General Loan and Stock Act

Link to law: http://laws.gov.ag/acts/chapters/cap-188.pdf
Published: 1950

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General Loan and Stock (CAP. 188 1

CHAPTER 188

T H E G E N E R A L L O A N A N D S T O C K A C T

Arrangement of Sections
Section

1. Short title.
2. Interpretation..
3. Loans to be raised by debentures or stock.
4. Loans to be a charge upon general revenue.
5. Borrowing upon debentures.
6. Amount of each debenture.
7. Debentures may be redeemed by annual drawings or

by purchase in the market or on a date fixed.
8. Interest coupons.
9. Form of debenture and coupons.

10. Debentures and coupons transferable by delivery.
11. Registry of debentures.
12. Payment of interest.
13. Mode of providing for payment of interest on

debentures.
14. Further sums to be remitted for the redemption of the

debentures.
15. Application of sinking fund.
16. Creation of sinking fund for redemption of debentures

payable on a fixed date.
17. Disposal of sinking fund when debentures are redeemed

by purchase or by annual drawings.
18. Appointment of day for drawing debentures.
19. Notice of time and place appointed for drawing.
20. Mode of drawing.
21. Notice of debentures drawn for redemption.
22. Payment of drawn debentures.
23. Cesser of interest from day appointed for payment of

principal.
24. Redeemed debentures to be cancelled.
25. Borrowing upon stock.
26. When the principal is to be repaid.

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2 CAP. 188) General Loan and Stock

27. Mode of providing for the payment of interest on stock.
28. Mode of providing for payment of principal of stock.
29. Creation of sinking fund.
30. Charge upon general revenue.
31. Expenses to be paid out of sinking fund.
32. Powers of Governor-General.
33. Exchange of securities for stock.
34. Converted securities to be cancelled.
35. Trustees to apportion amount of sinking fund released

by conversion.
36. Sinking funds released: how to be disposed of.
37. Creation, inscription, registration, issue, conversion, and

transfer of stock.
38. Raising of loans in Antigua and Barbuda.
39. Regulations regarding transfer of Stock. 40 and 41 Vic.

c 59. 12 & 13 Geo. 6 c.1.

LAWS OF ANTIGUA AND BARBUDA

General Loan and Stock (CAP. 188 3

GENERAL LOANAND STOCK.

( 1st December, 1950. )

WHEREAS it is expedient to define in one Act the terms
and conditions applicable to loans hereinafter authorized to
be raised by the Legislature:

AND WHEREAS it is expedient to provide for the crea-
tion of stock and to enable Antigua and Barbuda to take
advantage of the provisions of the Acts of the Parliament
of the United Kingdom entitled the Colonial Stocks Act, 1877
to 1948, and any Act amending the same:

1. This Act may be cited as the General Loan and short title.
Stock Act.

2. In this Act- Interpretation.

"stock" includes both inscribed and registered stock;

"registered stock" means stock transferable by instru-
ment in writing.

3. Whenever by any Act authority shall have been :; ;be
given, or shall hereafter be given, to raise any sum of money debentures or
for the purposes mentioned in such Act, the Governor- stock.
General, or the Crown Agents acting on his behalf, may
from time to time, as he or they may deem expedient, raise
such sum either by debentures or by stock, or partly by
debentures and partly by stock.

4. The principal moneys and interest represented by Loans charge to upon be a
debentures or stock issued under the provisions of this Act general revenue.
are hereby charged upon and shall be payable out of the
general revenues and assets of Antigua and Barbuda.

5 . When the Governor-General, or the Crown Agents ~ ; ~ ~ ; , " , . U P O ~
acting on his behalf, shall deem it expedient to raise money

LAWS OF ANTIGUA AND BARBUDA

4 CAP. 188) General Loan and Stock

by debentures, such debentures shall be issued in London
on behalf of the Government by the Crown Agents, upon
the best and most favourable terms that can be obtained,
and shall be signed by any one of them in that behalf.

Amount of each
debenture.

