Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) EFIC may enter into a contract under which it gives an indemnity or guarantee to a person in respect of a liability to which this section applies.
(2) The liabilities to which this section applies are as follows:
(a) the liability of an insurer under a contract, whether entered into in Australia or elsewhere, to give an indemnity or guarantee in respect of monetary loss or other detriment suffered in connection with a transaction involving:
(i) goods exported, or to be exported, under an export contract; or
(ii) goods in the production or treatment of which goods referred to in subparagraph (i) have been, or are to be, used; or
(iii) services rendered, or to be rendered, under an export contract;
(b) the liability of a person under a contract under which the person has given a guarantee in respect of the loan, or proposed loan, of moneys for the purpose of financing, in whole or in part, the making of payments under a contract referred to in subsection 17(1);
(c) the liability of a person under an indemnity or guarantee given, or proposed to be given, by the person in relation to a tender or proposed tender of a kind referred to in subsection 19(1).
(3) An indemnity or guarantee given in respect of a liability referred to in paragraph (2)(a) must relate only to such part of the liability as may reasonably be regarded as related to the goods or services referred to in subsection (2).
(4) An indemnity or guarantee given in relation to a liability referred to in paragraph (2)(b) must relate only to so much of the liability as does not exceed:
(a) where the indemnity or guarantee under which the liability arises relates to money lent, or proposed to be lent, for the purpose of financing payments under an export contract--the amount, or the total of the amounts, payable under that contract in respect of goods or services to which that export contract relates; or
(b) where the indemnity or guarantee under which the liability arises relates to money lent, or proposed to be lent, for the purpose of financing payments under a contract for the purpose of performing which a party to that contract has entered into an export contract--the amount, or the total of the amounts, payable under that export contract in respect of goods or services to which that export contract relates.
(5) A reference in this section to a contract under which an indemnity or guarantee is given is a reference to a contract which, however expressed and in whatever form, is in substance a contract for the giving of an indemnity or guarantee.