General Loan Act 2005

Link to law: http://laws.gov.ag/acts/2005/a2005-19.pdf

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The General Loans Act ,2005
No. 19 of 2005. ANTIGUA
AND

BARBUDA

1The General Loan Act, 2005.

ANTIGUA AND BARBUDA

No. 19 of 2005

AN ACT to make provision for the borrowing of money by
the issue of Debentures.

[ Published in the Official Gazette Vol. XXV No. 77
dated 1st December, 2005. ]

ENACTED by the Parliament of Antigua and Barbuda as
follows —

1. This Act may be cited as the General Loan Act, 2005.

2. In this Act, unless the context otherwise provides —

“holder” means the person for the time being entered in
the register as the holder of a debenture and in each
case includes such person’s personal representative.

“investor” refers to a person, group, broker dealer,
organization, firm or company that purchases
debentures.

“Minister” means Minister responsible for Finance.

“register” includes the register in which the particulars
of holders are by virtue of any enactment required to be

Short title.

Interpretation.

[ L.S.]

I Assent,

James B. Carlisle,
Governor-General.

15th November, 2005

No. 19 of 2005.ANTIGUA
AND

BARBUDA

2 The General Loan Act, 2005.

entered, and a register maintained in a computer-based
system.

“Securities Act” means the Securities Act, 2001

“Securities Registry” means the Eastern Caribbean
Central Securities Registry Limited or such other
securities registry approved by the Government to carry
out the functions of a securities registry under the
provisions of this Act.

3. The Act applies to loans raised within and outside
Antigua and Barbuda.

4. (1) Whenever the Minister is authorised by an Act to
raise any sum of money for the purposes mentioned in such
Act, the Minister may, if he deems it expedient, direct the
Financial Secretary, in writing, to raise all or part of such sum
by the issue of Debentures.

(2) The Minister shall determine the amount of debenture
directed by him to be issued under this Act.

5. The principal monies and interest represented by such
debentures are hereby charged upon and shall be payable
out of the Consolidated fund.

6. The Debentures shall be issued upon the best and most
favourable terms that can be obtained.

7. (1) The Minister may direct that Debentures be issued
in certificated of uncertificated form

(2) Debentures issued in a certificated form shall be
authenticated in such names as may, from time to time, be
approved by the Minister;

(3) Debentures issued in an uncertificated form shall be
authorised by the Minister or by persons authorised by him.

8. The Debentures shall be redeemable either —

Scope.SScope

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Scope.

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Scope.

Loans to be
raised by
Debentures.

Loans to be a
charged upon
Consolidated
Fund.

Borrowing upon
Debentures.

Forms of issue of
debentures.

Debentures may
be either fixed-
date or drawing
Debentures.

No. 14. of 2001

No. 19 of 2005. ANTIGUA
AND

BARBUDA

3The General Loan Act, 2005.

(a) on a fixed date to be declared on the issue of the
Debentures, such date not being later than sixty
years from the date of issue:

Provided that the Minister may reserve the option
to redeem the Debentures prior to such date on
such conditions as may be declared at the time of
issue (such debentures being hereinafter referred
to as fixed-date Debentures); or

(b) by annual drawings or at the option of the Minister
by purchase in the market as hereinafter provided
(such Debentures being hereinafter referred to as
drawing Debentures).

9. (1) The Securities Registry shall maintain a register in
such form as may be prescribed by the Minister and shall
enter the particulars of every Debenture issued.

(2) The ownership of Debentures, which are issued under
this Act, may subject to the provisions of this Act, be
evidenced and transferred without a written instrument.

10. (1) A register of Debentures is prima facie evidence of
any matters which are, by these Regulations, directed or
authorised to be entered in the register.

(2) A register of Debentures or an extract of such register
shall be admissible in evidence in any court by means of a
document printed from the Securities Registry system and
certified by the person authorised to certify such documents.

11. The Accountant General shall effect payment of the
principal and interest on every Debenture in accordance with
instructions given in writing by the holder.

12. (1) The Minister shall appropriate out of the
Consolidated Fund, the sum to pay the principal and interest
represented by the Debentures issued by the Minister and,
out of the sum so appropriated, he shall remit such amount at
such time as will enable it to pay the principal and interest on
every Debenture when such Debenture falls due, and shall
cause every Debenture to be paid when it falls due.

Debentures to
be registered
and transferable
by instrument
in writing.

Register to be
conclusive
evidence of
facts entered
therein.

Payment of
interest.

Repayment of
bonds.

No. 19 of 2005.ANTIGUA
AND

BARBUDA

4 The General Loan Act, 2005.

(2) Debentures shall not be deemed to be outstanding for
the purpose of this Act by reason only that anyone of the
holders have not given instructions for payment on the day
appointed for payment and have in consequence not been
paid.

13. (1) The Minister shall appropriate out of the Consoli-
dated Fund the necessary sum to pay the principal and interest
represented by the debentures issued by the Minister and out of
the sum so appropriated shall remit such amount at such time as
will enable it to pay the principal and interest on every debenture
when such debenture falls due, and shall cause every debenture
to be paid when it falls due.

(2) Debentures shall not be deemed to be outstanding for
the purpose of this Act by reason only that one or more of the
debenture holders have not given instructions for payment on
the day appointed for payment and have in consequence not
been paid.

14. In the case of drawing Debentures, so much of the
monies appropriated under section 13 as shall not be required
for the immediate payment of interest and the accumulations
thereon shall be held by the Accountant-General in trust to
apply them to the purchase of the Debentures when they can
be obtained at a price not exceeding par, and secondly to the
redemption of the Debentures by means of annual drawings
in the manner following —

(a) After the commencement of the contributions of
the special fund in respect of any loan, and so
long thereafter as any of the Debentures remain
outstanding, the Minister shall, in every year,
unless the whole of the money applicable in that
year to the redemption of Debentures has been
applied in the purchase thereof, appoint a day in
that year for the drawing by lot of the Debentures
to be redeemed.

