Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection (2), this section applies to contracts entered into, and guarantees given, by EFIC in accordance with approvals or directions under Part 5.
(2) This section does not apply to a contract or guarantee in relation to which EFIC has given the Minister notice, under section 64, that EFIC will bear the whole of the liability of EFIC under the contract or guarantee.
(3) EFIC is required to keep separate accounts of so much of its receipts and disbursements relating to contracts and guarantees to which this section applies as relates to the proportion of the liability under those contracts and guarantees that is to be borne by the Commonwealth.
(4) Subject to subsections (9) and (10), EFIC is required to pay to the Commonwealth, from time to time, as directed by the Finance Minister, so much of the receipts by EFIC from contracts and guarantees to which this section applies as relates to the proportion of the liability under those contracts and guarantees that is to be borne by the Commonwealth.
(5) For the purpose of subsection (4), the receipts from a contract or guarantee are calculated by deducting from the total of the amounts received by EFIC in relation to the contract or guarantee all amounts paid or payable by EFIC in relation to the contract or guarantee.
(6) Subject to subsections (8) and (9), the Commonwealth is liable to pay to EFIC the amount needed to discharge any liability of EFIC under a contract or guarantee to which this section applies.
(7) Instead of the Commonwealth paying the amount due under subsection (6) when the liability of the Commonwealth arises, the Minister may, on behalf of the Commonwealth, direct EFIC to seek approval under section 59 for EFIC to borrow the amount necessary to discharge its liability under the contract or guarantee.
(8) If the Finance Minister gives approval under section 59, the Commonwealth's liability under subsection (6) is replaced by a liability to pay EFIC the amount needed to discharge the borrowing by EFIC and to pay all costs (including interest) incurred by EFIC in connection with the borrowing.
(9) Where EFIC has given the Minister notice, under section 64, that EFIC will bear a specified proportion of the liability of EFIC under a contract or guarantee to which this section applies:
(a) if EFIC would be required by subsection (4) to pay an amount to the Commonwealth in respect of the contract or guarantee--EFIC may deduct from the amount the proportion of the amount that equals the proportion specified in the notice; and
(b) the liability of the Commonwealth to EFIC under subsection (6) or (8), as the case may be, in relation to the contract or guarantee is reduced by the proportion specified in the notice.
(10) EFIC may deduct from any amount that it is required to pay under subsection (4) an administration fee, to be ascertained in such manner as the Finance Minister directs in writing, in relation to contracts and guarantees to which this section applies.