40. Application for Government guarantee
-
(1) Prior to the guarantee of a loan under section 65 of the Public Finance Management Act, a borrower shall make an application for a Government guarantee to the Minister.
-
(2) An application under subsection (1) must —
-
(a) specify that —
-
(i) the purpose of the loan is to achieve a public purpose,
-
(ii) the proposed guarantee is expected to serve a specific public policy objective;
-
(b) be accompanied by —
-
(i) the financial statements of the statutory body,
-
(ii) legal documentation that —
-
(A) is prepared by the Attorney General;
-
(B) is executed by the borrower whose loan is to be guaranteed; and
-
(C) specifies that in the event of default by the borrower —
(aa) the Government is indemnified of any liability, and
(bb) the borrower commits to repaying the Government any money paid by the Government to a creditor under the loan guarantee,
-
(iii) the prescribed application fee.