No. 9/1954:

STATE GUARANTEES ACT, 1954

ARRANGEMENT OF SECTIONS

1 Definitions.

2 Guarantee in respect of moneys borrowed by scheduled body.

3 Restriction on total of guarantees for scheduled body.

4 Security for repayment of moneys paid under guarantee.

5 Advance out of Central Fund of moneys required to be paid under guarantee.

6 Repayment of moneys paid under guarantee.

7 Annual statement as to guarantees.

8 Abstract of accounts of scheduled body.

9 Amendment by order of Schedule.

10 Borrowing by the Minister.

11 Short title and commencement.

SCHEDULE

AN ACT TO PROVIDE FOR GUARANTEES BY THE MINISTER FOR FINANCE IN RESPECT OF MONEYS BORROWED BY CERTAIN BODIES.

[10th March, 1954.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

1.—In this Act—

the word "guarantee" means, except in section 2, a guarantee given or deemed to have been given under subsection (1) of section 2;

the expression "the Minister" means the, Minister for Finance;

the expression "scheduled body" means a body specified in the Schedule to this Act.

2.—(1) The Minister may guarantee, in such form and manner and on such terms and conditions as he thinks fit, the due repayment by a scheduled body of the principal of any moneys borrowed with the consent of the Minister, by the body or the payment of interest on such moneys or both the repayment of the principal and the payment of the interest.

(2) A guarantee given by the Minister before the commencement of this Act for a scheduled body shall be deemed for the purposes of this Act to have been given under subsection (1) of this section.

3.—The Minister shall not, as respects a scheduled body, so exercise the powers conferred by subsection (1) of section 2 of this Act that the amount, or the aggregate amount, of principal, which he may at any one time be liable to repay for the body on foot of any guarantee or guarantees for the time being in force, together with the amount of principal (if any) which he has previously paid on foot of any guarantees for the body and has not been repaid, exceeds the amount specified in the third column of the Schedule to this Act in respect of the body.

4.—Where a guarantee has been given for a scheduled body, the body shall, if the Minister so requires, give to him such security (including, if the body is a company, debentures) as may be specified in the requisition for the purpose of securing to the Minister the repayment of any moneys which he may be liable to pay or has paid under the guarantee.

5.—Moneys required to be paid by the Minister under a guarantee shall be advanced out of the Central Fund or the growing produce thereof.

6.—(1) Moneys paid by the Minister under a guarantee for a scheduled body shall be repaid to the Minister (with interest therein at such rates as the Minister appoints) by the body within twelve months from the date of the advance.

(2) Where the whole or any part of moneys advanced under section 5 of this Act has not been repaid to the Minister in accordance with subsection (1) of this section, the amount so remaining outstanding shall be repaid to the Central Fund out of moneys provided by the Oireachtas.

(3) Notwithstanding the provision of moneys under subsection (2) of this section to repay an amount to the Central Fund, the scheduled body concerned shall remain liable to the Minister in respect of that amount and that amount (with interest thereon at such rates as the Minister appoints) shall be repaid to the Minister by the scheduled body at such times and in such instalments as the Minister appoints and, in default of repayment as aforesaid and without, prejudice to any other method of recovery, shall be recoverable as a simple contract debt in any court of competent jurisdiction.

(4) Moneys repaid by a scheduled body to the Minister, or recovered from a scheduled body by the Minister, under this section shall be paid into or disposed of for the benefit of the Exchequer.

7.—The Minister shall, as soon as may be after the expiration of every financial year, lay before each House of the Oireachtas a statement setting out as respects each guarantee given during such year or given at any time before, and in force at, the commencement of such year—

( a ) particulars of the guarantee,

( b ) in case any payment has been made by the Minister under the guarantee before the end of such year, the amount of the payment and the amount (if any) repaid to the Minister on foot of the payment,

( c ) the amount for which the Minister would, if the guarantee were enforced immediately upon the expiration of such year, be liable as principal under the guarantee.

8.—(1) A scheduled body shall, within the next six months after the end of each of the accounting periods of the body—

( a ) prepare an abstract of the accounts of the body in respect of that period in such form as the Minister directs from time to time, and

( b ) send the abstract to the Minister together with a report thereon by the auditors of the body.

(2) As soon as may be after receiving an abstract of accounts and a report thereon sent pursuant to this section, the Minister shall lay copies thereof before each House of the Oireachtas.

9.—(1) The Government may by order amend the Schedule to this Act—

( a ) by deleting an amount specified in the third column or substituting a greater or less amount,

( b ) by deleting a body specified in the second column, or

( c ) by adding a body to the bodies specified in the second column and inserting in the third column an amount in respect of the body added.

(2) Where an order proposed to be made under this section will delete an amount specified in the third column of the Schedule to this Act and substitute a greater amount or will add a body to the bodies specified in the second column of that Schedule, a draft of the order shall be laid before each House of the Oireachtas and the order shall not be made until a resolution approving of the draft has been passed by each such House.

(3) An order under this section shall not prejudice or affect any guarantee in force when the order is made.

10.—(1) For the purpose of providing for advances out of the Central Fund under this Act, the Minister may borrow from any person any sum or sums, and for the purpose of such borrowing he may create and issue securities bearing such rate of interest and subject to such conditions as to repayment, redemption or any other matter as he thinks fit, and shall pay the moneys so borrowed into the Exchequer.

(2) The principal of and interest on any securities issued under this section and the expenses incurred in connection with the issue of such securities shall be charged on and payable out of the Central Fund or the growing produce thereof.

11.—(1) This Act may be cited as the State Guarantees Act 1954.

(2) This Act shall come into operation on such day as the Minister appoints by order.

SCHEDULE