Loan Stock Authorisation Act 2005

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The Loan Stock Authorisation (Amendment) Act 2005
ANTIGUA
AND

BARBUDA

No. 17 of 2005 The Loan Stock Authorisation Act, 2005 1

ANTIGUA AND BARBUDA

No. 17 of 2005

AN ACT to authorise the Minister to borrow money by the
issue of bonds.

[ 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 Loan Stock Authorisation
Act, 2005.

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

“due date” means the date on which the bonds are due to
be redeemed in terms of the prospectus.

“holder” means the person for the time being entered in
the register as the holder of a bond and the personal repre-
sentative of such holder.

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

“Minister” means the Minister responsible for Finance.

Short title.

Interpretation.

[ L.S. ]

I Assent,

James B. Carlisle,
Governor-General.

15th November, 2005.

ANTIGUA
AND

BARBUDA

The Loan Stock Authorisation Act, 2005 No. 17 of 20052

“Participating Government” means a Government which is
a party to the Agreement establishing the Eastern Carib-
bean Securities Regulatory Commission dated 24th Novem-
ber, 2000.

“register” means any resister kept and maintained by a share
registry licensed under the Securities Act in which the record
of holders are entered manually or in electronic form.

“Securities Act” means the Securities Act 2001, No. 14 of
2001.

“Securities Registry” means the Eastern Caribbean Central
Securities Registry Limited or such other securities registry
licensed by the Eastern Caribbean Securities Regulatory
Commission established by Article 3 of the Eastern Carib-
bean Securities Regulatory Commission Agreement dated
24th November, 2000.

3. (1) The Minister may, from time to time, borrow money in
terms of this Act.

(2) Any money borrowed in terms of this section shall be
applied to the following purposes —

(i) the repayment of moneys granted to Govern-
ment by statutory corporations;

(ii) the financing of projects approved in the esti-
mates prepared in accordance with the Devel-
opment Fund Act;

(iii) the repayment of public debt;

(iv) the meeting of expenses incurred in raising and
administering the loan.

4. Any loan borrowed by the Minister under authority of any
Act before the coming into force of this Act may be repaid in
accordance with the terms of this Act unless the Act authorising
the borrowing specifically provides otherwise.

5. In exercising the power conferred on him under section 3
the Minister shall issue Bonds, to be known as Registered Loan

Minister
authorised to
borrow money for
specified
purposes.

Cap. 134.

Application of
the Act.

Borrowing by is-
sue of Registered
Loan Stock.

ANTIGUA
AND

BARBUDA

No. 17 of 2005 The Loan Stock Authorisation Act, 2005 3

Effect of bonds.

Loan to be paid
out of the
Consolidated
Fund.

The securities
registry.

Stock, on such terms and conditions as he may deem appropriate
and such terms and conditions shall be set forth in a prospectus
inviting applications for the Bonds, and such prospectus shall
be published in three consecutive issues of the Gazette and a
newspaper circulating publicly in Antigua and Barbuda.

6. With respect to the issue of Bonds the following provi-
sions shall have effect:

(a) each bond shall be for an amount directed by the
Minister;

(b) bonds issued in a certificated form shall be authenti-
cated in such names as may from time to time be
approved by the Minister;

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

7. (1) The Minister shall appropriate out of the Consolidated
Fund the necessary sum to pay the principal and interest repre-
sented by the bonds 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 bond when
such bond falls due, and shall cause every bond to be paid when
it falls due.

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

8. (1) “The Securities Registry shall keep or cause a register
to be kept in such form as may be prescribed by the Minister
containing particulars of every bond issued.

(2) The ownership of bonds, which are issued by the Minis-
ter, may subject to the provisions of this Act, be evidenced and
transferred without a written instrument.”

ANTIGUA
AND

BARBUDA

The Loan Stock Authorisation Act, 2005 No. 17 of 20054

Contents of
register prima
facie evidence.

Accountant
General’s
authority to pay
principal and
interest.

Confidentiality.

9. (1) A register of securities is prima facie evidence of any
matters which are by the provisions of section 8(1) and any
regulations made under this Act directed or authorised to be
inserted in it.

(2) A register of securities or an extract thereof shall be admis-
sible in evidence in any court by means of a document printed
from the registry system and certified by a director or authorised
officer of the share registry which maintains the relevant register.

10. The Accountant General shall effect payment of the princi-
pal and interest on every bond in accordance with instructions
issued by the holder of the bond.

11. (1) No person who has acquired knowledge in his capac-
ity as secretary, officer, employee or agent of the Government
shall disclose to any person or governmental authority the iden-
tity, 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 opera-
tions of the Securities Exchange or the Securities Reg-
istry; or

(c) when lawfully required to make disclosure by any
court of competent jurisdiction; or

(d) under the provisions of any law of Antigua and
Barbuda or agreement among the Participating Gov-
ernments.

(2) Every person who contravenes the provisions of sub-
section (1) commits an offence and is liable on summary con-
viction 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.

ANTIGUA
AND

BARBUDA

No. 17 of 2005 The Loan Stock Authorisation Act, 2005 5

Regulations.

Repeal of Cap.
251.

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

D. Giselle Isaac-Arindell,
Speaker.

Yvonne Henry,
Clerk to the House of Representatives.

Passed the Senate this 3rd day of
November, 2005

Mackenzie M. Frank,
Vice President.

Yvonne Henry,
Clerk to the Senate.

12. The Minister may make regulations for the better carrying
out of the provisions of this Act.

13. (1) The Loan Stock Authorisation Act, Cap. 251 is re-
pealed.

(2) Notwithstanding the repeal of the Loan Stock
Authorisation Act, any monies borrowed under that Act shall
continue to be administered as if they were borrowed under this
Act.

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

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

800—11.05 [ Price$2.60 ]

ANTIGUA AND BARBUDA

THE LOAN STOCK AUTHORISATION ACT 2005

ARRANGEMENT OF SECTIONS

Section

1. Short title.

2. Interpretation.

3. Minister authorised to borrow money for specified purpose

4. Application of the Act.

5. Borrowing by issue of registered loan stock.

6. Effect of bonds.

7. Loan to be paid out of the Consolidated Fund.

8. The securities registry.

9. Contents of register prima facie evidence.

10. Accountant General’s authority to pay principal and interest.

11. Confidentiality.

12. Regulations.

13. Repeal of Cap 251.

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