{"id":"nsw:act-1977-003","name":"Sporting Bodies’ Loans Guarantee Act 1977","slug":"sporting-bodies-loans-guarantee-act-1977","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"3 of 1977","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":109891,"registerId":"nsw-act-1977-003-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1 Name of Act\n\n> This Act may be cited as the [Sporting Bodies’ Loans Guarantee Act 1977](/view/html/inforce/current/act-1977-003).","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Definitions","content":"#### 2 Definitions\n\n2 Definitions\n\n> In this Act, sporting body means a body or an association of persons, whether incorporated or unincorporated, formed for, or having as its object, the control, development or promotion of any form of lawful physical recreational activity engaged in competitively, but does not include a body or association that:\n> \n> > (a) conducts horse or greyhound racing, or\n> \n> > (b) (Repealed)\n> \n> **s 2:** Am 1998 No 113, Sch 2.15.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Guarantees","content":"#### 3 Guarantees\n\n3 Guarantees\n\n> > (1) The Minister may execute a guarantee, either alone or jointly with some other person, in favour of a bank, building society or credit union, or another person or a body of persons, whether corporate or unincorporate, for the repayment of money expended or to be expended on:\n> > \n> > > (a) the acquisition of land, or land and buildings thereon,\n> > \n> > > (b) the construction, improvement or alteration of buildings, or\n> > \n> > > (c) the acquisition of items of plant or equipment that have or are to become fixtures,\n> > \n> > by a sporting body in connection with the provision by it of sporting facilities.\n> \n> > (2) The Minister shall not execute a guarantee under subsection (1) if the amount of the guarantee:\n> > \n> > > (a) exceeds 90 per centum of the estimated value of the land or land and buildings, of the estimated cost of the works of construction, improvement or alteration, or of the estimated value of the plant or equipment, as the case may be, that estimated value or cost to be ascertained in such manner as the Minister may direct, or\n> > \n> > > (b) together with the amounts of all other guarantees executed, or approved by the Minister to be executed, under subsection (1) (excluding guarantees no longer in force), exceed such amount as may, from time to time, be fixed by the Treasurer.\n> \n> > (3) The execution by the Minister, either alone or jointly with some other person, of a guarantee under subsection (1) shall, in favour of the creditor, be conclusive evidence that the requirements of this Act with respect to the guarantee have been complied with.\n> \n> **s 3:** Am 1996 No 24, Sch 1.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Provisions relating to guarantees","content":"#### 4 Provisions relating to guarantees\n\n4 Provisions relating to guarantees\n\n> > (1) Subject to subsection (2), a guarantee executed under section 3 (1) may be subject to such terms and conditions as the Minister thinks fit.\n> \n> > (2) The following provisions shall apply to and in respect of a guarantee executed under section 3 (1):\n> > \n> > > (a) The guarantee may include any interest charges and expenses chargeable by the creditor against the principal debtor and the expenses of enforcing or obtaining or endeavouring to enforce or obtain payment of the debt guaranteed and those interest charges and expenses.\n> > \n> > > (b) The guarantee may be expressed to include compound interest.\n> > \n> > > (c) The creditor shall, if required to do so by the Minister, obtain, take and hold or retain and hold securities for the payment of the principal debt of such nature as the Minister may require.\n> > \n> > > (d) The guarantee shall not be enforceable against the Minister unless and until the creditor has exercised the creditor’s rights and remedies under all securities held by or for the creditor in respect of the debt guaranteed, other than the guarantee.\n> > \n> > > (e) The creditor shall not, without the consent in writing of the Minister, assign or encumber the benefit of the guarantee.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Payments under guarantees","content":"#### 5 Payments under guarantees\n\n5 Payments under guarantees\n\n> Any amount payable under a guarantee executed under this Act shall:\n> \n> > (a) despite the provisions of the [Public Lotteries Act 1996](/view/html/inforce/current/act-1996-086), be paid out of the Sport and Recreation Fund established under section 34 of that Act, or\n> \n> > (b) where the fund referred to in paragraph (a) is insufficient to cover the amount payable, be paid by the Treasurer, without further appropriation than this Act, out of the Consolidated Revenue Fund,\n> \n> or be paid partly as referred to in paragraph (a) and partly as referred to in paragraph (b).\n> \n> **s 5:** Am 1996 No 86, Sch 1.4.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Regulations","content":"#### 6 Regulations\n\n6 Regulations\n\n> The Governor may make regulations, not inconsistent with this Act, for or with respect to any matter that by this Act is required or permitted to be prescribed or that is necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":5}],"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"},"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose of guaranteeing loans for sporting infrastructure. The 1996 amendment updated the funding mechanism (switching from the former Lottery Fund to the Sport and Recreation Fund under the Public Lotteries Act 1996), and the 1998 amendment removed a spent paragraph, but neither expanded the substantive scope beyond loan guarantees for sporting facilities."