New South Wales Consolidated Acts

HERITAGE ACT 1977 - SECT 108

108 Execution of guarantees

(1) The corporation may, with the concurrence of the Treasurer and subject to this section, execute a guarantee, either alone or jointly with some other person, in favour of a bank, building society, credit union or other person for the repayment of any money expended or to be expended on any one or more of the following--

(a) the acquisition of an item of the environmental heritage,

(b) the conservation of an item of the environmental heritage, or

(c) the acquisition of personal property--

(i) which is associated with and contributes to the significance of an item of the environmental heritage as such an item, or

(ii) which is required for the purpose of furnishing or decorating an item of the environmental heritage.

(2) The corporation may, in agreeing to execute a guarantee, impose such conditions as, in the opinion of the corporation, are appropriate.

(3) A guarantee executed by the corporation is not enforceable against the corporation until the creditor has exercised all his or her rights and remedies under all other securities held by or for the creditor in respect of the debt guaranteed, other than the guarantee.

(4) The corporation may, as a condition of a guarantee, require the creditor to obtain, take and hold, or retain and hold, such securities for the payment of the principal debt and interest thereon as the corporation requires.

(5) The corporation may execute a guarantee notwithstanding that it includes any interest (including compound interest), charges and expenses chargeable by the creditor against the principal debtor and the expenses of enforcing or obtaining or endeavouring to enforce or obtain payment of the debt guaranteed, that interest and those charges and expenses.

(6) Where the corporation executes a guarantee, any assignment or encumbrance of the guarantee by the creditor without the consent of the corporation has no force or effect.

(7) The corporation shall not execute a guarantee--

(a) if the amount guaranteed would exceed 90 per centum of the estimated cost, ascertained as directed by the corporation, of--

(i) the acquisition of the item of the environmental heritage,

(ii) the conservation of the item of the environmental heritage, or

(iii) the acquisition of the personal property,

as the case may be, or

(b) if the amount guaranteed would, together with the amounts of all other guarantees executed by the corporation and then in force, or agreed to by the corporation but not then executed, exceed such amount as may be determined from time to time by the Treasurer and notified to the corporation.

(8) The execution by the corporation of a guarantee referred to in this section is, in favour of the creditor, conclusive evidence that the requirements of this section with respect to the guarantee have been complied with.