Co-operative Farmers and Graziers Direct Meat Supply Limited (Loan Guarantee) Act 1978

Co-operative Farmers and Graziers Direct Meat Supply Limited (Loan Guarantee) Act 1978

What this law does in plain English:

This is a short, highly specific piece of legislation that authorises the Australian Commonwealth Government to act as a guarantor (a financial backstop — someone who promises to repay a debt if the borrower can't) for a single loan taken out by a specific farming cooperative.

Who is involved?

• The Society: A specific agricultural cooperative called Co-operative Farmers and Graziers Direct Meat Supply Limited — a farmer-owned meat supply business.
• The Finance Minister: The Commonwealth minister responsible for financial management, who holds the power to issue the guarantee.
• The Victorian Treasurer: The State of Victoria must also provide a matching guarantee as a condition of the Commonwealth's involvement.

What exactly does it authorise?

• The Commonwealth can guarantee repayment of half of the principal (the original loan amount, not including interest) of one single loan taken out by the Society.
• That guarantee is capped at $4,500,000 — or half of whatever portion of the loan remains unpaid at any given time, whichever is the smaller amount.