LOANS (CARIBBEAN DEVELOPMENT BANK) 1

THE LOANS (CARIBBEAN DEVELOPMENT
BANK) ACT

ARRANGEMENT OF SECTIONS

1. Short title.
2. Interpretation.
3. Power of the Government to borrow from the Caribbean

Development Bank.

4. Power to issue instruments including bonds.
5. Borrowing by statutory authority from the Bank.
6. Application of loan moneys by statutory authority.
7. Power of Government to guarantee loans by Bank to statutory

authorities.

8. PO= of Government to guarantee loans by Bank to com-

9. Restriction on borrowing powers of statutory authority so far as
panies

guarantee outstanding.

4y statutory authority.

guarantee.

1 2 Arbitration.
13. Implementation of obligation under the a g m e n L

10. Powers exercisable by Minister in event or prospea of default

11. Statutory authority to repay to Government sums paid under

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LOANS (CARIBBEAN DEVELOPMENT BANK) 3

Ad
31 of 1973.

THE LOANS (CARIBBEAN DEVELOPMENT
BANK) ACT

[I71h July. 1973.1

1. This Act may be cited as the Loans (Caribbean shontiuc.
Development Bank) Act.

2. In this Act- Intcrmc-
tation.

“Bank” means the Caribbean Development Bank;
“company” means a company incorporated in Jamaica

“Minister” means the Minister responsible for finance;
“statutory authority” means any body established

directly by statute and exercising powers vested
in such body by law for a public purpose.

3 . 4 1 ) Subject to the provisions of t h i s Act, the Govern- p m o t
ment may, in such manner and on such terms and subject pment
to such conditions as may be agreed between the Govern- ‘zyhw
ment and the Bank, borrow from the Bank from time to
time such sums as may be required by the Government.

(2) Any sums borrowed by the Government under the
powers conferred by subsection (1) for the requirements of
the Government shall be applied and are hereby appro-
priated to the purposes for which they were borrowed as
specified in any agreement concluded with the Bank in
respect of the sums so borrowed :

Provided that where any part of such sum cannot be
applied to the purposes aforesaid such part may be applied
to such other purposes as may be approved by the Minister
and the Bank.

and carrying on business thereh

B.nt.

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4 M A N S (CARIBBEAN DEVELOPMENT BANIY)

(3) Any agreement between the Government and the
Bank in respect of sums borrowed under the powers con-
ferred by subsection (1) shall be made in the name of Jamaica
and may be signed on behalf of Jamaica by the Minister
or by any person authorized thereto in writing by the
Minister.

(4) As soon as possible after the conclusion thereof
a copy of any agreement concluded with the Bank in respect
of any sum borrowed under the powers conferred by sub-
section (1) shall be laid by the Minister before the House
of Representatives.

(5) Nothing in the provisions of this section shall affect
or derogate from any other power to borrow money
possessed by the Government.

(6) All amounts required for the repayment of any
sums borrowed under the powers conferred by this section
and all interest and other charges on such sums are hereby
charged upon and shall be payable out of the Consolidated
Fund and assets of Jamaica.

Pomr to 4.41) The Government may issue such bonds, p m -
issory notes or other instruments on such terms and con-
ditions as may be necessary for the purjme of giving effect
to the terms of any agreement which may be entered into
by it with the Bank in respect of any borrowing authorized
by subsection (1) of section 3.

(2) Any such bond, promissory note or other instru-
ment may be signed on behalf of the Government by the
Minister or by any other person authorized thereto in writing
by the Minister.

irsue ism-

~~d~ 5 4 1 ) Subject to the provisions of thii Act, a statutory
byatPNLow authority authority may, in such manner and on such terms and sub-
f r o m h ject to such conditions as may be agreed between the Bank.

statutory authority and the Bank and with the approval in
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LOANS (CARIBBEAN DEVELOPMENT BANK) 5

writing first obtained of the Minister, borrow from the Bank
from time to time such sums as may be required by the
statutory authority.

(2) Notwithstanding anything to the contrary any
agreement between the statutory authority and the Bank
shall be valid and binding on the authority if signed on
behalf of the authority by a person authorized thereto in
writing under the seal of the statutory authority.

(3) The power to borrow conferred by this section
on a statutory authority shall be in addition to any power
to borrow conferred on such authority by or under any
other statute.

(4) Notwithstanding anything to the contrary, a
statutory authority may charge or mortgage all or any of
its property (movable or immovable) undertaking or revenue
to secure any s u m owing to the Bank in respect of sums
borrowed by it under the powers conferred by subsection
(1).

(5 ) Notwithstanding anything to the contrary, a
statutory authority may issue such bonds, promissory notes
and other instruments on such terms and conditions as may
be necessary for the purpose of giving effect to any agree-
ment which may be entered into by it with the Bank in
respect of any borrowing authorized by subsection (1).

