57Agreement with banks, States and State authorities

57 Agreement with banks, States and State authorities

(1) A prescribed authority may, with the consent of the Treasurer, enter into an agreement with a State, an authority of a State or a bank for the performance by the State, the authority or the bank of such of the functions of the prescribed authority under this Part as are specified in the agreement. (2) Where a bank, State or authority that has entered into any agreement under the last preceding subsection makes any loan to, or gives any guarantee with respect to a loan made to, an eligible person, in accordance with that agreement, the bank, State or authority, as the case may be, may take any security in respect of the loan or guarantee in its own name. (3) A prescribed authority may, with the consent of the Treasurer, make loans to, and may, on behalf of the Commonwealth, give financial guarantees to an authority of a State or a savings bank making loans to, or giving guarantees with respect to loans made to, eligible persons, in accordance with the agreement.