Loan Guarantees and Assistance for Not-for profit Community Organisations on Council Land

Reference: P13-003
Date: 30 July 2013
Review: 2018, BST - Financial

Policy Purpose

To clarify how the Council provides loan guarantees and assistance to not-for-profit community organisations on Council land. 


Not-for-profit community organisation means a group whose primary purpose is the delivery of non-statutory services and activities, and does not seek to generate profit, revenue or financial surpluses for commercial interests.

Policy Statements

  1. The Council will only act as a loan guarantor or provide loan assistance to not-for-profit community organisations that are located on Council land. 
  2. Where the Council agrees to act as guarantor in respect of a loan raised by a not-for-profit organisation, the Council shall require the not-for-profit organisation to provide the Council with personal guarantees to an amount equivalent to 120% of the Council's liability as guarantor.
  3. Where the Council advances loan assistance in excess of $5,000.00 to any not-for-profit organisation, repayment of the loan shall be guaranteed by personal guarantees to an amount equal to 120% of the amount borrowed.
  4. All personal guarantees are to be in a form prepared by the New Plymouth District Council Solicitors at the cost of the not-for-profit organisation and protecting the Council in the event of default by the not-for-profit organisation in its obligations under the loan.

Policy Contact

The policy holder is the Financial Services Team within the Business Services Group.

Policy Review
This policy shall be reviewed five yearly from the date the policy is adopted.