Division 3—Guarantees in relation to Loans to Overseas Buyers
Guarantees in relation to loans to overseas buyers.
(1) Where—
(a) a person (in this sub-section referred to as “the overseas buyer”), in the course of carrying on business outside Australia, has entered into, or proposes to enter into, a contract with a person carrying on business in Australia (in this sub-section referred to as “the Australian supplier”), being a contract involving—
(i) the export from Australia by the Australian supplier of goods manufactured or produced wholly or partly in Australia; or
(ii) both the export from Australia by the Australian supplier of such goods and the rendering of services by the Australian supplier in connexion with the goods; and
(b) a person (in this sub-section referred to as “the lender”) has lent, or proposes to lend, moneys to the overseas buyer or to another person for the purpose of financing, in whole or in part, the making of payments by the overseas buyer to the Australian supplier under the contract referred to in paragraph (a),
the Corporation may, subject to sub-section (2), guarantee to the lender the repayment of the whole or any part of the moneys so lent of proposed to be lent by him and the payment of the whole or any part of any interest or other charges that may become payable to him in respect of those moneys.
(2) Subject to sub-section (3), a guarantee shall not be given under sub-section (1) in respect of a loan made, or proposed to be made, in relation to a contract referred to in paragraph (1)(a) unless—
(a) the amount of the loan is not less than such amount as is prescribed by the regulations for the purposes of this paragraph;
(b) the amount of the loan is not greater than such percentage of the amount, or of the total of the amounts, payable under the contract as is prescribed by the regulations for the purposes of this paragraph; and
(c) the amount, or the total of the amounts, payable under the contract that relates or relate to the goods, or to the goods and services, as the case may be, referred to in paragraph (1)(a) is not less than such percentage (not being less than 50) of the amount, or of the total of the amounts, payable under the contract as is prescribed by the regulations for the purposes of this paragraph.
(3) The Minister may, if so requested by the Board in a particular case and if he thinks it appropriate so to do, having regard to the special circumstances applicable in the case, direct, by instrument in writing, that—
(a) in lieu of the amount that is prescribed by the regulations for the purposes of paragraph (2)(a), such lesser amount as is specified in the instrument shall apply;
(b) in lieu of the percentage that is prescribed by the regulations for the purposes of paragraph (2)(b) such greater percentage as is specified in the instrument shall apply; and
(c) if the percentage that is prescribed by the regulations for the purposes of paragraph (2)(c) exceeds 50—in lieu of that percentage, such lesser percentage (not being less than 50) as is specified in the instrument shall apply.
Guarantees in relation to loans to buyers in external Territories.
(1) Where—
(a) a person (in this sub-section referred to as “the Territory buyer”), in the course of carrying on business in an external Territory, has entered into, or proposes to enter into, a contract with a person carrying on business in Australia (in this subsection referred to as “the Australian supplier”), being a contract involving—
(i) the export from Australia by the Australian supplier of goods manufactured or produced wholly or partly in Australia; or
(ii) both the export from Australia by the Australian supplier of such goods and the rendering by the Australian supplier of services in connexion with the goods; and
(b) a person (in this sub-section referred to as “the lender”) has lent, or proposes to lend, moneys to the Territory buyer or to another person for the purpose of financing, in whole or in part, the making of payments by the Territory buyer to the Australian supplier under the contract referred to in paragraph (a),
the Corporation may, subject to sub-section(2), guarantee to the lender the repayment of the whole or any part of the moneys so lent or proposed to be lent by him and the payment of the whole or any part of any interest or other charges that may become payable to him in respect of those moneys.
(2) Subject to sub-section (3), a guarantee shall not be given under sub-section (1) in respect of a loan made, or proposed to be made, in relation to a contract referred to in paragraph (1)(a) unless—
(a) the amount of the loan is not less than such amount as is prescribed by the regulations for the purposes of this paragraph;
(b) the amount of the loan is not greater than such percentage of the amount, or of the total of the amounts, payable under the contract as is prescribed by the regulations for the purposes of this paragraph; and
(c) the amount, or the total of the amounts, payable under the contract that relates or relate to the goods, or to the goods and services, as the case may be, referred to in paragraph (1)(a) is not less than such percentage (not being less than 50) of the amount, or of the total of the amounts, payable under the contract as is prescribed by the regulations for the purposes of this paragraph.
(3) The Minister may, if so requested by the Board in a particular case and if he thinks it appropriate so to do having regard to the special circumstances applicable in the case, direct, by instrument in writing, that—
(a) in lieu of the amount that is prescribed by the regulations for the purposes of paragraph (2)(a), such lesser amount as is specified in the instrument shall apply;
(b) in lieu of the percentage that is prescribed by the regulations for the purposes of paragraph (2)(b), such greater percentage as is specified in the instrument shall apply; and
(c) if the percentage that is prescribed by the regulations for the purposes of paragraph (2)(c) exceeds 50—in lieu of that percentage, such lesser percentage (not being less than 50) as is specified in the instrument shall apply.
(4) In sub-section (1), “Australia” does not include the external Territories.
Guarantees in national interest.
