14Commonwealth guarantee of certain borrowings

14 Commonwealth guarantee of certain borrowings

(1) Subject to subsection (3), the Treasurer may, on the Commonwealth’s behalf: (a) before the 100% sale day; and (b) in order to facilitate, either directly or indirectly, the sale of shares in Qantas; enter into a written agreement under which the Commonwealth guarantees the performance by Qantas, or a Qantas subsidiary, of an obligation of Qantas or the subsidiary if the obligation is: (c) an obligation in connection with a borrowing undertaken by Qantas or the subsidiary; or (d) an obligation in connection with a leasing contract entered into by Qantas or the subsidiary. (2) If the Treasurer determines in writing, at any time before the 100% sale day, that the Commonwealth guarantees the performance by Qantas or a Qantas subsidiary of a specified obligation of a kind referred to in subsection (1), the performance by Qantas or the subsidiary of that obligation is, by force of this subsection, guaranteed by the Commonwealth. (3) The Treasurer must not, by an agreement under subsection (1), provide a guarantee that would have effect after the 100% sale day. (4) A guarantee under subsection (2) does not have effect after the 100% sale day. (5) A guarantee under subsection (2) is subject to such terms and conditions (if any) as are specified in the determination.