{"id":"mercy-private-hospital-guarantee-act-1971","name":"Mercy Private Hospital (Guarantee) Act 1971","slug":"mercy-private-hospital-guarantee-act-1971","collection":"act","jurisdiction":"vic","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":175041,"registerId":"vic-mercy-private-hospital-guarantee-act-1971-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Mercy Private Hospital (Guarantee) Act 1971","content":"Victorian Legislation and Parliamentary Documentsi\nVersion No. 001\nMercy Private Hospital (Guarantee) Act 1971\nAct No. 8158/1971\nVersion as at 14 February 2000\nTABLE OF PROVISIONS\nSection Page\n1. Short title 2\n2. Power to Treasurer to execute guarantees 2\n3. Total Principal sums guaranteed not to exceed $800 000 2\n═══════════════\nENDNOTES 4\n1. General Information 4\n2. Table of Amendments 5\n3. Explanatory Details 6\n\nVictorian Legislation and Parliamentary Documents1\nVersion No. 001\nMercy Private Hospital (Guarantee) Act 1971\nAct No. 8158/1971\nVersion as at 14 February 2000\nAn Act to authorize the Treasurer of Victoria to guarantee\nRepayment of certain Moneys proposed to be borrowed by the\nSisters of Mercy Property Association and for other purposes.\nPreamble\nWHEREAS a private hospital called the Mercy\nPrivate Hospital which is situated in Grey Street,\nEast Melbourne, is administered on behalf of the\nCongregation of the Sisters of Mercy by a body\ncorporate registered in Victoria and named the\nSisters of Mercy Property Association:\nAND WHEREAS the Sisters of Mercy Property\nAssociation wishes to make renovations and\nadditions to the said Mercy Private Hospital:\nAND WHEREAS the Government of Victoria\nwishes to assist the said body corporate in carrying\nout their plan for such renovations and additions to\nthe said hospital:\nAND WHEREAS the said body corporate will be\nable to borrow the moneys required to defray the\ncost of such renovations and additions if the\nrepayment of the moneys is guaranteed by the\nGovernment of Victoria:\nAND WHEREAS it is expedient to make provision\nas hereinafter enacted:\n\nVictorian Legislation and Parliamentary DocumentsAct No. 8158/1971\nMercy Private Hospital (Guarantee) Act 1971\n2\nBE IT THEREFORE ENACTED by the Queen's Most\nExcellent Majesty by and with the advice and consent of the\nLegislative Council and the Legislative Assembly of Victoria\nin this present Parliament assembled and by the authority of\nthe same as follows (that is to say):\n1. Short title\nThis Act may be cited as the Mercy Private\nHospital (Guarantee) Act 1971.\n2. Power to Treasurer to execute guarantees\n(1) The Treasurer may execute in favour of any\nperson a guarantee guaranteeing the repayment of\nany loan to be made by that person to the Sisters\nof Mercy Property Association.\n(2) A guarantee by the Treasurer pursuant to sub-\nsection (1)—\n(a) shall be in such form and subject to such\nterms and conditions as he thinks fit; and\n(b) may extend to any interest charges and\nexpenses chargeable by the person making\nthe loan and the expenses of enforcing or\nobtaining or endeavouring to enforce or\nobtain repayment of the loan guaranteed and\nsuch interest charges and expenses.\n3. Total Principal sums guaranteed not to exceed\n$800 000\n(1) The Treasurer shall not execute any guarantee\nunder this Act where such guarantee would\ninvolve him in a liability in respect of the\nprincipal sum of any loan which when added to\nthe total liabilities in respect of other principal\nsums guaranteed pursuant to the powers conferred\nby section 2 would in the aggregate exceed the\namount of $800 000.\ns. 1\n\nVictorian Legislation and Parliamentary DocumentsAct No. 8158/1971\nMercy Private Hospital (Guarantee) Act 1971\n3\n(2) Such sums as may from time to time become due\nand payable by the Treasurer under any guarantee\nauthorized by this Act shall be paid out of the\nConsolidated Fund (which is hereby to the\nnecessary extent appropriated accordingly).\n═══════════════\ns. 3\n\nVictorian Legislation and Parliamentary DocumentsAct No. 8158/1971\nMercy Private Hospital (Guarantee) Act 1971\n4\nENDNOTES\n1. General Information\nThe Mercy Private Hospital (Guarantee) Act 1971 was assented to on\n26 October 1971 and came into operation on 26 October 1971.\nEndnotes\n\nVictorian Legislation and Parliamentary DocumentsAct No. 8158/1971\nMercy Private Hospital (Guarantee) Act 1971\n5\n2. Table of Amendments\nThere are no amendments made to the Mercy Private Hospital (Guarantee)\nAct 1971 by Acts and subordinate instruments.\nEndnotes\n\nVictorian Legislation and Parliamentary DocumentsAct No. 8158/1971\nMercy Private Hospital (Guarantee) Act 1971\n6\n3. Explanatory Details\nNo entries at date of publication.\nEndnotes","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"No amendments are recorded. The Act continues to authorise the Treasurer to guarantee loans for the Sisters of Mercy Property Association up to an aggregate principal of $800,000, allows guarantees to include interest and enforcement costs, and charges payments to the Consolidated Fund (s.2; s.3; Endnotes)."