guarantee

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.

Last updated: 13 January 2016