Jamaica Development Bank Act

Link to law: http://www.moj.gov.jm/laws/jamaica-development-bank-act
Published: 1969-09-03

JAMAICA DEVE1,OPMENi" BANK

THE JAMAICA DEVELOPMENT BANK ACT

ARRANGEMENT OF SECTIONS

Short title.

[nterpretation.

Establishment of the Jamaica Development Bank.

Duty of the Bank.

Powers of the Bank.

Divisions of the Bank.

Capital of the Bank.

Ministerial directions.

Borrowing powers.

Guarantee by Minister of borrowings.

Repayment of and interest on advances and sums issued to meet
guarantee.

Securities.

R e s e ~ e fund.

Accounts and audt.

[Deleted bvAct 28 of 2003, S. 2.1

Annual report.

General manager. secretary and other staff'.

Power to delegate.

Enforcement of securities.

Power to appoint a receiver, etc.

Power of Bank to act as agent for the Government.

Power to make regulations.

Transitional.

Transfer of employees of Development Finance Corporation.

Functions of Development Finance Corporation to be carried out
by the Bank.

SCHEDULE

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JAUA ICA DEVELOPMENT BANK

THE JAMAICA DEVELOPMENT BANK ACT

[3rd September, 1969. ]

1. This Act may be cited as the Jamaica Development
Bank Act.

2. In this Act-
"agricultural development enterprise" means an agri-

cultural or livestock enterprise operated on a
commercial basis;

"the B a n k means the Jamaica Development Bank
established in accordance wit]! this Act;

"the Board" means the Board of Directors of the Bank
constituted in accordance with this Act;

"the chairman" means the chairman of the Board;
"debenture" includes debenture stock;

"development enterprise" means an industrial enterprise, a
tourist industry enterprise, a housing enterprise, an
agricultural development enterprise or any enterprise
that may from time to time be approved as a
development enterprise by the Minister by order;

"director" means a director of the Bank;
"financial year" means the period of twelve months

beginning on the first day of January in any year:

Provided that the period beginning on the date of
the commencement of this Act and ending on the
thirty-first day of December next following shall be
deemed to be a financial year;

"hndions" includes powers and duties;

"housing enterprise" means an enterprise in Jamaica
in which is carried on the business of construd-

Acts
12 of 1969,
43 of 1974,
28 of 2003

S. 2.

Short title.

Interpre-
tation.

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J W C A DEVELOPMENT BANK

ing or facilitating the construction or purchase of
dwelling-houses;

"industrial enterprise" means an enterprise in Jamaica in
which is carried on the business of-

(a) manufacturing, processing, assembling,
installing, overhauling, reconditioning,
altering, repairing, cleaning, packaging,
transporting or warehousing of goods; I

(b) logging, drilling, construction, engineer-
ing, technical surveys or scientific re-
search;

(c) operating a mine or quarry;
(d) generating, supplying or distributing elec-

tricity;

(e) operating a commercial transport service;
V) supplying premises, machinery or equipment

for any business mentioned in paragraph (a),
(b), (c), (4 or (e) hereof under a lease,
contract or other arrangement whereby title
to the premises, machinery or equipment is
retained by the supplier;

"secretary" means the secretary of the Board,

"share" includes stock;

"shareholder" means a shareholder of the Bank;

"tourist industry enterprise" means an enterprise in
Jamaica in which is carried on the business of-

(a) supplying hotel accommodation or other
facilities principally intended for visitors
to Jamaica; or

(b) supplying premises or equipment for any
business referred to in paragraph (a)
hereof under a lease, contract or other

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JAMAICA DEVELOPMENT BANK 5

arrangement whereby title to the premises
or equipment is retained by the supplier.

3.-(1) There is hereby established a body to be called Esbbitsh-
the Jamaica Development Bank which shall be a body Jamaica
corporate with perpetual succession and a common seal z;$lz;k.
with power to purchase, take, hold and dispose of land
and other property of whatever kind, to enter into con-
tracts, to sue and be sued in the said name and to do all
things necessary for the purposes of this Act.

as to the constitution, operation and expenses of the Bank
and otherwise in relation thereto.

(3) The seal of the Bank shall be authenticated in
the manner prescribed in the Schedule and shall be judi-
cially and officially noticed.

men1 of the

(2) The provisions of the Schedule shall have effect S&&!c.

