4Provisions relating to guarantees given under this Act

4 Provisions relating to guarantees given under this Act

4 Provisions relating to guarantees given under this Act

The following provisions shall apply to and in respect of any guarantee authorised by this Act to be given or to and in respect of the renewal of any guarantee validated by this Act or by the Housing (Further Provisions) Act 1937:

(a) The guarantee shall be in such form and subject to such terms and conditions as are prescribed or as the Treasurer may determine.

(b) The guarantee may include the interest charges and expenses chargeable by the bank, building society, credit union or approved body as the case may be against the principal debtor in the usual course of its business and the expenses of enforcing or obtaining or endeavouring to enforce or obtain payment of the debt guaranteed and such interest charges and expenses.

(c) The guarantee may be expressed to include compound interest.

(d) The bank, building society, credit union or approved body as the case may be shall obtain, take and hold or retain and hold such securities (if any) for the payment of the principal debt as the Treasurer may require.

(e) The guarantee shall not be enforceable against the Treasurer or the Consolidated Revenue Fund unless and until the bank, building society, credit union or approved body as the case may be has exercised its rights and remedies under all securities held by or for it in respect of the debt guaranteed, other than the guarantee or where the principal debtor is a marketing board or a society (other than a building society community settlement society or community advancement society) within the meaning of the Co-operation Act 1923, unless a judge of the Supreme Court by order made on summons in Chambers declares that he or she is satisfied that the bank, building society, credit union or approved body as the case may be is unable to exercise such rights and remedies without undue interference with the operations of the board or society concerned or where the principal debtor is a building society community settlement society or community advancement society within the meaning of the said Act or a society (other than an association) within the meaning of the Permanent Building Societies Act 1967, unless the bank, building society, credit union or approved body, as the case may be, shall, under the provisions of the securities executed by the building society community settlement society or community advancement society in favour of the bank, building society, credit union or approved body as the case may be, or of any such securities, have become entitled to appoint a receiver of such of the property of the building society community settlement society or community advancement society or society (other than an association) within the meaning of the as is charged by those securities or any of them with the repayment of the debt guaranteed.