JAMAICA MORTGAGE BANK

THE JAMAICA MORTGAGE BANK ACT

ARRANGEMENT OF SECTIONS

Short title.

Interpretation.

Establishment of the Jamaica Mortgage Bank.

Duty of the Bank.

Powers of the Bank.

Divisions of the Bank.

Capita1 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.

Reserve fund.

Accounts and audit.

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 Jamaica Mortgage Bank Limited.

[Deleted by Act 28 of 2003, S. 2.1

Functions under Mortgage Insurance Act to be carried out by the
Bank.

SCHEDULE

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JAUAICA MORTGAGE BANK 3

THE JAMAICA MORTGAGE BANK ACT A ~ Q
16 of 1973,
28 of 2003

1. This Act may be cited as the Jamaica Mortgage Bank Shorttitle.
Act.

Interpre-

2. In this Act- tation.

"the Bank means the Jamaica Mortgage Bank established
in accordance with this Act;

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

"the chairman" means the chairman of the Board;
"debenture" includes debenture stock;
"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 fifteenth
day of June, 1973, and ending on the thirty-first day of
December next following shall be deemed to be a
financial year;

"fbnctions" includes powers and duties;

"secretary77 means the secretary of the Bank;
"share" includes stock;

"shareholder" means a shareholder of the Bank.

3.-41) There shall be established a body to be called the Establish-
Jamaica Mortgage Bank, which shall be a body corporate
to which the provisions of section 28 of the Interpretation ~ a t g r g e
Act, shall apply. Bmk.

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4 J M I C A MORTGAGE BANK

Schedule. (2 ) The provisions of the Schedule shall have effect with
respect to the constitution and operation of the Bank and
otherwise in relation thereto.

Duty of 4.-41) Subject to the provisions of this Act, it shall be the
the Bsnk. duty of the Bank-

(a ) to foster the development of housing;
(b ) directly or indirectly to assist societies registered

under the Co-operative Societies Act to develop
co-operative housing; and

(c) to develop an active mortgage market.

(2) The Bank shall in the performance of its duty-

(a ) have regard to the financial standing of every
applicant and to the financial and economic merits
of every scheme proposed;

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

(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.

P O W ~ ~ S of 5.-41) Subject to the provisions of this Act, the Bank
the B;mL may, for the purpose of performing any of its functions

under this Act, do anything and enter into any transaction

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JAMAICA MORTGAGE BANK 5

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-

(U) guarantee loans made from private investment
sources for building development;

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

(c) lend money on security to be used for the con-
struction of premises for private residential pur-
poses or of a commercial or industrial nature;

(6) lend money on mortgage and carry out any other
transactions involving mortgages;

(e) furnish financial advice and provide or assist in
obtaining managerial, technical and administrative
services for persons engaged in building develop-
ment in Jamaica.

6. Transactions relating to the following divisions of the Divirionsof
the Bank. Bank, namely-

(a) the granting of mortgages by the Bank;
(b) the buying and selling of mortgages;
(c) mortgage insurance; and
(4 such other divisions as the Minister may require,

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

7.41) Subject to the provisions of this section, the Capitalof
the Bank. authorized capital of the Bank shall be twenty million

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

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

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6 JAMAICA MORTGAGE BANK

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.

Mirusterid 8.41) Subject to the provisions of this section, the
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, and the Board shall give
effect to any such directions.

(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, and
shall affod to him facilities for verifying such information
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.

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.

(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 con-
tingent liabilities of the Bank in the form of guarantees
given, shall not at any time without the prior approval of
the Minister exceed seven times the aggregate amount of
the paid-up capital and the reserve fund for which pro-
vision is made in section 13.

directions.

Borrowing
powers.

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JAMAICA MORTGAGE BANK 7

10.41) With the approval of the House of Representa- Guarantee
by Minister tives the Minister may guarantee, in such manner and on ofborrow-

such conditions as he thinks fit, the repayment of the
principal and the payment of interest on any authorized
borrowings of the Bank.