4.-(1) Subject to the provisions of this Act, it shall be Dutyof

(U) to assist persons in establishing, carrying on or
expanding development enterprises by participat-
ing in share capital, granting loans and providing
other forms of financial assistance to such per-
sons; and

(b) to foster the development of money and capital
markets in Jamaica.

(2) The Bank shall in the performance of its duty-
(U) ensure that every application dealt with on behalf

of the Bank is considered principally on its finan-
cial and economic merits;

(b) take all such measures as may be necessary to
ensure that any financial assistance rendered by
the Bank to any development enterprise is
utilized for the purpose for which it is given.

lhe Bank. the duty of the Bank-

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6 JAMAZCA DEVELOPMENT BANK

(3) The Bank shall not make an investment in or
otherwise transact business with an enterprise in which a
director of the Bank is a partner, director or shareholder or
is in any other way directly or indirectly interested, unless
the transaction is unanimously approved by the other
directors of the Bank.

(4) A director who is directly or indirectly interested
in a contract made or proposed to be made by the Bank-

(a) shall disclose the nature of his interest; and
(b) shall not take part in any deliberation or decision

of the Bank with respect to that contract.

5.-(1) Subject to the provisions of this Act, the Bank
may, for the purpose of performing any of its functions
under this Act, do anything and enter into any transaction
which, in the opinion of the Bank, is necessary to ensure
the proper performance of its functions.

(2) In particular and without prejudice to the general-
ity of the provisions of subsection (1) the Bank may-

(a) underwrite new issues of stocks, shares, bonds,
debentures and other securities;

(b ) guarantee loans made from private investment
sources;

(c) sell investments of whatever kind belonging to the
Bank as and when appropriate;

(6) carry out transactions involving unit trust schemes
and mortgages;

(e) furnish financial advice and provide or assist in
obtaining managerial, technical, and administrative
services for development enterprises in Jamaica;

Powersof
the Bank.

43 / 1974
S. 2(b).

(f, make mortgage loans for fixed periods to persons
who are in the whole time service of the Bank for
the purpose of facilitating the acquisition by them
of housing.

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JAMAICA DEVELOPMENT BANK 7

6. Transactions relating to the following divisions of the Divisions
of the

Bank, namely- Bank.
(a) industrial and tourist development;
(b) housing;
(c) agricultural development;
(4 other development projects,

shall be distinguished so far as possible and shall be
recorded and dealt with separately in the annual accounts
and reports of the Bank.

7.-(1) Subject to the provisions of this section, the Capital
of the authorized capital of the Bank shall be ten million dollars B~,,L

divided into ten million shares of the par value of one
dollar each.

(2) The Government of Jamaica may subscribe for
the said ten million dollar shares or such other amount as
the Minister may from time to time determine at par:

Provided that any person may, subject to regulations
made pursuant to section 21, subscribe for and hold shares
in the Bank.

(3) The Bank may, from time to time, with the
approval of the Minister, vary the amount of the authorized
capital of the Bank.

8 . 4 1 ) Subject to the provisions of this section, the Ministerial
directions. Minister may, after consultation with the chairman, give the

Board such directions of a general character as to the policy
to be followed by the Bank in the exercise and performance
of its functions as appear to the Minister to be necessary
in the public interest.

(2) The Bank shall furnish the Minister with such
returns, accounts and other information, as he may require
with respect to the property and activities of the Bank,

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8 JAMAICA DEVELOPMENT BANK

and shall afford to him facilities for verifying such informa-
tion in such manner and at such times as he may reasonably
require.

(3) The power of the Minister to give directions to
the Board shall include power to give directions whether of
a general character or otherwise, as to the exercise by the
Bank of its borrowing powers.

Borrowing 9.-(1) Subject to the provisions of this Act, the Bank
may borrow sums required by it for meeting any of its
obligations or discharging any of its functions.

powers.

(2) The aggregate of the liabilities of the Bank out-
standing at any one time, including direct liabilities such as
bonds and debentures issued by the Bank and the contingent
liabilities of the Bank in the form of guarantees given or
underwriting agreements entered into by it, shall not at
any time exceed seven times the aggregate amount of the
paid-up capital and the reserve fund for which provision
is made in section 13.

