a) a person (in this sub-section referred to as "the Territory buyer"), in
the course of carrying on business in an external Territory, has entered into,
or proposes to enter into, a contract with a person carrying on business in
Australia (in this sub- section referred to as "the Australian supplier"),
being a contract involving-

        (i)    the export from Australia by the Australian supplier of goods
               manufactured or produced wholly or partly in Australia; or

        (ii)   both the export from Australia by the Australian supplier of
               such goods and the rendering by the Australian supplier of
               services in connexion with the goods; and

(b) a person (in this sub-section referred to as "the lender") has lent, or
proposes to lend, moneys to the Territory buyer or to another person for the
purpose of financing, in whole or in part, the making of payments by the
Territory buyer to the Australian supplier under the contract referred to in
paragraph (a), the Corporation may, subject to sub-section(2), guarantee to
the lender the repayment of the whole or any part of the moneys so lent or
proposed to be lent by him and the payment of the whole or any part of any
interest or other charges that may become payable to him in respect of those
moneys.

(2) Subject to sub-section (3), a guarantee shall not be given under
sub-section (1) in respect of a loan made, or proposed to be made, in relation
to a contract referred to in paragraph (1) (a) unless-

   (a)  the amount of the loan is not less than such amount as is prescribed
        by the regulations for the purposes of this paragraph;

   (b)  the amount of the loan is not greater than such percentage of the
        amount, or of the total of the amounts, payable under the contract as
        is prescribed by the regulations for the purposes of this paragraph;
        and

   (c)  the amount, or the total of the amounts, payable under the contract
        that relates or relate to the goods, or to the goods and services, as
        the case may be, referred to in paragraph (1) (a) is not less than
        such percentage (not being less than 50) of the amount, or of the
        total of the amounts, payable under the contract as is prescribed by
        the regulations for the purposes of this paragraph.

(3) The Minister may, if so requested by the Board in a particular case and if
he thinks it appropriate so to do having regard to the special circumstances
applicable in the case, direct, by instrument in writing, that-

   (a)  in lieu of the amount that is prescribed by the regulations for the
        purposes of paragraph (2) (a), such lesser amount as is specified in
        the instrument shall apply;

   (b)  in lieu of the percentage that is prescribed by the regulations for
        the purposes of paragraph (2) (b), such greater percentage as is
        specified in the instrument shall apply; and

   (c)  if the percentage that is prescribed by the regulations for the
        purposes of paragraph (2) (c) exceeds 50-in lieu of that percentage,
        such lesser percentage (not being less than 50) as is specified in the
        instrument shall apply.
(4) In sub-section (1), "Australia" does not include the external Territories.