6. Every debenture issued under the provisions of this
Act shall be for the sum of not less than four hundred and
eighty dollars.

Debentures may
be redeemed by 7. The debentures shall be redeemable either-
annual drawings
OI by purchase (a) at par on a fixed date to be declared on the
in the market or issue of the debentures such date not being later than
on a date fixed. sixty years from the date of issue:

Provided that the Governor-General, or the Crown
Agents acting on his behalf, may reserve the option to
redeem the debentures prior to such date on such con-
ditions as may be declared at the time of issue; or

(6) by annual drawings at par or at the option of
the Governor-General, or the Crown Agents acting on
his behalf, by purchase at or below par.

Interest coupons. 8. There shall be attached to every debenture coupons
for the payment of the interest to become due in each half-
year upon the principal represented by the debenture. The
coupons shall be sufficient in number to provide for the pay-
ment of the interest, either during the whole period for which
the debenture has to run, or for such limited period as the
Crown Agents, acting on behalf of the Government, may
determine.

Form of
debenture and 9. The debentures and the coupons thereto shall be
coupons. in such form as the Governor-General, or the Crown Agents

acting on his behalf, may direct or approve.

Debentures and
coupons 10. Every debenture and coupon, and the right to
transferable by receive the principal and interest represented thereby, shall
delivery. be transferable by delivery.

Registry of
debentures. 1 . Every debenture shall, before being issued, be

registered in a register book to be kept for that purpose at
the office in London of the Crown Agents.

LAWS OF ANTIGUA AND BARBUDA

General Loan and Stock (CAP. 188 5

12. The interest upon the principal represented by p ~ = ; t of
each debenture shall run from the day named in that behalf
in the debenture, and shall be paid half-yearly on the days
named in that behalf in the debenture, at the office in London
of the Crown Agents.

13. So long as any of the debentures remain outstand- Mode of
providing for

ing, the Governor-General shall, in each half-year ending payment of
with the day on which the interest on the debentures falls z;;:~.
due, appropriate out of the general revenues and assets of
Antigua and Barbuda, a sum equal to one half-year's interest
on the whole of the debentures issued, including any which
may have been redeemed, but exclusive of any which may
have been exchanged at any time for stock, and shall remit
that sum to the Crown Agents at such time as will enable
them to pay thereout the then current half-year's interest
on the day on which it falls due. Debentures shall not be
deemed to be outstanding for the purpose of this Act by
reason only that one or more of the debentures have not
been presented for payment on the day appointed for pay-
ment and have, in consequence, not been paid.

14. (1) The Governor-General shall, in the half-year ~~~,h~,:~;;$
ending on the date specified in the terms of issue of the loan the redemption
as that on which the first contribution to the sinking fund ; ~ ~ ~ ; t u r e s .
shall be taken and in each subsequent half-year, appropriate
out of the said revenues and assets of Antigua and Barbuda
for the formation of a sinking fund, an additional sum equal
to one half of the annual contribution specified in the pros-
pectus or, in the case of a loan not issued publicly, in the
terms of issue relating to the loan, in respect of the total
nominal amount of all the debentures issued, including any
which may have been redeemed, but exclusive of any which
may have been at any time exchanged for stock, and shall
remit that sum to the Crown Agents with the remittance
hereinbefore mentioned.

(2) Notwithstanding anything to the contrary contained
in subsection (I), if at any time the trustees of the sinking
fund of any loan issued under the provisions of this Act are
satisfied that the value of the fund will be sufficient with fur-
ther accumulations of interest but without further payment
of contributions to enable the loan to be redeemed out of
the proceeds of the sinking fund not later than the final

LAWS OF ANTIGUA AND BARBUDA

CAP. 188) General Loan and Stock

Application of
sinking fund.

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

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

Appointment of
day for drawing
of debentures.

redemption date, the Governor-General may suspend fur-
ther contribution to the said sinking fund:

Provided always that contributions to the sinking fund
shall be recommenced if the trustees shall at any time inform
the Governor-General that this is necessary.

