13AGuarantees and indemnities

13A Guarantees and indemnities

[Section 13A Inserted by No. 22 of 1977, s. 6 ]

(1)  Subject to this section, the corporate trustees shall, when requested by the Diocesan Council to do so on behalf of any person, give –

(a) a guarantee for the repayment of any moneys borrowed or proposed to be borrowed, or the payment of any moneys owing, by that person;

(b) a guarantee for the performance of any other contractual obligation entered into, or proposed to be entered into, by that person; or

(c) an indemnity against any loss in respect of any moneys borrowed or proposed to be borrowed, or the payment of any moneys owing, by that person.

(2)  A guarantee or indemnity under subsection (1) shall be deemed to include an obligation by the corporate trustees to guarantee the payment of, or to indemnify against loss in relation to, any interest and other charges payable in respect of the loan or other contractual obligation guaranteed or arising out of the giving of the indemnity.

(3)  A guarantee or indemnity under subsection (1) may be made subject to the observance by the person in respect of whom it is given of such conditions as the corporate trustees, with the approval of the Diocesan Council, determine.

(4)  The corporate trustees may give security for a guarantee or indemnity under subsection (1) by a mortgage or other form of charge, registered or unregistered, over land vested in the trustees, subject, however, to any special trusts affecting that land.

(5)  If the corporate trustees are called on to make a payment to any person in consequence of giving a guarantee or indemnity under subsection (1) , the trustees may, for the purposes of making that payment but subject to any special trusts affecting the land, sell any land vested in them or realize any investments made by them pursuant to section 13 (1) .