Loans (Caribbean Development Bank) Act


Published: 1973

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Loans (Caribbean Development Bank) (CAP. 252 1

CHAPTER 252

THE LOANS (CARIBBEAN DEVELOPMENT
BANK) ACT

Arrangement of Sections
Section

1. Short title.
2. Interpretation.
3. Power of Government to borrow from the Bank.
4. Loans etc., to be charged on Consolidated Fund.
5. Power to issue instruments including bonds.
6. Borrowing by statutory authority from the Bank.
7. Application of loan moneys by statutory authority.
8. Power of Government to guarantee loans by Bank to

statutory authorities.
9. Power of Government to guarantee loans by Bank to

companies.
10. Restriction on borrowing powers of statutory authority

so far as guarantee outstanding.
11. Powers exercisable by Minister in event or prospect of

default by statutory authority.
12. Statutory authority to repay to Government sums paid

under guarantee.
13. Arbitration.
14. Implementation of obligations under the agreement.
15. Application of certain loans to statutory authorities and

companies.

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Loans (Caribbean Development Bank) (CAP. 252 3

LOANS (CARIBBEAN DEVELOPMENT BANK)

(5th September, 1973. ) 1311973.
2011974.

811980.

1. This Act may be cited as the Loans (Caribbean Short title.
Development Bank) Act.

2. In this Act- Interpretation.

"Bank" means the Caribbean Development Bank;

< ' company" means a company incorporated and
registered under the provisions of the Companies Cap. 94.
Act;

"Government" means the Government of Antigua and
Barbuda;

"International Bank" means the International Bank for
Reconstruction and Development;

"Minister" means the Minister responsible for finance;

"statutory authority" means any body established
directly by statute and exercising powers vested in
such body by law for a public purpose.

3. (1) Subject to the provisions of this Act, the g;t;n",'ezto
Government may in such manner and on such terms and borrow from the
subject to such conditions as may be agreed between the Bank.
Government and the Bank borrow from the Bank from time
to time such sums as may be required by the Government.

(2) Any sums borrowed by the Government under the
powers conferred by subsection (1) for the requirements of
the Government shall be applied and are hereby appropriated
to the purposes for which they were borrowed as specified
in any agreement concluded with the Bank in respect of the
sums so borrowed:

Provided that where any part of such sum cannot be
applied to the purposes aforesaid such part may be applied

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4 C A P . 252) Loans (Caribbean Development Bank)

to such other purposes as may be approved by the Minister
and the Bank and, where such sum consists wholly or partly
of monies lent by the International Bank which have been
onlent to the Government, also approved by the Government
of the United Kingdom.

( 3 ) Any agreement between the Government and the
Bank in respect of sums borrowed under the powers conferred
by subsection (1) shall be made in the name of the
Government and may be signed on behalf of the Government
by the Minister or by any person authorised thereto in writing
by the Minister.

(4) As soon as possible after any agreement has been
concluded with the Bank in respect of any sum borrowed
under the powers conferred by subsection (1) the Minister
shall cause a copy thereof to be laid before the House of
Representatives.

(5) Nothing in the provisions of this section shall affect
or derogate from any other power to borrow money possessed
by the Government.

Loans etc., to be . 4. There are hereby charged on and shall be payable
charged on
Consolidated out of the Consolidated Fund-
Fund.

(a) All amounts required for the repayment to the
bank of any sums borrowed by the Government under
the powers conferred by section 3 and all interest and
charges on such sums;

(6) All amounts required for the repayment to the
Bank of any sums borrowed by any statutory authority
or by any company on account of any guarantee which
the Government has issued under section 8 or 9;

( 6 ) All amounts required for the repayment to the
International Bank of the part of any loan from the
International Bank to the Bank which has been onlent
to the Government by the Bank and all interest and
other charges on such sum;

(4 All amounts required for the repayment to the
Treasury of the United Kingdom with interest at such
rate as the said Treasury may fix, of any sum issued

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Loans (Caribbean Development Bank) (CAP. 252 5

in pursuance of the Colonial Loans Acts 1949 to 1962
of the United Kingdom on account of any guarantee
under those Acts to the International Bank or to the
Bank as has been onlent by the Bank to the Government;

(e) All amounts required for the repayment to the
International Bank of any part of any loan from the
International Bank to the Bank which has been onlent
to any statutory authority or to any company on account
of any guarantee which the Government has issued
under section 8 or 9; and

( f) All amounts required for the repayment to the
Treasury of the United Kingdom with interest at such
rate as the said Treasury may fix, of any amount issued
in pursuance of the Colonial Loans Acts of the United
Kingdom 1949 to 1962 on account of any guarantee
under those Acts to the International Bank on such part
of any loan from the International Bank as has been
onlent to any statutory authority or any company and
in respect of which the Government has issued a
guarantee under section 8 or 9.

