New South Wales Consolidated Acts
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HERITAGE ACT 1977 - SECT 108
Execution of guarantees
108 Execution of guarantees
(1) The corporation may, with the concurrence of the Treasurer and subject to
this section, execute a guarantee, either alone or jointly with some other
person, in favour of a bank, building society, credit union or other person
for the repayment of any money expended or to be expended on any one or more
of the following--
(a) the acquisition of an item of the
(b) the conservation of an item of the
environmental heritage, or
(c) the acquisition of personal property--
which is associated with and contributes to the significance of an item of the
environmental heritage as such an item, or
(ii) which is required for the
purpose of furnishing or decorating an item of the environmental heritage.
(2) The corporation may, in agreeing to execute a guarantee, impose such
conditions as, in the opinion of the corporation, are appropriate.
guarantee executed by the corporation is not enforceable against the
corporation until the creditor has exercised all his or her rights and
remedies under all other securities held by or for the creditor in respect of
the debt guaranteed, other than the guarantee.
(4) The corporation may, as a
condition of a guarantee, require the creditor to obtain, take and hold, or
retain and hold, such securities for the payment of the principal debt and
interest thereon as the corporation requires.
(5) The corporation may execute
a guarantee notwithstanding that it includes any interest (including compound
interest), charges and expenses chargeable by the creditor against the
principal debtor and the expenses of enforcing or obtaining or endeavouring to
enforce or obtain payment of the debt guaranteed, that interest and those
charges and expenses.
(6) Where the corporation executes a guarantee, any
assignment or encumbrance of the guarantee by the creditor without the consent
of the corporation has no force or effect.
(7) The corporation shall not
execute a guarantee--
(a) if the amount guaranteed would exceed 90 per centum
of the estimated cost, ascertained as directed by the corporation, of--
the acquisition of the item of the environmental heritage,
conservation of the item of the environmental heritage, or
acquisition of the personal property, as the case may be, or
(b) if the
amount guaranteed would, together with the amounts of all other guarantees
executed by the corporation and then in force, or agreed to by the corporation
but not then executed, exceed such amount as may be determined from time to
time by the Treasurer and notified to the corporation.
(8) The execution by
the corporation of a guarantee referred to in this section is, in favour of
the creditor, conclusive evidence that the requirements of this section with
respect to the guarantee have been complied with.
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