Commonwealth Consolidated Acts

ABORIGINAL AND TORRES STRAIT ISLANDER ACT 2005 - SECT 193N

Limit

  (1)   The Indigenous Land and Sea Corporation must not guarantee a loan in a financial year if the sum of:

  (a)   the contingent liabilities to which it would be subject if the proposed guarantee were to be given; and

  (b)   its current borrowings; and

  (c)   the total of its liabilities (whether actual or contingent) in respect of guarantees; and

  (d)   the current borrowings of its subsidiaries; and

  (e)   the total of the liabilities (whether actual or contingent) of its subsidiaries in respect of guarantees;

is more than the guarantee limit for the financial year.

Guarantee limit

  (2)   For the purposes of this section, the guarantee limit for a financial year is the amount worked out using the formula:

where:

"indexation factor" means the indexation factor for the financial year worked out under section   192Y.

Validity of transactions

  (8)   A failure to comply with subsection   (1) does not affect the validity of any transaction.