Commonwealth Numbered Acts

FEDERAL AIRPORTS CORPORATION ACT 1986 No. 4 of 1986 - SECT 52

52. (1) This section applies to a borrowing by a body corporate (in this
section referred to as a "relevant subsidary") that is a wholly owned
subsidiary of the Corporation, of money, whether in Australian currency or in
another currency, that has been or is to be expended in connection with the
objects of the body corporate.

(2) Subject to this section, the Treasurer may, on behalf of the Commonwealth,
at the request of a relevant subsidiary, enter into a contract guaranteeing
that the relevant subsidiary will fulfil its obligations arising out of a
borrowing to which this section applies to repay so much of the money
borrowed, and to pay so much of the interest (including any interest on that
interest) on that money, as are specified in the contract.

(3) For the purposes of the protection of the financial interests of the
Commonwealth, the Treasurer shall not enter into a contract under sub-section
(2) in respect of a borrowing by a relevant subsidiary unless -

   (a)  the Treasurer is satisfied that the terms and conditions of the
        borrowing are reasonable;

   (b)  where the borrowing consists of, or includes, the issue of instruments
        - the issue of those instruments, and the form of those instruments,
        have been approved by the Treasurer;

   (c)  appropriate security to the satisfaction of the Treasurer is, or is to
        be, given to the Commonwealth;

   (d)  undertakings to the satisfaction of the Treasurer are given by that
        relevant subsidiary that the property over which security is, or is to
        be, taken in accordance with paragraph (c) -

        (i)    will be insured and kept insured to its full insurable value
               against all risks against which it is customary to insure;

        (ii)   will not be sold or made the subject of a mortgage or charge
               having priority over the security given to the Commonwealth in
               respect of the contract of guarantee; and

        (iii)  will not be taken out of Australia for a destination outside
               Australia except after the giving of such security as the
               Treasurer requires;

   (e)  undertakings to the satisfaction of the Treasurer are given by that
        relevant subsidiary that, so long as the whole or any part of the
        amounts borrowed, or of any interest on those amounts, remains unpaid
        -

        (i)    officers of the Australian Public Service will have full access
               at all reasonable times to the financial accounts of that
               relevant subsidiary when authorised in writing by the Minister
               for that purpose; and

        (ii)   that relevant subsidiary will do everything within its power to
               ensure that the officers so authorised have access to the
               financial accounts of any body, whether corporate or
               unincorporate, in which that relevant subsidiary has, at any
               time, whether directly or indirectly, a controlling interest;

   (f)  undertakings to the satisfaction of the Treasurer are given by that
        relevant subsidiary that any legal costs incurred by the Commonwealth
        in connection with the contract of guarantee will be met by that
        relevant subsidiary; and

   (g)  such other conditions as the Treasurer thinks necessary are fulfilled.

(4) Where the Treasurer enters into a contract under sub-section (2) in
respect of a borrowing, the Treasurer shall cause to be laid before each House
of the Parliament, within 15 sitting days of that House after the contract is
entered into, a notice specifying the amount and term of the borrowing and
such other information relating to the borrowing or the guarantee as the
Treasurer considers appropriate.

(5) For the purposes of this section -

   (a)  the issue by a relevant subsidiary of an instrument acknowledging a
        debt in consideration of the payment or deposit of money, or the
        provision of credit; or

   (b)  the obtaining of credit by a relevant subsidiary, shall, to the extent
        of the amount of that money or of that credit, as the case may be, be
        deemed to be a borrowing by that relevant subsidiary.

(6) A contract entered into under sub-section (2) may include either or both
of the following provisions:

   (a)  a provision agreeing, on behalf of the Commonwealth, that proceedings
        under the contract may be taken in the courts, or a specified court,
        of a country other than Australia;

   (b)  a provision waiving, on behalf of the Commonwealth, the immunity of
        the Commonwealth from suit in the courts, or a specified court, of a
        country other than Australia in relation to any proceedings that may
        be taken under the contract.

(7) For the purposes of sub-section (1), a body corporate is a wholly owned
subsidiary of the Corporation if that body corporate is a subsidiary of the
Corporation and none of the members of that body corporate is a person other
than -

   (a)  the Corporation;

   (b)  a nominee of the Corporation;

   (c)  a subsidiary of the Corporation, being a subsidiary none of the
        members of which is a person other than the Corporation or a nominee
        of the Corporation; or

   (d)  a nominee of a subsidiary referred to in paragraph (c).