Commonwealth Numbered Acts

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AIRLINE EQUIPMENT (LOAN GUARANTEE) ACT 1980 No. 30 of 1980 - SECT 5

Conditions of guarantees
5. For the purpose of the protection of the financial interests of the
Commonwealth, the Treasurer shall not give a guarantee under section 4 in
respect of a borrowing unless-

   (a)  the Treasurer is satisfied that the terms and conditions of the
        borrowing are reasonable;

   (b)  where the borrowing consists of, or includes, the issue of
        instruments- the issue of those instruments, and the form of those
        instruments, has been approved by the Treasurer;

   (c)  proper security to the satisfaction of the Treasurer is, or is to be,
        given to the Commonwealth over the aircraft, spare parts and equipment
        to which the borrowing relates;

   (d)  undertakings to the satisfaction of the Treasurer are given that the
        aircraft, spare parts and equipment over which security is to be taken
        in accordance with paragraph (c)-

        (i)    will be insured, and kept insured, against all risks that it is
               customary to insure, and to their full insurable value;

        (ii)   will not be sold or made the subject of a mortgage or charge
               having priority over the security to the Commonwealth in
               respect of the guarantee; and

        (iii)  will not be taken out of Australia for a destination that is
               not in Australia or a Territory except after the furnishing of
               such security as the Treasurer requires;

   (e)  undertakings to the satisfaction of the Treasurer are given that, so
        long as the amount borrowed, or any interest on that amount, remains
        unpaid-

        (i)    officers of the Australian Public Service will have full access
               at all reasonable times to the financial accounts of Ansett
               Transport Industries Limited and Ansett Transport Industries
               (Operations) Proprietary Limited when authorized in writing by
               the Minister for that purpose; and

        (ii)   each of those companies will do everything within its power to
               ensure that the officers so authorized have similar access to
               the financial accounts of any company or firm in which that
               company at any time has, whether directly or indirectly, a
               controlling interest; and

   (f)  such other conditions as the Treasurer thinks necessary are fulfilled.
        


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