LGFA's debt obligations are guaranteed by its council shareholders and borrower and guarantor councils.
- Other than the New Zealand Government, each shareholder in LGFA must be a Guarantor.
- Any non-shareholder council that borrows in aggregate NZ$20 million or more from LGFA must be a Guarantor.
Parties to the guarantee will be able to exit the arrangement but only after:
- All the exiting council’s borrowings are repaid.
- All the LGFA’s borrowings, current at the time the council notifies of its withdrawal from the guarantee, are repaid.