(1)  On the written request of a Relevant Corporation, any constituent council, in writing, may guarantee, give an indemnity in relation to, or guarantee and give an indemnity in relation to –

(a) the repayment of any money lent or agreed to be lent to the Relevant Corporation; or

(b) the performance of an obligation undertaken by the Relevant Corporation or which the Relevant Corporation has agreed to undertake (whether that obligation is monetary or otherwise).

(2)  A guarantee or an indemnity –

(a) may include a guarantee of, or an indemnity relating to, any interest and other charges payable in respect of money lent or agreed to be lent or in respect of or arising from an obligation undertaken or agreed to be undertaken; and

(b) is subject to any conditions determined by the relevant constituent council and specified in the guarantee or indemnity.

(3)  This section has effect regardless of whether the loan or obligation was undertaken, agreed to be undertaken or required to be repaid or performed in Tasmania or elsewhere.