16ATransactions with local government authorities

16A Transactions with local government authorities

[Section 16A Inserted by No. 4 of 1995, s. 12 ]

(1)  Notwithstanding any other Act, a local government authority may –

(a) borrow money from; and

(b) deposit money with; and

(c) lend money to –

the Corporation on such terms and conditions as may be agreed between the Corporation and the local government authority.

(2)  A local government authority is not liable to pay a guarantee fee in respect of monies borrowed from the Corporation for the purposes of discharging or defeasing an existing liability.

(3)  In respect of a borrowing by a local government authority not referred to in subsection (2) , the Treasurer may give directions for the purposes of –

(a) assessing the amount of a guarantee fee in relation to the assessed value of the benefit to be obtained by the local government authority in respect of the borrowing; and

(b) determining the manner in which and the times at which the guarantee fee is to be paid.