South Australian Current Acts South Australian Current Acts135—Ability of a council to give security
(1) A council may
provide various forms of security, including—
(a)
guarantees (including guarantees relating to the liabilities of a subsidiary
of the council);
(b)
debentures charged on the general revenue of the council (including to support
a guarantee provided under paragraph (a));
(c)
bills of sale, mortgages or other charges (including to support a guarantee
provided under paragraph (a)).
(2) If a council
proposes to issue debentures on the general revenue of the council—
(a) it
must assign a distinguishing classification to the debentures to be included
in the issue so as to distinguish them from those included or to be included
in previous or subsequent issues; and
(b) if
the debentures are being offered generally to members of the public, it must
appoint a trustee for the debenture holders.
(3) The holders of
debentures of a particular classification rank equally and have priority over
the holders of debentures included in a subsequent issue.
(4) If a council
defaults in carrying out an obligation secured by debenture charged on the
general revenue of the council, the Supreme Court may, on the application of a
creditor or trustee for debenture holders—
(a)
—
(i)
direct the council to appropriate a specified portion of
its revenue to the satisfaction of its obligations; or
(ii)
require the council to raise a specified amount by way of
rates and direct that the amount raised be applied towards satisfaction of the
council's obligations; and
(b) give
incidental or ancillary directions as may be necessary or desirable.
(5) The rights of a
creditor or trustee under subsection (4) are in addition to other rights
that exist independently of that subsection.
(6) In this
section—
"debenture" includes any form of charge on the general revenue of a council.