CAP. 74 LOANS (CARIBBEAN DEVELOPMENT BANK) ACT BELIZE
LOANS (CARIBBEAN DEVELOPMENT BANK) ACT
CHAPTER 74
REVISED EDITION 2000
SHOWING THE LAW AS AT 31ST DECEMBER, 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner
under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition1980 - 1990.
This edition contains a consolidation of the following laws- Page
ARRANGEMENT OF SECTIONS 3
LOANS (CARIBBEAN DEVELOPMENT BANK) ACT 4
Amendments in force as at 31st December, 2000.
BELIZE
LOANS (CARIBBEAN DEVELOPMENT BANK) ACT
CHAPTER 74
REVISED EDITION 2000
SHOWING THE LAW AS AT 31ST DECEMBER, 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner
under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition1980 - 1990.
This edition contains a consolidation of the following laws- Page
ARRANGEMENT OF SECTIONS 3
LOANS (CARIBBEAN DEVELOPMENT BANK) ACT 4
Amendments in force as at 31st December, 2000.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Loans (Caribbean Development Bank) [CAP. 74
[ ]
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CHAPTER 74
LOANS (CARIBBEAN DEVELOPMENT BANK)
ARRANGEMENT OF SECTIONS
1. Short title.
2. Interpretation.
3. Power of the Government to borrow from the Caribbean Development
Bank.
4. Loans, etc., to be charged on Consolidated Revenue Fund and assets.
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. Restriction on borrowing powers of statutory authority whilst guarantee
is outstanding.
10. Powers of the Minister when likelihood of default of statutory authority.
11. Statutory authority to repay to Government sums paid under guarantee.
12. Power of Government to guarantee loans to companies.
4
13. Arbitration.
14. Implementation of obligations under the agreement.
CHAPTER 74
LOANS (CARIBBEAN DEVELOPMENT BANK)
[31st December, 1971]
1. This Act may be cited as the Loans (Caribbean Development Bank)
Act.
2. In this Act , unless the context otherwise requires -
“Bank” means the Caribbean Development Bank;
“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 public purpose.
3.-(1) Subject to the provisions of this Act, the Government may in such
manner and on such terms and subject to such conditions as may be agreed
between the Government and the Bank borrow from the Bank from time to
time such sums as may be required by the Government.
(2) No agreement in respect of sums borrowed under the powers
conferred by subsection (1) shall be executed unless the terms and condi-
tions thereof have been first approved by resolution of the House of Repre-
sentatives to that effect.
CAP. 59,
R.E. 1980-1990.
26 of 1971.
4 of 1975.
Short title.
Interpretation.
Power of the
Government to
borrow from the
Caribbean
Development
Bank.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
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(3) 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 to such other purposes as may
be approved by the Minister and the Bank.
(4) 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 Minister for and on behalf of the Govern-
ment of Belize and may be signed by the Minister or for and on behalf of the
Minister by any person specifically authorised in that behalf in writing by the
Minister.
(5) 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 copies thereof to be laid before the
National Assembly.
(6) Nothing in the provisions of this section shall affect or derogate
from any other power to borrow money possessed by the Government.
(7) All amounts required for the repayment of any sums borrowed
under the powers conferred by this section and all interest and other charges
on such sums are hereby charged upon and shall be payable out of the
Consolidated Revenue Fund and other assets of the Government.
4. There are hereby charged on and shall be payable out of the Consoli-
dated Revenue Fund and assets of the Government of Belize:-
Loans, etc., to
be charged on
Consolidated
Revenue Fund
and assets.
6
(a) all amounts required for the repayment of any sums
borrowed under the powers conferred by section 3
and all interest and other charges on any such sums;
(b) all amounts required for repayment to the Treasury
of the United Kingdom, with interest at such rate as
the said Treasury may fix, of any sum issued in
pursuance of the Colonial Loans Act, 1949 (as
amended) of the United Kingdom on account of any
guarantee under that Act of any sums borrowed
under the powers conferred by section 3.
5.-(1) The Government may issue such bonds, promissory notes or other
instruments on such terms and conditions as may be necessary for the
purpose of giving effect to the terms of any agreement which may be en-
tered into by it with the Bank in respect of any borrowing authorised by
section 3 (1).
(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 authority may in
such manner and on such terms and subject to such conditions as may be
agreed between the statutory authority and the Bank borrow from the Bank
from time to time such sums as may be required by the statutory authority.
(2) No agreement in respect of sums borrowed under the powers
conferred by subsection (1) shall be executed unless the terms and condi-
tions thereof have been first approved by resolution of the House of Repre-
sentatives to that effect and the Minister has given to the statutory authority
his approval in writing thereof.
(3) Notwithstanding anything to the contrary, any agreement
4 of 1975.
Power to issue
instruments
including bonds.
Borrowing
by statutory
authority
from the Bank.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Loans (Caribbean Development Bank) [CAP. 74
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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.
(4) 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.
(5) 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 borrowed by it under the powers conferred by subsection (1) of this
section.
(6) 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) of this section.
7. Any sums borrowed by a statutory authority under the powers conferred
by section 6 (1) shall be applied by the 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.
8.-(1) The Government may in such manner and on such terms and subject
to such conditions as may be agreed between it and the Bank-
(a) guarantee the discharge by a statutory authority of its
obligations under any agreement which may be
Application
of loan moneys
by statutory
authority.
