General Loan and Dominica Stock Act

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Act 32of1949 Amended by 25 of 1950 12 of 1990

Current Authorised Pages Pages AutJwrised
(inclusive) byL.R.O. 1-13 1/1991
Note on
Subsidiary Legislation
1. Short title. 2. Interpretation. 3. Loans to be raised by debentures or stock. 4. Loans to be a charge upon general revenue. 5. Borrowing upon debentures. 6. Amount of debenture. 7. Debentures may be redeemed by annual drawings or by
purchase in the market or on a date fixed. 8. Interest coupons. 9. Fonn of debenture and coupons. 10. Debentures and coupons transferable by delivery. 11. Registry of debentures. 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 deben-
tures. 15. Application of sinking fund. 16. Creationof sinking fundfor redemptionofdebentures 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 princi-
pal. 24. Redeemed debentures to be cancelled. 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.
Cesser of sinking fund contributions.
29. Creation of sinking fund. 30. Charge upon general revenue. 31. Expenses to be paid out of sinking fund. 32. Powers of Minister.
Debentures convertible into stockon conditions prescribed by the Crown Agents at time of issue.
Conversion of loans generally. Creation and issue of stock in exchange for other securities. Creation and sale of stock or debentures to raise loans and for
other purposes. Arrangements for conversion.
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 ofloans in the State. 39. Authority to make Regulations. 40. Saving clause.
AN ACT to declare the terms and conditions applicable to loans 1961 Ed. authorised to be raised by the Government of Dominica and to ~~f 1139~9. provide for the creation of Dominica stock.
WHEREAS it is expedient to define in one Act the terms and Preamble. conditions applicable to loans hereinafter authorised to be raised by the Government of Dominica.
AND WHEREAS it is expedient to provide for the creation of Dominica stock and to enable the Government of Dominica to take advantage of the provisions of the Acts of the United Kingdom entitled the Colonial Stocks Acts, 1877 to 1948, and any Act amending the same.
1. This Act may be cited as the - GENERAL LOAN AND DOMINICA STOCK ACT.
2. In this Act - "Crown Agents" means the persons for the time being acting as Crown
Agents for Overseas Governments and Administrations, or any of them;
"stock" includes both Dominica and registered stock; "registered stock" means stock transferable by instrument in writing.
3. Wherever by any Act authority is given to raise any sum of ~ans to be money for the purposes mentioned in such Act, the Minister, or the ~:::es or Crown Agents acting on his behalf, may from time to time, as he stock. considers expedient, raise such sum either by debentures or by stock, or partly by debentures and partly by stock.
4. The principal moneys and interest represented by debentures or Loans to be a stock issued under this Act are hereby charged upon the Consolidated ::~Iu::~ue. Fund. [12 of 1990].
S. When the Minister, or the Crown Agents acting on his behalf, Borrowing upon thinks it expedient to raise money by debentures, the debentures shall debentures.
L.R.O.1I1991
Amount of debenture.
Debentures may be redeemed by annual drawings or by purchase in the market or on a date fixed.
Form of debenture and coupons.
Debentures and coupons transferable by delivery.
Registry of debentures.
Payment of interesL
be issued in the United Kingdom on behalf of the Government of Dominica, by the Crown Agents, upon the best and most favourable terms that can be obtained, and shall be signed by anyone of them on that behalf.
6. Every debenture issued under this Actshall be for the sum of not less than one hundred pounds sterling.
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; and 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. 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. 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 Dominica, may determine.
9. The debentures 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 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. So long as any of the debentures remain outstanding, the Mo~?f Minis" hall' h half din"th th da hi h th provllling forter S , m eac -year en g WI e y on w c e payment of interest on the debentures falls due, appropriate out of the Consolidated interest on Fund a sum equal to one half-year's interest on the whole of the t~~:;]. debentures issued, including any which may have been redeemed, but exclusive of 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. 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 consequence, not been paid.
14. (1) The Minister shall, in the half-year ending on the date Furth~ sums to ified' th f " f th 1 . th hi h th fir be rermtted forSpeC m e terms 0 ISsue 0 e oan as at on w c e st the redemption of
contribution to the sinking fund shall be taken and in each subsequent the debentures. half-year, appropriate out of the Consolidated Fund for the formation [12 of 1990]. 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 exclusive of any which may have been at any time exchanged for stock, and shall remit that sum to the Crown Agents with the remittance hereinbefore mentioned.
(2) Notwithstanding anything to the contrary contained in subsec- tion (1), if at any time the trustees of the sinking fund of any loan issued under this Act are satisfied that the value of the fund will be sufficient with further accumulations of interest but without further payment of contributions 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; but contributions to the sinking fund shall be recommenced if the trustees shall at any time inform the Minister that this is necessary.
15. The sinking fund shall be applied in the first place in payment Application of of all expenses of, or incidental to, the redemption of the debentures and sinking fund. the cost and expenses of all notices required by this Act to be given, and in the next place, and subject to the aforesaid payments, in repayment
L.R.O.1I1991
Creation of sinking fwld for redemption of debentures payable on a fixed date.
Disposal of sinking fund when debentures are redeemed by purchase or by annual drawings.
Appointment of day for drawing of debentures.
Notice of time and place appointed for drawing.
Mode of drawing.
of the principal moneys for the time being represented by the deben- tures.
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 as aforesaid as shall not be required for the payment of interest for the current half-year, as a sinking fund for the final extinction of the debt, and the Crown Agents shall also place at interest or invest in the purchase of like securities the accumulations of interest or the divi- dends, interest or produce of such investments 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 moneys for the time being represented by the debentures.
17. In the 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 may not be required for immediate payments, at interest, and shall hold all such moneys and 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 unsatisfied, 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 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, ifhe thinks fit, be present. and shall then in the presence of the 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 Notice of • debentures drawn
