Statutory Bodies Financial Arrangements Regulation 2019

section 13

For section 82(3) of the Act, this schedule sets out the conditions of a special guarantee for a loan by QTC to an entity.

1 In this guarantee—

default amount means the amount of the guaranteed moneys the Treasurer is requested to pay to QTC in a notice under clause 2(4).

guaranteed moneys means all moneys that are payable, owing but not payable or contingently owing, by the entity to QTC under the loan.

this guarantee means these conditions.

2(1) If the entity defaults in the due and punctual payment of the whole or part of the guaranteed moneys, QTC may serve a notice (a default notice) upon the entity.

If QTC serves a default notice upon the entity, QTC must within 3 days of the service give a copy of the notice to the Treasurer.

In the default notice, QTC must—

specify the default; and

require the entity to remedy the default.

If the entity does not remedy the default within 14 days after receiving the default notice, QTC may serve a written notice upon the Treasurer.

In the notice, QTC must—

certify the default has occurred and remains unremedied; and

request the Treasurer to pay the amount of the unremedied default to QTC.

3(1) As soon as practicable after receiving a notice from QTC under clause 2(4), the Treasurer must pay the default amount to QTC from funds or reserves that the Treasurer considers appropriate.

If the Treasurer is obliged or elects to seek an appropriation from Parliament before paying the whole or part of the default amount out of a particular fund or reserve, the Treasurer must promptly seek the appropriation.

4 The Treasurer may at any time direct QTC not to provide—

any further financial accommodation to the entity; or

financial accommodation to the entity in excess of a specified aggregate amount.

5 If QTC provides financial accommodation to the entity contrary to the Treasurer’s direction under clause 4—

the financial accommodation is not part of the loan, or another loan to which section 82 of the Statutory Bodies Financial Arrangements Act 1982 applies, and the Treasurer has no obligation to QTC under this guarantee for the financial accommodation; and

any payments made by or for the entity to QTC must be applied by QTC firstly in reduction of the loan for which the Treasurer (for the State) is liable under this guarantee.

6 The Treasurer is under no obligation to pay the default amount to QTC if—

QTC or the entity materially contravened the Statutory Bodies Financial Arrangements Act 1982, the Queensland Treasury Corporation Act 1988 or the entity’s authorising Act in relation to the loan; or

the approvals required under the Statutory Bodies Financial Arrangements Act 1982, the Queensland Treasury Corporation Act 1988 or the entity’s authorising Act to enter into the loan were not obtained or any conditions of the approval were not materially complied with; or

QTC has materially contravened this guarantee.

7(1) QTC may grant the entity any time, waiver, forbearance or other concession without discharging or limiting the rights of QTC under this guarantee.

On each occasion QTC grants any time, waiver, forbearance or other concession to the entity, QTC must give the Treasurer notice of—

the time, waiver, forbearance or other concession; and

particulars of the default by the entity which resulted in the granting of the time, waiver, forbearance or other concession.

8(1) A failure to exercise, or any delay by QTC in exercising, any right or remedy under this guarantee does not operate as a waiver of the right or remedy.

The exercise or partial exercise by QTC of a right or remedy does not prevent any further or other exercise of the right or remedy.

9 QTC may not assign or transfer all or any part of its rights or obligations under this guarantee to a third party.

10 The Treasurer does not incur any personal liability under this guarantee.

11 On request by the Treasurer, QTC must give to the Treasurer any information about its transactions and dealings with the entity.

12 A notice, communication, consent or direction that may be given by or to the Treasurer may be given by or to the Under Treasurer or a person acting in the position of the Under Treasurer.