3Guarantees

3 Guarantees

3 Guarantees

(1) The Minister may execute a guarantee, either alone or jointly with some other person, in favour of a bank, building society or credit union, or another person or a body of persons, whether corporate or unincorporate, for the repayment of money expended or to be expended on:

(a) the acquisition of land, or land and buildings thereon,

(b) the construction, improvement or alteration of buildings, or

(c) the acquisition of items of plant or equipment that have or are to become fixtures,

by a sporting body in connection with the provision by it of sporting facilities.

(2) The Minister shall not execute a guarantee under subsection (1) if the amount of the guarantee:

(a) exceeds 90 per centum of the estimated value of the land or land and buildings, of the estimated cost of the works of construction, improvement or alteration, or of the estimated value of the plant or equipment, as the case may be, that estimated value or cost to be ascertained in such manner as the Minister may direct, or

(b) together with the amounts of all other guarantees executed, or approved by the Minister to be executed, under subsection (1) (excluding guarantees no longer in force), exceed such amount as may, from time to time, be fixed by the Treasurer.

(3) The execution by the Minister, either alone or jointly with some other person, of a guarantee under subsection (1) shall, in favour of the creditor, be conclusive evidence that the requirements of this Act with respect to the guarantee have been complied with.

s 3: Am 1996 No 24, Sch 1.