Commonwealth Numbered Acts

EXPORT FINANCE AND INSURANCE CORPORATION ACT 1974 No. 122 of 1974 - SECT 26

26. (1) Where-

(a) a person (in this 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 outside
Australia (in this section referred to as "the overseas supplier"), being a
contract for the supply of goods or the carrying out of works in that
Territory by the overseas supplier;

(b) a person (in this 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 overseas supplier under the contract referred to in
paragraph (a);

(c) a person (in this section referred to as "the guarantor") has guaranteed
to the lender the repayment of the whole or any part of the moneys so lent, or
proposed to be lent, by the lender and the payment of the whole or any part of
any interest or other charges that may become payable to the lender in respect
of those moneys; and

   (d)  for the purpose of supplying any of the goods or carrying out any of
        the works referred to in paragraph (a), the overseas supplier has
        entered into
a contract (in this section referred to as "the sub-contract") with a person
carrying on business in Australia (in this 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 of services by
               the Australian supplier in connexion with the goods, the
               Corporation may enter into a contract with the guarantor under
               which the Corporation gives an indemnity or guarantee to
               the guarantor in respect of so much of the liability of
               the guarantor under the guarantee as does not exceed the
               amount, or the total of the amounts, payable under
               the sub-contract that relates or relate to the goods, or to the
               goods and services, as the case may be, referred to in
               sub-paragraph (d) (i) or (ii).
(2) In sub-section (1), "Australia" does not include the external Territories.