Victorian Consolidated Legislation

Co-operative Housing Societies Act 1958 - SECT 73

Treasurer's guarantees

73. Treasurer's guarantees



(1) The Treasurer of Victoria may, with the approval of the Governor in
Council, execute a guarantee in favour of any authorised deposit-taking
institution or of any other person or body corporate or unincorporate
(including any trustee), approved by the Treasurer of Victoria, (in this
Division referred to as an approved body), guaranteeing the repayment of any
loan to be made by the authorised deposit-taking institution or approved body
to any society registered under this Act.



(2) No guarantee shall be executed pursuant to this Division of this Part
guaranteeing the repayment of any loan to be made to a society unless the
society has first entered into an agreement with the Treasurer of Victoria
with respect to the conduct of the affairs of the society while the guarantee
is in force and containing such provisions and conditions as are prescribed or
as the Treasurer of Victoria thinks fit, and in particular, a condition that
while the guarantee is in force-

   (a)  the society will not make to any member any advance the amount of
        which, reduced by the value of the share capital of that member,
        exceeds eighty per centum of the value of the land and the
        dwelling-house erected or to be erected thereon which comprise the
        security for such advance unless the Treasurer of Victoria has entered
        into an agreement of indemnity under Division two of this Part in
        respect of that advance to that member; and

   (b)  the society will not make to any member, in respect of whom such an
        agreement of indemnity has been entered into, any advance the amount
        of which, reduced by the value of the share capital of the member,
        exceeds ninety-five per centum of the value of the land and the
        dwelling-house erected or to be erected thereon which comprise the
        security for such advance.

(3) For the purposes of the last preceding subsection the value of the share
capital of a member of any society shall be ascertained in such manner as the
Victorian Co-operative Housing Council directs.