Commonwealth Numbered Acts

PAPUA NEW GUINEA LOANS GUARANTEE ACT 1973 No. 124, 1973 - SECT 5

5. (1) Subject to this section, if Papua New Guinea enters into an agreement
under which Papua New Guinea is to, or may, borrow, by way of the sale of
bonds or otherwise, an amount in a foreign currency, the Treasurer, or a
person authorized by him, may, on behalf of Australia, give a guarantee in
respect of the payment of all moneys, including interest, payable by Papua New
Guinea under the agreement and may, for the purposes of the guarantee, enter
into an agreement containing such terms as are approved by the Treasurer and
the Minister for External Territories.

(2) A guarantee or guarantees shall not be given under sub-section (1) in
relation to the borrowing, whether under one agreement or two or more
agreements, of foreign currency the equivalent of which in Australian currency
exceeds Twenty-four million dollars.

(3) For the purposes of sub-section (1), any form of undertaking of liability
to pay any moneys shall be deemed to be a guarantee in respect of the payment
of those moneys.

(4) A guarantee, when given, constitutes a valid and binding obligation of
Australia in accordance with its terms.

(5) The power conferred by sub-section (1) shall not be exercised on or after
1 July 1974.