CO-OPERATIVE FARMERS AND GRAZIERS

DIRECT MEAT SUPPLY LIMITED (LOAN

GUARANTEE) ACT 1978

No. 16 of 1978

An Act to authorize the giving of a guarantee in respect of a borrowing by Co-operative Farmers and Graziers Direct Meat Supply Limited.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title

1. This Act may be cited as the Co-operative Farmers and Graziers Direct Meat Supply Limited (Loan Guarantee) Act 1978.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Interpretation

3. In this Act, a reference to the Society shall be read as a reference to Co-operative Farmers and Graziers Direct Meat Supply Limited.

Guarantee

4. (1) The Treasurer may, on behalf of the Commonwealth, at the request of the Society and subject to the conditions required by this Act, give one guarantee in respect of the repayment by the Society of one-half of the principal moneys in relation to a borrowing of moneys by the Society for the purpose of repaying debts owed by the Society.

(2) A guarantee shall not be given under sub-section (1) that would render the Commonwealth liable to pay an amount that exceeds, or amounts that in the aggregate exceed $4,500,000 or one-half of so much of the principal moneys referred to in that sub-section as have not for the time being been repaid by the Society, whichever is the less.

Conditions of guarantee

5. For the purpose of the protection of the financial interests of the Commonwealth, the Treasurer shall not give a guarantee under section 4 in relation to a borrowing of moneys by the Society unless—

(a) a like guarantee is given by the Treasurer of the State of Victoria on behalf of that State in respect of the repayment by the Society of one-half of the principal moneys in relation to the same borrowing;

(b) the moneys are borrowed for a period not exceeding 3 years and on such other terms and conditions as the Treasurer is satisfied are reasonable;

(c) undertakings to the satisfaction of the Treasurer, are given that, so long as the amount borrowed remains unpaid, officers of the Australian Public Service will have full access at all reasonable times to the financial accounts of the Society when authorized in writing by the Minister for that purpose; and

(d) such other conditions as the Treasurer thinks necessary are fulfilled.