New South Wales Consolidated Acts

TOURISM NEW SOUTH WALES ACT 1984 - SECT 10

10 Terms of guarantees

(1) A guarantee executed by Tourism New South Wales is not enforceable against Tourism New South Wales until the creditor has exercised all the rights and remedies of the creditor under all other securities held by or for the creditor in respect of the debt guaranteed.

(2) Tourism New South Wales may, as a condition of a guarantee, require the creditor to obtain, take and hold, or retain and hold, such securities for the payment of the principal debt and interest thereon as Tourism New South Wales requires.

(3) Tourism New South Wales may execute a guarantee notwithstanding that the debt guaranteed includes:

(a) any interest (including compound interest), charges and expenses chargeable by the creditor against the principal debtor, and

(b) the expenses of enforcing or obtaining or endeavouring to enforce or obtain payment of any amount guaranteed, that interest and those charges and expenses.

(4) Where Tourism New South Wales executes a guarantee, any assignment or encumbrance of the guarantee by the creditor without the consent of Tourism New South Wales has no force or effect.

(5) Tourism New South Wales shall not execute a guarantee:

(a) for the repayment of any money expended or to be expended on:

(i) the acquisition of land, or land and buildings,

(ii) the construction, improvement or alteration of buildings,

(iii) the improvement of land otherwise than as referred to in subparagraph (ii), or

(iv) the acquisition of vehicles, vessels, plant, machinery or equipment,

if the amount guaranteed would exceed 90 per cent of:

(v) the estimated value, ascertained as directed by Tourism New South Wales, of the land, or the land and buildings,

(vi) the estimated cost, so ascertained, of the works of construction, improvement or alteration,

(vii) the estimated cost, so ascertained, of the works of improvement, or

(viii) the estimated value, so ascertained, of the vehicles, vessels, plant, machinery or equipment,

as the case may be, or

(b) if the amount guaranteed would, together with the amounts of all other guarantees executed by Tourism New South Wales and then in force, or agreed to by Tourism New South Wales but not then executed, exceed such amount as may be determined from time to time by the Treasurer and notified to Tourism New South Wales.

(6) The execution by Tourism New South Wales of a guarantee referred to in this section is, in favour of the creditor, conclusive evidence that the requirements of this section with respect to the guarantee have been complied with.