South Australian Repealed Acts

This legislation has been repealed.

INDUSTRIES DEVELOPMENT ACT 1941 - SECT 14A

14A—Other guarantees

        (1)         Subject to this Act, the Treasurer may guarantee the repayment, on such terms and conditions as the Treasurer thinks fit, of any loan made or to be made to any trustees, representative of employees or proposed employees of any person engaged or about to be engaged in an industry, for the purposes of enabling or assisting those trustees to create a prescribed trust fund to acquire for the benefit of those employees an interest in the business of that person in relation to that industry.

        (2)         No guarantee referred to in subsection (1)

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 has reported to the Treasurer that it is satisfied that a prescribed trust fund will be created and that there are reasonable prospects that—

                  (i)         the business or proposed business will be profitable; and

                  (ii)         the objects of the trust in relation to which the guarantee is proposed will be achieved; and

                  (iii)         the arrangements made by the trustees to repay the loan will be carried out; and

            (b)         the Treasurer is satisfied that the annual rate of interest payable on the loan in relation to which the guarantee is proposed makes due allowance for the reduced risk carried by the creditor as a consequence of the guarantee.

        (3)         In this section—

"prescribed trust fund" means a trust fund created under a trust deed that—

            (a)         provides that at least one trustee must have had experience in financial matters and be approved by the person engaged or about to be engaged in the relevant business; and

            (b)         provides, subject to paragraph (a)

, that the trustees are properly representative of the employees who are or may be beneficiaries of the trust fund; and

            (c)         provides that each employee engaged in the relevant business is eligible to be a beneficiary of the trust fund; and

            (d)         prevents use of the trust fund to acquire more than a one-third interest in the relevant business.

        (4)         A guarantee under this section 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.