5 . ( 1 ) The Government may issue such bonds, power to issue
instruments promissory notes or other instruments on such terms and including bonds.

conditions as may be necessary for the purpose of giving
effect to the terms of any agreement which may be entered
into by it with the Bank in respect of borrowing authorised
by subsection (1) of section 3 .

(2 ) Any such bond, promissory note or other instrument
may be signed on behalf of the Government by the Minister
or by any other person authorised thereto in writing by the
Minister.

6. (1) Subject to the provisions of this Act, a statutory 2;::;s by
authority may in such manner and on such terms and subject =uthoritv from
to such conditions as may be agreed between the statutory the Bank.
authority and the Bank and with the approval in writing
first obtained of the Minister borrow from the Bank from
time to time such sums as may be required by the statutory
authority.

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6 CAP. 252) Loans (Caribbean Development Bank)

(2) Notwithstanding anything to the contrary any
agreement between the statutory authority and the Bank shall
be valid and binding on the authority if signed on behalf
of the authority by a person authorised thereto in writing
under the seal of the statutory authority.

(3) The power to borrow conferred by this section on
a statutory authority shall be in addition to any power to
borrow conferred on such authority by or under any other
statute.

(4) Notwithstanding anything to the contrary, a
statutory authority may charge or mortgage all or any of
its property (movable or immovable), undertaking or revenue
to secure any sum owing to the Bank in respect of sums bor-
rowed by it under the powers conferred by subsection (1).

(5) Notwithstanding anything to the contrary, a
statutory authority may issue such bonds, promissory notes
and other instruments on such terms and conditions as may
be necessary for the purpose of giving effect to any agreement
which may be entered into by it with the Bank in respect
of any borrowing authorised by subsection (1).

Application of
loan moneys by 7. Any sums borrowed by a statutory authority under
statutory the powers conferred by subsection (1) of section 6 shall be
authority. applied by the statutory authority to the purposes for which

the sums were borrowed as specified in any agreement
concluded with the Bank in respect of the sums so borrowed:

Provided that where any part of such sum cannot be
applied to the purposes aforesaid such part may be applied
by the statutory authority to such other purposes as may
be approved by the Minister and the Bank.

Power of
Government to

8. (1) The Government may in such manner and on
cuarantee loans such terms and subiect to such conditions as may be agreed
Ly Bank to
statutory

between it and the Bank-
authorities. (a) guarantee the discharge by a statutory authority

of its obligations under any agreement which may be
entered into by the statutory authority with the Bank
in respect of any borrowing authorised by subsection (1)
of section 6 or under any bond, promissory note or other
instrument issued pursuant to any such agreement; and

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Loans (Caribbean Development Bank) (CAP. 252 7

( b ) undertake such other obligations as may be
agreed between the Government and the Bank in
relation to or pursuant to any such agreement, bond,
promissory note or instrument.

( 2 ) Any guarantee or undertaking given under this
section shall be given in writing in the name of the
Government and it and any indorsement of any bond,
promissory note or other instrument of any guarantee given
under this section may be signed on behalf of the Govern-
ment by the Minister or by any other person authorised
thereto in writing by the Minister.

(3) As soon as possible after a guarantee or under-
taking is given under this section, the Minister shall cause
to be laid before the House of Representatives a statement
of the guarantee or undertaking.

9. ( 1 ) Subject to subsection (4), the Government may Power of
Government to in such manner and on such terms and subject to such Cuarantee loans

conditions as may be agreed by it and the sink- Gy Bank to
companies.

(a ) guarantee the discharge by a company of a
company's obligations under any agreement for
borrowing from the Bank which may be entered into
by the company with the Bank or under any bond,
promissory note or other instrument issued pursuant
to any such agreement; and

( b ) undertake such other obligations as may be
agreed between the Government and the Bank in
relation to or pursuant to any such agreement, bond,
promissory note or instrument.