(b) If a day is appointed under paragraph (a) for
drawing by lot, the Accountant-General shall
publish in the Gazette and in at least two of the

Loan to be paid
out of the
Consolidated
Fund.

Disposal of
sinking fund
when
Debentures are
redeemed by
purchase of
annual drawings.

No. 19 of 2005. ANTIGUA
AND

BARBUDA

5The General Loan Act, 2005.

local newspapers circulating in Antigua and
Barbuda not less than fifteen days notice,
specifying the day on which, and the hour and
the place at which, the drawing will take place.

(c) On the day and at the hour and place so specified,
the Accountant-General or any other officer
appointed by the Minister for the purpose shall
hold a meeting at which the holder of any
Debenture may, if he thinks fit, be present, and
shall then in the presence of such Debenture
holders as may attend draw a lot, out of the whole
number of Debentures for the time being
outstanding, Debentures of the specified nominal
amount.

(d) The Accountant-General or any other officer
appointed under paragraph (c) shall thereupon
declare the distinguishing numbers of the
Debentures drawn for redemption.

(e) Subject to paragraph (d), the Accountant-General
shall, as soon as may be, publish in the Gazette
and at least one of the local newspapers
circulating in Antigua and Barbuda, a notice
specifying the distinguishing numbers and
appoint a day, not being later as to each Debenture
than the day on which the then current half-year’s
interest thereon is payable, on which the principal
monies represented by the Debenture numbers
so distinguished will be repaid.

(f) Notice of the Debentures drawn for redemption
shall also be sent by post to the registered holders
of such Debentures.

(g) From and after the day so appointed, the
Accountant-General shall at his office, pay on
demand to the holders of the Debentures drawn
for repayment, the principal monies represented
by these Debentures, with all interest payable
thereon up to the appointed day.

No. 19 of 2005.ANTIGUA
AND

BARBUDA

6 The General Loan Act, 2005.

15. From and after the day appointed under section 14 for
the repayment of any Debenture, whether a fixed-date or a
drawing Debenture, all interest on the principal monies
represented by the Debentures shall cease and determine,
whether payment of the principal shall have been demanded
or not.

16. (1) Upon payment of the principal monies secured by
any debenture, all the entries in the Register relating to any
Debenture shall be cancelled.

(2) Where Debentures are issued in certificated form, upon
repayment of the principal monies represented by any
debenture, such debenture shall be delivered up to the
Accountant General to be cancelled and retained. Any drawing
debenture redeemed by purchase shall likewise be so
cancelled and retained.

17. All expenses of or incidental to the redemption of the
Debentures and the costs and expenses of all notices required
by this Act to be given may be paid out of the special fund.

18. (1) No person who has acquired knowledge in his
capacity as secretary, officer, employee or agent of the
Government shall disclose to any person or governmental
authority, the identity, assets, liabilities, transactions or other
information in respect of a holder except:

(a) with the written authorisation of the holder or of
his heirs or legal personal representatives; or

(b) for the purpose of the performance of his duties
within the scope of his employment in conformity
with the provisions of this Act or rules governing
the operations of the Securities Exchange, and
the Securities Registry; or

(c) when lawfully required to make disclosure by any
court of competent jurisdiction within or outside
Antigua and Barbuda; or

(d) under the provisions of any laws of Antigua and
Barbuda or agreement among the participating
Governments.

Cessation of
interest from
day appointed
for payment of
principal.

Redeemed
Debentures to
be cancelled.

Expenses of
redemption to
be borne by
sinking fund.

Confident ia l i ty
of information.

No. 19 of 2005. ANTIGUA
AND

BARBUDA

7The General Loan Act, 2005.

(2) Every person who contravenes the provisions of
subsection (1) commits an offence and is liable on summary
conviction to a fine not exceeding fifteen thousand dollars or
to imprisonment for a term not exceeding two years or to both
such fine and imprisonment.

19. The General Loan Act is repealed Repeal of
Cap.189.

Passed by the House of Representatives this
14th day of October, 2005.

D. Giselle Isaac-Arrindell,
Speaker.

Yvonne Henry,
Clerk to the House of Representatives.

Passed by the Senate this 3rd
day of November, 2005.

Mackenzie M. Frank,
Vice President.

Yvonne Henry,
Clerk to the Senate.

________
Printed at the Government Printing Office, Antigua and Barbuda,

by Eric T. Bennett, Acting Government Printer
— By Authority, 2005.

800—11.05 [ Price$3.30 ]

ANTIGUA AND BARBUDA

GENERAL LOAN ACT, 2005

ARRANGEMENT OF SECTIONS

Section

1. Short title.

2. Interpretation.

3. Scope.

4. Loans to be raised by Debentures.

5. Loans to be a charged upon the Consolidated Fund.

6. Borrowing upon Debentures.

7. Forms of issue of Debentures.

8. Debentures may be either fixed-date or drawing Debentures.

9. Debentures to be registered and transferable by instrument in writing.

10. Register to be conclusive evidence of facts entered therein.

11. Payment of interest

12. Repayment of Bonds.

13. Creation of sinking fund for redemption of Debentures payable on a fixed date.

14. Disposal of sinking fund when Debentures are redeemed by purchase of
annual drawings.

15. Cessation of interest from day appointed for payment of principal.

16. Redeemed Debentures to be cancelled.

17. Expenses of redemption to be borne by sinking fund.

18. Confidentiality of information.

19. Repeal of Cap. 189.