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Loans (Local Authorities) Act


Published: 1958-02-17

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LOANS (LOCAL AUTHORITIES) 1

THE LOANS (LOCAL AUTHORITIES) ACT

TI ONS

1. Short title.
2. Interpretation.
3. Power to borrow.

Repayment of amount of principal moneys or interest guaranteed

in default.
4. Power to exempt from stamp duty upon transfer.
5. Power of local authority to convert debentures.
6. Exchange of debentures for stock.
7. Cancellation of convertxi debentures.
8. Payment of fees.
9. Regulations.

10. Saving.

SCHEDULE

m e inclusion of this page is authorized by L.N. 480/1973]

LOANS (LOCAL A U THORITIES) 3

THE LOANS (LOCAL AUTHORITIES) ACT Law 2 of 1958.

U7th February, 1958.1

1. This Act may be cited as the Loans (Local Authorities) Short title.
Act.

2. In this Act- Intcrpreta-
tion.

“local authority” means the Parish Council of any
parish of this Island and includes the Council of
the Kingston and Saint Andrew Corporation and
the National Water Commission;

“registered stock” means registered stock of a local
authority issued under the provisions of this Act.

3.-(1) A local authority may, with the approval of the Power to
borrow. Minister, raise loans from such sources within the Island

and for such purposes as the Minister may authorize.

(2) Any loan approved under subsection (l), or any h a a t o h
part of such loan, may be raised by the issue of stock ha at set,
or debentures or both, in such form and on such conditions $&?&
as may be approved by the Minister, or by such other
means as may be approved by the Minister; and the princi-
pal moneys and interest represented by any such loan are
hereby charged upon and shall be payable out of the revenue
and assets of the local authority.

(3) The principal moneys and interest represented by Repayment
any loan raised in accordance with the provisions of sub- ofprincipal
sections (1) and (2) may be guaranteed by the Minister z$;:Or
with the prior approval of the House of Representatives, g

of amount

uaranteed
rn default.

me inclusion d this page is aurhorid by L.N. 87/1986J

4 LOANS (LOCAL A UTHORITIES)

and thereupon, in the event of default in payment thereof
by the local authority shall be charged upon and be payable
out of the Consolidated Fund and assets of the Government
of Jamaica.

Power to

stampduty

4 . 4 1 ) Wherever any loan is about to be raised by the
issue of stock under the provisions of this Act by a local
authority the Minister may by order declare that notwith-
standing anything to the contrary no stamp duty shall be
payable upon the transfer, whenever such transfer may
occur, of any such stock issued within such period as may
be specified in such order.

exempt from

upon
transfer.

(2) Notwithstanding anything to the contrary, no
order under subsection (1) shall be revoked or be amended
in such manner as to render any stamp duty payable
upon the transfer of any stock to which such order relates
on which stamp duty would not have been payable if such
transfer had occurred immediately before the amendment
or revocation of such order.

Power of 5.--(1) Subject to the prior approval of the Minister, a
authority to local authority may-
debentures. (a) declare that any debentures issued by such local

authority, under this Act, are convertible, at the
option of the holders thereof, into registered
stock on such terms as may from time to time be
determined;

(b) authorize the creation of registered stock-

local

convert

(i) in exchange for debentures issued by such
local authority under the provisions of this
Act; or

(ii) in order to raise money for the redemption
of any outstanding loans, whether issued

holmion of this page is authorized by L.N. %7/1986)

LOANS (LOCAL AUTHORITIES)

before or after the coming into operation
of this Act; or

(iii) for paying any expenses in the creation of
registered stock; or

(iv) for carrying out the provisions of this
Act.

(2) Any conversion authorized under this section may
be effected either by arrangement with the holders of
existing securities, or by purchase thereof out of moneys
raised by the sale of registered stock, or partly in one way
and partly in the other.

(3) Any power conferred on a local authority by this
section may be exercised from time to time, and the local
authority may alter any terms or conditions as often as thz
occasion may require:

Provided that any change in such terms or conditions
shall be subject to the prior approval of the Minister:

Provided further that no contract or engagement pre-
viously entered into shall be prejudicially affected thereby.

6. Where debentures are exchanged for any registered Exchangeof
debentures stock under this Act any obligation imposed to make forstock.

remittances or set aside sums of money, in respect of such
debentures, shall cease, and such debentures on being
cancelled in accordance with the provisions of section 7
shall be regarded for the purposes of this Act as if they
had never been issued.

