Building Societies Act, 1974

Guarantee by Minister for Finance of borrowings by societies.

3.—(1) (a) The Minister for Finance may, if he so thinks fit, guarantee in such form and manner and on such terms and conditions as he thinks fit the due repayment by a society of the principal of any moneys borrowed by the society from an Associated Bank between the 18th day of October, 1973, and the 30th day of June, 1974, or the payment of interest on such moneys or both the repayment of the principal and the payment of the interest and any such guarantee may include a guarantee of payment of incidental expenses arising in connection with such borrowings.

(b) The total amount of the principal of any moneys the repayment of which is guaranteed under this section shall not exceed £6,000,000.

(2) Where a guarantee under this provision is in force, the society in respect of which it is given shall if the Minister for Finance so requires give to him such security as may be specified in the request for the purpose of securing to the Minister for Finance the repayment of any moneys which he may be liable to pay or has paid under the guarantee.

(3) The Minister for Finance shall, as soon as may be after the expiration of every financial year, lay before each House of the Oireachtas a statement setting out with respect to each guarantee under this section given during that year or given at any time before, and in force at, the commencement of that year—

(a) particulars of the guarantee,

(b) in case any payment has been made by the Minister for Finance under the guarantee before the end of that year, the amount of the payment and the amount (if any) repaid to the Minister for Finance on foot of the payment,

(c) the amount of principal covered by the guarantee which was outstanding at the end of that year.

(4) All moneys from time to time required by the Minister for Finance to meet sums which may become payable by him under this section shall be advanced out of the Central Fund or the growing produce thereof.

(5) The Minister for Finance may, for the purpose of providing for the advance of sums out of the Central Fund under this section, borrow on the security of the Central Fund or the growing produce thereof any sums required for that purpose and, for the purpose of such borrowing, he may create and issue securities bearing such rate of interest and subject to such conditions as to repayment, redemption or otherwise as he thinks fit, and shall pay all moneys so borrowed into the Exchequer.

(6) The principal of and interest on all securities issued under subsection (5) of this section and the expenses incurred in connection with the issue of such securities shall be charged on and payable out of the Central Fund or the growing produce thereof.

(7) Moneys paid by the Minister for Finance under a guarantee under this section shall be repaid to him (with interest thereon at such rate or rates as he appoints) by the society in respect of which the guarantee was given within two years from the date of the advance of the moneys out of the Central Fund.

(8) Where the whole or any part of moneys required by subsection (7) of this section to be repaid to the Minister for Finance has not been paid in accordance with that subsection, the amount so remaining outstanding shall be repaid to the Central Fund out of moneys provided by the Oireachtas.

(9) Notwithstanding the provision of moneys under subsection (8) of this section to repay the amount to the Central Fund, the society concerned shall remain liable to the Minister for Finance in respect of that amount and that amount (with interest thereon at such rate or rates as the Minister for Finance appoints) shall be repaid to the Minister for Finance by the society at such times and in such instalments as he appoints and, in default of repayment as aforesaid and without prejudice to any other method of recovery, shall be recoverable as a simple contract debt in any court of competent jurisdiction from the society concerned.

(10) Moneys paid by a society under subsection (7) or (9) of this section shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Finance thinks fit.