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Loan Guarantees for Developments on Council Land and Loans to Community Organisations

Reference: P97-003         
Status: Approved by the Council on 1 April 1997

ACE

That:
a) The Council, where it agrees to act as guarantor in respect of loans raised by sporting clubs or recreational organisations, shall, as a matter of policy, require any club or organisation to provide the Council with personal guarantees to an amount equivalent to 120% of the Council’s liability as guarantor such guarantees to be in a form prepared by the District Solicitors at the cost of the club or organisation and protecting the Council in the event of default by the club or organisation in its obligations under the loan;

b) As a matter of policy where the Council advances loan assistance in excess of $5,000.00 to any recreational group for recreational development purposes repayment of the loan shall be guaranteed by personal guarantees to an amount equal to 120% of the amount borrowed.

Reviewed three yearly (next review 2013).