73Treasurer's guarantees

73 Treasurer's guarantees

S. 73(1) amended by No. 119/1986 s. 142(Sch. 2 item 3) (as amended by No. 36/1990 s. 23(c)), substituted by No. 37/1999 s. 58(Sch. 2 Pt 1 item 16), amended by No. 11/2001 s. 3(Sch. item 15.4).

(1) The Treasurer of Victoria may, with the approval of the Governor in Council, execute a guarantee in favour of any authorised deposit-taking institution or of any other person or body corporate or unincorporate (including any trustee), approved by the Treasurer of Victoria, (in this Division referred to as an approved body), guaranteeing the repayment of any loan to be made by the authorised deposit-taking institution or approved body to any society registered under this Act.

(2) No guarantee shall be executed pursuant to this Division of this Part guaranteeing the repayment of any loan to be made to a society unless the society has first entered into an agreement with the Treasurer of Victoria with respect to the conduct of the affairs of the society while the guarantee is in force and containing such provisions and conditions as are prescribed or as the Treasurer of Victoria thinks fit, and in particular, a condition that while the guarantee is in force—

(a) the society will not make to any member any advance the amount of which, reduced by the value of the share capital of that member, exceeds eighty per centum of the value of the land and the dwelling-house erected or to be erected thereon which comprise the security for such advance unless the Treasurer of Victoria has entered into an agreement of indemnity under Division two of this Part in respect of that advance to that member; and

(b) the society will not make to any member, in respect of whom such an agreement of indemnity has been entered into, any advance the amount of which, reduced by the value of the share capital of the member, exceeds ninety-five per centum of the value of the land and the dwelling-house erected or to be erected thereon which comprise the security for such advance.

S. 73(3) amended by No. 10254 s. 43(d).

(3) For the purposes of the last preceding subsection the value of the share capital of a member of any society shall be ascertained in such manner as the Victorian Co-operative Housing Council directs.

No. 6138 s. 74.