40KGuarantee charge

40K Guarantee charge (1) The Treasurer may determine, before financial accommodation to which a State guarantee is to apply is provided to a person, that an annual guarantee charge is payable by that person in respect of the financial accommodation at an annual percentage rate specified in the determination, being a rate that, in the opinion of the Treasurer, does not exceed the difference between— (a) the annual interest or discount rate and other costs of the financial accommodation; and (b) the estimated annual interest or discount rate and other costs of the financial accommodation that would apply if the State guarantee did not apply. (2) A person who is required to pay a guarantee charge in respect of financial accommodation must pay to the Treasurer, for payment into the Consolidated Fund— (a) if the financial accommodation is provided for less than 12 months, an amount determined— (i) if the guarantee is under an Act, by multiplying the amount of the financial accommodation by the rate referred to in subsection (1); or (ii) if the guarantee is executed by the Treasurer, by multiplying the amount of the limit of the guarantee by the rate referred to in subsection (1); or (b) if the financial accommodation is provided for 12 months or more, an amount in respect of each financial year during which the guarantee is in force determined by multiplying the sum of the person's liabilities in respect of the financial accommodation as at the end of that financial year by the rate referred to in subsection (1). (3) A guarantee charge is payable on or before 31 December next following the financial year, or part of a financial year, to which it relates and may be recovered as a debt due to the State. S. 40L inserted by No. 43/1995 s. 9.