60   Treasurer’s guarantee for co-operative housing society loans

(1)  The Treasurer may, on the recommendation of the New South Wales Land and Housing Corporation, execute a guarantee in favour of any person approved by the Treasurer, for the repayment of any advance to a co-operative housing society made or to be made by the person.

(2)  Sections 4 and 5 of the Government Guarantees Act 1934 apply to a guarantee authorised by this section in the same way as they apply to a guarantee authorised by that Act, except as provided by subsections (3) and (4).

(3)  The guarantee is to be part of a three-party loan and guarantee agreement between the lender (being the approved person concerned), the Treasurer and the co-operative housing society under which, in consideration for the advance to be made by the lender to the co-operative housing society and the guarantee to be given by the Treasurer:

(a)  the co-operative housing society and the lender undertake to observe the terms and conditions specified in the agreement, and

(b)  the co-operative housing society creates a charge in favour of the Treasurer over the securities given to the society by its members in respect of loans to be made from the advance.

(4)  The society concerned must lodge with the Registrar a copy of each such three-party loan and guarantee agreement entered into by the society as soon as practicable after it is entered into.

(5)  The guarantee is enforceable against the Treasurer and the Consolidated Fund even though the lender is not authorised:

(a)  to hold any security in respect of the debt guaranteed (other than the guarantee), or

(b)  to appoint a receiver or manager of the property of the co-operative housing society.

(6)  The Treasurer may delegate to any Minister any or all of the Treasurer’s functions under this section.