28Special provisions as to guarantees of loans

28 Special provisions as to guarantees of loans

(1)  Without prejudice to the generality of sections 26 and 27 , the giving of a guarantee for the repayment of a loan or for the payment of interest or other charges in respect of a loan is deemed to be the giving of financial assistance to the person liable to repay the loan or to pay that interest or those charges, and any such guarantee given under this section is in this section referred to as a forestry loan guarantee.

(2)  The aggregate of all sums borrowed by way of loans in respect of which forestry loan guarantees are in force under this Act, and that have not been repaid, is not to exceed $5 000 000.

(3)  [Section 28 Subsection (3) amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] Where in consequence of giving a forestry loan guarantee in respect of a loan the Authority is required to make a payment to the person to whom the money is required to be repaid, that payment is payable out of the Public Account without further appropriation than this section.

(4)  [Section 28 Subsection (4) amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] A forestry loan guarantee in respect of a loan is to require the person liable to repay the loan to pay to the Authority, on its demand, sums equal to the sums paid out of the Public Account under subsection (3) in pursuance of the guarantee together with interest on those sums at the same rate as that payable in respect of the principal money lent under the loan.

(5)  [Section 28 Subsection (5) amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] Any money paid to the Authority in pursuance of a requirement under subsection (4) is to be paid into the Public Account.