169Borrowing and investment by corporations

#### 169 Borrowing and investment by corporations 169 Borrowing and investment by corporations > > (1) A corporation may obtain borrowings, and may invest the funds of the corporation, in any manner it thinks fit. > > > (2) A corporation may, for the purpose of obtaining borrowings— > > > > > (a) charge the whole or any part of any of its property (including any income arising from rates or charges) by debenture, mortgage or in any other manner, and > > > > > (b) enter into arrangements to provide guarantees or indemnities. > > > (3) If a corporation defaults in carrying out its obligations under a debenture charged on income arising from rates or charges, the Supreme Court may, on the application of a creditor or a trustee for the debenture holders— > > > > > (a) direct the corporation to appropriate a specified portion of its income to satisfy its obligations under the debenture, or > > > > > (b) direct the corporation to raise a specified amount by way of charges and direct the amount to be applied towards satisfying those obligations, > > > > and may give any other ancillary or incidental directions that it thinks fit. > > > (4) The rights of a creditor or trustee in subsection (3) are in addition to any other rights of the creditor or trustee. > > > (5) The obligations of a corporation are not guaranteed by the State of New South Wales. > > > (6) The State of New South Wales is not liable to any action, liability, claim or demand in respect of the exercise by or on behalf of a corporation of any function under this Division. > > > (7) In this section— > > > > borrowing has the same meaning as in the [Government Sector Finance Act 2018](/view/html/inforce/current/act-2018-055). > > > > funds includes any funds under the control of the corporation and real property, securities or other property comprising an investment. > > **s 169:** Subst 2010 No 133, Sch 2\[54\] (am 2018 No 70, Sch 3.69\[1\] \[2\]).