(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 Con-
solidated Fund of the amount in respect of which there has
been such default and such payment shall be a charge
on the Consolidated Fund.

(3) Where any loan is guaranteed under the pro-
visions of this section the Minister may, by order published
in the Gazette, provide that any tax, duty or fee payable
under the Income Tax Act, or the Stamp Duty Act or
the Registration of Titles Act or any other enactment
shall be remitted where such remission is, in the opinion
of the Minister, necessary to give effect to any term upon
which, or any condition subject to which, such loan was
so guaranteed.

11. The Bank shall make to the Accountant-General at ~epaymcnt
such times and in such manner as the Minister or other intereston
person designated by the Minister may direct payments of
such amounts as may be so directed in or towards repay- issuedto
ment of advances made to the Bank by Government and guarantee.
of any sums issued in fulfilment of any guarantee given
under section 10, and payments of interest on what is
outstanding 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.

of and

meet

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8 lAMAICA MORTGAGE BANK

Sccuritita. 12. The Bank-
(0) may issue debentures or bonds for the purpose

of exercising its borrowing powers under section
9;

(h) 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;

(d may make provision (whether or not by way of
the setting up of a fund for the purpose) for
meeting foreign exchange losses.

Resxvc 1 1 The Bank shall set aside in each calendar year out
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.

fund.

Accounts 14 .41) The Bank shall keep proper accounts and other
records in relation to its business and shall prepare annually
a statement of accounts in a form satisfactory to the
Minister, being a form which shall conform with established
accounting principles.

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

and audit.

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JAMAICA MORTGAGE BANK 9

(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) to the Minister together with
a copy of any report made by the auditors on that state-
ment 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.

1 5 4 1 ) The Bank shall, not later than two months after Annual
the end of each financial year or such later time as the
Minister may permit, cause to be made and transmitted
to the Minister a report dealing generally with the activities
of the Bank during the preceding financial year, and con-
taining such information relating to the proceedings and
policy of the Bank as can be made public without detriment
to the interests of the Bank.

(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.-(1) The Bank may appoint and employ at such re- General
muneration and on such terms and conditions as it thinks =retaw
fit a general manager, a secretary and such officers, agents ~ ~ ~ * ‘

manager.

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10 JAMAICA MORTGAGE BANK

and servants as it deems necessary for the proper carrying
out of its functions under this Act:

Provided that-

(a) no salary exceeding eight thousand dollars per
annum shall be assigned to any post without the
prior approval of the Minister;

(b ) subject to any regulation made pursuant to sec-
tion 21, no provision shall be made for the pay-
ment of any pension, gratuity or other retiring
benefit to any employee of the Bank without the
prior approval of the Minister.

(2) The Governor-General may, subject to such con-
ditions as he may impose, approve of the appointment of
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.

Power b 17.-(1) Subject to the provisions of this Act, the Bank
may delegate to any director, employee or agent of the
Bank the power to carry out on behalf of the Bank such
function 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.

delegate.

Enforce-

semritiw.

18. Where any property mortgaged as security for a loan
under 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 or in relation to such property
or sell or otherwise dispose of it as it may deem fit.

ment of

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19.--( 1) Notwithstanding that a loan granted or guaran- I1owor~o
teed by the Bank may not have been secured by a mortgage ~~~~~Y~r'
within the meaning of the Conveyancing Act, the Bank ete.
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 ~IJ/LI/IS rn~~/nnJis as a receiver appointed
pursuant to the power conferred on a mortgagee by para-
graph (4 of subsection (1) of section 22 of the Conveyan-
cing Act.

(2) A person appointed by the Bank to be a receiver
pursuant either to the power conferred on a mortgagee by
paragraph (4 of subsection ( I ) of section 22 of the Con-
veyancing Act or to the power conferred on the Bank by
subsection ( 1 ) 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.

20. The Bank may act generally as agent for the Govern- I>oworo~.
Bank lo a d ment where it can do so appropriately and consistently (b

with its hnctions under this Act. I ~ C