CAP. 260, MONEYLENDERS ACT BELIZE
MONEYLENDERS ACT
CHAPTER 260
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
MONEYLENDERS ACT 6
Amendments in force as at 31st December, 2000.
BELIZE
MONEYLENDERS ACT
CHAPTER 260
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
MONEYLENDERS ACT 6
Amendments in force as at 31st December, 2000.
THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
Printed by the Government Printer,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Moneylenders [CAP. 260
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3
CHAPTER 260
MONEYLENDERS
ARRANGEMENT OF SECTIONS
PART I
Preliminary
1. Short title.
2. Interpretation.
PART II
Registration and Licensing of Moneylenders
3. Licences to be taken out by moneylenders.
4. Certificate required for issue of moneylender’s excise licence.
5. Grounds on which a certificate may be refused.
6. Appeal against refusal.
7. Suspension and forfeiture of moneylender’s certificates.
8. Obligation to produce certificate for endorsement.
9. Suspension of moneylender’s excise licence.
10. Form of moneylender’s excise licence.
11. Penalty for contravention of provisions of this Act.
12. Power to make rules and regulations.
PART III
Form of Moneylender’s Contracts
13. Form of moneylender’s contracts.
14. Prohibition of compound interest and provision as to default.
PART IV
Regulation of Moneylending Transactions
15. Prohibition of charge for expenses on loans by moneylenders.
16. Obligation of moneylender to supply information as to state of loan
and copies of documents relating thereto.
17. Prohibition of certain advertisements.
18. Penalty for moneylender implying the carrying on of banking
business.
19. Display of effective annual interest rates on loans.
20. Minimum reporting requirements.
PART V
Assignment of Moneylender’s Debts
21. Duty to give notice and supply information on assignment.
22. Position of assignee.
PART VI
Limitation of Moneylenders’ Action
23. Limitation of time for proceedings in respect of money lent by
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
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moneylenders.
PART VII
Relief from Harsh and Unconscionable Transactions
24. Power to relieve borrower from harsh transactions.
25. Power to grant relief at instance of borrower or surety.
26. Presumption that interest excessive.
27. Application and construction of sections 24 to 26.
PART VIII
Bankruptcy Proceedings for Moneylender’s Loan
28. Interest not to exceed 5 % in bankruptcy proceedings.
29. Proof by moneylender in bankruptcy.
30. Claim of relief by trustee in bankruptcy.
PART IX
Miscellaneous
31. Penalties for false statements and representations.
32. Power of court to determine contract.
33. Offences punishable on summary conviction.
CHAPTER 260
MONEYLENDERS
[13th March, 1954]
PART I
Preliminary
1. This Act may be cited as the Moneylenders Act.
2.-(1) In this Act, unless the context otherwise requires:-
“business name” means the name or style under which any business is carried
on, whether in partnership or otherwise;
“certificate” means a certificate of registration as a moneylender granted under
this Act;
“company” means any body corporate being a moneylender;
“firm” means an unincorporated body of two or more individuals, or one or
more individuals and one or more corporations, or two or more corporations,
who have entered into partnership with one another with a view to carrying on
business for profit;
“interest” does not include any sum lawfully charged in accordance with the
provisions of this Act by a moneylender for or on account of costs, charges or
expenses, but except as aforesaid, includes any amount, by whatever name
called, in excess of the principal, paid or payable to a moneylender in consid-
eration of or otherwise in respect of a loan;
“Minister” means the Minister for the time being responsible for Finance;
“moneylender” includes every person whose business is that of moneylending,
Ch. 260, R.L., 1958. CAP. 210, R.E. 1980-1990. 40 of 1963. 4 of 1998.
Short title.
Interpretation.
4 of 1998.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
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or who advertises or announces himself or holds himself out in any way as
carrying on that business, but does not include-
(a) any registered society within the meaning of the Friendly Soci-
eties Act or any society registered or having rules certified un-
der the Building Societies Act; or
(b) any body corporate, incorporated or empowered by a special
enactment to lend money in accordance with such special en-
actment; or
(c) any person bona fide carrying on the business of banking or
insurance or bona fide carrying on any business not having for
its primary object the lending of money, in the course of which
and for the purposes whereof he lends money; or
(d) any body corporate for the time being exempted from this Act
by Order of the Minister made and published pursuant to regula-
tions made by the Minister;
“moneylender’s excise licence” means a licence which is required to be taken
out under, and is issued in accordance with, the provisions of this Act;
“principal” means, in relation to a loan, the amount actually lent to the bor-
rower;
“registered name” and “registered address” mean respectively the name under
which and the address at which a moneylender is authorised by a certificate
granted under this Act to carry on business as a moneylender.
