49Guarantees

49 Guarantees

49 Guarantees

(1) The Corporation may guarantee repayment of a loan, including interest on a loan, made to a person only if the loan is a loan that could have been made by the Corporation in exercising its investment function.

(2) The Corporation may guarantee obligations made to a person only if the commitment to meet the obligations is a commitment that could have been made by the Corporation in exercising its investment function.

(3) The giving of a guarantee under subsection (1) or (2) must be consistent with the Corporation’s investment and risk policies.

(4) A guarantee given by the Corporation is void if, at the time the Corporation purports to give the guarantee, the guarantee would secure an amount that is more than the uncommitted balance of the Operational Fund at that time, less any liabilities of the Corporation not already covered by the uncommitted balance.

(5) To avoid doubt, for subsection (4), the guarantee is wholly void regardless of whether a part of the amount the guarantee would secure could be covered by the uncommitted balance of the Operational Fund.