Government Guarantees Act 1934 (NSW)

Government Guarantees Act 1934 No 57 An Act to validate certain guarantees given to certain banks by the Treasurer or pursuant to minutes of the Governor and Executive Council; to authorise the Treasurer to execute guarantees in certain cases; to make certain contingent appropriations out of the Consolidated Revenue Fund; to amend the Usury, Bills of Lading, and Written Memoranda Act 1902; and for purposes connected therewith. 1 Name of Act This Act may be cited as the Government Guarantees Act 1934. 2 Validation (1) The action of the Governor and Executive Council or the Treasurer in authorising the giving of the guarantees set out in the Schedule is hereby validated and any such authorisation shall be deemed a guarantee by the Government notwithstanding that no formal instrument of guarantee has been executed. (2) No guarantee so authorised shall be held to be void merely on the ground that the person by whom such guarantee was so authorised or given had no power to create a liability enforceable against the Government and to be discharged out of the Consolidated Revenue Fund. 3 Authority for Treasurer to guarantee overdraft accounts etc (1) It shall be lawful for the Treasurer, upon the recommendation of the Minister for Health, with the approval of the Governor, to execute a guarantee in favour of any bank, building society or credit union in respect of the overdraft account with the bank, building society or credit union or of any indebtedness to the bank, building society or credit union of any statutory health corporation or affiliated health organisation within the meaning of the Health Services Act 1997. (2) It shall be lawful for the Treasurer with the approval of the Governor to execute a guarantee in favour of any bank, building society or credit union, or of any other body of persons, corporate or unincorporate, approved by the Minister (in this Act referred to as approved body) for the repayment of any advance made or to be made by the bank, building society, credit union or approved body, as the case may be: (a) to any marketing board within the meaning of the Marketing of Primary Products Act 1927, or (a1) (Repealed) (b) to any society (other than a co-operative housing society) within the meaning of the Co-operation Act 1923, or (c) to any society within the meaning of the Permanent Building Societies Act 1967: Provided further that where any such guarantee is for the repayment of any advance to a community settlement society within the meaning of the Co-operation Act 1923, it shall not be executed except upon the recommendation of the Co-operative Farms Purchase Promotion Committee constituted under that Act. (2A) (Repealed) (3) It shall be lawful for the Treasurer, upon the recommendation of the Farmers' Relief Board and with the approval of the Governor, to execute a guarantee in favour of any bank in respect of the account with the bank of a supervisor within the meaning of the Farmers' Relief Act 1932. (4) It shall be lawful for the Treasurer, with the approval of the Governor, but subject to this Act, to renew any guarantee validated by this Act or by the Housing (Further Provisions) Act 1937 for such further period or periods as the Treasurer may think fit, and either upon the same terms and conditions or upon such other terms and conditions and for the same amount or such other amount as may be agreed upon by the Treasurer, the bank and the debtor. (5) Nothing in this section shall require the renewal of a continuing guarantee validated by this Act or by the Housing (Further Provisions) Act 1937 or prejudice its operation as a continuing guarantee. (5A) (a) It shall be lawful for the Treasurer with the approval of the Governor to execute a guarantee in favour of any bank in respect of the overdraft account with the bank of any person or body of persons corporate or unincorporate with whom the Treasurer has entered into an agreement pursuant to section 13A of the Cinematograph Films (Australian Quota) Act 1935. (b) The Treasurer shall not execute a guarantee under this subsection after the thirty-first day of December, one thousand nine hundred and thirty-nine. (5B) It shall be lawful for the Treasurer with the approval of the Governor to execute a guarantee in favour of any bank in respect of the overdraft account with the bank of The Metropolitan Meat Industry Commissioner. (5C) (a) It shall be lawful for the Treasurer, upon the recommendation of the Minister for Agriculture and with the approval of the Governor, to execute a guarantee in favour of any bank, building society