Guarantee

ofborrow.
ings.

lO.--(I) With the approval of the House of Representa-
tives the Minister may guarantee, in such manner and on
such conditions as he may think fit, the repayment of the
principal and the payment of interest on any authorized
borrowings of the Bank.

by Minister

(2) Where the Minister is satisfied that there has
been default in the repayment of any principal moneys or
the payment of interest guaranteed under the provisions
of this section he shall direct the payment out of the
Consolidated Fund of the amount in respect of which there
has been such default and such payment shall be a charge
on the Consolidated Fund.

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J M C A DEELOPMENT BANK 9 1

11. The Bank shall make to the Accountant-General at :zyd
such times and in such manner as the Minister or other intereston
person designated by the Minister may direct payments of 2:;
such amounts as may be so directed in or towards repay- issuedto
ment of advances made to the Bank by Government and :Lee.
of any sums issued in fulfilment of any guarantee given
under section 10, and payments of interest on what is out-
standing for the time being in respect of such advances
and of any sums so issued at such rate as the Minister may
direct and different rates of interest may be directed as
respects different advances and sums and as respects
interest for different periods.

12. The Bank- Securities.

(a) may issue debentures or bonds for the purpose of
exercising its borrowing powers under section 9;

(b) shall establish a sinking fund for the redemption
of debentures so created;

(c) may postpone sinking fund contributions for such
period or periods of time and subject to such
conditions as may be approved by the Minister.

13. The Bank shall set aside in each calendar year out Ed:
of the net profits (if any) of the Bank a minimum of twenty-
five per centum of such profits towards a reserve fund to
meet contingencies and for such other purposes as the Bank
may think fit until the total amount standing to the credit
of such reserve fund shall amount to a sum equal to its
paid-up capital.

14.-(1) The Bank shall keep proper accounts and other EzuZ.
records in relation to the business of the Bank and shall
prepare annually a statement of accounts in a form
satisfactory to the Minister, being a form which shall
conform with the best commercial standards.

(2) The accounts and records shall be kept in such
a manner as to secure the provision of separate informa-

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J M C A DEVELOPMENT BANK

tion as respects each of the main divisions of the Bank,
and to show as far as may be, the financial and operating
results of each such division.

(3) The accounts of the Bank shall be audited by
an auditor or auditors appointed annually by the Bank
and approved by the Minister.

(4) So soon as the accounts of the Bank have been
audited, the Bank shall send the statement of its accounts
referred to in subsection (1) of this section to the Minister
together with a copy of any report made by the auditors
on that statement or on the accounts of the Bank.

(5) The auditors' fees and any expenses of the audit
shall be paid by the Bank.

(6) The Auditor-General shall be entitled, on the
direction of the Minister, at all reasonable times to examine
the accounts and other records in relation to the business
of the Bank.

14A. [Deleted by Act 28 of 2003, S. 2.1

Annual
repal.

15.-41) The Bank shall, not later than two months after
the end of each financial year, cause to be made and trans-
mitted to the Minister a report dealing generally with the
activities of the Bank during the preceding financial year,
and containing such information relating to the proceed-
ings and policy of the Bank as can be made public without
detriment to the interests of the Bank.

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JAMAICA DEVELOPMENT BANK 11

(2) The Minister shall cause a copy of the report
together with the annual statement of accounts and the
auditors’ report thereon to be laid on the Table of the
House of Representatives and of the Senate.

(3) Copies of the Bank‘s report together with the
annual statement of accounts and the auditors’ report on
that statement or on the accounts of the Bank shall be
published in such manner as the Minister may direct and
shall be made available to the public by the Bank at a
reasonable price.

16.41) The Bank may appoint and employ at such re- General
muneration and on such terms and conditions as it thinks fit sscretary
a general manager, a secretary and such officers, agents and zipther
servants as it deems necessary for the proper carrying out
of its functions under this Act :

manager,

Provided that-
(a) no salary exceeding eight thousand dollars per 4311974

annum shall be assigned to any post without the
prior approval of the Minister;

(b) subject to any regulation pursuant to paragraph
(a) of section 21, no provision shall be made for
the payment of any pension, gratuity or other
retiring benefits to any employee of the Bank
without the prior approval of the Minister.
(2) The Governor-General may, subject to such 4311974

conditions as he may impose, approve of the appointment of S. @).
any public officer in the service of the Government to any
office with the Bank and any public officer so appointed
shall, in relation to pension, gratuity or other allowance, and
in relation to other rights as a public officer, be treated as
continuing in the service of the Government.