7. Every security exchanged or otherwise converted into Cancellation
of converted registered stock shall be forthwith cancelled on behalf of de&nurm.

the relevant local authority by such person as may be
appointed by the Minister.

8. All fees payable under this Act shall be paid into Paymentof
fccs. the Treasury, and shall form part of the Consolidated Fund.

bd& of tlth is authorized by LN. 480/1973]

6 LOANS (LOCAL AUTHORITIES)

Regulations. 9.-(1) For the purposes of any borrowing by a local
authority by means of the issue of stock or debentures

Schedule.

Saving.

under this Act, stock or debentures may be issued, trans-
ferred, dealt with and redeemed in such manner as may
be prescribed by regulations made by the Minister.

(2) Without prejudice to the generality of the power
conferred by subsection (1) such regulations may provide
for the payment of fees, the discharge of any loan
raised under this Act and also for the consent of owners
under disability :

Provided that, until varied or revoked by any such
regulations, the regulations contained in the Schedule shall
be in force in respect of registered stock.

10. Save in so far as other provision is expressly made
in this Act, nothing in this Act contained shall be deemed
to affect the provisions of any other law relating to the
raising of loans by local authorities.

[The inclusion of this page is authorized by L.N. 480/1973]

LOANS (LOCAL AUTHORITIES) 7

SCHEDULE (Section 9)
1. These Regulations may be cited as the Local Authorities Loans Citation.

2. In these Regulations-

Regulations, 1957.
Interprcta-
tion. “Accountant-General” means the Accountant-General of Jamaica

and his successors in office;
“Local Registrar” means the person appointed by regulation 7

of these Regulations to be Local Registrar;
“the Minister” means the Minister responsible for local govem-

ment;
“stockholder” means the person holding registered stock and

entered as proprietor thereof in the stock register kept under
these Regulations.

3. Where a local authority is raising a loan, or part thereof. by ~ o ~ a i
the issue of registered stock (to be called by an appropriate name authority
approved by the Minister) such stock shall from time to time be gyitk
issued in the Island by the Local Registrar to such an amount and on ofrcgistercd
such conditions as the Minister may before the issue thereof from stock.
time to time direct.

4. The Local Registrar shall keep records (hereinafter referred to as Stock
“the stock register”) in which shall be entered the names and addresses register.
of holders from time to time of stock, and the amount held by them.

5. The stock register shall be prima fade evidence of any matter Primofucie
entered therein in accordance with these Regulations. and of the evidenceof ,

contents of
stock title of the persons entered therein as holders of stock.
register.
Entries in

(a) all registered stock of every local authority, at the time of stock
issue; register.

(b) all transfers of, and dealings in, such stock under the pro-
visions of the Act and of these Regulations;

(c) all matters required by these Regulations to be entered in the
stock register.

6. There shall be entered in the stock register-

7. The Accountant-General or such other person as the Minister Accountant-
may from time to time appoint shall be the Local Registrar under Cheralto
these Regulations and he shall have the custody of, and be responsible z,gr.

8. A printed copy of these Regulations and all amendments thereto, yErs to
and of the documents containing the authority for, and conditions of, ngiskd.
the issue of registered stock, shall be entered in the stock register.

9. The Local Registrar shall with the approval of the Minister Powenof
fix the fees to be paid on the transfer of registered stock and in strar.

for, the stock register. L.N.
241 / 1964.

[The inclusion of this page is authorized by LN. 480/1973]

8 LOANS (LOCAL AUTHORITIES)

respect of the issue of certificates and may after consultation with
the relevant local authority make arrangements in relation to-

(a) the registration and issue of registered stock created by the
local authority under the provisions of the Act;

(b) the payment of interest on such stock;
(c) the management, transfer and registration of transfers of such

stock; and
(d) all dealings generally in such stock:

Provided that no such arrangement shall vary the terms on which
such stock is issued and that no contract or engagement previously
entered into in relation to such stock shall be prejudicially aiTected
thereby.

10. Where any registered stock is issued to any person under the
provisions of these Regulations, such person shall be entitled to a
certificate, under the hand of the Local Registrar of his title to such
stock: Provided that no person shall be registered as the holder of
any registered stock until that stock is fully paid up.

11.41) The Local Registrar shall keep, in a separate book, a list
of the stockholders on whose stock the dividends have been unclaimed
for ten years and upwards, together with their registered addresses
and description, and such list shall be open for inspction at the usual
hours of transfer upon payment of a fee of ten cents.

