37.Section 10 permits two kinds of guarantee (see paragraph 32 above), which are:
those that may be given by the Treasury to CDC itself; and
those that may be given by the Secretary of State with the consent of the Treasury (see section 22(1)(e)) to companies associated with CDC (as defined in section 25).
38.The Treasury is not permitted to guarantee sums borrowed by CDC from the Secretary of State or from a company associated with CDC (see subsection (2)), and the Secretary of State is not permitted to guarantee sums borrowed by a company associated with CDC from another such company or from CDC itself (subsection (4)). By subsection (5), a guarantee may be given only when CDC is wholly owned by the Crown: that expression is defined in section 25. A guarantee cannot be given unless the Treasury or the Secretary of State (as the case may be) has entered into an agreement so that, if CDC or the associated company defaults on its obligations and the Government has to make payments to the person to whom it gave the guarantee, CDC or the associated company will be liable to repay the Government: see subsection (7).