( 2 ) In connection with a guarantee or undertaking given
under subsection ( 1 ) in respect of any borrowing by a
company, the company shall pay to the Government as a
commission such sum not exceeding one per centum of the
amount borrowed as the Minister may determine and the
Government may in addition either-

( a ) require and take from the company such
securities as the Minister thinks fit for securing the
repayment to the Government of any sums which the

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8 CAP. 252) Loans (Caribbean Development Bank)

Government may at any time be called upon to pay
pursuant to subsection ( 1 ) ; or

( 6 ) enter into such other arrangement with the
company as the Minister thinks fit for securing the
repayment aforesaid.

(3) Any guarantee or undertaking given by the
Government under subsection ( 1 ) shall be given in writing
in the name of the Government and it and any endorsement
on any bond, promissory note or other instrument issued
pursuant to the agreement to which the guarantee or under-
taking relates may be signed on behalf of the Government
by the Minister or by any person authorised thereto in writing
by the Minister.

(4) A guarantee or undertaking shall not be given at
any time under subsection (1) where-

(a ) the principal amount outstanding is at that time
not less than the prescribed sum; or

( 6 ) if the guarantee or undertaking were given, the
principal amount outstanding would at that time exceed
the prescribed sum.

(5) Where any agreement referred to in subsection ( 1 )
relates to a borrowing in a currency other than dollars then
for the purposes of subsection (4)-

( a ) the amount of such borrowing shall be
converted into dollars at a rate of exchange determined
by the Minister to be, as near as is conveniently possible,
equivalent to the average rate of exchange in respect
of that currency for the month prior to the month in
which the guarantee or undertaking in respect of that
borrowing is given; and

( 6 ) the principal amount outstanding in respect
thereof at any time shall be converted into dollars at
the rate of exchange obtaining at that time in respect
of that currency.

(6) Where any sum becomes payable by the
Government pursuant to a guarantee or undertaking given
in exercise of the powers conferred by subsection ( I ) , that

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Loans (Caribbean Development Bank) (CAP. 252 9

sum shall be charged on the general revenues of Antigua
and Barbuda and the Minister shall direct payment to issue
out of the general revenues accordingly.

(7) If any sum is paid out of the general revenues
pursuant to subsection (6), the Minister shall, as soon as
possible after the end of each financial year beginning with
that in which the sum was paid and ending with that in which
dl liability in respect thereof and any interest payable thereon
i a finally discharged by the company concerned, lay before
the House of Representatives a statement relating thereto.

( 8 ) In this section unless the context otherwise
requires-

"prescribed sum7' means one million dollars or such
greater amount as the House of Representatives
may from time to time, by resolution, approve;

"principal amount outstanding" means so much of the
total of the principal amounts of borrowings
guaranteed by the Government pursuant to
subsection ( 1 ) as has not been repaid.

10. So long as the Government shall continue liable F:;::;:;; on
under any guarantee or other undertaking given in exercise powers of
@f the powers conferred by subsection (1) of section 8 in 2,"i;t;f'yy SO fir
respect of borrowing by a statutory authority the statutory ~,,, ,t , ,
authority shall not, except with the consent of the Minister, outstanding.
exercise any other power to borrow possessed by it.

11. ( 1 ) Where it is made to appear to the Minister f;z:;;able by
that there is reasonable cause to believe- Minister in event

or prospect of
( a ) that a statutory authority is likely to fail or be default by

unable to discharge any of its obligations under any :,"i;i,"L;.
agreement concluded by it with the Bank or under any
bond, promissory note or other instrument issued
pursuant to any such agreement; and

(b ) that the Government is or may become liable
under any guarantee or other undertaking given in
exercise of the powers conferred by subsection (1) of
section 8 in respect of such obligation,

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10 CAP. 252) Loans (Caribbean Development Bank)

the Minister may by order give or authorise any other person
to give such directions to the statutory authority as he or
such other person may from time to time think necessary
or desirable to ensure that satisfactory arrangements are made
by the statutory authority to enable it duly to discharge its
obligations under such agreement, bond, promissory note
or instrument or under this Act.

(2) The statutory authority shall notwithstanding any
provision contained in any other statute comply with any
directions given by or under any such order.

(3) Nothing in the provisions of this section shall affect
or derogate from any other power conferred by law on the
Minister or any public officer in respect of the statutory
authority.

(4) Where any sum becomes payable by the
Government pursuant to a guarantee or undertaking given
in exercise of the powers conferred by section 8, that sum
shall be charged on the Consolidated Fund and the Minister
shall direct payment to issue out of the Consolidated Fund
accordingly.

