Victorian Consolidated Legislation

Borrowing and Investment Powers Act 1987 - SECT 30

Provisions applying to guarantees etc. under this Part

30. Provisions applying to guarantees etc. under this Part



(1) If the Treasurer so determines, a guarantee, indemnity or covenant under
this Part may include interest charges and expenses chargeable by the creditor
against the debtor and the expenses of enforcing or obtaining, or endeavouring
to enforce or obtain, payment of the debt to which the guarantee, indemnity or
covenant relates and those interest charges and expenses.





(2) The Treasurer may require the creditor to which a guarantee, indemnity or
covenant under this Part relates to hold securities of such nature as the
Treasurer requires for the payment of the debt or the performance of other
obligations to which the guarantee, indemnity or covenant relates.

(3) The Treasurer may secure from the debtor to which a guarantee, indemnity
or covenant under this Part relates an indemnity against loss suffered as a
result of the failure of the debtor to pay the debt or perform the other
obligations to which the guarantee, indemnity or covenant relates and hold
securities of such nature as the Treasurer requires in respect of the
indemnity.

(4) A guarantee, indemnity or covenant under this Part is not enforceable
against the Treasurer unless and until the creditor, to the satisfaction of
the Treasurer, has exercised the creditor's rights under all securities, if
any, held by or for the creditor in respect of the debt or other obligation to
which the guarantee, indemnity or covenant relates, other than the guarantee,
indemnity or covenant itself.

(5) The creditor must not, without the consent in writing of the Treasurer,
assign or encumber the benefit of a guarantee, indemnity or covenant under
this Part.

(6) Such sums as may from time to time become due and payable by the Treasurer
under a guarantee, indemnity or covenant under this Part shall be paid out of
the Consolidated Fund which is hereby to the necessary extent appropriated
accordingly.

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