Public Loans Act

Link to law: http://www.belizelaw.org/web/lawadmin/PDF%20files/cap081.pdf
Published: 2000

CAP. 81 PUBLIC LOANS ACT BELIZE

PUBLIC LOANS ACT

CHAPTER 81

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 Edition 1980 - 1990.

This edition contains a consolidation of the following laws - Page

ARRANGEMENT OF SECTIONS 3

PUBLIC LOANS ACT 6 Amendments in force as at 31st December, 2000

BELIZE

PUBLIC LOANS ACT

CHAPTER 81

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 Edition 1980 - 1990.

This edition contains a consolidation of the following laws - Page

ARRANGEMENT OF SECTIONS 3

PUBLIC LOANS ACT 6 Amendments in force as at 31st December, 2000

Public Loans

THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000

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[CAP. 81

CHAPTER 81

PUBLIC LOANS

ARRANGEMENT OF SECTIONS

1. Short title.

2. Interpretation.

3. Loans to be raised by debentures or stock.

4. Loans to be a charge upon Consolidated Revenue Fund.

PART I

Raising of Loans by Debentures

5. Borrowing upon debentures.

6. Amount of each debenture.

7. Debentures may be redeemed by annual drawings or by purchase

in the market or on a date fixed.

8. Interest coupons.

9. Form of debentures and coupons.

10. Debentures and coupons transferable by delivery.

11. Registry of debentures.

Public Loans

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12. Payment of interest.

13. Mode of providing for payment of interest on debentures.

14. Further sums to be remitted for the redemption of the debentures.

15. Application of sinking fund.

16. Creation of sinking fund for redemption of debentures payable on a

fixed date.

17. Disposal of sinking fund when debentures are redeemed by

purchase or by annual drawings.

18. Appointment of day for drawing of debentures.

19. Notice of time and place appointed for drawing.

20. Mode of drawing.

21. Notice of debentures drawn for redemption.

22. Payment of drawn debentures.

23. Cesser of interest from day appointed for payment of principal.

PART II

Raising of Loans by Issue of Stock

24. Redeemed debentures to be cancelled.

Public Loans

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25. Borrowing upon stock.

26. When the principal is to be repaid.

27. Mode of providing for the payment of interest on stock.

28. Mode of providing for payment of principal of stock.

29. Creation of sinking fund.

30. Charge upon Consolidated Revenue Fund.

31. Expenses to be paid out of sinking fund.

32. Powers of Minister.

33. Exchange of securities for stock.

34. Converted securities to be cancelled.

35. Trustees to apportion amount of sinking fund released by conversion.

36. Sinking funds released: how to be disposed of.

37. Creation, inscription, registration, issue, conversion and transfer of

stock.

38. Raising of loans in Belize.

39. Regulations.

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Public Loans

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CHAPTER 81

PUBLIC LOANS

[18th October, 1952]

1. This Act may be cited as the Public Loans Act.

2. In this Part of this Act-

“stock” includes both inscribed and registered stock;

“registered stock” means stock transferable by instrument in writing.

3. Whenever by an Act authority is given to raise any sum of money for the

purposes mentioned in such Act, the Minister, or the Crown Agents acting on

his behalf, may from time to time as he or they may deem expedient raise that

sum either by debentures or by stock, or partly by debentures and partly by

stock.

4. The principal moneys and interests represented by debentures or stock

issued under the provisions of this Act are hereby charged upon and shall be

payable out of the Consolidated Revenue Fund and assets of Belize.

PART I

Raising of Loans by Debentures

5. When the Minister, or the Crown Agents acting on his behalf, deems it

expedient to raise money by debentures, such debentures shall be issued in

the United Kingdom on behalf of the Government of Belize by the Crown

Agents, upon the best and most favourable terms that can be obtained, and

Interpretation.

Loans to be

raised by

debentures or

stock.

40 of 1963.

Loans to be a

charge upon

Consolidated

Revenue

Fund.

Borrowing

upon

debentures.

Ch. 48,

R.L., 1958.

CAP. 63,

R.E. 1980-1990.

40 of 1963.

Short title.

Public Loans

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shall be signed by any one of them on that behalf.

6. Every debenture issued under the provisions of this Act shall be for the

sum of not less than four hundred dollars.

7. 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, or the Crown Agents acting on his

behalf, may reserve the option to redeem the debentures prior to such date on

such conditions as may be declared at the time of issue; or

(b) by annual drawings at par or at the option of the Minister, or

the Crown Agents acting on his behalf, by purchase at or

below par.

