Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The Board may, after consultation with the Finance Minister, determine that the money and other assets of EFIC are, or within the current or next financial year are likely to become, inadequate to meet the expected liabilities, losses and claims of or against EFIC and may determine the amount of capital required to overcome the inadequacy.
(2) A determination under subsection (1) must be made according to sound commercial principles.
(3) The Chairperson must give notice of a determination under subsection (1) to the Finance Minister, the Treasurer and the Minister not later than the day after the determination is made.
(4) Where notice has been given in accordance with subsection (3):
(a) there is payable by the Commonwealth to EFIC an amount equal to the amount of capital determined by the Board as necessary to overcome the inadequacy mentioned in subsection (1); and
(b) the amount is to be paid within 5 working days after the day on which it becomes payable.
(5) Where:
(a) the capital of EFIC includes called capital; and
(b) the Board determines that the money and other assets of EFIC are excessive, having regard to the expected liabilities, losses and claims of and against EFIC;
the Board may determine the amount representing the extent to which the money and assets are excessive.
(6) Where a determination is made under subsection (5), there is payable by EFIC to the Commonwealth:
(a) the amount equal to EFIC's called capital at the time when the determination was made; or
(b) the amount determined by the Board under subsection (5);
whichever is the lesser.
(7) An amount payable under subsection (6) is to be paid within 28 days after the making of the determination.
(8) EFIC's called capital at any time must not exceed:
(a) $1,200,000,000; or
(b) if a greater amount is specified in a legislative instrument made by the Minister--that greater amount.
(9) For the purposes of subsections (1) and (5):
(a) an expected liability of EFIC under a contract entered into, or a guarantee given, in accordance with an approval or direction under Part 5 is to be ignored to the extent that the Commonwealth would be liable to pay an amount to EFIC under section 65 in relation to the contract or guarantee; and
(b) an expected loss by EFIC under a loan made in accordance with an approval or direction under Part 5 is to be ignored to the extent that the Commonwealth would be liable to pay an amount to EFIC under section 66 in relation to the loan; and
(c) an expected loss by, or liability of, EFIC under or in relation to a DIFF loan, as defined in section 66A, is to be ignored to the extent that the Commonwealth would be liable to pay an amount to EFIC under that section in relation to the loss or liability.
(10) Payments by the Commonwealth to EFIC under this section are to be made out of the Consolidated Revenue Fund which is appropriated accordingly.