(2) Where by a contract for the loan of money by a moneylender,
the interest charged on the loan is not expressed in terms of a rate, any amount
paid or payable to the moneylender under the contract (other than simple inter-
est charged in accordance with the proviso to section 14) shall be appropriated
to principal and interest in the proportion that the principal bears to the total
CAP. 317.
CAP. 310.
40 of 1963.
4 of 1998.
amount of the interest.
PART II
Registration and Licensing of Moneylenders
3. Every moneylender, whether carrying on business alone or as a partner in
a firm, shall-
(a) register himself as such with the summary jurisdiction court in
the judicial district in which the moneylending business is to be
carried on, and obtain from that court a certificate under this
Act; and
(b) take out annually, in respect of every address at which he
carries on his business as such, an excise licence which shall
expire on 31st December in every year.
4.-(1) A moneylender’s excise licence shall not be granted except to a person
who has registered and holds a certificate granted to him in accordance with
the provisions of this Act, authorising the Financial Secretary to issue the li-
cence to that person, and a separate certificate shall be required in respect of
every separate licence.
(2) Every moneylender’s excise licence issued in contravention
of this section shall be void.
(3) A certificate under this section shall be granted by the sum-
mary jurisdiction court having jurisdiction in the judicial district in which the
moneylender’s business is to be carried on.
(4) Every certificate granted to a moneylender shall show his true
name and the registered name under which, and the registered address at
which, he is authorised by the certificate to carry on business as such.
Licences to be taken out by moneylenders.
Certificate required for issue of moneylender’s excise licence.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
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(5) A certificate shall not authorise a moneylender to carry on busi-
ness at more than one registered address, or under more than one registered
name, or under any name which includes the word “bank”, or otherwise implies
that he carries on banking business.
(6) A certificate shall not authorise a moneylender to carry on busi-
ness under any name except—
(a) his true name; or
(b) the name of a firm in which he is a partner, not being a firm
required by the Business Name Act, to be registered;
(c) a business name, whether of an individual or of a firm in which
he is a partner, under which he or the firm has, at the passing of
this Act, been registered for not less than one year under the
Business Names Act.
(7) Every certificate shall be prepared in duplicate, both bearing
the same number, one of which shall be delivered to the registered moneylender
and the other entered into a “Register of Moneylenders’ Certificates”.
(8) The duplicate delivered to the moneylender, or a certified copy
of the duplicate entered into the register, shall be received in all courts as evi-
dence that the moneylender is registered, and a statement in writing signed by
the clerk of the court to the effect that the name of the moneylender does not
appear in the register shall be sufficient evidence that the moneylender is not
registered, unless the contrary is shown.
(9) A certificate shall come into force on the date specified therein,
and shall expire on the next following 31st day of December.
5. A certificate shall not be refused except on some one or more of the follow-
ing grounds-
CAP. 247.
Grounds on which a certifi- cate may be refused.
CAP. 247.
(a) that satisfactory evidence has not been produced of the good
character of the applicant, and, in the case of a company, of
the persons responsible for the management thereof;
(b) that satisfactory evidence has been produced that the appli-
cant, or any person responsible or proposed to be respon-
sible for the management of his business as a moneylender, is
not a fit and proper person to hold a certificate;
(c) that the applicant, or any person responsible or proposed to
be responsible for the management of his business as a mon-
eylender, is by order of a court disqualified for holding a cer-
tificate;
(d) that the applicant has not complied with the provisions of any
rules made under section 12 with respect to applications for
registration as a moneylender and the grant of a certificate.
6. Any person aggrieved by the refusal of a summary jurisdiction court to
grant a certificate may appeal to the Supreme Court in manner provided by
Part X of the Supreme Court of Judicature Act.
