South Australian Current Acts

PUBLIC FINANCE AND AUDIT ACT 1987 - SECT 19

19—Guarantees and indemnities

        (1)         The Treasurer may, for and on behalf of the State—

            (a)         guarantee performance of obligations by a semi-government authority;

            (ab)         guarantee performance of obligations by any other person if, in the opinion of the Treasurer, the guarantee will facilitate the carrying out by a semi-government authority of its functions;

            (b)         indemnify any person against loss, expenditure or costs related to a contract to which a semi-government authority is a party, or a contract that is incidental, ancillary, or otherwise related to such a contract.

        (1a)         A guarantee under subsection (1) may—

            (a)         guarantee performance of existing or contingent obligations; or

            (b)         guarantee performance of obligations for the benefit of a person who does not exist or who cannot be ascertained when the guarantee is given; or

            (c)         guarantee performance of obligations that the semi-government authority incurs or assumes in the future.

        (1b)         A guarantee under subsection (1) may—

            (a)         refer specifically to the obligations guaranteed or refer to a class to which they belong;

            (b)         be given by the Treasurer by notice in the Gazette or by written contract between the parties to the guarantee;

            (c)         be varied or revoked by the Treasurer in respect of obligations not yet incurred or assumed by the semi-government authority.

        (1c)         A guarantee given by notice in the Gazette may be varied or revoked under subsection (1b)(c) by notice in the Gazette.

        (2)         The terms and conditions of a guarantee or indemnity under this section will be as determined by the Treasurer.

        (3)         As a condition of giving a guarantee or indemnity under this section, the Treasurer may require an indemnity against liabilities that may arise under the guarantee or indemnity.

        (4)         The money required to satisfy the obligations of the Treasurer under a guarantee or indemnity entered into under this section or under the repealed Public Finance Act will be paid out of the Consolidated Account which is appropriated for that purpose to the necessary extent.

        (5)         This section—

            (a)         applies in addition to the provisions of any other Act relating to guarantees and indemnities for the benefit of a body corporate that is a semi-government authority;

            (b)         does not operate to exclude or diminish obligations of the Treasurer under any other Act or law.