South Australian Current Acts South Australian Current Acts20—Government guarantee
(1) The Treasurer
guarantees that BSAL will satisfy—
(a)
liabilities of BSAL on deposits, being deposits at call or on a period of
notice, transferred from SBSA to BSAL together with interest accrued on the
deposits up to the transfer and further interest accrued on the deposits up to
the end of the guarantee period; and
(b)
liabilities of BSAL on deposits, being deposits at call or on a period of
notice, made with BSAL within the guarantee period, but only to the extent of
$1 000 000 in respect of any one account together with interest
accrued on the deposits (to the extent that they are guaranteed) up to the end
of the guarantee period; and
(c)
liabilities of BSAL on term deposits transferred from SBSA to BSAL together
with interest accrued on the deposits up to the transfer and further interest
accrued on the deposits until payment or satisfaction; and
(d)
liabilities of BSAL on term deposits maturing no later than 30 June 1999 made
with BSAL within the guarantee period, but only to the extent of
$1 000 000 in respect of any one account together with interest
accrued on the deposits (to the extent that they are guaranteed) until payment
or satisfaction; and
(e)
transferred liabilities arising on negotiable instruments, bank guarantees or
letters of credit; and
(f) such
other transferred liabilities and liabilities incurred by BSAL within
the guarantee period as are specified by the Treasurer, by notice published in
the Gazette within the transfer period, on terms and conditions fixed in the
notice.
(2) Any money required
under the guarantee is to be paid out of the Consolidated Account (which is
appropriated to the necessary extent).
(3) Subject to
subsections (4) and (5), the guarantee expires on 1 July 1999.
(4) If a written
demand is made not later than 30 June 1999 for payment of a guaranteed
liability falling due on or before that date, the guarantee continues in
relation to the liability.
(5) If a written
demand is made for payment of a guaranteed liability not later than six months
after the liability falls due, the guarantee continues in relation to the
liability even though—
(a) the
demand is made on or after 1 July 1999; or
(b) the
liability falls due on or after 1 July 1999.
(6) For the purposes
of subsections (4) and (5)—
(a) a
guaranteed liability is taken to fall due when the person in whose favour the
liability exists first becomes entitled to require payment in discharge of the
liability; and
(b)
where a guaranteed liability falls due by virtue of service of a written
notice or demand, that notice or demand constitutes a written demand for
payment of the liability.
(7) The Treasurer may,
after consultation with the board of directors of BSAL, by order in writing
made within the transfer period—
(a) fix
charges to be paid by BSAL in respect of the guarantee as it relates to
specified liabilities of BSAL;
(b)
impose restrictions binding on BSAL as to—
(i)
the acceptance of deposits by BSAL within
the guarantee period; or
(ii)
the variation by agreement at any time of the terms or
conditions governing any guaranteed liability.
(8) BSAL may agree
with a depositor that a deposit is not to be subject to the guarantee and, in
that event, this section does not apply to the deposit.
(9) For the purposes
of this section, payments or transfers of money from an account at BSAL
containing a deposit guaranteed under this section are taken to diminish the
guaranteed liability before any liability not so guaranteed.
(10) If the Treasurer
makes a payment to a person under the guarantee, the Treasurer is subrogated,
to the extent of the payment, to the person's rights (including rights of
priority as a creditor in a winding-up) in respect of the liability
guaranteed.
(11) In this
section—
"deposits" includes money on current account and the bonds known as Term Bonds
issued from time to time by SBSA or BSAL, but does not include any other bond
issue, note issue or other raising in the capital markets;
"the guarantee period" means the period of eight months beginning on the
appointed day, or, if a longer period is fixed by regulation as
the guarantee period, that period.