7. Where any person, being a holder of a certificate, is convicted
of any offence under this Act, the court-
(a) may order that any certificates held by that person, and, in the
case of a partner in a firm, by any other partner in the firm,
shall either be suspended for such time as the court thinks fit,
or shall be forfeited, and may also, if the court thinks fit, de-
clare any such person, or any person responsible for the man-
agement of the moneylending business carried on by the per-
son convicted, to be disqualified for obtaining a certificate for
such time as the court thinks fit; and
Suspension and forfeiture of moneylender’s certificates.
Appeal against re- fusal.
CAP. 91.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
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(b) shall cause particulars of the conviction and of any order made
by the court under this section to be endorsed on every certifi-
cate held by the person convicted or by any other person af-
fected by the order, and shall cause copies of those particulars
to be sent to the authority by whom any certificate so endorsed
was granted:
Provided that, where by order of a court a certificate held by any person
is suspended or forfeited, or any person is disqualified from obtaining a certifi-
cate, he may, whether or not he is the person convicted, appeal against the
order in the same manner as any person convicted may appeal against his con-
viction, and the court may, if it thinks fit, pending the appeal, defer the operation
of the order.
8. Any certificate required by a court for endorsement in accordance with
section 7 shall be produced, in such manner and within such time as may be
directed by the court, by the person by whom it is held, and every person who,
without reasonable cause, makes default in producing any certificate so re-
quired shall, in respect of each offence, be liable to a fine not exceeding one
hundred dollars for each day during the default continues.
9. Where a certificate held by any person is ordered to be suspended or to be
forfeited under section 7, any moneylender’s excise licences issued to that per-
son, whether in pursuance of that or any other certificate, is ordered to be
suspended or become void, as the case may be.
10.-(1) Subject to this Act, a moneylender’s excise licence shall be in the form
prescribed by the Minister, and shall be issued by the Financial Secretary on
payment of the appropriate duty.
(2) A moneylender’s excise licence shall be taken out by a money-
lender in his true name, and shall be void if it be taken out in any other name, but
every moneylender’s excise licence shall also show the moneylender’s regis-
tered name and registered address.
Obligation to produce certifi- cate for endorse- ment.
4 of 1998.
Suspension of moneylender’s excise licence.
Form of moneylender’s excise licence.
40 of 1963.
11. Every person who -
(a) takes out a moneylender’s excise licence in any name other
than his true name; or
(b) carries on business as a moneylender without having in force
a proper moneylenders excise licence authorising him to do
so; or
(c) being licensed as a moneylender, carries on business as such
in any name other than his registered name, or at any other
place than his registered address or addresses; or
(d) enters into any agreement in the course of his business as a
moneylender with respect to the advance or repayment of
money, or takes any security for money in the course of his
business as a moneylender, otherwise than in his registered
name;
commits an offence and shall be liable on summary conviction to a fine of two
thousand dollars:
Provided that, on a second or subsequent conviction of any person
(other than a company) for an offence under this section, the court may, in lieu
of or in addition to ordering the offender to pay the penalty aforesaid, order
him to be imprisoned for a period not exceeding six months, and an offender
being a company shall on a second or subsequent conviction be liable to a fine
of not less than ten thousand dollars.
12. The Minister may make rules and regulations with respect to the follow-
ing matters-
(a) the procedure to be followed in making application for regis-
tration as a moneylender and the grant of a certificate;
Penalty for contra- vention of provi- sions of this Act. 4 of 1998.
Power to make rules and regula- tions.
40 of 1963.
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Belmopan, by the authority of
the Government of Belize.
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(b) the notice to be given of intention to make such application;
(c) the procedure to be followed for the issue of a moneylender’s
licence and the amount of duty to be paid thereon;
(d) the form of a certificate and of a moneylender’s excise licence;
(e) the exemption of bodies corporate pursuant to paragraph (d)
of the definition of “moneylender” in this Act;
(f) the carrying of this Act into effect.
PART III
Form of Moneylender’s Contracts
13.-(1) No contract for the repayment by a borrower of money lent to him or
to any agent on his behalf by a moneylender after the commencement of this
Act or for the payment by him of interest on money so lent, and no security
given by the borrower or by any such agent as aforesaid in respect of any such
contract shall be enforceable, unless a note or memorandum in writing of the
contract be made and signed personally by the borrower, and unless a copy
thereof be delivered or sent to the borrower within seven days of the making of
the contract.
