Tasmanian Development Act 1983

Where the Treasurer is of the opinion that it will assist the development, expansion, or retention of a business undertaking to do so, the Treasurer may, on behalf of the State but subject to this section, guarantee – the repayment of money lent, or agreed to be lent, to a person; and the performance by a person of any obligation arising from, or in any way incidental to, assistance provided or to be provided, whether under this Act or not, for the purpose of a business undertaking.

The power of the Treasurer under subsection (1) to guarantee the repayment of money lent or agreed to be lent includes a power to guarantee the payment to the lender of interest and other charges payable by the borrower in respect of that money.

A guarantee under subsection (1) shall, subject to subsection (4), be given only – on the recommendation of TDR and with the approval of the Minister; on such terms and conditions as the Treasurer may determine; and by instrument in writing.

If the Treasurer is satisfied that urgent assistance is required for the retention of a business undertaking in Tasmania, the Treasurer may give a guarantee under subsection (1) without the recommendation of TDR or the approval of the Minister.

A guarantee under this section operates so as to guarantee – the repayment of money lent, or agreed to be lent, to the borrower; the payment of interest and other charges in respect of that money; and any liability arising from a failure to perform an obligation mentioned in subsection (1)(b) – only to the extent that the aggregate of those amounts and any such liability does not exceed $2 000 000.

Before a guarantee is given under this section, the borrower shall, if the Treasurer so requires, give to the Treasurer such security as he may specify and shall execute such instruments as may be necessary for the purpose.

A guarantee under this section – may, subject to subsection (8), be given to a person notwithstanding that another such guarantee to that person has been given or is in force; and on the recommendation of TDR and with the consent of the person whose loan to the borrower is guaranteed, may be varied or revoked by the Treasurer.

If 2 or more guarantees to a person are in force under this section, the second or any subsequent guarantee operates so as to guarantee – the repayment of money lent, or agreed to be lent, to that person; the payment of interest and other charges in respect of that money; and any liability arising from a failure to perform an obligation mentioned in subsection (1)(b) – only so long as the aggregate amount of the liability incurred by the Treasurer under this section in respect of all those guarantees does not exceed $2 000 000.

The amount of any liability incurred under a guarantee given under this section shall be a charge on the Public Account and shall be payable out of the Public Account without further appropriation than this section.