59Borrowing by territory authorities

59 Borrowing by territory authorities (1) The Treasurer may, on the terms and conditions the Treasurer considers appropriate— (a) borrow money for a territory authority; or (b) lend public money to a territory authority. (2) A borrowing may be secured by the territory authority’s assets approved by the Treasurer for this section. (3) A territory authority may arrange an overdraft or credit facility only with the written approval of the Treasurer. (4) A loan under subsection (1) (b) may be made only from— (a) money appropriated for the purpose of making the loan; or (b) money appropriated for purposes that include the purpose of making the loan. (5) However, subsection (4) does not apply to an overdraft or credit facility for a territory authority from the territory banking account that is approved by the Treasurer for the authority. (6) The Treasurer may approve an overdraft or credit facility for a territory authority under subsection (5) only if satisfied that it is for a purpose consistent with a function of the authority. (7) An approval under subsection (5) must state, for the overdraft or credit facility— (a) each purpose for which it may be used; and (b) the maximum amount that may be outstanding at any time; and (c) conditions about— (i) the repayment of principal; and (ii) the interest rate; and (iii) the repayment of interest.

(8) An approval under subsection (5) may also state any other condition that the Treasurer requires. (9) An approval under subsection (5) is a disallowable instrument. (10) An overdraft or credit facility approved under subsection (5) must be reviewed annually by the Treasurer.