Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Where:
(a) a person (in this section called the lender ) has lent, or proposes to lend, other than in the form of an equity investment, money to a person who is carrying on business in Australia; and
(b) the purpose of the loan or proposed loan is the financing, in whole or in part, of Australian export trade;
EFIC may guarantee to the lender the repayment of the whole, or any part, of the money lent, or proposed to be lent, and the payment of the whole, or a part, of any interest or other charges that may become payable to the lender in respect of the money lent.
(2) Where EFIC has given, or proposes to give, a guarantee to the lender, EFIC may enter into a contract with the lender under which, in consideration of the lender making or agreeing to make the loan, EFIC agrees to pay the lender, in specified circumstances, an amount ascertained in accordance with the contract.
(3) However, EFIC must not make a guarantee or enter into a contract under this section in relation to a loan or a proposed loan that is to be used for the dominant purpose of direct investment outside Australia unless the requirements in subsection (4) are satisfied.
(4) For the purposes of subsection (3), the requirements are the following:
(a) the person who carries on the business must certify, by writing given to EFIC, that the person reasonably believes that the loan will result in a net increase in the number of people employed in Australia by the business, or a related party of the business, during the term of the loan;
(b) at the completion of the loan, the person carrying on the business must certify to EFIC whether the loan has resulted in a net increase in the number of people employed in Australia by the business, or a related party of the business;
(c) if the business is a large business--the person who carries on the business must certify, by writing given to EFIC, that the loan will not be used to move the whole or a substantial part of the business, or of a related party of the business, overseas; and
(d) EFIC must ensure that it publicly discloses copies of the certification it receives under subsection (4)(b).