or credit union, or of any other body of persons, corporate or unincorporate, approved by the Treasurer (in this Act referred to as approved body) for repayment of any advance to a society or company, being the owner or engaged in the operation of a factory for the processing of milk or other dairy products, or any such society and company acting together, for the purpose of providing facilities for bulk handling and transportation of milk. (b) In this subsection: society means a society within the meaning of the Co-operation Act 1923. company means a company within the meaning of the Corporations Act 2001 of the Commonwealth. (c) The provisions of this subsection in relation to a society shall be additional to and not in derogation of the provisions of paragraph (b) of subsection (2). (5D) It shall be lawful for the Treasurer with the approval of the Governor to execute a guarantee in favour of any bank, building society or credit union, or other body of persons, corporate or unincorporate, approved by the Treasurer (in this Act referred to as approved body) for the repayment of any advance to the Trustees of The Labor Council of New South Wales, a trade union registered under the Trade Union Act 1881, as subsequently amended, for purposes connected with a new Trades Hall or other like purposes. (5E) It shall be lawful for the Treasurer with the approval of the Governor to execute a guarantee in favour of any bank, building society or credit union in respect of the overdraft account with the bank, building society or credit union of the Hunter Valley Conservation Trust. (5F) It shall be lawful for the Treasurer, with the approval of the Governor, to execute a guarantee in favour of any bank, building society or credit union in respect of the overdraft account with the bank, building society or credit union of the New South Wales Meat Industry Authority. (5G) It shall be lawful for the Treasurer, upon the recommendation of the Minister for Sport and Recreation, and with the approval of the Governor, to execute a guarantee in favour of a bank, building society or credit union or other body of persons, corporate or unincorporate, approved by the Treasurer (in this Act referred to as the approved body) for the repayment of any money borrowed pursuant to section 24 of the Sydney Cricket and Sports Ground Act 1978. (5H) It shall be lawful for the Treasurer, upon the recommendation of the Minister for Health and with the approval of the Governor, to execute a guarantee in favour of any bank, building society or credit union, or other body of persons, corporate or unincorporate, approved by the Treasurer (in this Act referred to as approved body) for the repayment of any advance to the Australasian Conference Association Limited, a company within the meaning of the Companies Act 1961, for the purpose of providing extensions to the body formerly known as the Sydney Sanitarium and Hospital, Wahroonga, and now known as the Sydney Adventist Hospital, Wahroonga, and for other purposes connected therewith. (5I) It shall be lawful for the Treasurer, on the recommendation of the Minister for Health and with the approval of the Governor, to execute a guarantee in favour of the Bank of New South Wales for the repayment of any advance to the Trustees of the Sisters of Charity of Australia, a body corporate constituted under the Roman Catholic Church Communities' Lands Act 1942, for the purpose of rebuilding St. Vincent's Private Hospital, Darlinghurst, and for other purposes connected therewith. (5J) It shall be lawful for the Treasurer, upon the recommendation of the Minister for the Arts and with the approval of the Governor, to execute a guarantee in favour of any bank or other body of persons, corporate or unincorporate, approved by the Treasurer (in this Act referred to as approved body) for the repayment of any advance to the Nimrod Theatre Company Limited. (5K) (Repealed) (6) Any guarantee executed by the Treasurer under this Act may be made by way of increase of the amount of the Treasurer's liability as stated in a previous guarantee given under this Act, and may be made upon such terms and conditions as are prescribed or as the Treasurer may determine. The enactment of this subsection shall not affect subsections (1), (2) and (3). (7) The approval of the Governor to the execution of any guarantee under this section shall be conclusive evidence that the guarantee has not been entered into in contravention of this section. 