15. The sinking fund shall be applied in the first place
in payment of all expenses of, or incidental to, the redemp-
tion of the debentures and the cost and expenses of all notices
required by this Act to be given, and in the next place, and
subject to the aforesaid payments, in repayment of the prin-
cipal moneys for the time being represented by the
debentures.

16. In the case of debentures redeemable on a fixed
date, the Crown Agents shall place at interest or invest in
the purchase of such securities as may be approved by the
Governor-General so much of the money so remitted to them
as aforesaid as shall not be required for the payment of
interest for the current half-year, as a sinking fund for the
final extinction of the debt, and the Crown Agents shall also
place at interest or invest in the purchase of like securities
the accumulations of interest or the dividends, interest or
produce of such investments and may, from time to time,
with the approval of the Governor-General, change any such
investments and shall hold such fund in trust for the repay-
ment of the principal moneys for the time being represented
by the debentures.

17. In the case of debentures redeemable by annual
drawings, the Crown Agents shall place and keep the moneys
so remitted to them, or so much thereof as may not be
required for immediate payments, at interest, and shall hold
all such moneys and the accumulation thereon in trust to
apply them in the first place to the purchase of the deben-
tures when they can be obtained at a price not exceeding
par, and, secondly, to the redemption of the debentures by
means of annual drawings.

18. After the date specified in the Act authorizing
a loan as that on which the contributions to the sinking fund
shall commence in respect of that loan, and so long thereafter
as any of the debentures remain oustanding and unsatisfied,

LAWS OF ANTIGUA AND BARBUDA

General Loan and Stock (CAP. 188 7

the Crown Agents shall in every year, unless the whole of
the money applicable in that year to the redemption of deben-
tures has been applied in the purchase thereof, appoint a
day in that year for the drawing by lot of the debentures
to be redeemed.

19. If a day is appointed for drawing, the Crown I'J'Jp;ottime
Agents shall give, by advertisement in the London Times appointed for
newspaper, not less than fifteen days previous notice, speci- drawing.
fying the day on which, and the hour and place at which,
the drawing will take place.

20. On the day and at the hour and place so specified :;$:
the Crown Agents 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, if any, as
may attend, and of a Notary Public, draw by lot, out of
the whole number of debentures for the time being outstand-
ing, debentures of the specified nominal amount.

2 1. The Crown Agents shall thereupon declare the ~ ; ~ ~ t u O r f e s drawn
distinguishing numbers of the debentures drawn for redemp- for redemption.
tion, and shall, as soon as may be, by advertisement in the
London Times newspaper, specify those 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 moneys represented by the deben-
tures so distinguished will be repaid.

22. On the day so appointed the Crown Agents shall, z;z;t of
at their office in London, on demand, pay to the holders debentures.
of the debentures drawn for repayment the principal moneys
represented by those debentures, with all interest payable
thereon up to that day.

23. From and after the day appointed for the repay- cesser of interest
from day ment of any debenture all interest on the principal moneys appointed for

represented thereby shall cease and determine, whether pay- ;rn:;,.of
ment of the principal shall have been demanded or not.

24. Upon the repayment of the principal moneys Redeemed
debentures to be

represented by any debenture, the debenture, with all cance~ed.
coupons thereunto belonging, shall be delivered up to the
Crown Agents, to be by them cancelled and disposed of in

LAWS OF ANTIGUA AND BARBUDA

CAP. 188) General Loan and Stock

such a manner as the Governor-General, or the Crown
Agents acting on his behalf, may decide. Any debenture
redeemed by purchase shall likewise be so cancelled and
disposed of.

Borrowing upon
stock.

25. When the Governor-General, or the Crown
Agents acting on his behalf, shall deem it expedient to raise
money by the issue of Antigua and Barbuda stock, then such
stock shall be issued in England by the Crown Agents under
the provisions of the Acts of the Parliament of the United

40 and 41
Vic.c.59.

