Credit Guarantee (Amendment) Act 2016

13.

Counter guarantee schemes

13. (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 Part.

(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:

(a) the giving of information to the Minister, as he or she may reasonably require, for the purpose of the making of a counter guarantee agreement;

(b) the extent of the Minister’s liability, in accordance with a counter guarantee agreement, to the participating PFI in circumstances where the participating PFI fails or refuses to comply with this Part or the scheme under this section;

(c) the variation of the terms of a counter guarantee agreement in circumstances where the participating PFI fails or refuses to comply with this Part or the scheme under this section;

(d) without prejudice to the generality of section 14(4) , the method of payment of the premium under section 14 and the time or times at which the premium shall be paid;

(e) the preparation and maintenance by the participating PFI of records, books of account and such other documentation as may be specified in the scheme under this section;

(f) provision with regard to the giving of documents, information and reports by the participating PFI to the Minister;

(g) 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 for the purposes of this Part.

(3) A scheme under this section shall specify conditions, with which the participating PFI shall comply, relating to—

(a) the policies and practices of the participating PFI as respects—

(i) the giving of guarantees generally,

(ii) the giving of guarantees in respect of moneys provided to qualifying enterprises, and

(iii) the recovery of sums paid by the participating PFI under a guarantee given by the participating PFI,

(b) the administration and management of the participating PFI in relation to the giving of guarantees, and

(c) the procedures in relation to the supervision of guarantee agreements entered into on behalf of the participating PFI by members of staff of the participating PFI.

(4) A scheme under this section shall specify—

(a) the class or classes of qualifying PFI guarantee schemes to which the scheme shall apply,

(b) the purposes for which a counter guarantee under the scheme is given,

(c) subject to subsection (5) , the conditions that shall be complied with in relation to the entering into of a guarantee agreement by the participating PFI in accordance with a qualifying PFI guarantee scheme,

(d) the maximum value of financial products that may be provided pursuant to finance agreements—

(i) entered into between finance providers and qualifying enterprises, and

(ii) that are subject to qualifying PFI guarantee agreements to which the counter guarantee under the scheme applies,

(e) the Minister’s maximum liability under the scheme to pay to the participating PFI an amount in respect of moneys—

(i) for the time being standing unpaid to the finance provider under any finance agreement, and

(ii) that the participating PFI has paid to the finance provider, pursuant to the qualifying PFI guarantee agreement concerned, in respect of those moneys standing so unpaid,

(f) the methodology which ensures that the scheme cannot operate in such manner as may result in a contravention of section 12 , and

(g) the methodology referred to in section 14(1) .

(5) The conditions referred to in paragraph (c) of subsection (4) may, in relation to the qualifying PFI guarantee scheme concerned, include conditions specifying the class or classes of—

(a) finance agreements,

(b) finance providers, and

(c) financial products,

to which that scheme shall apply.

(6) A scheme under this section shall specify the ground or grounds on which the Minister may terminate a counter guarantee agreement by notice in writing given to the participating PFI specifying the ground or grounds concerned and the date from which such termination shall take effect.

(7) (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 participating PFI 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 participating PFI.

Annotations:

Editorial Notes:

E2

Power pursuant to section exercised (28.11.2017) by Counter Guarantee Scheme 2017 (S.I. No. 551 of 2017), in effect as per art. 2.