3AA Execution of certain guarantees on behalf of Treasurer (1) Any guarantee authorised by this Act to be given for the repayment of any advance made to a co-operative housing society within the meaning of the Co-operation Act 1923 may, upon the recommendation of the Co-operative Housing Societies Advisory Committee constituted under that Act and with the approval of the Governor, be executed for and on behalf of the Treasurer by any other Minister of the Crown whom the Treasurer may authorise in writing either generally or in any particular case so to do. (2) A guarantee executed by a Minister of the Crown for and on behalf of the Treasurer pursuant to subsection (1) shall be deemed to have been executed by the Treasurer. (3) The approval of the Governor to the execution of any guarantee pursuant to this section shall be conclusive evidence that the guarantee has not been entered into in contravention of this section. 3A Guarantees for industrial purposes (1) Subject to subsection (2), it shall be lawful for the Treasurer, upon the recommendation of the Minister for Decentralisation and Development and with the approval of the Governor, to execute a guarantee, either alone or jointly with some other person, in favour of any bank, building society or credit union or other person (not being a co-operative society within the meaning of the Co-operation Act 1923) for the repayment of moneys expended or to be expended on: (a) the acquisition of land, or land and buildings thereon, (b) the construction, improvement or alteration of buildings, or (c) the acquisition of plant, machinery or equipment, used or to be used for the conduct of a country industry, as defined in the State Development and Industries Assistance Act 1966 immediately before its repeal by the Trade and Investment Cluster Governance (Amendment and Repeal) Act 2014. (2) The Treasurer shall not execute a guarantee referred to in subsection (1) if the amount of the guarantee exceeds ninety per centum of the estimated value of the land or land and buildings thereon, of the estimated cost of the works of construction, improvement or alteration, or of the estimated value of the plant, machinery or equipment, as the case may be, such estimated value or cost to be ascertained in such manner as the Treasurer may direct. (3) The Treasurer may enter into an agreement with a council within the meaning of the Local Government Act 1993 for the payment by that council to the Treasurer of part of any moneys paid under any guarantee given by the Treasurer under subsection (1). (4) The execution by the Treasurer, either alone or jointly with some other person, of a guarantee under this section shall, in favour of the creditor, be conclusive evidence that the requirements of this section with respect to the guarantee have been complied with. 3B Guarantees for development of the tourist industry (1) Subject to subsection (2), the Treasurer may, upon the recommendation of the Minister administering the Tourism Commission Act 1984, and with the approval of the Governor, execute a guarantee, either alone or jointly with some other person, in favour of any bank, building society or credit union or other person (not being a co-operative society within the meaning of the Co-operation Act 1923) for the repayment of moneys expended or to be expended on: (a) the acquisition of land, or land and buildings thereon, (b) the construction, improvement or alteration of buildings, or (c) the acquisition of plant, machinery or equipment, used or to be used for the development of the tourist industry in the State. (2) Subsections (2), (3) and (4) of section 3A apply in respect of guarantees under this section in the same way as they apply in respect of guarantees under that section. 4 Provisions relating to guarantees given under this Act The following provisions shall apply to and in respect of any guarantee authorised by this Act to be given or to and in respect of the renewal of any guarantee validated by this Act or by the Housing (Further Provisions) Act 1937: (a) The guarantee shall be in such form and subject to such terms and conditions as are prescribed or as the Treasurer may determine. (b) The guarantee may include the interest charges and expenses chargeable by the bank, building society, credit union or approved body as the case may be against the principal debtor in the usual course of its business and the expenses of enforcing or obtaining or endeavouring to enforce or obtain payment of the debt guaranteed and such interest charges and expenses. (c) The guarantee may be expressed to include compound interest. (d) The bank, building society, credit union or approved body as the case may be shall obtain, take and hold or retain