Kingdom entitled "The Colonial Stock Acts, 1877 to 1948",
and any Act amending the same upon the best and most
favourable terms that can be obtained.

When the 26. All the stock which may be created under the pro-
principal is to be
repaid. visions of this Act shall be redeemable at par on a date to

be named in that behalf by the Crown Agents when issuing
the stock, such date not being later than sixty years from
the date of issue:

Provided that the Governor-General, or the Crown
Agents acting on his behalf, may reserve the option to redeem
the stock in whole or in part, by drawings or otherwise, at
any time prior to such date on such conditions as may be
declared at the time of issue. From and after the date
appointed for the redemption of the stock or any part of it
all the interest on the principal moneys represented thereby
shall cease and determine, whether payment of the principal
shall have been demanded or not.

Mode of
providing for the

27. So long as any of the stock shall remain
payment of unredeemed, the Governor-General shall, in each half-year
interest on stock. ending with the day on which the interest on such stock falls

due, appropriate out of the general revenues and assets of
Antigua and Barbuda, a sum equal to one half-year's interest
on the whole of such stock, and shall remit that sum to the
Crown Agents at such time as will enable them to pay
thereout the then current half-year's interest on the day when
it falls due.

Mode of
providing for

28. (1) The Governor-General shall, in the half-year
payment of ending on the date specified in the terms of issue of the loan
principal of as that on which the first contribution to the sinking fund
stock.

shall be taken and in each subsequent half-year, appropriate

LAWS OF ANTIGUA AND BARBUDA

General Loan and Stock (CAP. 188 9

out of the said revenues and assets of Antigua and Barbuda
for the formation of a sinking fund an additional sum equal
to one half of the annual contribution specified in the pros-
pectus, or, in the case of a loan not issued publicly, in the
terms of issue relating to the loan, in respect of the total
nominal amount of such stock including any such stock which
may at any time have been issued in exchange for deben-
tures under the authority of this Act, and shall remit that
sum to the Crown Agents with the remittance hereinbefore
mentioned.

(2) Notwithstanding anything to the contrary contained
in sub-section (I), if at any time the trustees of the sinking
fund of any loan issued under the provisions of this Act are
satisfied that the value of the fund will be sufficient with fur-
ther accumulations of interest but without further payment
of contributions to enable the loan to be redeemed out of
the proceeds of the sinking fund not later than the final
redemption date, the Governor-General may suspend fur-
ther contributions to the said sinking fund:

Provided always that contributions to the sinking fund
shall be recommenced if the trustees shall at any time inform
the Governor-General that this is necessary.

29. The Crown Agents shall, for the purpose of for- ~ ? ~ ~ ~ f , " ~ d .
ming such sinking fund, from time to time place at interest
or invest in the purchase of such securities as may from time
to time be approved by the Governor-General so much of
the money so remitted to them as aforesaid as shall not be
required for the payment of interest for the current half-year
and shall also place at interest or invest in the purchase of
like securities, the accumulations of interest or the dividends,
interest, or produce of such investments, and may from time
to time, with the approval of the Governor-General, change
any such investments, and shall hold such fund in trust for
the repayment of the principal moneys for the time being
represented by the stock.

30. In case the sinking funds provided for by this Act :% ;pane.
shall be insufficient for the payment of all the principal - .
moneys borrowed under the authority of this Act a;the time
the same shall have become due, the Governor-General shall

LAWS OF ANTIGUA AND BARBUDA

10 CAP. 188) General Loan and Stock

make good the deficiency out of the general revenues and
assets of Antigua and Barbuda.

Expenses to be
paid out of

31. All expenses of or incidental to the management
&king fund. of the sinking fund, or to the payment of the principal moneys

borrowed, shall be paid out of the sinking fund.

