Guarantee Arrangements

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.
  • Any council shareholder of a Council Controlled Organisaton who borrows from LGFA

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.