6. Any sums borrowed by a statutory authority under A licatioa
the powers conferred by subsection (1) of section 5 shall moamby
be applied ,by the authority to the purposes for which the E&!%,
sums were borrowed as specified in any agreement concluded
with the Bank in respect of the sums so borrowed :

Provided that where any part of such sum cannot be
applied to the purposes aforesaid such part may be applied
by the statutory authority to such other purposes as may
be approved by the Minister and the Bank.

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6 LOANS (CARIBBEAN DEVELOPMENT BANK)

Power of 7.-(1) The Government may in such manner and on such
togUBIilntcS terms and subject to such conditions as may be agreed
kz:lz between it and the Bank, notwithstanding anything to the

(a) guarantee the discharge by a statutory authority of
its obligations under any agreement which may be
entered into by the statutory authority with the
Bank in respect of any borrowing authorized by
subsection (I) of section 5 or under any bond,
promissory note or other instrument issued pursu-
ant to any such agreement; and

( b ) undertake such other obligations as may be agreed
between the Government and the Bank in relation
to or pursuant to any such agreement, bond, prom-
issory note or instrument.

(2) Any guarantee or undertaking given under this
section shall be given in writing in the name of Jamaica
and it and any endorsement on any bond, promissory note
or other instrument of any guarantee given under this sec-
tion may be signed on behalf of Jamaica by the Minister
or by any person authorized thereto in writing by the
Minister.

(3) As soon as possible after a guarantee or under-
taking is given under this section, the Minister shall lay
before the House of Representatives a statement of the
guarantee or undertaking.

Government

StatUION contraqr-
authorities.

Powcr of 8.-(1) Subject to subsection (51, the Government may
to Government guarantee in such manner and on such terms and subject to such con-
loans by ditions as may be agreed by it and the Bank, notwithstand-
compames. ing anything to the contrary-

(U) guarantee the discharge by a company of the
company’s obligations under any agreement for
borrowing from the Bank which may be entered
into by the company with the Bank or under any

Banks g

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LOANS (CARIBBEAN DEVELOPMENT BANK)

bond, promissory note or other instrument issued
pursuant to any such agreement; and

(b) undertake such other obligations as may be agreed
between the Government and the Bank in relation
to or pursuant to any such agreement, bond, prom-
issory note or instrument.

12) In connection with a guarantee or undertaking
given under subsection (1) in respect of any borrowing by
a company, the company shall pay to the Government as
a commission such sum not exceeding one per cenrum of
the amount borrowed as the Minister may determine and
the Government may in addition either-

(U) require and take from the company such securities
as the Minister thinks fit for securing the repay-
ment to the Government of any sums which the
Government may at any time be called upon to
pay pursuant to this section; or

(b) enter into such other arrangements with the com-
pany as the Minister thinks fit for securing the
repayment aforesaid.

(3) Any guarantee or undertaking given by the
Government under subsection (1) shall be given in writing
in the name of Jamaica and it and any endorsement on any
bond, promissory note or other instrument issued pursuant
to the agreement to which the guarantee or undertaking
relates may be signed on behalf of Jamaica by the Minister
or by any person authorized thereto in writing by the
Minister.

(4) As soon as possible after a guarantee or under-
taking is given under subsection (11, the Minister shall lay
before the House of Representatives a statement of the
guarantee or undertaking.

(5 ) A guarantee or undertaking shall not be given at
any time under subsection (1) where-

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8 LOANS (CARIBBEAN DEVELOPMENT BANK3

(a) the principal amount outstanding is at that time
not less than the prescribed sum; or

( b ) if the guarantee or undertaking were given, the
principal amount outstanding would at that time
exceed the prescribed sum.

In this subsection-
“principal amount outstanding” means so much of the

total of the principal amounts of the borrowings
guaranteed by the Government pursuant to sub-
section (1) as has not been repaid;

“prescribed sum” means forty million dollars or such
greater amount as the House of Representatives
may from time to time, by resolution, approve.

(6) Where any agreement referred to in subsection (1)
relates to a borrowing in a currency other than dollars then
for the purposes of subsection (5)-

(U) the amount of such borrowing shall be converted
into dollars at a rate of exchange determined by
the Minister to be, as near as is conveniently
possible, equivalent to the average rate of exchange
in respect of that currency for the month prior
to the month in which the guarantee or under-
taking in respect of that borrowing is given; and

(b) the principal amount outstanding in respect thereof
at any time shall be converted into dollars at the
rate of exchange obtaining at that time in respect
of that currency.

(7) Where any sum becomes payable by the Govem-
ment pursuant to a guarantee or undertaking given in exer-
cise of the powers conferred by subsection U), that s u m
shall be charged on the Consolidated Fund of Jamaica and
the Minister shall direct payment to issue out of the Con-
solidated Fund accordingly.

(8) If any sum is paid out of the Consolidated Fund
pursuant to subsection (3, the Minister shall, as soon as

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LOANS (CARIBBEAN DEVELOPMENT BANK)

possible after the end of each financial year beginning with
that in which the sum was paid and ending with that in
which all liability in respect thereof and any interest payable
thereon is finally discharged by the company concerned,
lay be€ore the House of Representatives a statement relating
thereto.

