21FCapitalisation agreements

21F Capitalisation agreements

(1) A capitalisation agreement entered into between the applicant and the Authority may include such terms and conditions in respect of the grant as the Minister thinks appropriate for achieving the objectives of the business plan. (2) Without limiting the generality of the matters that may be dealt with in capitalisation agreements, each agreement is to identify the assets of the applicant (including assets proposed to be acquired) that are essential to achieving the objectives of the applicant’s business plan. (3) Where an applicant wishes to sell, lease or otherwise deal with an asset identified in a capitalisation agreement as essential to achieving the objectives of the applicant’s business plan, the applicant must make application to the Minister or to a person authorised by the Minister for agreement to that sale, lease or other dealing. (4) The Minister, or a person authorised by the Minister, on receipt of an application by an applicant in respect of a proposed sale, lease or other dealing with an asset identified as essential to achieving the objectives of the applicant’s business plan may, if, and only if, the Minister or that other person is satisfied: (a) that the asset has, for any reason, ceased to be essential to achieving those objectives; or (b) that the sale, lease or other dealing is not likely to prejudice the achieving of those objectives; agree to the sale, lease or other dealing, either absolutely or on such conditions as the Minister or authorised person thinks appropriate. (5) Where: (a) an applicant: (i) fails to meet the terms and conditions included in a capitalisation agreement; or (ii) sells, leases or otherwise deals with an asset identified in a capitalisation agreement as essential to achieving the objectives of the applicant’s business plan otherwise than in accordance with the agreement of the Minister or other authorised person; and (b) the Minister makes a demand, in writing, for repayment of the capitalisation grant concerned within a period of 90 days of making that demand; and (c) the applicant fails, within that period, to repay that amount; the amount becomes, on the expiration of the period, a debt due to the Commonwealth and may be recovered in a court of competent jurisdiction. (6) In subsections (3), (4) and (5), a reference to the applicant (other than a reference to the applicant in the expression the applicant’s business plan) includes a reference to a person having control of the applicant’s business affairs.