8.-(1) There shall be attached to every debenture coupons for the payment

of the interest to become due in each half-year upon the principal represented

by the debenture.

(2) The coupons shall be sufficient in number to provide for the payment

of the interest, either during the whole period for which the debenture has to

run, or for such limited period as the Crown Agents, acting on behalf of the

Government of Belize, may determine.

9. The debenture and the coupons thereto shall be in such form as the

Minister, or the Crown Agents acting on his behalf, may direct or approve.

10. Every debenture and coupon, and the right to receive the principal and

40 of 1963.

Interest

coupons.

Form of

debentures and

coupons.

Debentures and

coupons

Debentures may

be redeemed by

annual drawings

or by purchase in

the market or on a

date fixed.

Amount of each

debenture.

Public Loans

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interest represented thereby, shall be transferable by delivery.

11. Every debenture shall, before being issued, be registered in a register book

to be kept for that purpose at the office in London of the Crown Agents.

12. The interest upon the principal represented by each debenture shall run

from the day named in that behalf in the debenture, and shall be paid half-yearly

on the days named in that behalf in the debenture, at the office in London of the

Crown Agents.

13.-(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, but excluding any which

may have been at any time exchanged for stock, and shall remit that sum to the

Crown Agents at such time as will enable them to pay thereout the then current

half-year’s interest on the day on which it falls due.

(2) Debentures shall not be deemed to be outstanding for the purpose 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.

14.-(1) The Minister shall, 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 is taken and in each subsequent half-year, appropriate out of the said

revenue and assets of Belize for the formation of a sinking fund, an additional

sum equal to one half of the annual contribution specified in the prospectus or,

in the case of a loan not issued publicly, in the terms of issue relating to the loan

in respect of the total nominal amount of all the debentures issued, including any

which may have been redeemed, but not including any which may have been at

Mode of

providing for

payment of

interest on

debentures.

Registry of

debentures.

Payment

of interest.

transferable by

delivery.

Further sums to

be remitted for

the redemption

of the deben-

tures.

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any time exchanged for stock and remit that sum to the Crown Agents with the

remittance mentioned in section 13 (2).

(2) Notwithstanding anything to the contrary contained in subsection (1),

if at any time the trustees of the sinking fund of any loan issued under the

provisions of this Act are satisfied that the value of the fund will be sufficient

with further accumulations of interest but without further payment of contribu-

tions to enable the loan to be redeemed out of the proceeds of the sinking fund

not later than the final redemption date, the Minister may suspend further con-

tributions to the said sinking fund:

Provided that contributions to the sinking fund shall be recommenced

if the trustees at any time inform the Minister that this is necessary.

15. The sinking fund shall first be applied in payment of all expenses of and

incidental to the redemption of the debentures and the cost and expenses of all

notices required by this Act to be given, and secondly, subject to the aforesaid

payments, in repayment of the principal moneys for the time being represented

by the debentures.

16. In the case of debentures redeemable on a fixed date, the Crown Agents

shall place at interest or invest in the purchase of such securities as may be

approved by the Minister so much of the money so remitted to them under

section 14 as is not required for the payment of interest for the current half-

year, as a sinking fund for the final extinction of the debt, and shall also place at

interest or invest in the purchase of like securities the accumulations of interest

or the dividends, interest or produce of these investments and may, from time

to time, with the approval of the Minister, change any of the investments and

hold the fund in trust for the repayment of the principal moneys for the time

being represented by the debentures.

17. In case of debentures redeemable by annual drawings, the Crown Agents

shall place and keep the moneys so remitted to them, or so much thereof as

Application of

sinking fund.

Creation of

sinking fund for

redemption of

debentures

payable on a

fixed date.

Disposal of

sinking fund

when

Public Loans

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may not be required for immediate payments, at interest, and hold all moneys

and the accumulation thereon in trust to apply them in the first place 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.

18. After the date specified in the Act authorising a loan as that on which the

contributions to the sinking fund shall commence in respect of that loan, and

so long thereafter as any of the debentures remain outstanding and unsatis-

fied, the Crown Agents 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.

19. If a day is appointed for drawing, the Crown Agents shall give, by

advertisement in the London Financial Times newspaper, not less than

fifteen days’ previous notice, specifying the day on which, and the hour and

place at which, the drawing will take place.

20. On the day and at the hour and place so specified the Crown Agents

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, if any,

as may attend, and of a Notary Public, draw by lot, out of the whole number

of debentures for the time being outstanding, debentures of the specified

nominal amount.

