5Conditions of guarantees

5 Conditions of guarantees

For the purpose of the protection of the financial interests of the Commonwealth, the Treasurer shall not give a guarantee under section 4 unless: (a) the moneys are borrowed on terms and conditions that the Treasurer is satisfied are reasonable; (b) proper security to the satisfaction of the Treasurer is, or is to be, given to the Commonwealth over the aircraft, spare parts and equipment to which the borrowing relates; (c) undertakings to the satisfaction of the Treasurer are given that the aircraft, spare parts and equipment over which security is to be taken in accordance with paragraph (b): (i) will be insured, and kept insured, against all risks that it is customary to insure, and to their full insurable value; and (ii) will not be sold or made the subject of a mortgage or charge having priority over the security to the Commonwealth in respect of the guarantee; and (d) such other conditions as the Treasurer thinks necessary are fulfilled.