Statutory
authority to

12. (1) If any sum is paid out of the Consolidated
repay to Fund in respect of any liability incurred by the Government
Government under a guarantee or other undertaking given in exercise
sums paid under
guarantee. of the powers conferred by subsection (1) of section 8 in

respect of any borrowing by a statutory authority the statutory
authority shall repay such sum (together with interest thereon
at the same rate as that payable on the loan under the
agreement by the statutory authority with the Bank) to the
Consolidated Fund in such manner and at such time or by
such instalments as the Minister may direct.

(2) If any sum is so paid out of the Consolidated Fund
the Minister shall as soon as possible after the end of each
financial year beginning with that in which the sum was paid
and ending with that in which all liability in respect thereof
and any interest payable thereon is finally discharged by the
statutory authority concerned, cause to be laid before the
House of Representatives, a statement relating thereto.

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Loans (Caribbean Development Bank) (CAP. 252 11

13. If any dispute between the Bank on the one part Arbitration.
and the Government or a statutory authority or both on the
other part arises under any agreement concluded or guarantee
or undertaking given in exercise of the powers conferred by
this Act or under any bond, promissory note or other
instrument issued pursuant to any such agreement it shall
be determined by arbitration in the manner agreed between
the parties.

14. (1) Notwithstanding anything to the contrary, :~zk~';,"?
any agreement concluded with the Bank in respect of any under the
boirowing authorised by subsection (1) of section 3 o; agreement.
subsection (1) of section 6 and any bond, promissory note
or other instrument issued pursuant to any such agreement
and any guarantee or undertaking given in respect of any
rruch agreement, bond, promissory note or instrument by
the Government or a statutory authority shall be valid and
enforceable and have full force and effect in Antigua and
Barbuda in accordance with their respective terms.

(2) Neither the Government nor any agency thereof nor
m y statutory authority shall, except as shall be otherwise
agreed between the Minister and the Bank, create any lien
on any of its assets as security for any external debt unless
It is expressly provided that the lien will ips0 facto equally
and rateably secure the payment of the principal of and
interest and other charges on any loan made by or any bonds,
promissory notes or instruments issued pursuant to any loan
made by the Bank to the Government or to a statutory
authority.

(3) In subsection (2) of this section-

"lien" includes mortgages, pledges, charges, privileges
and priorities of any kind;

"external debt" means any debt payable in any medium
other than currency which at the time in question
is legal tender in Antigua and Barbuda whether
such debt is payable absolutely or at the option of
the creditor in such other medium.

(4) Without prejudice to the generality of the provisions
stubsection (1)-

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12 CAP. 252) Loans (Caribbean Development Bank)

(a) the Minister may by order published in the
Gazette, provide that any Tax, duty or fee payable under

Cap. 212. the Income Tax Act,
Cap. 410. the Stamp Act,
Cap. 429. the Title by Registration Act,
Cap. 374. the Registered Land Act, or
Cap. 175. the Foreign Currency Levy Act,

or any other enactment shall be remitted where such
remission is, in the opinion of the Minister, necessary to
give full effect to any agreement, bond, promissory note
instrument, guarantee or undertaking under this Act;

Cap. 157.
( b ) nothing in the provisions of the Exchange

Control Act or of any regulations or Orders made
thereunder shall apply to any transaction required to
effect payment in any currency of any sum in accordance
with the terms of any such agreement, bond, promissory
note, instrument, guarantee or undertaking.

Application of
certain loans to 15. (1) Any loan made by the Bank to a statutory
statutory authority or a company in terms of an agreement made
authOrit'ies companies. and between'the Bank and such statutory autho;ty or company

which has been approved by the Minister under section 6
shall in any case where the loan from the Bank consists wholly
or partly of sums loaned to it by the International Bank be
applied by the statutory authority or company solely for the
purposes specified in such agreement:

Provided however, that any part of any loan to a
statutory authority or company which cannot be applied for
the purposes specified in the agreement may be applied to
such other purposes as may be approved in writing by the
Government of the United Kingdom, the Government of
Antigua and Barbuda, the Bank and the International Bank.

(2) Any statutory authority or company which
contravenes the provisions of subsection (1) shall be guilty
of an offence and liable on summary conviction to a fine
of one hundred thousand dollars.

(3) Where any offence under this section committed by
a statutory authority or a company is proved to have been
committed with the consent or connivance of, or to be
attributable to any, neglect on the part of any director,

manager, secretary, or other officer of the said statutory
authority or company, or any person purporting to act in
any such capacity, he as well as the statutory authority or
company shall be guilty of that offence and shall be liable
to be proceeded against accordingly.

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Loans (Caribbean Development Bank) (CAP. 252 13

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