Malaysia legislation
Section 32A
of Bintulu Development Authority Ordinance, 1978 ( Ord. No. 1/78 )
Section 32A
Power to guarantee
The guarantee by the Authority under section 7(1)(mm) may be given if⎯
(a)
the Chief Minister approves⎯
(i)
the bank or other financial source from which the loan is proposed to be raised;
(ii)
the purpose for which the loan is raised; and
(iii)
the terms and conditions of the loan and in particular the period of payment and the rate of interests and other charges on it; and
(b)
the loan does not exceed such limit as may be fixed by the Chief Minister.
(2)
Where it is made to appear to the Authority that there is reasonable cause to believe⎯
(a)
that a borrower is likely to fail or be unable to discharge any of its obligations under any loan agreement entered by it with any bank or other financial source; and
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(b)
that the Authority is or may become liable under any guarantee given under subsection (1) in respect of such loan, the Authority may direct the borrower from time to time as it deems necessary or desirable to ensure that satisfactory arrangements are made by the borrower to enable it duly to discharge its obligations under such loan agreement.
(3)
The borrower shall, notwithstanding any provision contained in any other written law to the contrary, comply with any direction given under subsection (2).
(4)
If any sum is paid by the Authority in respect of any liability incurred by the Authority arising from the guarantee given under subsection (1), the borrower concerned shall repay such sums
(together with interests on it at the same rate as that payable on the loan under the loan agreement between the borrower and a bank or other financial source) to the Authority in such manner and at such time or by such instalments as the Authority may direct.
[Am. Ord. No. 6/82.]