and hold such securities (if any) for the payment of the principal debt as the Treasurer may require. (e) The guarantee shall not be enforceable against the Treasurer or the Consolidated Revenue Fund unless and until the bank, building society, credit union or approved body as the case may be has exercised its rights and remedies under all securities held by or for it in respect of the debt guaranteed, other than the guarantee or where the principal debtor is a marketing board or a society (other than a building society community settlement society or community advancement society) within the meaning of the Co-operation Act 1923, unless a judge of the Supreme Court by order made on summons in Chambers declares that he or she is satisfied that the bank, building society, credit union or approved body as the case may be is unable to exercise such rights and remedies without undue interference with the operations of the board or society concerned or where the principal debtor is a building society community settlement society or community advancement society within the meaning of the said Act or a society (other than an association) within the meaning of the Permanent Building Societies Act 1967, unless the bank, building society, credit union or approved body, as the case may be, shall, under the provisions of the securities executed by the building society community settlement society or community advancement society in favour of the bank, building society, credit union or approved body as the case may be, or of any such securities, have become entitled to appoint a receiver of such of the property of the building society community settlement society or community advancement society or society (other than an association) within the meaning of the Permanent Building Societies Act 1967 as is charged by those securities or any of them with the repayment of the debt guaranteed. This paragraph shall not apply to or in respect of any guarantee or any renewal of a guarantee, as the case may be, given under the authority of this Act, guaranteeing the repayment of any loans or advances made or to be made to any statutory health corporation or affiliated health organisation within the meaning of the Health Services Act 1997. (f) The bank, building society, credit union or approved body as the case may be shall not without the consent in writing of the Treasurer assign or encumber the benefit of the guarantee. 4A (Repealed) 5 Contingent appropriation Such sums as may from time to time become due and payable by the Treasurer under any guarantee validated or authorised by this Act or validated by the Housing (Further Provisions) Act 1937 may be paid out of the Consolidated Revenue Fund without further appropriation than this Act. 6 Regulations (1) The Governor may make regulations not inconsistent with this Act prescribing all matters which by this Act are required or permitted to be prescribed or which are necessary or convenient to be prescribed for giving effect to this Act. (2) (Repealed) 7 (Repealed) Schedule (Section 2 (1)) Date Debtor Creditor Amount Guaranteed £ s d 10 May, 1926 Royal Prince Alfred Hospital. Commercial Banking Co. of Sydney Ltd., Sydney. 35,000 0 0 31 Aug, 1926 """ """ 10,000 0 0 4 Jan, 1927 """ """ 7,000 0 0 15 Nov, 1927 """ """ 10,000 0 0 18 Sept, 1928 """ """ 23,000 0 0 5 Mar, 1929 """ """ 10,000 0 0 19 June, 1929 """ """ 10,000 0 0 £ 105,000 0 0 11 Dec, 1928 Sydney Hospital Bank of NSW, Sydney 69,000 0 0 8 May, 1929 Royal North Shore Hospital Bank of NSW, North Sydney Branch. 54,000 0 0 8 Oct, 1929 """ """ 32,392 0 0 28 " 1930 St. George District Hospital Bank of Australasia, Kogarah Branch. 5,000 0 0 6 Dec, 1932 Royal Alexandra Hospital for Children—General Fund Account. Bank of NSW, Camperdown Branch. 15,000 0 0 6 " 1932 Royal Alexandra Hospital for Children—Building Fund Account. """ 10,000 0 0 3 July, 1933 Auburn District Hospital Bank of NSW, Auburn Branch. 500 0 0 9 Jan, 1934 Broken Hill and District Hospital. E.S.& A. Bank Limited, Broken Hill Branch. 5,500 0 0 31 " 1934 Cessnock District Hospital Bank of NSW, Cessnock Branch. 6,000 0 0 31 " 1934 Kurri Kurri District Hospital Bank of NSW, Kurri Kurri Branch. 7,000 0 0 31 " 1934 Maitland Hospital Bank of NSW, West Maitland Branch. 8,000 0 0 31 " 1934 Orange District Hospital Bank of NSW, Orange Branch. 1,000 0 0 and interest. 6 Dec, 1921 Murrumbidgee Irrigation Areas Co-operative Company, Limited. Bank of NSW, Leeton Branch. 35,000 0 0 12 Oct, 1932 3,000 0 0 and Yenda Producers' Co-operative Society, Limited. Bank of NSW, Yenda Branch. and interest. 