Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The Indigenous Land and Sea Corporation must not guarantee a loan in a financial year if the sum of:
(a) the contingent liabilities to which it would be subject if the proposed guarantee were to be given; and
(b) its current borrowings; and
(c) the total of its liabilities (whether actual or contingent) in respect of guarantees; and
(d) the current borrowings of its subsidiaries; and
(e) the total of the liabilities (whether actual or contingent) of its subsidiaries in respect of guarantees;
is more than the guarantee limit for the financial year.
(2) For the purposes of this section, the guarantee limit for a financial year is the amount worked out using the formula:
"indexation factor" means the indexation factor for the financial year worked out under section 192Y.
(8) A failure to comply with subsection ( 1) does not
affect the validity of any transaction.