(1) Subject to sub-section (2), where
(a) an application is made to the Corporation for the giving of a guarantee of a kind referred to in section 22 or 23; and
(b) the proposed guarantee would impose upon the Corporation a liability that the Corporation is not authorized to undertake, or would not undertake in the ordinary course of business,
(2) The Minister may give directions to the Board with respect to the circumstances or cases in which applications are, or are not, to be referred to him under sub-section (1), and the Board shall comply with any such direction.
(3) Where, in relation to an application referred to the Minister under sub-section (1), the Minister is of opinion that it is in the national interest that the Corporation should give a guarantee in respect of the matter the subject of the application, the Minister may, by writing under his hand, approve the giving by the Corporation of such a guarantee.
(4) An approval under sub-section (3) may contain conditions or directions in relation to the proposed guarantee (including conditions or directions with respect to the amount to be charged by the Corporation for the giving of the guarantee or the percentage of the relevant loan to which the guarantee is to extend).
(5) Where an approval is given under sub-section (3), the Corporation is empowered, notwithstanding anything contained in section 11 or sub-section 22(2) or 23(2), to give a guarantee in accordance with the approval and, unless the approval is revoked, shall not decline to do so.
(6) The Board may, before the Corporation gives a guarantee in accordance with an approval given under sub-section (3), inform the Minister, by notice in writing, that the Corporation will bear such proportion of the liability of the Corporation under the guarantee as is specified in the notice.
(7) Where a guarantee is given in accordance with an approval under sub-section (3), the Minister shall notify the fact in the Gazette together with particulars of the nature and extent of the liability under the guarantee.
Contracts of indemnity in relation to persons guaranteeing loans to overseas buyers.
Where––
(a) a person (in this section referred to as “the overseas buyer”), in the course of carrying on business outside Australia, has entered into, or proposes to enter into, a contract with another person carrying on business outside Australia (in this section referred to as “the overseas supplier”), being a contract for the supply of goods or the carrying out of works outside Australia by the overseas supplier;
(b) a person (in this section referred to as “the lender”) has lent, or proposes to lend, moneys to the overseas buyer or to another person for the purpose of financing, in whole or in part, the making of payments by the overseas buyer to the overseas supplier under the contract referred to in paragraph (a);.
(c) a person (in this section referred to as “the guarantor”) has guaranteed to the lender the repayment of the whole or any part of the moneys so lent, or proposed to be lent, by the lender and the payment of the whole or any part of any interest or other charges that may become payable to the lender in respect of those moneys; and
(d) for the purpose of supplying any of the goods or carrying out any of the works referred to in paragraph (a), the overseas supplier has entered into a contract (in this section referred to as “the sub-contract”) with a person carrying on business in Australia (in this section referred to as “ the Australian supplier”), being a contract involving—
(i) the export from Australia by the Australian supplier of goods manufactured or produced wholly or partly in Australia; or
(ii) both the export from Australia by the Australian supplier of such goods and the rendering of services by the Australian supplier in connexion with the goods,
the Corporation may enter into a contract with the guarantor under which the Corporation gives an indemnity or guarantee to the guarantor in respect of so much of the liability of the guarantor under the guarantee as does not exceed the amount, or the total of the amounts, payable under the sub-contract that relates or relate to the goods, or to the goods and services, as the case may be, referred to in sub-paragraph (d) (i) or (ii).
Contracts of indemnity in relation to persons guaranteeing loans to buyers in external Territories.
(1) Where—
(a) a person (in this section referred to as “the Territory buyer”), in the course of carrying on business in an external Territory has entered into, or proposes to enter into, a contract with a person carrying on business outside Australia (in this section referred to as “the overseas supplier”), being a contract for the supply of goods or the carrying out of works in that Territory by the overseas supplier;
(b) a person (in this section referred to as “the lender”) has lent, or proposes to lend, moneys to the Territory buyer or to another person for the purpose of financing, in whole or in part, the making of payments by the Territory buyer to the overseas supplier under the contract referred to in paragraph (a);
(c) a person (in this section referred to as “the guarantor”) has guaranteed to the lender the repayment of the whole or any part of the moneys so lent, or proposed to be lent, by the lender and the payment of the whole or any part of any interest or other charges that may become payable to the lender in respect of those moneys; and
(d) for the purpose of supplying any of the goods or carrying out any of the works referred to in paragraph (a), the overseas supplier has entered into a contract (in this section referred to as “the sub-contract”) with a person carrying on business in Australia (in this section referred to as “the Australian supplier”), being a contract involving—
(i) the export from Australia by the Australian supplier of goods manufactured or produced wholly or partly in Australia; or
(ii) both the export from Australia by the Australian supplier of such goods and the rendering of services by the Australian supplier in connexion with the goods,
the Corporation may enter into a contract with the guarantor under which the Corporation gives an indemnity or guarantee to the guarantor in respect of so much of the liability of the guarantor under the guarantee as does not exceed the amount, or the total of the amounts, payable under the sub-contract that relates or relate to the goods, or to the goods and services, as the case may be, referred to in sub-paragraph (d) (i) or (ii).
(2) In sub-section (1), “Australia” does not include the external Territories.
Division Div 3 - Export Finance and Insurance Corporation Act 1974 - Guarantees in relation to Loans to Overseas Buyers | Zoe