8Capital reserves of Corporation—special capital notes

8 Capital reserves of Corporation—special capital notes

8 Capital reserves of Corporation—special capital notes

(1) In this section:

security includes a capital note or other instrument issued by the Corporation, whether secured or not and whether for a fixed or an indefinite term.

special arrangement means an agreement or arrangement under subsection (2).

special capital note means a security issued by the State Bank or the Corporation that is the subject of a special arrangement.

(2) The Treasurer may, on behalf of the State, enter into an agreement or arrangement, to which the Corporation is a party or at the Corporation’s request, in connection with the issue of securities by the Corporation.

(3) A special arrangement, and the special capital notes to which it relates, may:

(a) require (in specified circumstances) the Treasurer, on behalf of the State, to pay to the Corporation for crediting to the capital reserves of the Corporation an amount calculated by reference to the interest and other amounts paid by the Corporation to the holders of the notes, and

(b) require (in specified circumstances) the Treasurer, on behalf of the State, to purchase all or any of the notes and release the Corporation from its obligations and liabilities under the notes so purchased, and

(c) provide that (in specified circumstances) the Treasurer may, on behalf of the State, pay all or any of the interest or other amounts due to the holders of the notes and assume any obligations or liabilities of the Corporation under the notes, and

(d) provide that the obligations and liabilities of the Corporation under the notes may be enforced only against the State in the case of any default by the Corporation, and

(e) provide for the redemption of all or any of the notes by the Corporation, and

(f) make any other provision that the Treasurer considers appropriate.

(4) Any liability of the State arising under a special arrangement or special capital note is to be met out of the Consolidated Fund, which is appropriated accordingly.

(5) Unless the Treasurer otherwise determines, the principal amount of each special capital note, is, for accounting purposes, to be treated as a subscription of capital.