Automatic language translation
Our website uses an automatic service to translate our content into different languages. These translations should be used as a guide only. See our Accessibility page for further information.
Third party guarantees
Reference received: 2 March 1999
Report
Report 107: Guaranteeing someone else's debt (PDF, 1.3 MB), November 2006
- Tabled in parliament: 9 May 2007
Research report
Research Report 11: Darling, please sign this form: a report on the practice of third party guarantees in New South Wales (PDF, 4.6 MB) , October 2003
Issues paper
Issues Paper 17: Guaranteeing Someone Else's Debts, April 2000
A summary of Issues Paper 17 was also published
Terms of reference
To inquire into and report on the legal framework for the protection of guarantors of small business and other loans and in particular, to consider:
(i) whether the present legal framework adequately protects the interests of personal guarantors of small business and other loans;
(ii) whether there is a reasonable level of satisfaction in the community with the operation and application of the existing laws protecting guarantors of small business and other loans, in particular, whether those guarantors, financiers and principal borrowers are satisfied with the present legal framework;
(iii) whether there are more practical and effective strategies for the provision of personal guarantees of small business and other loans that would enhance the development of conscientious lending practices while not placing undue constraints on small business lending; and
(iv) any related matters.
In carrying out its review, the Commission is to have regard to:
- The report of the Expert Group on Family Financial Vulnerability "Good Relations: High Risks - Financial Transactions Within Families and Between Friends" released by the Commonwealth Attorney General in February 1996, and any other relevant reviews;
- The effectiveness of current New South Wales legislation with particular reference to the Contracts Review Act 1980 and the Fair Trading Act 1987; and
- The need to ensure that any legal framework governing this issue adequately and effectively protects the interests of personal guarantors; promotes commercial stability and certainty; and does not unduly restrain small business lending.
We acknowledge Aboriginal people as the First Nations Peoples of NSW and pay our respects to Elders past, present and future. We acknowledge the ongoing connection Aboriginal people have to this land and recognise Aboriginal people as the original custodians of this land.