(2) No such contract or security shall be enforceable if it is proved
that the note or memorandum aforesaid was not signed by the borrower before
the money was lent or before the security was given, as the case may be.
(3) The note or memorandum aforesaid shall contain all the terms
of the contract, and in particular shall show the date on which the loan is made,
the amount of the principal of the loan, and the effective annual rate of interest
charged on the loan.
14. Subject as hereinafter provided, any contract made after the commence-
ment of this Act for the loan of money by a moneylender shall be illegal in so far
Form of money- lender’s con- tracts.
4 of 1998.
Prohibition of compound
as it provides directly or indirectly for the payment of compound interest or for
the rate or amount of interest being increased by reason of any default in the
payment of sums due under the contract:
Provided that provision may be made by any such contract that if default is
made in the payment upon the due date of any sum payable to the money-
lender under the contract, whether in respect of principal or interest, the mon-
eylender shall be entitled to charge simple interest on that sum from that date
of the default until the sum is paid, at a rate not exceeding the rate payable in
respect of the principal apart from any default, and any interest so charged
shall not be reckoned for the purposes of this Act as part of the interest charged
in respect of the loan.
PART IV
Regulation of Moneylending Transactions
15. Any agreement between a moneylender and a borrower or intending
borrower for the payment by the borrower or intending borrower to the mon-
eylender of any sum on account of costs, charges or expenses incidental to or
relating to the negotiations for or the granting of the loan or proposed loan
shall be illegal, and if any sum is paid to a moneylender by a borrower or
intending borrower as for or on account of any such costs, charges or ex-
penses, that sum shall be recoverable as a debt due to the borrower or intend-
ing borrower, or, in the event of the loan being completed, shall, if not so
recovered, be set off against the amount actually lent and that amount shall be
deemed to be reduced accordingly.
16.-(1) In respect of every contract for the repayment of money lent by a
moneylender whether made before or after the commencement of this Act,
the moneylender shall, on any reasonable demand in writing being made by
the borrower at any time during the continuance of the contract and on tender
by the borrower of the sum of two dollars for expenses, supply to the bor-
rower or, if the borrower so requires, to any person specified in that behalf in
the demand, a statement signed by the moneylender or his agent showing-
Prohibition of charge for expenses on loans by moneylenders.
Obligation of moneylender to supply informa- tion as to state of loan and copies of documents relating thereto.
4 of 1998.
interest and provision as to default.
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(a) the date on which the loan was made, the amount of the princi-
pal of the loan and the effective annual interest rate charged on
the loan; and
(b) the amount of any payment already received by the money-
lender in respect of the loan and the date on which it was made;
and
(c) the amount of every sum due to the moneylender, but unpaid,
and the date upon which it became due, and the amount of
interest accrued due and unpaid in respect of every such sum;
and
(d) the amount of every sum not yet due which remains outstand-
ing, and the date upon which it will become due.
(2) A moneylender shall, on any reasonable demand in writing by
the borrower, and on tender of a reasonable sum for expenses, supply a copy
of any document relating to a loan made by him or any security therefor, to the
borrower, or if the borrower so requires, to any person specified in that behalf
in the demand.
(3) If a moneylender to whom a demand has been made under this
section fails without reasonable excuse to comply therewith within one month
after the demand has been made, he shall not, so long as the default continues,
be entitled to sue for or recover any sum due under the contract on account
either of principal or interest, and interest shall not be chargeable in respect of
the period of the default, and if such default is made or continued after pro-
ceedings have ceased to lie in respect of the loan, the moneylender shall be
liable to a fine not exceeding fifty dollars for every day on which the default
continues.
17.-(1) No moneylender shall engage in advertising likely to mislead the public
concerning:-
4 of 1998.
Prohibition of certain adver- tisements. 4 of 1998.
4 of 1998.
(a) the relationship of the moneylender to the Financial Secretary,
an Ministry or Department of Government, the Central Bank
of Belize or any department or official thereof;
(b) the interest rate and charges levied on loans; and
(c) the financial condition of the moneylender.