Power of
Government
to guarantee
loans by Bank
to statutory
authorities.
8
entered into by the statutory authority with the Bank
in respect of any borrowing authorised by section 6
(1) 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, promis-
sory note or instrument.
(2) Any guarantee or undertaking given under this section shall be
given in writing in the name of the Minister for and on behalf of the Govern-
ment of Belize and it and any endorsement of any bond, promissory note or
other instrument of any guarantee given under this section may be signed on
behalf of the Government by the Minister or by any person authorised
thereto in writing by the Minister.
(3) As soon as possible after a guarantee or undertaking is given
under this section, the Minister shall cause to be laid before the National
Assembly a statement of the guarantee or undertaking.
9. So long as the Government shall continue liable under any guarantee or
other undertaking given in exercise of the powers conferred by section 8 (1)
in respect of any borrowing by a statutory authority the statutory authority
shall not, except with the consent of the Minister, exercise any other power
to borrow possessed by it.
10.-(1) Where it is made to appear to the Minister that there is reasonable
cause to believe-
(a) that a statutory authority is likely to fail or be unable
to discharge any of its obligations under any agree-
ment concluded by it with the Bank or under any
Restriction on
borrowing powers
of statutory whilst
guarantee is
outstanding.
Powers of the
Minister when
likelihood of
default of
statutory
authority.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
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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 section 8 (1) in respect
of such obligation,
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 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 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 Revenue Fund and
the Minister shall direct payment to issue out of the Consolidated Revenue
Fund accordingly.
11.-(1) If any sum is paid out of the Consolidated Revenue Fund in respect
of any liability incurred by the Government under a guarantee or other
undertaking given in exercise of the powers conferred by section 8 (1) 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 Revenue Fund in such instalments as the Minister
Statutory
authority
to repay to
Government
sums paid under
guarantee.
10
may direct.
(2) If any sum is so paid out of the Consolidated Revenue Fund the
Minister shall as soon as possible after the end of each financial year begin-
ning 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 dis-
charged by the statutory authority concerned, cause to be laid before the
National Assembly, a statement relating thereto.
12.-(1) Subject to subsection (5), the Government may in such manner and
on such terms and subject to such conditions as may be agreed by it and the
Bank, notwithstanding anything to the contrary-
(a) guarantee the discharge by a company of the
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, promis-
sory 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 Govern-
Power of
Government to
guarantee loans
to companies.
4 of 1975.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Loans (Caribbean Development Bank) [CAP. 74
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ment may at any time be called upon to pay pursuant
to this section; or
(b) enter into such other arrangements 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 Belize and it and any
endorsement on any bond, promissory note or other instrument issued
pursuant to the agreement to which the guarantee or undertaking relates
may be signed on behalf of Belize by the Minister or by any person
authorised thereto in writing by the Minister.
(4) As soon as possible after a guarantee or undertaking is given
under subsection (1), the Minister shall lay before the National Assembly
a statement of the guarantee or undertaking.
(5) 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
(b) if the guarantee or undertaking were given, the
principal amount outstanding would at that time
exceed the prescribed sum.
In this subsection-
“principal amount outstanding” means so much of the total of the principal
amounts of the borrowings guaranteed by the Government pursuant to
subsection (1) as has not been repaid;
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“prescribed sum” means five million dollars or such greater amount as the
National Assembly may from time to time, by resolution, approve.
(6) Where any agreement referred to in subsection (1) relates to a
borrowing in currency other than for the purposes of subsection (5)-
(a) the amount of such borrowing shall be converted
into Belize 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
(b) the principal amount outstanding in respect thereof
at any time shall be converted into Belize dollars at
the rate of exchange obtaining at that time in respect
of that currency.
(7) Where any sum becomes payable by the Government pursuant
to a guarantee of undertaking given in exercise of the powers conferred
by subsection (1), that sum shall be charged on the Consolidated Rev-
enue Fund of Belize and the Minister shall direct payment to issue out of
the Consolidated Revenue Fund accordingly.
(8) If any sum is paid out of the Consolidated Revenue Fund
pursuant to subsection (7), 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 company concerned, lay before
the National Assembly a statement relating thereto.
13. If any dispute between the Bank on the one part and the Government
or a statutory authority or both on the other part arises under any agreement
Arbitration.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Loans (Caribbean Development Bank) [CAP. 74
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concluded or guarantee or undertaking given in exercise of the powers
conferred by this Act or under any bond, promissory note or other instru-
ment issued pursuant to any such agreement it shall be determined by arbitra-
tion in the manner agreed between the parties.
14.-(1) Notwithstanding anything to the contrary elsewhere contained, any
agreement concluded with the Bank in respect of any borrowing authorised
by section 3 (1) or section 6 (1) and any bond, promissory note or other
instrument issued pursuant to any such agreement and any guarantee or
undertaking given in respect of any such 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 the country in accordance with
their respective terms.
(2) Neither the Government nor any agency thereof nor any statu-
tory 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 ipso 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) -
“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 the country 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 of sub-
section (1)-
Implementation
of obligations
under the
agreement.
Interpretation.
4 of 1975.
14
(a) the Minister may provide, by Order published in the
Gazette, that any tax, duty or fee payable under the
Income and Business Tax Act or the Stamp Duties
Act or the General Registry 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;
(b) nothing in the provisions of the Exchange Control
Regulations Act 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.
CAP. 55.
CAP. 52.
CAP. 327.
CAP. 64.
