Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to:
(a) a person who carries on business in Australia; and
(b) any corporation in which such a person has a substantial shareholding.
(2) A person to whom this section applies who proposes to enter into an overseas investment transaction may apply to EFIC to enter into a contract of insurance insuring the person against risk of direct or indirect monetary loss or other detriment in respect of the transaction arising out of an approved cause of loss specified in the application.
(3) A person to whom this section applies who has entered into an overseas investment transaction may apply to EFIC to enter into a contract of insurance insuring the person against risk of direct or indirect monetary loss in respect of payments generated by the transaction where the loss or detriment arises out of an approved cause of loss specified in the application.
(4) The reference in subsection (3) to payments generated by a transaction is a reference to payments generated after the application is made to EFIC.
(5) An application must be in writing.
(6) On receipt of an application, EFIC may enter into a contract of insurance of the kind referred to in subsection (2) or (3), as the case may be, in respect of the whole or a part of the overseas investment transaction to which the application relates.
(7) EFIC must not enter into a contract of insurance under which a person is insured against loss or detriment attributable to circumstances within the control of the person.