(2) Every moneylender who contravenes subsection (1) above
commits an offence and is liable on summary conviction to a fine of not less
than five hundred dollars and not exceeding one thousand dollars, and on a
second or subsequent conviction, the court may, in lieu of or in addition to
ordering the offender to pay the penalty aforesaid, order him to be imprisoned
for a period not exceeding six months, and an offender being a company shall
on a second or subsequent conviction be liable to a fine of five thousand dol-
lars.
18. If a moneylender, for the purposes of his business as such, issues or
publishes, or causes to be issued or published, any advertisement, circular or
document of any kind whatsoever containing expressions which might reason-
ably be held to imply that he carries on banking business or operates as, or has
the status of, a bank or financial institution licensed under the Banks and Fi-
nancial Institutions Act, he commits and offence and shall be liable on sum-
mary conviction to a fine not exceeding one hundred thousand dollars or to
imprisonment for a period not exceeding three years, or to both such fine and
period of imprisonment, and in case of a continuing offence, to a fine of five
thousand dollars for each day during which the offence continues.
19. Every moneylender shall display in a conspicuous and prominent place in
the public part of his offices, the effective annual rate of interest he charges and
all other charges and fees he levies, on loans.
20.-(1) Every moneylender shall, in relation to his operations in Belize, submit
to the Central Bank of Belize such information of a financial nature or other-
Penalty for money- lender implying the carrying on of banking business. 4 of 1998.
Display of effec- tive annual in- terest rates on loans. 4 of 1998.
Minimum reporting requirements. 4 of 1998.
CAP. 263.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Moneylenders [CAP. 260
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wise, including but not limited to statement of condition and profit and loss
accounts at such times and in such forms as may be specified in writing by the
Central Bank of Belize from time to time.
(2) Every moneylender who contravenes subsection (1) above
commits an offence and shall be liable on summary conviction to a fine of not
less than fifty thousand dollars, and the court may also order the cancellation or
suspension of his certificate.
PART V
Assignment of Moneylender’s Debts
21.-(1) Where any debt in respect of money lent by a moneylender whether
before or after the commencement of this Act or in respect of interest on any
such debt or the benefit of any agreement made or security taken in respect of
any such debt or interest is assigned to any assignee, the assignor (whether he
is the moneylender by whom the money was lent or any person to whom the
debt has been previously assigned) shall, before the assignment is made-
(a) give to the assignee notice in writing that the debt, agreement
or security is affected by the operation of this Act; and
(b) supply to the assignee all information necessary to enable him
to comply with the provisions of this Act relating to the obli-
gation to supply information as to the state of loans and cop-
ies of documents relating thereto.
(2) Every person who acts in contravention of any of the provi-
sions of this section shall be liable to indemnify any other person who is preju-
diced by the contravention, and shall also commit an offence, and shall in re-
spect of each offence be liable on summary conviction to imprisonment for a
period not exceeding two years, or to a fine not exceeding two thousand dol-
lars, or to both such fine and period of imprisonment.
Duty to give notice and supply informa- tion on assignment.
4 of 1998.
(3) In this section, the expression “assigned” means assigned by
any assignment inter vivos other than an assignment by operation of law, and
the expressions “assignor” and “assignee” have corresponding meanings.
22.-(1) Subject as hereinafter provided, the provisions of this Act shall con-
tinue to apply as respects any debt to a moneylender in respect of money lent
by him after the commencement of this Act or in respect of interest on money
so lent or of the benefit of any agreement made or security taken in respect of
any such debt or interest, notwithstanding that the debt or benefit of the agree-
ment or security may have been assigned to any assignee, and, except where
the context otherwise requires, references in this Act to a moneylender shall
accordingly be construed as including any such assignee as aforesaid:
Provided that, notwithstanding anything in this Act-
(a) any agreement with, or security taken by, a moneylender in
respect of money lent by him after the commencement of
this Act shall be valid in favour of any bona fide assignee or
holder for value without notice of any defect due to the
operation of this Act and of any person deriving title under
him; and
(b) any payment or transfer of money or property made bona
fide by any person, whether acting in a fudiciary capacity or
otherwise, on the faith of the validity of any such agreement or
security, without notice of any such defect shall, in favour of
that person, be as valid as it would have been if the agreement
or security had been valid; and
(c) the provisions of this Act limiting the time for proceedings in
respect of money lent shall not apply to any proceedings in
respect of any such agreement or security commenced by a
bona fide assignee or holder for value without notice that the
agreement or security was affected by the operation of this
Position of assignee.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
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Act, or by any person deriving title under him,
but in every such case the moneylender shall be liable to indemnify the bor-
rower or any other person who is prejudiced by virtue of this section, and
nothing in this proviso shall render valid an agreement or security in favour of,
or apply to proceedings commenced by, an assignee or holder for value who is
himself a moneylender.