},"complexity_factors":["Very narrow, single-purpose scope directed at a named body and project (Preamble; s.2(1)).","Broad executive discretion: Treasurer may set form, terms and conditions of guarantees (s.2(2)(a)).","Guarantee can extend to interest, lender expenses and enforcement costs, enlarging contingent liability (s.2(2)(b)).","Aggregate principal cap limits total exposure to $800,000 (s.3(1)).","State bears payment risk via the Consolidated Fund appropriation (s.3(2)).","Statute contains few procedural limits, no specified duration or additional approvals; no amendments recorded (Act text; Endnotes)."],"plain_english_summary":"Authorises the Victorian Treasurer to guarantee loans to the Sisters of Mercy Property Association so it can borrow for Mercy Private Hospital renovations, subject to an aggregate principal cap of $800,000 (s.2(1); s.3(1)). Guarantees may cover interest, lender expenses and enforcement costs and are in the Treasurer’s chosen form and terms (s.2(2)(a)–(b)). Payments under guarantees are charged to the Consolidated Fund (s.3(2)). This shifts repayment risk from the borrower to the State and gives the Treasurer broad discretion over guarantee terms."},"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly scoped to its original purpose. It has never been amended and continues to authorize guarantees only for the specific hospital renovation project described in the 1971 preamble. The $800,000 cap and specific beneficiary (Sisters of Mercy Property Association) have remained unchanged."},"complexity_factors":["Only 3 operative sections (excluding short title and preamble)","No defined terms section; all terms used are ordinary English or explained in context","Single straightforward condition: total guarantees cannot exceed $800,000","No cross-references to other Acts","No delegated legislative powers or regulations","Simple linear structure without exceptions or nested conditions"],"plain_english_summary":"This is a short Victorian law from 1971 that lets the State Government guarantee a bank loan for a private hospital run by a Catholic religious order.\n\n**What it does:**\n- Allows the Victorian Treasurer to act as a guarantor (a financial backer who promises to pay if the borrower defaults) for loans taken out by the Sisters of Mercy Property Association\n- The loans are specifically for renovating and expanding the Mercy Private Hospital in East Melbourne\n- Caps the government's total exposure at $800,000 in principal (the original amount borrowed, not including interest)\n- If the government has to pay out on the guarantee, the money comes from the Consolidated Fund (the state's main bank account)\n\n**Who it affects:**\n- The Sisters of Mercy Property Association (the borrower)\n- Any bank or lender willing to loan money to the Association\n- Victorian taxpayers (who ultimately back the guarantee through the Consolidated Fund)\n\n**Why it matters:**\nThis is an example of the government using its creditworthiness to help a non-profit private hospital access capital for infrastructure improvements. Without the government guarantee, the religious order might not have been able to secure the loan or would have paid higher interest rates. It reflects a historical pattern of governments supporting private hospitals—particularly those with religious affiliations—that serve the public."},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"Insufficient content was provided to assess whether the scope changed from the original intent. The Act appears to remain in its original form based on version history, suggesting no significant amendments have altered its scope."},"complexity_factors":["Act title is self-descriptive, suggesting a narrow and specific purpose","Guarantee legislation is typically straightforward in structure — one institution, one guarantee","Historical 1971 legislation may reference outdated financial or administrative frameworks","Insufficient legislative text was provided to assess true complexity — actual content could contain complex financial conditions or triggers"],"plain_english_summary":"The Mercy Private Hospital (Guarantee) Act 1971 appears to provide a government financial guarantee for Mercy Private Hospital, meaning the state promises to cover certain debts or obligations if the hospital cannot. It primarily affects the hospital and its lenders and creates a potential contingent liability for Victorian taxpayers.\n\nThis summary is based on the Act’s title only (full text not supplied); the Act appears to remain in force."}},"importantCases":[],"_links":{"self":"/api/acts/mercy-private-hospital-guarantee-act-1971","history":"/api/acts/mercy-private-hospital-guarantee-act-1971/history","analysis":"/api/acts/mercy-private-hospital-guarantee-act-1971/analysis","conflicts":"/api/acts/mercy-private-hospital-guarantee-act-1971/conflicts","importantCases":"/api/acts/mercy-private-hospital-guarantee-act-1971/important-cases","documents":"/api/acts/mercy-private-hospital-guarantee-act-1971/documents"}}