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9. So long as the Government shall continue liable under Restrictim
any guarantee or other undertaking given in exercise of the ingpowm of
powers conferred by subsection (1) of section 7 in respect authonN
of any borrowing by a statutory authority the statutory ;::;ne
authority shall not, except with the consent of the Minister, m m a n d ~ ~ .
exercise any other power to borrow possessed by it.

on borrow-

StfLtUtOrY

10.41) Where it is made to appear to the Minister that POWC~,
exerclsable
by Mituster
in event or

default by

there is reasonable cause to believe-
(U) that a statutory authority is likely to fail or be prospectof

unable to discharge any of its obligations under ,bat,,n
any agreement concluded by it with the Bank or au*o"~.
under any bond, promissory note or other instru-
ment issued pursuant to any such agreement; and

(b) that the Government is or may become liable
under any guarantee or other undertaking given
in exercise of the powers conferred by subsection
(1) of section 7 in respect of such obligation, the
Minister may by order give or authorize any other
person to give such directions to the statutory
authority as he or such other person may from
time to time think necessary or desirable to ensure
that satisfactory arrangements are made by the
authority to enable it duly to discharge its obliga-
tions under such agreement, bond, promissory note
or instrument or under this Act.

(2) The statutory authority shall, notwithstanding
any provision contained in any other statute, comply with
any directions given by or under any such order.

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10 LOANS (CARIBBEAN DEVELOPMENT BANK)

(3) Nothing in the provisions of this section shall
affect or derogate from any other power conferred by law on
the Minister or any public officer in respect of the statutory
authority.

(4) Where any sum becomes payable by the Govern-
ment pursuant to a guarantee or undertaking given in exer-
cise of the powers conferred by section 7, that sum shall be
charged on the Consolidated Fund of Jamaica and the
Minister shall direct payment to issue out of the Consoli-
dated Fund accordingly.

S t a t U t o r Y 11.41) If any sum is paid out of the Consolidated Fund
authority to remy to in respect of any liability incurred by the Government under
Govement sums paid a guarantee or other undertaking given in exercise of the
under powers conferred by subsection (1) of section 7 in respect of

any borrowing by a statutory authority the statutory
authority shall repay such s u m (together with interest there-
on at the same rate as that payable on the loan under the
agreement by the statutory authority with the Bank) to the
Consolidated Fund in such manner and at such time or by
such instalments as the Minister may direct.

(2) If any sum is so paid out of the Consolidated
Fund the Minister shall, as won as possible after the end
of each financial year beginning with that in which the sum
was paid and ending with that in which all liability in respect
thereof and any interest payable thereon is finally discharged
by the statutory authority concerned, lay before the House
of Representatives a statement relating thereto.

auarantee.

Arbiiration. 12. If any dispute between the Bank, on the one part,
and the Government or a statutory authority or a company
or all or any of them, on the other part, arises under any
agreement concluded or guarantee or undertaking given
in exercise of the powers conferred by this Act or under
any bond, promissory note or other instrument issued pur-

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LOANS (CARIBBEAN DEVELOPMENT BANK)

suant to any such agreement it shall be determined by
arbitration in the manner agreed between the parties.

1’1

13.41) Notwithstanding anything to the contrary-
(U) any agreement concluded with the Bank in respect ;;$;fhg

of any borrowing authorized by subsection (1) agmment.
of section 3 or subsection (1) of section 5 and any
bond, promissory note or other instrument issued
pursuant to any such agreement and any guarantee
or undertaking given in respect of any such agree-
ment, bond, promissory note or instrument by the
Government or a statutory authority; and

(6) any guarantee or undertaking given by the Govern-
ment pursuant to subsection (1) of section 8,

shall be valid and enforceable and have full force and effect
in Jamaica in accordance with their respective terms.

(2) Neither the Government nor any agency thereof
nor any statutory authority nor the Bank of Jamaica shall,
except as shall be otherwise agreed between the Minister and
the Bank, create any lien on any of its assets as security for
any external debt unless it is expressly provided that the
lien will ipso fact0 equally and rateably secure the payment
of the principal of and interest and other charges on any
loan made by or any bonds, promissory notes or instruments
issued pursuant to any loan made by the Bank to the
Government or to a statutory authority or to a company.

I ~ ~ I ~ ~ ~ ~ ~ ~ -
tion of

(3) In subsection (2)-
“lien” includes mortgages, pledges, charges, privileges

and priorities of any kind;
“external debt” means any debt payable in any medium

other than currency which at the time in question
is legal tender in Jamaica whether such debt is
payable absolutely or at the option of the creditor
in such other medium.
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12 LOANS (CARIBBEAN DEVELOPMENT BANK)

(4) Without prejudice to the generality of the pro-
visons of subsection (1) the Minister may provide, by order
published in the Gazette, 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 Min-
ister, necessary to give full effect to any agreement, bond,
promissory note, instrument, guarantee or undertaking
under this Act.

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