Powers of
Governor-General. 32. The Governor-General shall also have, and may

from time to time exercise, the following powers and - .
authorities or any of them-

(a) He may authorize the Crown Agents when
issuing any loan in the form of debentures to declare
that such debentures will be convertible into stock at
such dates and on such terms and conditions as may
be prescribed by the Crown Agents at the time of the
issue of the debentures;

(6 ) He may declare all or any of the Antigua and
Barbuda loans, whether existing in the form of stock
or debentures, and whether issued before or after the
commencement of this Act, to be convertible into stock,
to be issued under the provisions of this Act;

(c) He may authorize the creation and issue of such
an amount of stock in exchange for the securities held
for such loans as may be necessary;

(6) He may authorize the creation and sale of any
such stock or debentures for the purpose of raising
money for redeeming any outstanding loans whether
issued before or subsequent to the passing of this Act,
for paying any expense in the creation of stock, and
otherwise for carrying out the provisions of this Act;

(e) Any conversion so authorized may be effected
either by an arrangement with the holders of existing
securities or by purchase thereof out of moneys raised
by the sale of stock, or partly in one way and partly
in the other.

Exchange of
securities for

33. Nothing in this Act contained shall authorize an
stock. increase of the capital or of the annual charge on any loan,

except-

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General Loan and Stock (CAP. 188 11

(a) when securities exchanged for stock bear a rate
of interest not less than the stock, an additional amount
of stock may be created and issued to make up the dif-
ference in saleable value between the securities and the
stock;

(b) in the case of the conversion of securities into
stock the Crown Agents shall issue such an amount of
stock as may be required to defray the stamp duties and
all other expenses incidental to the conversion;

(c) in accordance with such terms and conditions
as may be prescribed under paragraph (a) of section 32.

34. The securities exchanged or otherwise converted Converted
securities to be

into stock under the provisions of this Act shall be forthwith cance~,d.
cancelled by the Crown Agents, and the debentures sur-
rendered shall be cancelled and transmitted to the
Governor-General.

35. The trustees of the sinking fund appointed under T;;:;::
this Act, and acting under any Act authorizing the issue of of
any securities which may be exchanged into stock or cancelled $ , k ~ ~ ~ ~ ; d
or purchased under the provisions of this Act, shall deter- conversion.
mine what amount of the sinking fund held by them and
created for repayment of such securities shall be released and
in the determination of such question the trustees shall take
into consideration the value of the whole investments held
by them on account of such sinking funds, the amount of
the debt remaining a charge on such sinking funds, and such
matters as the trustees may think fit to take into account.

36. So much of the sinking funds as may be released s:;y~",i:%d," to
shall either be transferred unto the trustees of the stock sinking be disposed of.
fund, or be disposed of in such a manner as the Governor-
General, with the advice and consent of the Legislature, may
direct.

37. The Crown Agents may from time to time, at Creation, inscription,
the request of the Governor-General, make arrangements registration,
for all or any of the following things- issue, conversion,

and transfer of
stock.

( 1 ) For inscribing and registering stock in their books;

LAWS OF ANTIGUA AND BARBUDA

CAP. $88) General Loan and Stock

(2) For managing the creation, inscription, registration
and issue of stock, including the issue of certificates of title
in respect of such stock;

(3) For effecting the conversion of loans into stock;

(4) For paying interest on stock and managing the
transfers thereof;

(5) For issuing stock certificates to bearer, and, as often
as occasion shall require, re-inscribing or re-registering them;

(6) For effecting the exchange or conversion of inscribed
stock into registered stock.

Raising of loans
in Antigua and

38. This Act shall be applicable only to the raising
Barbuda. of loans in England, and nothing in this Act contained shall

prevent the raising of loans in Antigua and Barbuda upon
such terms and conditions as shall be specified in any Act
authorizing the raising of such loans.

Regulations
regarding

39. Authority is hereby given for the making of
transfer of stock. regulations under section 16 of the Colonial Stock Act, 1877,
40 and 41
Vic.c.59.

to provide, that, in accordance with section 1 of the Col-
12 and 13 Geo.6 onial Stock Act, 1948, stock issued (whether before or after
c.1. the passing of the last mentioned Act) under the provisions

of this Act shall be transferable by instrument in writing in
accordance with the regulations and in no other manner.