5 Sept, 1933 16 May, 1933 Rice Marketing Board for the State of New South Wales. Bank of NSW, Leeton Branch. 205,000 0 0 and interest. 5 April, 1934 """ """ 205,000 0 0 and interest. 9 Jan, 1934 Young District Producers' Co-operative Association Limited. Commonwealth Bank of Australia, Young Branch. 31,166 0 0 and interest. 1 May, 1934 New South Wales Dairy Products Board. Commercial Banking Co. of Sydney, Ltd., Royal Exchange Branch. 300 0 0 and interest. 8 May, 1934 Irrigation Co-operative Societies, Limited. Bank of NSW, Yenda Branch. 10,000 0 0 and interest. 15 May, 1934 Egg Marketing Board for the Counties of Cumberland and Northumberland and Shires of Nattai and Wollondilly. Commonwealth Bank of Australia, Sydney. 55,000 0 0 and interest. 16 Oct, 1928 White Memorial Swimming Baths Committee. Commercial Banking Co. of Sydney, Ltd, Muswellbrook Branch. 3,500 0 0 26 Mar, 1926 The Sydney Harbour Trust Clerical and General Officers' Association, Ticket Organisation. Bank of NSW, Sydney. 1,250 0 0 1 June, 1933 NSW Public Service Professional Officers' Association Season Ticket Organisation. Bank of NSW, Royal Exchange Branch. 1,500 0 0 and interest. 20 Mar, 1934 Public Service Association of NSW Season Ticket Organisation. Commercial Banking Co. of Sydney, Ltd, Sydney. 2,500 0 0 4 Sept, 1929 J C Lennon Bank of NSW, Inverell Branch. 5,040 0 0 29 Oct, 1929 J D Smith Bank of NSW, Trundle Branch. 300 0 0 17 " 1933 C W Beer, Supervisor, Farmers' Relief Board. Bank of NSW, Murwillumbah Branch. 100 0 0 17 " 1933 R E Cumming, Supervisor, Farmers' Relief Board. Bank of NSW, Moree Branch. 100 0 0 17 " 1933 W E Frost, Supervisor, Farmers' Relief Board. Bank of NSW, Canowindra Branch. 200 0 0 17 " 1933 W J Johnson, Supervisor, Farmers' Relief Board. Bank of NSW, Grafton Branch. 100 0 0 17 " 1933 J S Longhurst, Supervisor, Farmers' Relief Board. Bank of NSW, Bega Branch. 100 0 0 17 " 1933 H A Marks, Supervisor, Farmers' Relief Board. Bank of NSW, Bellingen Branch. 100 0 0 17 " 1933 E T Matthews, Supervisor, Farmers' Relief Board. Bank of NSW, Deniliquin Branch. 200 0 0 17 " 1933 H G Norton, Supervisor, Farmers' Relief Board. Bank of NSW, Corowa Branch. 150 0 0 17 " 1933 D R Parker, Supervisor, Farmers' Relief Board. Bank of NSW, Kempsey Branch. 100 0 0 17 " 1933 F A Paterson, Supervisor, Farmers' Relief Board. Bank of NSW, Lismore Branch. 100 0 0 17 " 1933 J D Purcell, Supervisor, Farmers' Relief Board. Bank of NSW, Junee Branch. 150 0 0 17 " 1933 J R Souter, Supervisor, Farmers' Relief Board. Bank of NSW Glen Innes Branch. 100 0 0 17 " 1933 H H Stevenson, Supervisor, Farmers' Relief Board. Bank of NSW, Tamworth Branch. 200 0 0 17 " 1933 W D Sykes, Supervisor, Farmers' Relief Board. Bank of NSW, Wentworth Branch. 100 0 0 17 " 1933 T A Tester, Supervisor, Farmers' Relief Board. Bank of NSW, Young Branch. 100 0 0 17 " 1933 M C Tweedie, Supervisor, Farmers' Relief Board. Bank of NSW, Gunnedah Branch. 200 0 0 17 " 1933 A F Witcombe, Supervisor, Farmers' Relief Board. Bank of NSW, Grenfell Branch. 150 0 0 17 Oct, 1933 D L Young, Supervisor, Farmers' Relief Board. Bank of NSW, Albury Branch. 250 0 0 17 " 1933 L C Abbott, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney, Ltd., Berrigan Branch. 200 0 0 17 " 1933 C D Cook, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney Ltd., Barraba Branch. 250 0 0 17 " 1933 H L Dawson, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney, Ltd., Cootamundra Branch. 100 0 0 17 " 1933 O F Ebert, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney Ltd., Warren Branch. 150 0 0 17 " 1933 A D Hickey, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney, Ltd., Gosford Branch. 150 0 0 17 " 1933 J P Le Lievre, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney, Ltd., Cobar Branch. 100 0 0 17 " 1933 B W Loder, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney Ltd., Sydney. 200 0 0 17 " 1933 G E Metcalfe, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney, Ltd., Cooma Branch. 100 0 0 17 " 1933 G E Mitchell, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney, Ltd., Goulburn Branch. 100 0 0 17 " 1933 H G Moffitt, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney, Ltd., Grenfell Branch. 100 0 0 17 " 1933 R S Moore, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney, Ltd., Young Branch. 200 0 0 17 " 1933 D P McGee, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney, Ltd., West Wyalong Branch. 500 0 0 17 " 1933 E R Patston, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydney, Ltd., Armidale Branch. 100 0 0 17 " 1933 R S Phillips, Supervisor, Farmers' Relief Board. Commercial Banking Co. of Sydn