Victorian Consolidated Legislation

Educational Institutions (Guarantees) Act 1976 - SECT 3

Power of Treasurer to execute guarantees

3. Power of Treasurer to execute guarantees



(1) Subject to this section the Treasurer of Victoria may execute a guarantee
in favour of any person or body guaranteeing the repayment of a loan made or
to be made by that person or body to the school authority of an educational
institution.

(2) A guarantee by the Treasurer pursuant to subsection (1) shall be executed
only in respect of a loan-

   (a)  for school purposes approved by the Treasurer; and

   (b)  the terms and conditions of which have been approved by the Treasurer.

(3) The following provisions shall apply to and in respect of any guarantee
under this Act-

   (a)  the guarantee may include any interest charges and expenses chargeable
        by the creditor against the institution and the expenses of enforcing
        or obtaining or endeavouring to enforce or obtain payment of the
        amount guaranteed and those interest charges and expenses;

   (b)  the creditor shall, if required to do so by the Treasurer, obtain take
        and hold or retain and hold securities of such nature as the Treasurer
        may require for the payment of the amount guaranteed;

   (c)  the guarantee shall not be enforceable against the Treasurer of
        Victoria unless and until the creditor has exercised his rights and
        remedies under all securities held by or for him in respect of the
        amount borrowed to the satisfaction of the Treasurer;

   (d)  the creditor shall not without the consent in writing of the Treasurer
        assign or encumber the benefit of the guarantee;

   (e)  the guarantee shall be in such form and shall be subject to such other
        terms and conditions as the Treasurer thinks fit.

(4) The power of the Treasurer to execute a guarantee in respect of a loan for
school purposes extends to, and shall be deemed to have always extended to, a
loan which is made or to be made to the school authority of an educational
institution for the purpose of refinancing in whole or in part a loan made and
expended for school purposes.