WESTERN AUSTRALIAN EXIM CORPORATION ACT 1986 - SECT 26

This legislation has been repealed.

WESTERN AUSTRALIAN EXIM CORPORATION ACT 1986 - SECT 26

26 .         Guarantees by the Corporation

        (1)         Subject to subsections (2) and (3), the Corporation for the purposes of this Act may —

            (a)         guarantee the payment of any moneys payable by, or the discharge of any indebtedness or liability of, any business undertaking;

            (b)         give an indemnity against the failure of a business undertaking to pay moneys or discharge any indebtedness or liability; or

            (c)         enter into any other financial arrangement with a business undertaking whereby the Corporation assumes a contingent risk.

        (2)         The Corporation shall not provide a guarantee or an indemnity or enter into any other financial arrangement pursuant to subsection (1), for a sum or sums greater in the aggregate than the prescribed amount.

        (3)         The Corporation shall not provide a guarantee or an indemnity or enter into any other financial arrangement pursuant to subsection (1), if the aggregate actual or contingent liability of the Corporation under all such financial arrangements at any time exceeds the prescribed amount.

        (4)         The execution by the Corporation either alone or jointly with some other person of a financial arrangement under subsection (1) in favour of a creditor shall be conclusive evidence that the requirements of this Act with respect to the financial arrangement have been complied with.

        (5)         In respect of any guarantee or indemnity under subsection (1) —

            (a)         the guarantee or indemnity may include any 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 and those interest charges and expenses;

            (b)         the creditor shall, if required to do so by the Corporation, obtain, take and hold or retain and hold securities of such nature as the Corporation may require for the payment of the debt or the discharge of the liability to which the guarantee or indemnity refers;

            (c)         the guarantee or indemnity shall not be enforceable against the Corporation unless and until the creditor has exercised to the satisfaction of the Board his rights and remedies under all securities (if any) held by or for him in respect of the debt or liability to which the guarantee or indemnity refers other than the guarantee or indemnity; and

            (d)         the creditors shall not, without the consent in writing of the Corporation, assign or encumber the benefit of the guarantee or indemnity.