21. The Crown Agents shall thereupon declare the distinguishing numbers of

the debentures drawn for redemption, and shall, as soon as may be, by

advertisement in the London Financial Times newspaper, 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, on which the

principal moneys represented by the debentures so distinguished will be

Notice of time

and place

appointed for

drawing.

Mode of

drawing.

Notice of

debentures

drawn for

redemption.

Appointment of

day for drawing

of debentures.

debentures are

redeemed by

purchase or by

annual drawings.

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repaid.

22. On the day so appointed the Crown Agents shall, at their office in

London, on demand, pay to the holders of the debentures drawn for repay-

ment the principal moneys represented by those debentures, with all interest

payable thereon up to that day.

23. From and after the day appointed for the repayment of any debenture

all interest on the principal moneys represented thereby shall cease and

determine, whether payment of the principal shall have been demanded or

not.

24.-(1) Upon the repayment of the principal moneys represented by any

debenture, the debenture, with all coupons thereunto belonging shall be

delivered up to the Crown Agents, to be by them cancelled and disposed of

in such a manner as the Minister, or the Crown Agents acting on his behalf,

may decide.

(2) Any debenture redeemed by purchase shall likewise be cancelled

and disposed of.

PART II

Raising of Loans by Issue of Stock

25. When the Minister, or the Crown Agents acting on his behalf, deems it

expedient to raise money by the issue of stock, then such stock shall be issued

in the United Kingdom by the Crown Agents under the provisions of The

Colonial Stock Act, 1877, upon the best and most favourable terms that can

be obtained.

Cesser of

interest from

day appointed

for payment of

principal.

Payment of drawn

debentures.

Redeemed

debentures to be

cancelled.

40 of 1963.

Borrowing

upon stock.

1877, c. 59.

Public Loans

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26. All the stock which may be created under the provisions of this Act shall

be redeemable at par on a date to be named in that behalf by the Crown

Agents when issuing the stock, such date not being later than sixty years from

the date of issue:

Provided that the Minister, or the Crown Agents acting on his behalf,

may reserve the option to redeem the stock in whole or in part, by drawings

or otherwise, at any time prior to such date on such conditions as may be

declared at the time of issue and from and after the date appointed for the

redemption of the stock or any part of it all the interest on the principal

moneys represented thereby shall cease and determine, whether payment of

the principal shall have been demanded or not.

27. So long as any of the stock remains unredeemed, the Minister shall, in

each half-year ending with the day on which the interest on the stock 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 stock, and shall

remit that sum to the Crown Agents at such time as will enable them to pay

thereout the then current half-year’s interest on the day when it falls due.

28.-(1) The Minister shall, 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 is taken and in each subsequent half-year appropriate out of the revenue

and assets of Belize for the formation of a sinking fund an additional sum

equal to one half of the annual contribution specified in the prospectus or, in

the case of a loan not issued publicly, in the terms of issue relating to the loan

in respect of the total nominal amount of the stock including any stock which

may at any time have been issued in exchange for debentures under the

authority of this Act, and remit the sum to the Crown Agents with the remit-

tance mentioned in section 27.

(2) Notwithstanding anything to the contrary contained in subsection

(1), if at any time the trustees of the sinking fund of any loan issued under the

Mode of

providing for

the payment of

interest on stock.

40 of 1963.

Mode of

providing for

payment of

principal of

stock.

When the

principal is to

be repaid.

Public Loans

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provisions of this Act are satisfied that the value of the fund will be sufficient

with further accumulations of interest but without further payment of contri-

butions to enable the loan to be redeemed out of the proceeds of the sinking

fund not later than the final redemption date, the Minister may suspend

further contributions to the sinking fund:

Provided always that contributions to the sinking fund shall be

recommenced if the trustees at any time inform the Minister that this is

necessary.

29. The Crown Agents shall, for the purpose of forming the sinking fund,

from time to time place at interest or invest in the purchase of such securities

as may from time to time be approved by the Minister so much of the

money so remitted to them under section 28 as is not required for the

payment of interest for the current half-year and shall also place at interest

or invest in the purchase of like securities, the accumulations of interest or

the dividends, interest, or produce of such investments, and may from time

to time, with the approval of the Minister, change any of the investments,

and hold the fund in trust for the repayment of the principal moneys for the

time being represented by the stock.

30. In case the sinking funds provided for by this Act is insufficient for the

payment of all the principal moneys borrowed under the authority of this Act

at the time the same becomes due, the Minister shall make good the defi-

ciency out of the Consolidated Revenue Fund and assets of Belize.

