Section 17Part 4 — Finances of Bank
Government guarantee
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Subject to subsections (2) to (5), the Cabinet may guarantee, in such manner and on such conditions as he thinks fit, the repayment of the principal of, the payment of interest on and the discharge of any other financial obligation in connection with, any sums which the Bank may borrow in exercise of its powers under section 16.
A guarantee under this section shall not be given unless a statement of the proposed guarantee has been laid before the Legislative Assembly and a resolution approving that statement has been passed by the Legislative Assembly.
After a guarantee is given under this section, a statement of the guarantee shall be laid before the Legislative Assembly; and, where any sum is issued for fulfilling a guarantee so given, the Minister shall, as soon as possible after the end of each financial year (beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest on the sum is finally discharged), lay before the Legislative Assembly a statement relating to that sum.
Any sums required by the Cabinet for fulfilling a guarantee under this section shall be charged on and issued out of the revenues of the Islands.
If any sums are issued in fulfilling a guarantee given under this section, the Bank shall make to the revenues of the Islands, at such times and in such manner as the Cabinet may from time to time direct, payments of such amounts as the Cabinet may so direct in or towards repayment of the sums so issued and payments of interest, at such rate as the Cabinet may so direct, on what is outstanding for the time being in respect of sums so issued.