Loans (Caribbean Development Bank) Act

Link to law: http://www.belizelaw.org/web/lawadmin/PDF%20files/cap074.pdf
Published: 2000

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.

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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.

Loans (Caribbean Development Bank) [CAP. 74

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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.
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