Effect of merger or transfer of engagements on guarantees
179 Effect of merger or transfer of engagements on guarantees
This section applies on a merger or transfer of engagements taking effect, if a guarantee is in force for each of the societies involved in the merger or transfer of engagements.
On a merger—
each existing guarantee must be surrendered to the Treasurer; and
a new guarantee must be executed for the merged society for the amount outstanding under all the guarantees.
On a transfer of engagements—
each existing guarantee, other than the most recent guarantee if it is for the transferee society, must be surrendered to the Treasurer who must vary the most recent guarantee to cover the total amount outstanding under all the guarantees; or
each existing guarantee must be surrendered to the Treasurer who must execute a new guarantee for the transferee society for the total amount outstanding under all the guarantees.
This Act’s bill:Explanatory memorandum
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