66Loans made in the national interest

#### 66 Loans made in the national interest (1) Subject to subsection (2), this section applies to loans made by EFIC in accordance with approvals under section 27 or directions under section 29. (2) This section does not apply to a loan in relation to which EFIC has given the Minister notice, under section 64, that EFIC will bear the whole of the risk associated with the loan. (3) EFIC is required to keep separate accounts of so much of its receipts and disbursements relating to loans to which this section applies as relates to the proportion of the risk associated with such loans that is to be borne by the Commonwealth. (4) Subject to subsections (9) and (10), EFIC is required to pay to the Commonwealth, from time to time, as directed by the Finance Minister, so much of the receipts by EFIC from loans to which this section applies as relates to the proportion of the risk associated with those loans that is to be borne by the Commonwealth. (5) For the purpose of subsection (4), net receipts from a loan are calculated by deducting from the total of the amounts received by EFIC in relation to the loan all amounts paid or payable by EFIC in relation to the loan, including amounts payable in respect of borrowings made by EFIC to enable it to make the loan. (6) Subject to subsections (8) and (9), the Commonwealth is liable: (a) to reimburse EFIC the amount of all costs (including interest) incurred by EFIC in connection with the borrowing of money needed to finance a loan to which this section applies; and (b) to pay to EFIC an amount equal to any amount in respect of which default or loss is made under a loan to which this section applies. (7) Instead of the Commonwealth paying the amount due under subsection (6) when the liability of the Commonwealth arises, the Minister may, on behalf of the Commonwealth, direct EFIC to seek approval under section 59 for EFIC to borrow an amount equal to the amount due by the Commonwealth. (8) If the Finance Minister gives approval under section 59, the Commonwealth’s liability under subsection (6) is replaced by a liability to pay EFIC the amount needed to discharge the borrowing by EFIC and to pay all costs (including interest) incurred by EFIC in connection with the borrowing. (9) Where EFIC has given the Minister notice, under section 64, that EFIC will bear a proportion of the risk associated with a loan to which this section applies: (a) if EFIC would be required by subsection (4) to pay an amount to the Commonwealth in respect of the loan—EFIC may deduct from the amount the proportion of the amount that equals the proportion specified in the notice; and (b) the liability of the Commonwealth to EFIC under subsection (6) or (8), as the case may be, in relation to the loan is reduced by the proportion specified in the notice. (10) EFIC may deduct from any amount that it is required to pay under subsection (4) a reasonable amount, to be ascertained in such manner as the Finance Minister directs, in respect of the expenses of EFIC in relation to the making of loans to which this section applies. (10A) For the purpose of subsection (10), the expenses of EFIC in relation to a loan made in the form of an equity investment include expenses incurred by EFIC in relation to the acquisition, management or sale of its equity interest. (11) On the commencement of section 66A, this section ceases to apply to a loan to which that section applies. This does not affect any liability incurred under this section before the commencement of section 66A.