Financial Intermediaries Act 1996

The following provisions apply to a guarantee executed by the Treasurer—

the guarantee is subject to the terms prescribed under a regulation and to any other terms the Treasurer decides;

the guarantee may include either or both of the following—

the interest, charges and expenses chargeable by the approved entity against the principal debtor in the normal course of its business;

the expenses of enforcing, obtaining, or trying to enforce or obtain, payment of the debt guaranteed and the interest, charges and expenses;

the approved entity must obtain and take the security for the payment of the principal debt (including any interest, charges and expenses chargeable) that the Treasurer may require;

the guarantee is enforceable against the Treasurer or against the Consolidated Fund only if—

the approved entity has exhausted all other rights and remedies for the recovery of the amount secured by the guarantee; or

the approved entity becomes entitled to appoint a receiver for the society;

an assignment of, or charge on, the rights conferred by the guarantee is effective against the Treasurer only if made with the Treasurer’s written consent;

other provisions prescribed under a regulation.

A liability arising under a guarantee is to be satisfied out of amounts appropriated by the Parliament.