(2) Nothing in this section shall render valid for any purpose any agree-
ment, security or other transaction which would, apart from the provisions of
this Act, have been void or unenforceable.
PART VI
Limitation of Moneylenders’ Action
23.-(1) Notwithstanding anything contained in the Limitation Act, no proceed-
ings shall lie for the recovery by a moneylender of any money lent by him after
the commencement of this Act or of any interest in respect thereof, or for the
enforcement of any agreement made or security taken after the commencement
of this Act in respect of any loan made by him, unless the proceedings are
commenced before the expiration of twelve months from the date on which the
cause of action accrued.
(2) In every other respect, the Limitation Act shall apply to all trans-
actions and dealings falling within the provisions of this Act.
PART VII
Relief from Harsh and Unconscionable Transactions
24.-(1) Where proceedings are taken in any court by a moneylender for the
recovery of any money lent after the commencement of this Act , or the en-
forcement of any agreement or security made or taken after the commence-
ment of this Act, in respect of money lent either before or after the commence-
ment of this Act, and there is evidence which satisfies the court that the interest
Limitation of time for proceedings in respect of money lent by moneylenders. CAP. 170.
CAP. 170.
Power to relieve borrower from harsh transac- tion.
charged in respect of the sum actually lent is excessive, or that the amounts
charged for expenses, inquiries, fines, bonus, premium, renewals or any other
charges, are excessive, and that, in either case, the transaction is harsh and
unconscionable, or is otherwise such that a court of equity would give relief,
the court may re-open the transaction, and take an account between the money-
lender and the person sued, and may, notwithstanding any statement or settle-
ment of account or any agreement purporting to close previous dealings and
create a new obligation, re-open any account already taken between them,
and relieve the person sued from payment of any sum in excess of the sum
adjudged by the court to be fairly due in respect of such principal, interest and
charges, as the court, having regard to the risk and all the circumstances, may
adjudge to be reasonable.
(2) If any such excess has been paid, or allowed in account, by
the debtor, the court may order the creditor to repay it, and may set aside,
either wholly or in part or may revise or alter any security given or agreement
made in respect of money lent by the moneylender, and if the moneylender has
parted with the security, may order him to indemnify the borrower or other
person sued.
25. Any court in which proceedings might be taken for the recovery of
money lent by a moneylender shall have and may, at the instance of the bor-
rower or surety or other person liable, exercise the like powers as may be
exercised under this section, whether or not proceedings are taken for the
recovery of money lent, and the court shall have power, notwithstanding any
provision or agreement to the contrary, to entertain any application under this
Act by the borrower or surety, or other person liable, notwithstanding that the
time for repayment of the loan or any instalment thereof, may not have arrived,
or that the moneylender’s right of action for the recovery of the money lent is
barred.
26.-(1) Where, in any proceedings in respect of any money lent by a money-
lender after the commencement of this Act or in respect of any agreement or
security made or taken after the commencement of this Act in respect of money
Power to grant re- lief at instance of borrower or surety.
Presumption that interest excessive.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Moneylenders [CAP. 260
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21
lent either before or after the commencement of this Act, it is found that the
interest charged exceeds the rate forty-eight per centum per annum, or the
corresponding rate in respect of any other period, the court shall, unless the
contrary is proved, presume for the purposes of section 24 that the interest
charged is excessive and that the transaction is harsh and unconscionable, but
this provision shall be without prejudice to the powers of the court under that
section where the court is satisfied that the interest charged, although not ex-
ceeding forty-eight per centum per annum, is excessive.
(2) Where a court re-opens a transaction of a moneylender under
section 24, the court may require the moneylender to produce any certificate
granted to him in accordance with this Act, and may cause such particulars as
the court thinks desirable to be endorsed on any such certificate, and a copy of
the particulars to be sent to the authority by whom the certificate was granted.
