1) Subject to any other Act, the Government may guarantee the financial liability of an entity in respect of a loan or otherwise, but only if the giving of the guarantee is authorised by the House of Representatives.
2) A guarantee given under subsection (1) is to be evidenced in writing by the Minister.
3) The authorisation of a guarantee is not to be granted unless the following conditions have been complied with –
(a) the guarantee is for a financial liability of an entity that is -
(i) a statutory authority; or
(ii) a government company in which the State holds at least one-half of the voting rights;
(b) the Minister has recommended the giving of the guarantee;
(c) the Minister has certified that the entity has been or will be required to execute a written guarantee agreement with the Government;
(d) the Minister has certified that the guarantee agreement or a related agreement requires or will require the entity to provide such specified kinds of information and at such specified times as the Minister considers appropriate for protecting the interests of the State.
4) For the purposes of subsection (3), the State holds voting rights in a government company if those rights are exercisable by a person on behalf of the Government.
5) Any sum payable by the Government in fulfilment of a guarantee given under this section –
(a) is appropriated from the Consolidated Fund without further appropriation than this Act; and
(b) is taken to be a loan to the entity whose financial liability has been guaranteed.
(Financial Management Act 2004 s(62))