Credit Guarantee (Amendment) Act 2016
Payment of premium to Minister by participating enterprise
7. The Principal Act is amended by the substitution of the following section for section 8:
“8. (1) Subject to this section, a participating enterprise shall, in accordance with a credit guarantee scheme that applies to the enterprise and a qualifying finance agreement entered into by the enterprise with a participating finance provider, pay to the Minister an amount (in this section referred to as the ‘premium’) determined by the Minister in accordance with the methodology specified in the scheme for the purposes of making that determination.
(2) The Minister shall, in specifying, in a credit guarantee scheme, the methodology referred to in subsection (1), have regard to—
(a) the expenses referred to in section 11 incurred or likely to be incurred, or both, in relation to the scheme, and
(b) the objectives of the scheme.
(3) The Minister shall, in specifying, in a credit guarantee scheme, the methodology referred to in subsection (1) in so far as the expenses referred to in section 11 are concerned, have regard to—
(a) the size and quality of the participating enterprises to which the scheme applies,
(b) the risks associated with those participating enterprises,
(c) the typical risks associated with the business sector or sectors to which those participating enterprises belong,
(d) the duration of guarantees given under the scheme,
(e) the Minister’s liability under section 4(2) in relation to a qualifying finance agreement to which the scheme applies, and
(f) the nature of qualifying finance agreements to which the scheme applies.
(4) The premium may be charged annually, may be paid by one payment or by instalments, and may be paid at such time or times, as may be specified in the credit guarantee scheme.
(5) The Minister shall apply the premium received by him or her from a participating enterprise for the purpose only of defraying the costs of the credit guarantee scheme which applies to the enterprise.”.