Key Benefits:
9. Funds of the bank
(1) The funds of the bank shall consist of unrecallable capital, loan funds, a fund established under section 14, such moneys as may be applied by the bank as capital in terms of section 15(2), and such other moneys as may from time to time be received by or fall due to the bank in respect of its business or any matter incidental to its business.
(2) The unrecallable capital of the bank shall consist of-
(a) such moneys as the Government may from time to time pay to the bank as part of its funds out of moneys provided by law from the public funds (other than loan funds) for such purpose;
(b) the fund vested in the bank in terms of section 35;
(c) the fund established under section 11 of the State Land Act; and
(d) such moneys as the bank may from time to time accept by way of donation or bequest to the bank other than moneys required to be paid into a special fund established under section 14.
(3) The loan funds of the bank shall consist of-
(a) such moneys as the Government may from time to time pay to the bank as part of its funds out of moneys provided by law from the proceeds of any loan raised by the Government;
(b) such moneys as may from time to time be borrowed by the bank in terms of section 12; and
(c) such moneys as may from time to time be raised by the bank by the issue of national development bonds in terms of section 13.
(4) The loan funds of the bank shall at no time exceed in aggregate the sum of P30 000 000 or such other sum as may from time to time be approved by resolution of the National Assembly.
10. Payment of interest on unrecallable capital
(1) Subject to subsection (2), the bank shall pay dividends to the Government on its unrecallable capital, other than moneys referred to in section 9(2)(d).
(2) The Minister may, from time to time, by order fix a minimum dividend rate in respect of dividends payable in accordance with this section or waive payment to the Government of such dividends for any period he thinks fit.
11. Provisions as to moneys provided from loan funds
Where any moneys are paid to the bank as part of its funds out of moneys provided by law from the proceeds of any loan raised by the Government, the bank shall repay such moneys in such manner and at such times, and shall pay interest thereon to the Government at such times and at such rates, as the Minister may determine at the time at which such moneys are paid, and such moneys shall be applied by the bank only for such purposes as may be specified in the written law under which the loan was raised.
12. Borrowing powers of the bank
(1) Subject to the provisions of section 9(4), and to the provisions of this section, the bank may borrow sums required by it for meeting any of its obligations or for the purpose of its business.
(2) The power of the bank to borrow shall be exercisable only with the approval of the Minister as to the amount, the nature and sources of the borrowing and as to the terms on which the borrowing may be effected.
(3) An approval given in any respect for the purposes of subsection (2) may be either general or limited to a particular borrowing or otherwise, and be either unconditional or subject to conditions.
(4) The Government may guarantee, in such manner and on such conditions as it thinks fit, the repayment of the principal of, and the payment of the interest and other charges on, any borrowings of the bank under this section, and any sums required for the fulfilling of any such guarantee shall be charged on and paid out of the revenues and public funds of Botswana, and such expenditure thereof is hereby declared to be statutory expenditure.
(5) As soon as possible after any guarantee is given under subsection (4), the Minister shall lay a statement of such guarantee before the National Assembly.
(6) A person lending money to the bank shall not be bound to inquire whether the borrowing of such money is within the power of the bank.
13. Issue of national development bonds
(1) Subject to the provisions of section 9(4), the bank may, with the approval of the Minister, issue national development bonds.
(2) The provisions of the Second Schedule shall have effect with respect to national development bonds.
(1) The bank may from time to time accept moneys by way of donation or bequest subject to a condition that they shall be applied to any specific purpose or used in a specified manner, and if the bank so accepts any such moneys it shall establish a special fund and pay those moneys into that fund.
(2) The bank shall apply the moneys of a fund established under subsection (1) for the purposes, and in the manner, specified by the person who gave or bequeathed the moneys.
(3) The bank shall not accept a donation or bequest in terms of subsection (1) which is required to be applied for a purpose, or in a manner inconsistent with the purpose, for which the bank is established under section 3.
15. Balancing of revenue account, and surplus revenue
(1) It shall be the duty of the bank so to carry on its business as to secure that its revenues are sufficient to meet all sums properly chargeable to its revenue account (including, without prejudice to the generality of that expression, provision in respect of its obligations under sections 10, 11, 12 and 17, and the First and Second Schedules), taking one year with another.
(2) Any excess of the revenues of the bank for any financial year thereof over the sums properly chargeable to its revenue account for that year (including as aforesaid) shall be applied by the bank for such purposes as it may determine with the approval of the Minister.
16. Restriction on underwriting
Except with the prior approval of the Minister, the bank shall not underwrite an issue of shares or debentures if, on the date on which it is proposed to underwrite such issue, the moneys which the bank may be called upon to pay under the same when added to the sums which it may be called upon to pay under all other contracts for underwriting the issue of shares and debentures then outstanding shall exceed such sum as the Minister may from time to time direct by order published in the Gazette.
(1) The bank shall establish a reserve fund.
(2) The management of the said fund, the sums to be carried from time to time to the credit thereof, and the application thereof, shall be as the bank may determine:
Provided that-
(i) no part of the said fund shall be applied otherwise than for the purposes of the bank; and
(ii) the power of the Minister to give directions to the bank shall extend to the giving to it of directions as to any matter relating to the establishment or management of the said fund, the carrying of sums to the credit thereof, or the application thereof, notwithstanding that the directions may be of a specific character.
Moneys standing to the credit of the bank may from time to time be invested in securities approved either generally or specifically by the Minister, and the bank may, from time to time, with the like approval sell any or all of such securities.
(1) The bank shall keep accounts of its transactions to the satisfaction of the Minister and such accounts shall be audited annually by an auditor appointed by the Minister.
(2) The bank shall grant to the auditor appointed to audit the accounts of the bank under the provisions of subsection (1) access to all books, documents, cash and securities of the bank and the general manager, all other members of the board, and all officers, servants and agents of the bank shall give to such auditor on request all such information as may be within their knowledge in relation to the affairs of the bank.
(3) The bank may write off bad debts.
