South Australian Repealed Acts

This legislation has been repealed.

INDUSTRIES DEVELOPMENT ACT 1941 - SECT 14

14—Guarantees to assist the establishment, carrying on or expansion of businesses

        (1)         Subject to this section, the Treasurer may, for the purpose of assisting a person to establish, carry on or expand a business in any industry—

            (a)         guarantee the repayment of a loan made or to be made to the person for the purposes of the business or proposed business; or

            (b)         give a guarantee (limited to the payment of a fixed or ascertainable amount) in respect of any other liability that has been or may be incurred by the person in connection with the business or proposed business.

        (2)         No such guarantee will be given unless—

            (a)         the Committee has first inquired into the business or proposed business in connection with which the guarantee is to be given; and

            (b)         the Committee has reported to the Treasurer—

                  (i)         that in its opinion there is a reasonable prospect that the business or proposed business will be profitable; or

                  (ii)         in the case of a business consisting of a sporting, cultural or social activity—that there is a reasonable prospect that the business or proposed business will earn an income sufficient to meet its liabilities and commitments; and

            (c)         the Committee has reported to the Treasurer that, in its opinion, the giving of the guarantee will be in the public interest and has recommended that the guarantee be given; and

            (d)         the person on whose behalf the guarantee is to be given has agreed to pay to the Treasurer, as consideration for the guarantee, a commission at an agreed rate, not exceeding two per cent per annum, on the amount in respect of which the guarantee is given, and to comply with any other conditions imposed by the Treasurer on the recommendation of the Committee; and

            (e)         the person on whose behalf the guarantee is to be given has given the Treasurer such security (if any) as the Treasurer requires for the repayment to the Treasurer of any money that the Treasurer becomes liable to pay by virtue of the guarantee; and

            (f)         in the case of a guarantee in respect of a loan—

                  (i)         the Treasurer is satisfied that the annual rate of interest payable on the loan makes due allowance for the reduced risk carried by the creditor as a result of the guarantee; and

                  (ii)         any stipulations of the Treasurer as to giving the lender security for the loan have been complied with by the person on whose behalf the guarantee is to be given or that person has satisfied the Treasurer that the stipulations will be complied with.

        (2a)         The Treasurer may, on the recommendation of the Committee, exempt a person from the obligation to comply with subsection (2)(d)

or (e)

permanently or for a specified period and subject to limitations, restrictions and conditions recommended by the Committee and approved by the Treasurer.

        (3)         A guarantee given under this section in respect of a loan may extend—

            (a)         to the payment of interest on the loan guaranteed; and

            (b)         to any expenses incidental to the loan; and

            (c)         to any expenses incurred by the creditor in obtaining or endeavouring to obtain payment of the principal, interest and expenses.