4Provisions relating to guarantees

4 Provisions relating to guarantees

4 Provisions relating to guarantees

(1) Subject to subsection (2), a guarantee executed under section 3 (1) may be subject to such terms and conditions as the Minister thinks fit.

(2) The following provisions shall apply to and in respect of a guarantee executed under section 3 (1):

(a) The guarantee may include any interest charges and expenses chargeable by the creditor against the principal debtor and the expenses of enforcing or obtaining or endeavouring to enforce or obtain payment of the debt guaranteed and those interest charges and expenses.

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

(c) The creditor shall, if required to do so by the Minister, obtain, take and hold or retain and hold securities for the payment of the principal debt of such nature as the Minister may require.

(d) The guarantee shall not be enforceable against the Minister unless and until the creditor has exercised the creditor’s rights and remedies under all securities held by or for the creditor in respect of the debt guaranteed, other than the guarantee.

(e) The creditor shall not, without the consent in writing of the Minister, assign or encumber the benefit of the guarantee.