CAP. 80 LOCAL PUBLIC LOANS ACT BELIZE
LOCAL PUBLIC LOANS ACT
CHAPTER 80
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
LOCAL PUBLIC LOANS ACT 4
Amendments in force as at 31st December, 2000.
BELIZE
LOCAL PUBLIC LOANS ACT
CHAPTER 80
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
LOCAL PUBLIC LOANS ACT 4
Amendments in force as at 31st December, 2000.
Local Public Loans
THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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[CAP. 80
CHAPTER 80
LOCAL PUBLIC LOANS
ARRANGEMENT OF SECTIONS
1. Short title.
2. Interpretation.
3. Scope.
4. Loans to be raised by debentures.
5. Loans to be a charge upon Consolidated Revenue Fund.
6. Borrowing upon debentures.
7. Amount of each debenture.
8. Debentures may be either fixed-date or drawing debentures.
9. Debentures to be registered and transferable by instrument in
writing.
10. Form of debentures.
11. Payment of interest.
12. Mode of providing for payment of interest on debentures and for
contributions to sinking fund.
13. Creation of sinking fund for redemption of debentures payable on
a fixed date.
14. Disposal of sinking fund when debentures are redeemed by
purchase or by annual drawings.
15. Cesser of interest from day appointed for payment of principal.
16. Redeemed debentures to be cancelled.
17. Expenses of redemption to be borne by sinking fund.
Local Public Loans
THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
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Belmopan, by the authority of
the Government of Belize.
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CAP. 80]
CHAPTER 80
LOCAL PUBLIC LOANS
[26th February, 1949]
1. This Act may be cited as the Local Public Loans Act.
2. In this Act “register” includes any book kept by the Accountant Gen-
eral under the provisions of this Act.
3. This Act shall be applicable only to loans raised in Belize.
4. Whenever by an Act authority is given to the Minister to raise any sum
of money for the purposes mentioned in the Act, the Minister may from time to
time, as he may deem expedient, raise such sum or any part thereof by deben-
tures issued under the provisions of this Act.
5. The principal monies and interest represented by the debentures are
hereby charged upon and shall be payable out of the Consolidated Revenue
Fund and assets of Belize.
6. The debentures shall be issued in Belize upon the best and most favourable
terms that can be obtained and shall be signed by the persons holding the of-
fices of Financial Secretary and Accountant General for the time being, or by
any other person or persons thereto specially authorised by the Minister.
7. Each debenture may be for a sum of ten dollars, fifteen dollars, twenty
dollars, twenty-five dollars, fifty dollars, one hundred dollars, five hundred dol-
lars, two thousand dollars, or five thousand dollars.
Ch. 51,
R.L., 1958.
CAP. 62,
R.E. 1980-1990.
38 of 1963.
40 of 1963.
21 of 1972.
S.I. 44 of 1966.
Short title.
Interpretation.
Scope.
Loans to be
raised by
debentures.
Loans to be a
charge upon
Consolidated
Revenue
Fund.
38 of 1963.
40 of 1963.
Amount of
each deben-
ture.
21 of 1972.
40 of 1963.
Borrowing upon
debentures.
Local Public Loans
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8. The debentures shall be redeemable either-
(a) at par on a fixed date to be declared on the issue of the debentures,
such date not being later than sixty years from the date of issue:
Provided that the Minister may reserve the option to redeem the de-
bentures prior to such date on such conditions as may be declared at the time
of issue (such debentures being hereinafter referred to as fixed-date deben-
tures); or
(b) by annual drawings at par or at the option of the Minister by
purchase in the market as provided in section 14 (such deben-
tures being referred to as drawing debentures).
9.-(1) Every debenture shall before being issued be registered by the Ac-
countant General in a register to be kept for that purpose at the office of the
Accountant General, and the name and address of the holder of each deben-
ture and all transfers of debentures shall be noted in the register.
(2) Debentures shall be transferable by instrument in writing in such form
and subject to such conditions as may be prescribed by the Minister.
10. Debentures shall be in such form as may be prescribed by the Minis-
ter.
11. The interest upon the principal represented by each debenture shall
run from the day named in that behalf in the debenture, and shall be payable
half-yearly on the days named in that behalf in the debenture at the office of the
Accountant General in such manner as may be prescribed by the Minister.
Debentures
may be
either fixed-
date or
drawing
debentures.
40 of 1963.
Debentures to
be registered
and transfer-
able by
instrument in
writing.
38 of 1963.
Form of
debentures.
Payment of
interest.
Local Public Loans
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CAP. 80]
12.-(1) So long as any of the debentures remain outstanding the Minister shall,
in each half-year ending with the day on which the interest on the debentures
falls due, appropriate out of the Consolidated Revenue Fund and assets of
Belize a sum equal to one half-year’s interest on the whole of the debentures
issued, including any which may have been redeemed.
