52Guarantee of borrowings by subsidiary of Corporation

##### 52 Guarantee of borrowings by subsidiary of Corporation (1) This section applies to a borrowing by a body corporate (in this section referred to as a relevant subsidiary) that is a wholly owned subsidiary of the Corporation, of money, whether in Australian currency or in another currency, that has been or is to be expended in connection with the objects of the body corporate. (2) Subject to this section, the Treasurer may, on behalf of the Commonwealth, at the request of a relevant subsidiary, enter into a contract guaranteeing that the relevant subsidiary will fulfil its obligations arising out of a borrowing to which this section applies to repay so much of the money borrowed, and to pay so much of the interest (including any interest on that interest) on that money, as are specified in the contract. (4) Where the Treasurer enters into a contract under subsection (2) in respect of a borrowing, the Treasurer shall cause to be laid before each House of the Parliament, within 15 sitting days of that House after the contract is entered into, a notice specifying the amount and term of the borrowing and such other information relating to the borrowing or the guarantee as the Treasurer considers appropriate. (5) For the purposes of this section: (a) the issue by a relevant subsidiary of an instrument acknowledging a debt in consideration of the payment or deposit of money, or the provision of credit; or (b) the obtaining of credit by a relevant subsidiary; shall, to the extent of the amount of that money or of that credit, as the case may be, be deemed to be a borrowing by that relevant subsidiary. (6) A contract entered into under subsection (2) may include either or both of the following provisions: (a) a provision agreeing, on behalf of the Commonwealth, that proceedings under the contract may be taken in the courts, or a specified court, of a country other than Australia; (b) a provision waiving, on behalf of the Commonwealth, the immunity of the Commonwealth from suit in the courts, or a specified court, of a country other than Australia in relation to any proceedings that may be taken under the contract. (7) For the purposes of subsection (1), a body corporate is a wholly owned subsidiary of the Corporation if that body corporate is a subsidiary of the Corporation and none of the members of that body corporate is a person other than: (a) the Corporation; (b) a nominee of the Corporation; (c) a subsidiary of the Corporation, being a subsidiary none of the members of which is a person other than the Corporation or a nominee of the Corporation; or (d) a nominee of a subsidiary referred to in paragraph (c).