S. 4 (a).

17.41) Subject to the provisions of this Act, the Bank ~ ~ ~ , ~ ~ t ~
may delegate to any director or employee of the Bank the

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12 JAMAICA DEVELOPMENT BANK

power to carry out on behalf of the Bank such functions as
the Bank may determine.

(2) Every delegation under this section shall be
revocable by the Bank and no delegation shall prevent the
exercise by the Bank of any function delegated.

Enforce-

secunhes.

18. Where any property mortgaged as security for a
loan dnder the provisions of this Act is acquired by the
Bank, the Bank may either manage and hold such property
or carry on any business with such property or sell or
otherwise dispose of it as it may deem fit.

ment of

Power to

rece,ver,
etc.

19.-(1) Notwithstanding that a loan granted or guar-
anteed by the Bank may not have been secured by a
mortgage within the meaning of the Conveyancing Act, the
Bank may if a borrower defaults in respect of a loan granted
or guaranteed by the Bank, appoint a receiver in respect of
the business in connection with which the loan was granted
or guaranteed, and a receiver so appointed shall have the
same powers mutatis mutandis as a receiver appointed pur-
suant to the power conferred on a mortgagee by paragraph
(4 of subsection (1) of section 22 of the Conveyancing Act.

(2) A person appointed by the Bank to be a receiver
pursuant either to the power conferred on a mortgagee by
paragraph (d) of subsection (1) of section 22 of the Con-
veyancing Act or to the power conferred on the Bank by
subsection (I) of this section shall, if the Bank so appoints,
be also the manager of the business in respect of which the
loan was granted or guaranteed and the effect of such an
appointment shall be the same as if the person so appointed
had been appointed by the Court to be the receiver and
manager of such business.

(3) No person appointed by the Bank to be a receiver
or a receiver and manager shall be deemed to be an officer
of the Court.

appoint a

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JAMAICA DEVELOPMENT BANK 13

20. The Bank may act generally as agent for the Govern- Powerof
flank to

agent far
the Govern-
ment.

Power to
make

ment where it can do so appropriately and consistently
with its functions under this Act.

21. The Minister may make regulations-
(a) in relation to the grant of pensions, gratuities and regda.

other benefits to employees of the Bank and their tions.
dependants, and to the dependants or estate of
deceased employees of the Bank;

( b ) regulating the acquisition and holding of shares in
the Bank by persons and the rights of such p- ersons
including, but without prejudice to the generality
of the foregoing, such matters as the keeping of
registers of shareholders, the procedure for calls,
forfeiture and surrender of shares in the event of
default of payment, the transfer of shares, the
capitalization of surpluses, the declaration and
payment of dividends, the holding of meetings,
proceedings at such meetings and voting rights;
and

(c) generally for the better carrying out of the objects
and purposes of this Act.

22. Upon a day to be appointed by the Minister by order ::$-
published in the Gazette by virtue of this section and with-
out further assurance all such assets and liabilities of the
Development Finance Corporation as may be specified in
the order aforesaid shall be transferred to and vested in
the Bank.

Corporation immediately prior to the date of commence- ofDeuel.
ment of this Act shall, with effect from the date of com- $r:GL
mencement of this Act be deemed to be transferred to the Corpora.
Bank on the same terms and conditions as those on which
he was employed immediately prior to such date of com-
mencement.

23. Every person employed by the Development Finance Transfcrof
employees

tion.

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14 JAMAICA DEVELOPMEA’T BANK

Functions 24.-(1) From and after the 3rd September, 1969, the
mcnt functions of the Development Finance Corporation under

the Mortgage Insurance Act, or any other enactment shall
tjnntobc be carried out by the Bank; and accordingly, references in
out by the any such enactment to the Corporation shall be deemed

to be references to the Bank.

(2) In this section “enactment” includes any instru-
ment having the force of law.

of Develop

Finance
Corpora-

carried

Balk.

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JAMAICA DEVELOPMENT BANK

SCHEDULE (Section 3 (2))
1. (1) There shall be a Board of Directors of the Bank which. Roordof

subject to the provisions of this Act, shall be responsible for the Directors.
policy and the general administration of the affairs of the Bank.