},"complexity_factors":["Short statute with only 6 sections","Single defined term ('sporting body') with straightforward exclusions","Clear conditional structure in section 3 with two explicit numerical limits (90% cap and Treasurer's aggregate cap)","Minimal cross-referencing — only references to the Public Lotteries Act 1996 for funding source","Standard regulation-making power in section 6","Some protective legal mechanics in section 4 (compound interest, security requirements, enforcement sequencing) that require basic financial/legal literacy to parse"],"plain_english_summary":"This law lets the NSW Government act as a guarantor for loans taken out by sporting organisations. \n\n**What it does:**\n- Allows the Minister to guarantee (promise to pay back if the borrower defaults) loans that sporting bodies take from banks, building societies, credit unions, or other lenders.\n- These loans must be used for specific purposes: buying land or buildings, constructing or improving facilities, or purchasing equipment that becomes permanently attached to property.\n\n**Who it affects:**\n- **Sporting bodies** — defined as groups (incorporated or not) that control, develop, or promote competitive physical recreational activities. This explicitly excludes horse and greyhound racing organisations.\n- **Lenders** — banks and other financial institutions that provide loans to these sporting bodies.\n- **The public purse** — payments come from the Sport and Recreation Fund (funded by public lotteries), with the Consolidated Revenue Fund (taxpayer money) as a backup if the lottery fund runs dry.\n\n**Key limits:**\n- The government won't guarantee more than 90% of the project's value or cost.\n- There's a total cap on all guarantees set by the Treasurer.\n- The government gets protection: lenders must exhaust all other security (like mortgages) before calling on the guarantee, and can't transfer the guarantee to others without ministerial consent.\n\n**Why it matters:**\nThis helps community sporting groups access finance they might otherwise struggle to obtain, by reducing risk for lenders. It effectively uses government creditworthiness to support grassroots sport infrastructure, while protecting taxpayers through caps and procedural safeguards."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The Act text records later amendments to key provisions: s 3 and s 5 show 1996 amendments and s 2 shows a 1998 amendment (including the repeal of a paragraph). Those amendments indicate the Act's operational scope and payment arrangements have been altered since originally enacted (see amendment notes appended to ss 2, 3 and 5)."},"complexity_factors":["Ministerial discretion to execute guarantees and set terms and conditions (s 3(1); s 4(1)) increases administrative judgment and variability.","Quantitative limits: 90% cap on estimated value/cost and an aggregate cap set by the Treasurer require valuation processes and central fiscal control (s 3(2)(a),(b)).","Valuation method left to Ministerial direction — creates implementation uncertainty about how values/costs are ascertained (s 3(2)(a)).","Creditor obligations and enforcement order: Minister can require creditors to take and hold securities, and guarantees are only enforceable after other securities are exhausted (s 4(2)(c),(d)) — adds procedural steps before payment.","Guarantee may cover interest, expenses and compound interest and may include enforcement costs, expanding contingent fiscal exposure (s 4(2)(a),(b)).","Restrictions on assignment/encumbrance of guarantee benefit require Ministerial consent, affecting marketability of guaranteed loans (s 4(2)(e)).","Payment source and fallback mechanism: primary payment from Sport and Recreation Fund, fallback to Consolidated Revenue without further appropriation, implicating public finances (s 5).","Statutory exclusions in the definition of 'sporting body' (excludes horse and greyhound racing) narrow coverage and require identification of eligible entities (s 2).","Power for regulations to fill detail leaves substantive implementation to subordinate instruments (s 6).","Amendment notes in the text (s 3, s 5, s 2) indicate past changes that affect interpretation and operation (Am 1996; Am 1998)."],"plain_english_summary":"This Act allows the Minister to guarantee loans taken by sporting bodies for buying land, building or improving facilities, or acquiring fixtures, subject to monetary caps and conditions. The Minister decides whether to guarantee, may require securities and set terms, and creditors must generally exhaust other securities before calling the guarantee. Payments come from the Sport and Recreation Fund or, if that is insufficient, from Consolidated Revenue. The Act excludes horse and greyhound racing bodies from the definition of sporting body."},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"Based on available information, the Act appears to have remained focused on its original narrow purpose of enabling government guarantees for loans to sporting bodies. No amendments or expansions of scope are evident from the metadata, and the responsible portfolio (Sport) has remained consistent with the original intent."},"complexity_factors":["Very short and narrow legislation with a single, focused purpose","No substantive provisions are visible in the displayed text — only metadata and administrative information are shown, making full analysis impossible","The concept of a government loan guarantee is relatively straightforward","Has not been amended since 1999, suggesting minimal legislative evolution or complexity","Administered by a single Minister (Minister for Sport), indicating simple governance structure"],"plain_english_summary":"The Act lets the NSW government guarantee loans to sporting bodies so lenders are repaid if a club or association defaults. It affects sports organisations seeking finance, their lenders, and NSW taxpayers who bear the ultimate risk. By backing loans, the Act can help groups with limited assets access funding—but it hasn’t been updated since 1999 and appears to have limited practical application today."}},"importantCases":[],"_links":{"self":"/api/acts/sporting-bodies-loans-guarantee-act-1977","history":"/api/acts/sporting-bodies-loans-guarantee-act-1977/history","analysis":"/api/acts/sporting-bodies-loans-guarantee-act-1977/analysis","conflicts":"/api/acts/sporting-bodies-loans-guarantee-act-1977/conflicts","importantCases":"/api/acts/sporting-bodies-loans-guarantee-act-1977/important-cases","documents":"/api/acts/sporting-bodies-loans-guarantee-act-1977/documents"}}