36Power of Treasurer to give guarantees

36 Power of Treasurer to give guarantees

(1)  Where the Treasurer is of the opinion that it will assist the development, expansion, or retention of a business undertaking to do so, the Treasurer may, on behalf of the State but subject to this section, guarantee –

(a) the repayment of money lent, or agreed to be lent, to a person; and

(b) the performance by a person of any obligation arising from, or in any way incidental to, assistance provided or to be provided, whether under this Act or not, for the purpose of a business undertaking.

(2)  The power of the Treasurer under subsection (1) to guarantee the repayment of money lent or agreed to be lent includes a power to guarantee the payment to the lender of interest and other charges payable by the borrower in respect of that money.

(3)  *[Section 36 Subsection (3) amended by No. 76 of 1995, s. 28 and Sched. 1 ]*A guarantee under subsection (1) shall, subject to subsection (4) , be given only –

(a) on the recommendation of TDR and with the approval of the Minister;

(b) on such terms and conditions as the Treasurer may determine; and

(c) by instrument in writing.

(4)  *[Section 36 Subsection (4) amended by No. 76 of 1995, s. 28 and Sched. 1 ]*If the Treasurer is satisfied that urgent assistance is required for the retention of a business undertaking in Tasmania, the Treasurer may give a guarantee under subsection (1) without the recommendation of TDR or the approval of the Minister.

(5)  A guarantee under this section operates so as to guarantee –

(a) the repayment of money lent, or agreed to be lent, to the borrower;

(b) the payment of interest and other charges in respect of that money; and

(c) any liability arising from a failure to perform an obligation mentioned in subsection (1) (b) –

only to the extent that the aggregate of those amounts and any such liability does not exceed $2 000 000.