Credit Guarantee Act 2012

5.

Credit guarantee scheme.

5.— (1) The Minister may, with the consent of the Minister for Finance and the Minister for Public Expenditure and Reform, make a scheme or schemes for the purposes of this Act.

(2) Without prejudice to the generality of subsection (1), a scheme under this section may make provision in relation to all or any of the following matters:

F16 [ ( a ) the giving of such information to the Minister, as he or she may reasonably require for the purposes of the granting of approval under section 2 or the making of an agreement under section 4 ; ]

( b) the extent of the Minister’s liability to a F16 [ participating finance provider ] in accordance with an agreement under section 4 in circumstances where the F16 [ participating finance provider ] fails or refuses to comply with this Act or a scheme under this section;

( c) variation of the terms of an agreement under section 4 in circumstances where a F16 [ participating finance provider ] fails or refuses to comply with this Act or a scheme under this section;

F16 [ ( d ) without prejudice to the generality of section 8(4) , the method of payment of the premium under section 8 and the time or times at which the premium shall be paid; ]

( e) the preparation and maintenance of records, books of account and such other documentation as may be specified in a scheme under this section by F16 [ participating finance providers ];

( f) provision with regard to the giving of documents, information and reports by F16 [ finance providers ] to the Minister;

( g) the audit and examination of accounts of qualifying enterprises;

( h) requirements in relation to the transfer of any rights and liabilities under a F16 [ finance agreement ];

( i) such other matters as the Minister, after consultation with the Minister for Finance and the Minister for Public Expenditure and Reform considers necessary or expedient.

F17 [ (3) A scheme under this section shall specify conditions (in this Act referred to as applicable conditions ), with which a finance provider shall, for the purposes of the granting of approval under section 2 , comply, relating to

( a ) the policies and practices of the finance provider as respects

(i) the provision of financial products generally,

(ii) the provision of financial products to qualifying enterprises,

(iii) the assessment of the credit risk or financial stability of qualifying enterprises,

(iv) the recovery of sums owing to the finance provider by a qualifying enterprise or property provided to a qualifying enterprise by the finance provider under a qualifying finance agreement, and

(v) the provision by qualifying enterprises of security for financial products provided to qualifying enterprises under qualifying finance agreements,

( b ) the sources from which the finance provider obtains his or her finance or funding,

( c ) the credit history of the finance provider and, in the case of certain classes of finance provider as may be specified in the scheme, a person who has, subject to subsection (6), a controlling interest in the finance provider,

( d ) the accounts and financial performance of the finance provider,

( e ) in the case of a finance provider referred to in paragraph (b) of the definition of finance provider , the payment by the finance provider of any moneys that may be received by that provider from the Minister pursuant to a guarantee under section 4 in respect of a qualifying finance agreement, to the person who provided the financial product to which that agreement relates,

( f ) the administration and management of the finance provider,

( g ) the financial product or financial products to which the scheme applies, including

(i) the information and documentation to be provided by the finance provider to the Minister in relation to the provision of such financial products,

(ii) the information and documentation to be provided by the finance provider to qualifying enterprises in relation to the provision of such financial products, and

(iii) the interest, charges and other costs (if any) that may be applied in relation to the provision of such financial products to qualifying enterprises,

( h ) the procedures in relation to the supervision of finance agreements entered into on the finance provider s behalf by members of staff of the finance provider, and

( i ) where applicable, the capital reserves of the finance provider,

declared in a credit guarantee scheme to be conditions with which a finance provider shall comply before an approval in respect of that finance provider may be given under section 2 . ]

F18 [ (4) A scheme under this section shall specify

( a ) the class or classes of

(i) qualifying enterprise,

(ii) finance provider,

(iii) financial product, and

(iv) finance agreement,

to which the scheme shall apply,

( b ) the conditions that shall be complied with in relation to the entering into of a finance agreement by a participating finance provider with a qualifying enterprise,

( c ) the purposes for which moneys or other property received by qualifying enterprises pursuant to a finance agreement may be applied,

( d ) the maximum value or values of one or more financial products that may be provided to a qualifying enterprise under one or more finance agreements to which the scheme applies, and

( e ) the methodology referred to in section 8(1) . ]

F19 [ (5) ( a ) The Minister may require that any information referred to in subsection (2)(a) given to him or her by a person in compliance with a scheme under this section be attested as to the truth of the information by a statutory declaration made by that person.

( b ) The Minister may require that any document, information or report referred to in subsection (2)(f) given to him or her by a finance provider in compliance with a scheme under this section be attested as to the truth of the contents of the document or report or, as the case may be, as to the truth of the information, by a statutory declaration made by that finance provider.

(6) For the purposes of this section, controlling interest shall be construed in accordance with subsection (14) of section 494 of the Taxes Consolidation Act 1997 and, accordingly, that subsection shall apply in relation to a finance provider subject to any necessary modifications. ]

Annotations

Amendments:

F16

Substituted (1.10.2016) by Credit Guarantee (Amendment) Act 2016 (1/2016), s. 6(a), S.I. No. 504 of 2016, subject to exclusions in s. 9.

F17

Substituted (1.10.2016) by Credit Guarantee (Amendment) Act 2016 (1/2016), s. 6(b), S.I. No. 504 of 2016, subject to exclusions in s. 9.

F18

Substituted (1.10.2016) by Credit Guarantee (Amendment) Act 2016 (1/2016), s. 6(c), S.I. No. 504 of 2016, subject to exclusions in s. 9.

F19

Inserted (1.10.2016) by Credit Guarantee (Amendment) Act 2016 (1/2016), s. 6(d), S.I. No. 504 of 2016, subject to exclusions in s. 9.

Editorial Notes:

E3

Power pursuant to section exercised (28.08.2020) by Covid-19 Credit Guarantee Scheme 2020 (S.I. No. 325 of 2020).

E4

Power pursuant to section exercised (3.03.2017) by Credit Guarantee Scheme 2017 (S.I. No. 70 of 2017), in effect as per art. 2.

E5

Power pursuant to section exercised (10.02.2015) by Credit Guarantee Scheme 2015 (S.I. No. 48 of 2015), in effect as per art. 2.

E6

Power pursuant to section exercised (4.09.2012) by Credit Guarantee Scheme 2012 (S.I. No. 360 of 2012), in effect as per art. 2.