(1) If a person
indemnifies, or agrees to indemnify, a surety or proposed surety against any
liability which the surety or proposed surety may incur under this Act
(including this section) he and the surety or proposed surety and any person
with whom he agrees as aforesaid each commits an offence.
Penalty: $1 000 or imprisonment for 12 months or
(2) An offence is
committed under subsection (1) —
whether the agreement is made before or after the surety undertaking is
entered into and whether or not a proposed surety actually becomes a surety;
whether the compensation is to be in money or in money’s worth.
(3) An offence is not
committed under subsection (1) by a surety or proposed surety if he shows
he had no knowledge of an agreement within the meaning of subsection (1)
proposed to be entered into between 2 other persons; or
having such knowledge he took all steps reasonably available to him to prevent
the agreement being entered into.
[Section 50 amended: No. 74 of 1984 s. 18.]
[Heading inserted: No. 61 of 1990 s. 11.]