(2) The Minister shall also in the half-year ending on the date specified in
the terms of issue of the loan as that on which the first contribution to the sinking
fund shall be taken and in each subsequent half-year appropriate out of the
Consolidated Revenue Fund and assets of Belize for the formation of a sinking
fund an additional sum equal to one-half of the annual contribution to be de-
cided upon by the Minister on the issue of the loan.
(3) The contribution shall be in respect of the total nominal amount of all
the debentures issued, including any which may have been redeemed.
(4) Debentures shall not be deemed to be outstanding for the purposes of
this Act by reason only that one or more of the debentures have not been
presented for payment on the day appointed for payment and have, in conse-
quence, not been paid.
13.-(1) In the case of fixed-date debentures, so much of the monies appropri-
ated under section 12 as shall not be required for the immediate payment of
interest shall be remitted to the Crown Agents for the formation of a sinking
fund, and the Crown Agents shall place at interest or invest the money so remit-
ted to them in the purchase of such securities as may be approved by the Min-
ister as a sinking fund for the final extinction of the debt, and shall also place at
interest or invest the dividends, interest or produce of such investments in the
purchase of like securities, and may from time to time, with the approval of the
Minister, change any such investments, and shall hold the fund in trust for the
repayment of the principal monies for the time being represented by the
debentures.
Mode of
providing for
payment of
interest on
debentures
and for
contributions
to sinking
fund.
40 of 1963.
Creation of
sinking fund
for redemption
of debentures
payable on a
fixed date.
Local Public Loans
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(2) If at any time the trustees of the sinking fund are satisfied that the value
of the fund will be sufficient with further accumulations of interest, but without
further payments of contributions to enable the debentures to be redeemed
out of the proceeds of the sinking fund when the same shall fall due to be
redeemed the Minister may, with the approval of the National Assembly, sus-
pend further payment of contributions to the sinking fund:
Provided that contributions to the sinking fund shall be recommenced
if the trustees shall at any time inform the Minister that it is necessary.
14. In the case of drawing debentures, so much of the monies appropri-
ated under section 12 as shall not be required for the immediate payment of
interest and the accumulations thereon shall be held by the Accountant Gen-
eral in trust to apply them to the purchase of the debentures when they can be
obtained at a price not exceeding par, and, secondly to the redemption of the
debentures by means of annual drawings in the manner following-
(a) after the commencement of the contributions to the sinking
fund in respect of any loan, and so long thereafter as any of
the debentures remain outstanding, the Minister shall, in
every year, unless the whole of the money applicable in that
year to the redemption of debentures has been applied in the
purchase thereof, appoint a day in that year for the drawing
by lot of the debentures to be redeemed;
(b) if a day is appointed for drawing, the Accountant General
shall give by advertisement in the Gazette and in any local
newspaper circulating in Belize, not less than fifteen days’
previous notice, specifying the day on which, and the hour
and place at which, the drawing will take place;
(c) on the day and at the hour and place so specified the Financial
.
40 of 1963
Disposal of
sinking fund
when debentures
are redeemed by
purchase or by
annual drawings.
38 of 1963.
40 of 1963.
Local Public Loans
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Secretary and Accountant General or any other officers
appointed by the Minister for the purpose 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 as may attend, draw by lot, out of the whole number of
debentures for the time being outstanding, debentures of the
specified nominal amount;
(d) the Financial Secretary and Accountant General or any other
officers appointed under paragraph (c), shall thereupon declare
the distinguishing numbers of the debentures drawn for redemp
tion, and the Accountant General shall as soon as may be by
advertisement in the Gazette and in any local newspaper
circulating in Belize, 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, and on
which the principal monies represented by the debentures so
distinguished will be repaid;
(e) notice of the debentures drawn for redemption shall also be
sent by post to the registered holders of such debentures; and
(f) from and after the day so appointed the Accountant General
shall, at his office, pay on demand to the holders of the deben
tures drawn for repayment the principal monies represented by
those debentures, with all interest payable thereon up to the
appointed day.
15. From and after the day appointed for the repayment of any debenture,
whether a fixed-date or a drawing debenture, all interest on the principal mon-
ies represented thereby shall cease and determine whether payment of the
principal shall have been demanded or not.
Cesser of
interest from
day appointed
for payment of
principal.
Local Public Loans
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16.-(1) Upon the repayment of the principal monies represented by any
debenture, such debenture shall be delivered up to the Accountant General to
be by him cancelled and retained.
(2) Any drawing debenture redeemed by purchase shall likewise be so
cancelled and retained.
17. All expenses of or incidental to the redemption of the debentures
and the costs and expenses of all notices required by this Act to be given
may be paid out of the sinking fund.
Expenses of
redemption to
be borne by
sinking fund.
Redeemed
debentures to be
cancelled.