31. All expenses of or incidental to the management of the sinking fund, or

to the payment of the principal moneys borrowed, shall be paid out of the

sinking fund.

32.-(1) The Minister shall also have, and may from time to time exercise, the

following powers and authorities or any of them-

40 of 1963.

Creation of

sinking fund.

Charge upon

Consolidation

Revenue Fund.

Expenses to

be paid out of

sinking fund.

Powers of

Minister.

Public Loans

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(a) he may authorise the Crown Agents when issuing

any loan in the form of debentures to declare that

the debentures will be convertible into stock at such

dates and on the terms and conditions as may be

prescribed by the Crown Agents at the time of the

issue of the debentures;

(b) he may declare all or any of the loans of Belize,

whether existing in the form of stock or debentures,

and whether issued before or after the commence-

ment of this Act, to be convertible into stock, to be

issued under the provisions of this Act;

(c) he may authorise the creation and issue of such an

amount of stock in exchange for the securities held

for such loans as may be necessary;

(d) he may authorise the creation and sale of any such

stock or debentures for the purpose of raising money

for redeeming any outstanding loans whether issued

before or subsequent to the passing of this Act, for

paying any expense in the creation of stock, and

otherwise for carrying out the provisions of this Act.

(2) Any conversion authorised under this section may be effected

either by an arrangement with the holders of existing securities or by purchase

thereof out of moneys raised by the sale of stock, or partly in one way and

partly in the other.

33. Nothing contained in this Act shall authorise an increase of the capital or

of the annual charge on any loan, except-

Exchange for

securities of

stock.

Public Loans

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(a) when securities exchanged for stock bear a rate of interest

not less than the stock, an additional amount of stock may

be created and issued to make up the difference in saleable

value between the securities and the stock;

(b) in the case of the conversion of securities into stock the

Crown Agents shall issue such an amount of stock as may

be required to defray the stamp duties and all other

expenses incidental to the conversion;

(c) in accordance with such terms and conditions as may be

prescribed under paragraph (a) of section 32.

34. The securities exchanged or otherwise converted into stock under the

provisions of this Act shall be forthwith cancelled by the Crown Agents, and

the debentures surrendered shall be cancelled and transmitted to the Minis-

ter.

35. The trustees of the sinking fund appointed under this Act, and acting

under any Act authorising the issue of any securities which may be ex-

changed into stock or cancelled or purchased under the provisions of this

Act, shall determine what amount of the sinking fund held by them and

created for repayment of the securities shall be released and in the determi-

nation of the question, the trustees shall take into consideration the value of

the whole investments held by them on account of the sinking fund, the

amount of the debt remaining a charge on the sinking fund, and any other

matters as the trustees may think fit to take into account.

36. So much of the sinking funds as may be released shall either be

transferred unto the trustees of the stock sinking fund, or be disposed of in

such a manner as the Minister with the advice and consent of the National

Assembly may direct.

Converted

securities to

be cancelled.

Trustees to

apportion amount

of sinking fund

released by

conversion.

Sinking funds

released: how to

be disposed of.

40 of 1963.

Public Loans

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37. The Crown Agents may from time to time, at the request of the Min-

ister, make arrangements for all or any of the following things-

(a) for inscribing and registering stock in their books;

(b) for managing the creation, inscription, registration

and issue of stock, including the issue of certificates

of title in respect of such stock;

(c) for effecting the conversion of loans into stock;

(d) for paying interest on stock and managing the

transfers thereof;

(e) for issuing stock certificates to bearer, and, as often

as occasion shall require, re-inscribing or re-register-

ing them; and

(f) for effecting the exchange or conversion of inscribed

stock into registered stock.

38. This Act shall be applicable only to the raising of loans in the United

Kingdom, and nothing contained in this Act shall prevent the raising of loans

in Belize upon such terms and conditions as shall be specified in any Act

authorising the raising of such loans.

39. Authority is hereby given for the making of regulations under section 16

of the Colonial Stock Act 1877 to provide that, in accordance with section 1

of the Colonial Stock Act 1948 stock issued (whether before or after the

passing of the last-mentioned Act) under the provisions of this Act shall be

transferable by instrument in writing in accordance with the regulations and in

no other manner.

Raising of loans

in Belize.

Regulations.

Creation,

inscription,

registration,

issue, conver-

sion, and transfer

of stock.

1948, c. 1.

1877, c. 59.
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