11Exemption from prohibition on borrowing in foreign currency
Section 113(1) of the Local Government Act 2002 does not apply in relation to a guarantee by a local authority of any indebtedness of the Funding Agency.
Local Government Borrowing Act 2011
Application of Local Government Act 2002
11: Exemption from prohibition on borrowing in foreign currency
"When councils can borrow money in another country's currency without breaking the rules"
You can find an exemption in the law about borrowing money in a different country's currency. This exemption is related to a part of the Local Government Act 2002, which you can read more about in section 113(1). When a local authority guarantees a debt for the Funding Agency, this part of the law does not apply to them.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3620726.
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10: Additional requirements to be specified in local authority's financial strategy, or
"What local councils must include in their money plans when guaranteeing other people's debts"
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12: Certain arrangements and transactions to be treated as incidental arrangements and protected transactions under Local Government Act 2002, or
"Some council deals are protected by law, like guarantees or loans between councils and the Funding Agency."