New South Wales Consolidated Acts

CO-OPERATIVE HOUSING AND STARR-BOWKETT SOCIETIES ACT 1998 - SECT 59

59 Treasurer’s indemnity for loans by co-operative housing society

(1) The Treasurer may, on the recommendation of the New South Wales Land and Housing Corporation, grant a written indemnity for a co-operative housing society that indemnifies the society against loss as specified in the indemnity suffered by the society in respect of a loan made or to be made by the society.

(2) An indemnity in respect of a loan made by a society is subject to:

(a) the terms and conditions set out in the indemnity when it is granted, and

(b) any other terms and conditions imposed by the Treasurer, notice of which has been served on the society before the loan is made.

(3) An indemnity may apply:

(a) with respect to a particular loan, or

(b) with respect to loans of any class, whether or not made or to be made by the same society.

(4) An amount payable in connection with an indemnity under this section is to be paid out of moneys provided by Parliament.

(5) If a term or condition to which an indemnity relating to a society is subject is contravened, the Treasurer may, by notice served on the society, cancel the indemnity:

(a) if it was granted in respect of a particular loan-wholly, or

(b) if it was granted in respect of loans of a class made or to be made by that society-wholly or to the extent to which it applied in respect of any one or more of those loans.

(6) The Treasurer ceases to be liable in respect of an indemnity when the amount of the loan to which the indemnity relates is reduced to an amount that does not exceed the equivalent of 80% of the value of the security for the loan when the loan was made.

(7) The Treasurer may delegate to any Minister any or all of the Treasurer’s powers, authorities, duties or functions under this section.