27. Sections 24, 25 and 26:-
(a) shall apply to any transaction which, whatever its form may
be, is substantially one of moneylending by a moneylender;
(b) shall not affect the rights of any bona fide assignee or holder
for value without notice;
(c) shall not be construed as derogating from the existing powers
or jurisdiction of any court.
PART VIII
Bankruptcy Proceedings for Moneylender’s Loan
28.-(1) Where a debt due to a moneylender in respect of a loan made by him
after the commencement of this Act includes interest, that interest shall, for the
purposes of the provisions of the Bankruptcy Act , relating to the presentation
of a bankruptcy petition, voting at meetings, compositions and schemes of ar-
rangement and dividend, be calculated at a rate not exceeding five per centum
Application and construction of sec- tions 24 to 26.
Interests not to ex- ceed 5% in bank- ruptcy proceedings. CAP. 244.
per annum, but nothing in the foregoing provision shall prejudice the right of
the creditor to receive out of the estate, after all the debts proved in the estate
have been paid in full, any higher rate of interest to which he may be entitled.
(2) Subsection (1) shall, in relation to such a debt as aforesaid,
have effect, notwithstanding any other provisions relating to the payment of
debts, including interests or any pecuniary consideration in lieu of interest
contained in the Bankruptcy Act.
(3) No proof of a debt due to a moneylender in respect of a loan made by
him shall be admitted for any of the purposes of the Bankruptcy Act unless the
affidavit verifying the debt is accompanied by a statement showing in detail-
(a) the amount of the sums actually lent to the debtor and the
dates on which they were lent, and the amount of every pay
ment already received by the moneylender in respect of the
loan and the date on which every such payment was made;
and
(b) the amount of the balance which remains unpaid distinguishing
the amount of the principal from the amount of interest in-
cluded therein, the appropriation between principal and inter
est being made in accordance with the provisions of this Act
where the interest is not expressed by the contract for the
loan in terms of a rate; and
(c) where the amount of interest included in the unpaid balance
represents a rate per centum per annum exceeding five per
centum, the amount of interest which would be so included if
it were calculated at the rate of five per centum per annum.
(4) General rules may be made under section 97 of the Bank-
ruptcy Act for the purpose of carrying into effect the objects of this section.
CAP. 244.
CAP. 244.
CAP. 244.
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No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
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29. On an application relating to the admission or amount of a proof by a
moneylender in any bankruptcy proceedings, the court may exercise the like
powers as may be exercised under this Act when proceedings are taken for the
recovery of money.
30. The powers of a court under section 25 may, in the event of the bank-
ruptcy of the borrower, be exercised at the instance of the trustee in bank-
ruptcy, notwithstanding that he may not be a person liable in respect of the
transaction.
PART IX
Miscellaneous
31. If any moneylender, or any manager, agent or clerk of a moneylender, or
if any person being a director, manager or other officer of any corporation
carrying on the business of a moneylender, by any false, misleading or decep-
tive statement, representation or promise, or by any dishonest concealment of
material facts, fraudulently induces or attempts to induce any person to borrow
money or to agree to the terms on which money is or is to be borrowed, he
shall be guilty of a misdemeanour, and shall be liable on summary conviction to
imprisonment for a term not exceeding two years, or to a fine not exceeding
two thousand dollars, or to both such fine and term of imprisonment.
32. Without prejudice to the powers of a court under sections 24 and 25 if at
the time when proceedings are taken by a moneylender in respect of a default
in the payment of any sum due to him under a contract for the loan of money,
any further amount is outstanding under the contract but not yet due, the court
may determine the contract and order the principal outstanding to be paid to
the moneylender with such interest thereon, if any, as the court may allow up to
the date of payment.
33. Proceedings for the punishment of persons who contravene any of the
provisions of this Act shall, except where it is declared that they may be taken
on indictment, be taken under the Summary Jurisdiction Act.
Penalties for false statements and representations.
Proof by money- lender in bank- ruptcy.
Claim of relief by trustee in bank- ruptcy.
4 of 1998.
Power of court to determine contract.
Offences punish- able on summary conviction. CAP. 98. CAP. 99.
