193NLimit on guarantees

193N Limit on guarantees

Limit (1) The Indigenous Land and Sea Corporation must not guarantee a loan in a financial year if the sum of: (a) the contingent liabilities to which it would be subject if the proposed guarantee were to be given; and (b) its current borrowings; and (c) the total of its liabilities (whether actual or contingent) in respect of guarantees; and (d) the current borrowings of its subsidiaries; and (e) the total of the liabilities (whether actual or contingent) of its subsidiaries in respect of guarantees; is more than the guarantee limit for the financial year. Guarantee limit (2) For the purposes of this section, the guarantee limit for a financial year is the amount worked out using the formula: Start formula Indexation factor times Guarantee limit for the previous financial year end formula where:

indexation factor means the indexation factor for the financial year worked out under section 192Y.

Validity of transactions (8) A failure to comply with subsection (1) does not affect the validity of any transaction.