A promise whereby one party assumes responsibility for the debt, or performance obligations, of another party should that party default in some way — for example, where an entity guarantees payment of bank borrowings by a third party. A guarantee may give rise to a contingent liability. A guarantee can only be given by an accountable authority of a non-corporate Commonwealth entity in accordance with section 60 of the PGPA Act and the Finance Minister's delegation of this power to accountable authorities.
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26/11/2024