numbers of the debentures drawn for redemption and shall, as soon as for redemption. may be, by advertisement in the London 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 distin- guished will be repaid.
22. On the day so appointed the Crown Agents shall, at their office Payment of • drawn deben- ill London, on demand, pay to the holders of the debentures drawn for tures. repayment 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 Cesser of interest debenture all interest on the principal moneys represented thereby shall ~::::d for cease and determine, whether payment of the principal has been payment of demanded or not. principal.
24. Upon the repayment of the principal moneys represented by any Redeemed debenture, the debenture, with all coupons thereunto belonging, shall be =~::.s tobe 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. Any debenture redeemed by purchase shall likewise be so cancelled and disposed of.
25. When the Minister or the Crown Agents acting on his behalf, Borrowing upon considers it expedient to raise money by the issue of Dominica stock, stock. then such stock shall be issued in the United Kingdom by the Crown Agents under the United Kingdom Colonial Stock Act, 1877 upon the best and most favourable terms that can be obtained.
26. All the stock which may be created under this Act shall be When the • principal is to beredeemable at par on a date to be named ill that behalf by the Crown repaid.
Agents when issuing the stock, such date not being later than sixty years from the date of issue. 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. 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 has been demanded or not.
L.R.O.l/1991
Mode of providing for the payment of interest on stodc. [12 of 1990].
Mode of providing for payment of principal of stock. [12 of 1990].
Cesser of sinking fWld contribu- tions.
Creation of sinking fund.
Charge upon general revenue. [12 of 1990].
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 such stock falls due, appropriate out of the Consolidated Fund 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. (I) 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 shall be taken and in each subsequent half-year, appropriate out of the Consolidated Fund for the formation of a sinking fund an additional sum equal to one-haIf 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 shall remit the sum to the Crown Agents with the remittance hereinbefore mentioned.
(2) Notwithstanding anything to the contrary contained in sub- section (1), if at any time the trustees of the sinking fund of any loan issued under this Act are satisfied that the value of the fund will be sufficient with further accumulations of interest but without further payment of contributions 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; but contributions to the sinking fund shall be recommenced if the trustees at any time informs 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 as aforesaid as shall not be 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 such investments, and shall 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 has become due, the Minister
shall make good the deficiency out of the Consolidated Fund of Dominica.
31. All expenses of or incidental to the management of the sinking E~llCnses to be fund, or to the payment of the principal moneys borrowed, shall be paid =::;tf~~d. out of the sinking fund.
32. (1) The Minister shall also have, and may from time to time p~w~ of . th fi 11 . d th .. fth Mimster.exercISe, e 0 owmg powers an au onties or any 0 em:
(a) he may authorise the Crown Agents when issuing any Deben~res. . f th convertible mtoloan m the form 0 debentures to declare at the stock on
debentures will be convertible into stock at such dates conditions and on such terms and conditions as may be prescribed prescribed by the
• • Crown Agents at by the Crown Agents at the time of the Issue of the time of issue. debentures;
(b) he may declare all or any of the Government of Domi- Conversion of nica loans, whether existing in the form of stock or loans generally. debentures, and whether issued before or after the commencement 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 Creation and • . . issue of stock in
amount of stock m exchange for the secunties held for exchange for such loans as may be necessary; other securities.
(d) he may authorise the creation and sale of any such stock Creation and sale . . of stock or
or debentures for the purpose of raISmg money for debentures to redeeming any outstanding loans whether issued be- raise loans and fore or subsequent to the passing of this Act, for paying for other
. th . f k d th . 4' purposes.any expenses m e creation 0 stoc ,an 0 .eTWlseJ.or carrying out the provisions of this Act;
(2) Any conversion authorised by subsection (1) may be ef- Arrange~ents for fected either by an arrangement with the holders of existing securities conversion. 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 Exchange of capital or of the annual charge on any loan, except _ Stoecukritiesfor
s c .
(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
L.R.O.l/1991
Converted securities to be cancelled.
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 section 32(a).
34. The securities exchanged or otherwise converted into stock under this Act shall be forthwith cancelled by the Crown Agents, and the debentures surrendered shall be cancelled and transmitted to the Min- ister.
Trust~s to 35. The trustees of the sinking fund appointed under this Act, and apporuon amount • d A th·· th· f . . hi h of sinking fund acnng un er any ct au onsmg e Issue 0 any secunties w c may released by be exchanged into stock or cancelled or purchased under this Act, shall conversion. determine what amount of the sinking fund held by them and created for
repayment of the securities shall be released and in the determination of such question the trustees shall take into consideration the value of the whole investments held by them on account of the sinking funds, the amount of the debt remaining a charge on the sinking funds, and such matters as the trustees may think fit to take into account.
Sinking funds released how to be disposed of.
Creation, inscription, registration, issue, conver- sion, and transfer of stock.
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 House of Assembly may direct.
37. The Crown Agents may from time to time, at the request of the Minister, 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-registering them;
(f) for effecting the exchange of conversion of inscribed stock into registered stock.
38. 1bis Act is applicable only to the raising ofloans in the United ~ising of loans Kingdom, and nothing contained in this Act shall prevent the raising of m the State. loans in the State upon such tenus 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 Authority to section 16 of the United Kingdom Colonial Stock Act 1877 to provide :::. Regula- that, in accordance with section 1 of the United Kingdom Colonial Stock Act 1948, stock issued (whether before or after the passing of the last -mentioned Act) under this Act shall be transferable by instrument in writing in accordance with the Regulations and in no other manner.
40. Nothing in this Act or in the repeal of the General Loan and Saving clause. Inscribed Stock Ordinance 1914 shall affect the rights of any person 4 of 1914. who holds stock or bonds under the authority of the said Ordinance.

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