sec.612Prohibition on loans to directors

### sec.612 Prohibition on loans to directors A water authority must not, directly or indirectly— make a loan to a director, a director’s spouse, or a relative of a director or a director’s spouse; or give a guarantee or provide security for a loan made to a director, a director’s spouse, or a relative of a director or a director’s spouse. Subsection (1) does not apply to the entering into by the authority of an instrument with a person mentioned in the subsection if the instrument is entered into on the same terms as similar instruments are entered into by the authority with members of the public. A director of a water authority must not be knowingly concerned in a contravention of subsection (1) by the authority, whether or not in relation to the director. Maximum penalty—100 penalty units. In this section— relative , of a person, means the person’s— parent or remoter lineal ancestor; or son, daughter or remoter issue; or brother or sister. (sec.612-ssec.1) A water authority must not, directly or indirectly— make a loan to a director, a director’s spouse, or a relative of a director or a director’s spouse; or give a guarantee or provide security for a loan made to a director, a director’s spouse, or a relative of a director or a director’s spouse. (sec.612-ssec.2) Subsection (1) does not apply to the entering into by the authority of an instrument with a person mentioned in the subsection if the instrument is entered into on the same terms as similar instruments are entered into by the authority with members of the public. (sec.612-ssec.3) A director of a water authority must not be knowingly concerned in a contravention of subsection (1) by the authority, whether or not in relation to the director. Maximum penalty—100 penalty units. (sec.612-ssec.4) In this section— relative , of a person, means the person’s— parent or remoter lineal ancestor; or son, daughter or remoter issue; or brother or sister. - (a) make a loan to a director, a director’s spouse, or a relative of a director or a director’s spouse; or - (b) give a guarantee or provide security for a loan made to a director, a director’s spouse, or a relative of a director or a director’s spouse. - (a) parent or remoter lineal ancestor; or - (b) son, daughter or remoter issue; or - (c) brother or sister.