Government Loans Amendment Act 1993

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Government Loans Amendment Act 1993
The Laws of Bermuda
Annual Volume of Public Acts 1993 : 12


1993 : 12


[Date of Assent 22 March 1993]

[Operative Date 22 March 1993]

WHEREAS it is expedient to amend the Government Loans Act
1978 and, consequentially, the Public Funds Act 1954:

Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:

Short title
1 This Act may be cited as the Government Loans Amendment Act

Amends s 2A(2) of Act No 74 of 1978
2 Subsection (2) of section 2A of the Government Loans Act 1978
("the Act") is amended by deleting the paragraph defining "public debt"
and substituting the following paragraph—

" "public debt" means—

(a) debt owed by the Government; and also

(b) debt whose payment by some other person is guaranteed
by the Government:

Provided that, where that person is owed a money
amount by the Government at a time when such a
guarantee is in force, the amount so owed (up to the



money value of the guarantee obligation) shall be
disregarded; and".

Amends s 5
3 Section 5 of the Act is amended by adding the following

" (3) The Registrar may make arrangements whereby he
may be assisted in the performance of his functions under this
Act by such persons (whether or not public officers) on such
terms (including remuneration) and conditions as he thinks fit;
but no such arrangements shall be made without the Minister's
prior approval.".

Repeals and replaces s 12
4 Section 12 of the Act is repealed and the following sections are

"Sinking fund
12 (1) There is hereby established a sinking fund, to be
called "The Government Borrowing Sinking Fund", which shall
be maintained and managed by the Minister under and in
accordance with this section.

(2) In each financial year there shall be paid into the
above fund (in this Act referred to as "the Fund") out of the
Consolidated Fund an amount equal to two and one-half per
centum of the public debt outstanding at the end of the next
preceding financial year.

(3) The expression "public debt" in subsection (2) of
this section and in subsection (1) of section 12A means the
public debt as defined in subsection (2) of section 2A but
excluding the amount of any loan—

(a) guaranteed by the Government; or

(b) secured by land; or

(c) raised under the Temporary Loans Act 1973.

(4) The amount of the contribution required by sub-
section (2) to be paid into the Fund in any financial year shall be
so paid either—

(a) on or before 30th June in that financial year; or

(b) at some later time during that financial year;

The Laws of Bermuda
Annual Volume of Public Acts 1993 : 12


but, where in any financial year any amount has not been paid
as required by paragraph (a) of this subsection, interest at the
rate of six per cent per annum shall be paid out of the
Consolidated Fund on that amount for so long as it remains

Application of Sinking Fund
12A (1) Moneys at any time in the Fund may be applied—

(a) to reduce or cancel the public debt; or

(b) by way of investment under the Public Funds
Act 1954.

(2) Net income from investment undertaken pursuant
to paragraph (b) of subsection (1) shall be paid into the Fund.".

Consequential amendment of Act No 5 of 1954
5 Section 4 of the Public Funds Act 1954 is consequentially
amended by adding at the end of paragraph (c) of subsection (5) the
following sub-paragraph—

"(v)the Government Borrowing Sinking Fund established by
section 12 of the Government Loans Act 1978.".



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