Credit Guarantee Act 2012
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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: | ||
(a) the giving of information to the Minister for the purposes of the making of an agreement under section 4 ; | ||
(b) the extent of the Minister’s liability to a participating lender in accordance with an agreement under section 4 in circumstances where the participating lender 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 participating lender fails or refuses to comply with this Act or a scheme under this section; | ||
(d) the payment of the initial premium or annual premium under section 8 by instalments; | ||
(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 participating lenders; | ||
(f) provision with regard to the giving of documents, information and reports by lenders 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 loan 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. | ||
(3) A scheme under this section shall specify conditions (in this Act referred to as “applicable conditions”), with which a lender shall, for the purposes of the granting of approval under section 2 , comply, relating to— | ||
(a) the policies and practices of the lender as respects— | ||
(i) the lending of money generally, | ||
(ii) the giving of loans to qualifying enterprises, | ||
(iii) the recovery of moneys borrowed from the lender, | ||
(iv) the provision by borrowers of security for moneys borrowed from the lender, | ||
(b) the administration and management of the lender, | ||
(c) the procedures in relation to the supervision of transactions entered into on the lender’s behalf by members of staff of the lender, and | ||
(d) the proportion that moneys standing borrowed for the time being from the lender bears to the capital reserves of the lender, | ||
declared in a credit guarantee scheme to be conditions with which a lender shall comply before an approval in respect of that lender may be given under this section. | ||
(4) A scheme under this section shall specify— | ||
(a) the class or classes of qualifying enterprise to which the scheme shall apply, | ||
(b) the conditions that shall be complied with in relation to the entering into of a loan agreement by a participating lender with a qualifying enterprise, | ||
(c) the class or classes of loan agreement to which the scheme shall apply, | ||
(d) the purposes for which moneys borrowed pursuant to any such agreement may be applied, and | ||
(e) the maximum amount or amounts that a participating lender may lend to a qualifying enterprise. |