(2) The Board shall consist of not less than seven nor more than 43: 1974
thirteen directors appointed by instrimlent in writing by the Minister S . 5(a).
from persons appearing to the Minister to have ability and experience
in matters relating to industry, agriculture, commerce. finance, econom-
ics, engineering, accountancy or law.

place of any director of the Bank in the case of the absence or appoint-
2. The Minister may appoint any person to act temporarily in the T~~~~~~~~

inability to act of such director.

chairman thereof.
(2) The Minister shall appoint one of the directors to be the

deputy chairman thereof.
(3) In the case of the absence or inability to act of the chairman,

the deputy chairman shall exercise the functions of the chairman.
(4) In the case of the absence or inability to act at any meeting

of both the chairman and the deputy chairman the remaining directors
shall elect one of their number to act as chairman of that meeting.

shall hold office for such period not being less than three years nor office.
more than five years as shall be specified in the instrument appointing
him and shall be eligible for reappointment upon the expiration of
his pcriod of office.

any time resign his office by instrument in writing addressed to the tion.
Minister and transmitted through the chairman and from the date of
the receipt by the Minister of such instrument such director shall
cease to be a director of the Bank.

(2) The chairman may at any time resign his office by instrument
in writing addressed to the Minister and such resignation shall take
effect as from the date of the receipt of such instrument by the
Minister.

director if he considers it expedient so to do and shall revoke thc director.
appointment of any director if a unanimous vote to that effect is
passed by resolution of the other directors.

the Senate shall be appointed a director of the Bank.

ments.

3. (1) The Minister shall appoint one of the directors to be the Chairman.

4. Subject to the provisions of this Schedule, a director of the Bank T~~~~~ ot

5. (1) Any director of the Bank other than the chairman may at ~ ~ i ~ ~ ~ .

6. The Minister may at any time revoke the appointment of any R~~~~~~~~

7. No person who is a member of the House of Representatives or Members
of House
of Repre-
sentativcs
and Senate
excluded.

8. The names of all directors of the Bank as 6rst constituted and Publica-
every change in the composition thereof shall be published in the lionof cornposi-

tion of Gazette.
Bank.

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16

Authenti-
cation of
seal and
documents.

Procedure
and
meetings.

43/1974
S . 5 (b).

Remunera-
tion of
directors.

Funds of
the Bank.

Protection
of Bank.

Protection
of directors
of Bank.

JAMAICA DEVELOPMENT BANK

9. (I) The seal of the Bank shall be authenticated by the s:g 9 natures
of the chairman or one duector of the Bank authorized to act in that
behalf and the secretary of the Board.

(2) All documents, other than those required by law to be under
seal, made by, and all decisions of, the Board may be signified under
the hand of the chairman or any director authorized to act in thit
behalf or the secretary of the Board.

10. (1) The Board shall meet at such times as may be necewary or
expedient for the transaction of business, and such meetings shall be
held at such places and times and on such days as the Board shall
determine.

(2) The chairman may at any time call a special meeting of thc
Board and shall call a special meeting to be held within seven days
of a written request for that purpose addressed to him by any two
directors of the Bank.

(3 The c h m a n or, in the case of the absence or inability to

as chairman, in accordance with the provisions of sub-paragraph (4) of
pdragraph 3 of this Schedulc, shall preside at the meetings of the Board.
and when so presiding the chairman. deputy chairman or the person
elected as aforesaid to act as chairman, as the case may be, shall
have an original and a casting vote.

(4) The quorum of the Board shall be five including the
chairman or the deputy chairman or the person elected to act as
chairman as aforesaid.

( 5 ) Subject to the provisions of this Schedule the Board may
regulate its own proceedings.

(6) The validity of any proceedings of the Board shall not be
affected by any vacancy amongst the directors of the Bank or by
any defect in the appointment of a director thereof.
II. There shall he paid to the chairman and other directors of

the Bank such remuneration, if any (whether by way of salaries or
travelling or other allowances) as the Minister may determine.

12. The funds of the Bank shall consist of such moneys as may
lawfully be paid to the Bank.

13. Notwithstanding anything to the contrary no act done or pro-
ceeding taken under this Act by the Bank shall be questioned on the
ground of any omission, defect or irregularity not affecting the merits
of the case.

14. (1) No action, suit, prosecution or other proceedings shall be
brought or instituted personally against any director of the Bank in
respect of any act done bona fde in pursuance or execution or
intended execution of this Act.

(2) Where any director of the Bank is exempt from liability by
reason only of the provisions of this paragraph the Bank shall be
liable to the extent that it would be if the said director were a servant
or agent of the Bank.

act of t 2 e chairman, ” the deputy chairman or the person elected to act

We inclusion of this page is authorized hy L.N. 24Rj 19751
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