Whereas the Young Women's Christian Association of Rotorua (Incorporated) (in this section referred to as the Association) intends to erect a hostel on the land described in subsection (5) and for that purpose intends to raise a loan: And whereas the Rotorua City Council (in this section referred to as the Council) wishes to guarantee repayment of the loan but has no authority to do so: Be it therefore enacted as follows:
(1) The Council may, in the name and on behalf of the Mayor, Councillors, and Citizens of the City of Rotorua, by deed or other instrument, guarantee to any financial institution within the meaning of section 326 of the Municipal Corporations Act 1954 repayment of the whole or any portion of any money which the financial institution may advance to the Association by way of mortgage on the security of the land described in subsection (5):
provided that the Council shall not exercise the power conferred by this subsection unless the money so advanced to the Association by the financial institution amounts to not more than $30,000 or two-thirds of the total estimated value of the land and the proposed hostel when erected thereon, whichever is the less.
(2) Any such guarantee shall contain such terms and conditions as the Council and the financial institution may agree upon, and may from time to time be varied by deed or other instrument executed by the Council in the name and on behalf of the Mayor, Councillors, and Citizens of the City of Rotorua, and by the financial institution.
(3) The mortgage securing the advance shall contain such terms and conditions as the Council, the financial institution, and the Association may agree upon.
(4) For the purpose of providing funds to enable it to make any payment for which it becomes liable pursuant to a guarantee given under this section or for the purpose of refunding to its General Account any money paid from that account under such a guarantee, the Council may borrow money by way of special loan under the Local Authorities Loans Act 1956, by special order, and, notwithstanding anything in section 34 of that Act, any such special loan may be raised without the prior consent of the ratepayers.
(5) The land to which this section relates is described as follows:
All that piece of land containing 1 acre and 0.4 perches, more or less, situated in the City of Rotorua, being Section 46 and part Section 3, Block I, Tarawera Survey District, being more particularly defined and shown edged red on Survey Office Plan numbered 42697 lodged in the office of the Chief Surveyor at Hamilton.