(2) The Local Registrar shall give, within a reasonable time
after application, a certificate stating the following particulars. or such
as may be required by the applicant, relating to registered stock-

(a) the total amount of such stock issued;
(b) the total number of persons in whose names any stock,

or part thereof, is originally registered, or, aftcr the register
of such stock, or part thereof, has been once closed as regards
transfers, the total number d stockholders at the last pre-
ceding date at which the transfer books were closed;

(c) the total number of each class of p e r m in who= names
the stock, or part thereof, is originally registered. or, after
the register of such stock, or part thereof, has been once
closed as regards transfers, the total number of each Class of
stockholders at the last preceding dab at which the transfer
books were closed. The classification &all be acoording to
the amounts held, omitting fractions of two hundred doUars;

(d) a copy, or extract certified by the Locai Registrar, QT by some
officer appointed by him for the purpose, to Ize a true copy
or extract of all matters required by thesc Regulations to be
entered in the stock register:

Provided always that the Local Registrar shall not be required to
give any such certificate in relation to any registered stock until after

[The inclusion of this page is authrizcd by L.N. 480/1973]

Certificate
tostock-

Information
to bemade
available to
thepubfic.

LOANS (LOCAL AUTHORITIES) 9

the expiration of one month after the stock, or any part thereof, to
which the certificate refers has been registered.

(3) Within a reasonable time after the application of any
person who is a stockholder of registered stock. the Local Registrar
shall give him a list of the registered names and addresses of the
stockholders of such stock at the last preceding date at which the
register was closed as regards transfers.

(4) The Local Registrar. before giving a certificate or list under
this regulation may demand payment of a fee not exceeding ten
cents and a further sum of five cents for every folio of seventy-two
words.

(5 ) Any certificate or list given under this regulation, and duly
certified under the hand of the Local Registrar, shall be admitted in
evidence.

1 2 . 4 ) Where registered stock is standing in the name of an Infants,per-
infant, or person of unsound mind, jointly with any person not under sons d u n -
legal disability, a letter of attorney for the receipt of dividends on
such stock shall be sufficient authority in that behalf, if given under
the hand and seal of the pcrson not under disability, and duly
attested.

(2) The Local Registrar may nevertheless require proof to his
satisfaction of such mfancy or unsoundness of mmd, by the declaration
of competent persons made under the Voluntary Declarations Act, or
in such manner as is provided by law.

(3) Where any registered stock is standing in the name of two
or more persons and any of such persons die, a receipt by the survivor
or survivors of such persons shall he a valid discharge for the payment
of the principal or any interest in respect of such stock.

13. No notice of any trust in respect of any registered stock shall ~ ~ ~ ~ t i ~
be entered in the stock register, or recCivaMe by the Local Registrar of trust to

be received
or or by the local authority concerned.
registered.

14. If any stock certificate issued under these Regulations is lost. Renewing
mislaid, or destroyed, the Local Registrar may, on such indemnity lost
being given as he may reasonably require and on payment of a fee certificate.
of twenty-five cents issue a fresh stock certificate in the place
of the certificate so lost, mislaid, or destroyed.

15. Where a stockholder is required to sign his name to any deed Signatureby
of transfer or other document, it shall be sullicient. where such stock- corporation.
holder is a corporation. that the corporate s e a authenticated by the
signature of the secretary or other principal officer of such corporation.
be afied to such deed of transfer or other document:

me idusion of this page is authorized by LN. 480119731

10

Transfer of
stock.

Closing of
stock
register.

Repayment
of principal.

LOANS (LOCAL AUTHORITIES)

Provided that any change in the person of such secretary or officer
shall from time to time be notified to the Local Registrar, and there
shall be forwarded with such notification a specimen of the usual
signature of such secretary or officer and such specimen shall be under
the corporate seal of the corporation and shall be witnessed by the
signature of the chairman of directors or other principal govexnhg
member of the corporation.

16.41) Registered stock shall be transferred by instrument in
writing in such form as may be specified from time to time by the
Local Registrar, executed by all parties to the transfer and delivered
to, and retained by, the Local Registrar.

(2) No person shall be registered as a transferee of any regis-
tered stock except upon payment of a fee fixed in accordance with the
provisions of regulation 9 anti upon surrender to the Local Registrar
of the stock certificate and the instrument of transfer.

(3) The Local Registrar shall issue-
(a) to the transferee, a certificate of his title to the amount of

stock transferred; and
(b) to the transferor, a certificate of the balance of the amount

of stock to which he is entitled, if any.
(4) The executors or administrators of a deceased stockholder

shall alone be recognized by the Local Registrar as having any title
to the stack, or any dividend thereon, passing on the death of such
stockholder.

( 5 ) Any person who becomes entitled to any registered stock in
consequence of the death, bankruptcy, or marriage, of the stockholder,
or in any way except by the transfer of such stock, shall produce such
evidence of his title as may reasonably be required by the Local
Registrar: Provided that the person so becoming entitled to such
stock may transfer such stock to another person without being regis-
tered himself.

17.--(1) The Local Registrar may, for a period not exceeding
fourteen days previous to each payment of dividend on any registered
stock issued under the Act, close the register of that stock as regards
transfers, upon giving not less than seven days’ notice of such closing
by advertisement in the Gazette and in one other newspaper published
in the Island.

(2) The persons who on the day of such closing are registered
as stockholders shall, as between them and their transferees, be
entitled to the dividend when next payable thereon.

18.41) All registered stock which is created under the provisions of
the Act shall be redeemable at par on a date to be named in that
behalf by the Local Registrar when issuing such stock, such date not
being later than sixty years from the date of issue: Provided that

m e inclusion of t h i s page is authorized by L.N. 480/1973]

LOANS (LOCAL A UTHORITIES)

the Local Registrar may reserve the option to redeem such 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.

(2) From and after the date appointed for the redemption of
such stock, or any part thereof, all the interest on the principal moneys
represented thereby shall cease and determine, whether payment of
the principal has been demanded or not.

19.-(1) Interest at the rate approved at the time Of issue of sucb Interestand
stock, shall be payable on registered stock half-yearly by the Local payment
Registrar on behalf of the relevant local authority. thereof.

(2) So long as interest continues to be payable on any registered Interest on
stock the local authority shall, in each half-year ending with the day stocktobe
on which the interest on such registered stock falls due. appropriate, ~ t ~ ~ ~ ~ f
out of its revenue and assets, a sum equal to one half-year’s interest thelocal
on the whole of such registered stock, and shall deposit such s u m in the authority.
Treasury of the Island on or before the due date for payment of
interest, and authorize the Local Registrar to pay thereout the them
current half-year’s interest when it falls due.

20.--(1) The local authority shall SO, in the half-year ending on Sinking
the date specified in the terms of issue of the loan as that on which fundfor.
the first contribution to the sinking fund shall be taken, and in each redemption
subsequent half-year, appropriate out of its revenue and assets for the
formation of a sinking fund an additional sum, equal to not less than
one-half of the annual contribution specified in the terms of issue in
respect of the total nominal amount of such registered stock, and
shall remit that sum to the Local Registrar who shall be the trustee
of such fund:

Provided that if at any time the trustee of the sinking fund of any
loan issued under the provisions of the Act is satisfied that the valuc
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 local authority may, with the approval of
the Minister, suspend further contributions to such sinking fund:

Provided further that contributions to the sinking fund shall be
recommenced if the trustee at any time inform the local authority that
such action is necessary.

(2) The Local Registrar shall, for the purpose of forming such
sinking fund, from time to time place at interest or invest the money
so remitted to him in the purchase of such securities as may from
time to time be approved by the Minister, and shall also place at
interest or invest the dividends, interest or produce of such investments
in the purchase of like securities. and may from time to time, with
the approval of the Minister, change any such investments, and shall

[The inclusion of this page is authorized by L.N. 480/1973]

12 LOANS (LOCAL AUTHORITIES)

hold .such fund in trust €or repayment of the principal moneys for
the time being represented by the registered stock.

21. All expenses of, or incidental to, the management of the sicking
fund, or to the repayment of the principal moneys boflowed, shall be
paid out of the sinking fund.

22. Where the sinking fund is insufficient to provide the necessary
funds for the redemption of any registered stock when it becomes due.
the deficiency shall be made good out of the revenue and assets of the
local authority, and the local authority is hereby authorized to set
aside sufficient funds to make good the deficiency.

Cancellation 23. Every security exchanged or otherwise converted into
Of converted registered stock shall be forthwith cancelled on behalf of the relevant
debentures* local authority by the Local Registrar and kept by him.

Expensesof
sinking
fund.

Insufficiency
ofsinking
fund.

[The inclusion of this page is authorized by L.N. 480119731