LOANS (WORLD BANK) 1

THE LOANS (WORLD BANK) ACT

ARRANGEMENT OF SECTIONS

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

8. Power of Government to guarantee loans by Bank to companies.
9. Restriction on borrowing powers of statutory authority so far as

guarantee outstanding.
10. Powers exercisable by Minister in event or prospect of default by

statutory authority.
11. Statutory authority to repay to Government sums paid under

guarantee.
12. Arbitration.
13. Implementation of obligations under the agreement.

authorities.

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LOANS (WORLD BANK) 3

A& THE LOANS (WORLD BANK) ACT
1 of 1965,

[Ist March, 1965.1 *Oaf lm*

1. This Act may be cited as the Loans (World Bank) Short title.
Act.

2. In this Act- Interpre-
tation.

“Bank” means the International Bank for Reconstruc-

“company” means a company incorporated in Jamaica 201 1966

“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.

tion and Development;

and carrying on business therein; s. 2.

3.-(1) Subject to the provisions of this Act, the Govern- Power of

to such conditions as may be agreed between the Govern- &zW,
ment and the Bank borrow from the Bank from time to Interna-
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 require-
ments of the Government shall be applied and are hereby
appropriated 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.

ment may in such manner and on such terms and subject ment th: Govern- to

tional Bank.

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4 L ~ A N S (WORLD BANK)

Power to
issue in-
struments
including
bonds.

Borrowing
by statu-
tory author-
ity from
the Bank.

(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.

4.-(1) The Government may issue such bonds, promis-
sory notes or other instruments on such terms and condi-
tions as may be necessary for the purpose 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.

5.-(1) Subject to the provisions of this Act, a statutory
authority may in such manner and on such terms and
subject to such conditions as may be agreed between the

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LOANS (WORLD BANK) 5

statutory authority and the Bank and with the approval
in 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 sum 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
agreement 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 Application
the powers conferred by subsection (1) of section 5 shall gokg by
be applied by the authority to the purposes for which the :$$&
sums were borrowed as specified in any agreement con-
cluded 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

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6 LOANS (WORLD BANK)

by the statutory authority to such other purposes as may
be approved by the Minister and the Bank.

Power of 7.-(1) The Government may in such manner and on
to guarantee such terms and subject to such conditions as may be agreed
loans B nk to by

statutory authorities. (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 (1) of section 5 or under any bond,
promissory note or other instrument issued pur-
suant 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 Samaica 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.

Power of 8 .41 ) Subject to subsection (5), the Government may
ment Govern- to in such manner and on such terms and subject to such
guarantee conditions as may be agreed by it and the Bank-
Bank t? (a) guarantee the discharge by a company of the com-
20/ 1966 pany’s obligations under any agreement for

borrowing from the Bank which may be entered

Government

between it and the Bank-

loans by

companies.

s. 3.

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LOANS (WORLD BANK)

into by the company with the Bank or under any
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.

(2) 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 centum
of the amount borrowed as the Minister may determine
and the Government may in addition either-

(a) 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 pur-
suant to the agreement to which the guarantee or under-
taking 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 (l), the Minister shall lay
before the House of Representatives a statement of the
guarantee or undertaking.

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8 LOANS (WORLD BANK)

(5) A guarantee or undertaking shall not be given

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

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

at any time under subsection (1) w h e r e

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 pos-
sible, 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 Govern-
ment pursuant to a guarantee or undertaking given in exer-
cise of the powers conferred by subsection (U, that sum
shall be charged on the Consolidated Fund of Jamaica and

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LOANS (WORLD BANK) 9

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 (7), the Minister shall, as soon 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 company concerned, lay
before the House of Representatives a statement relating
thereto.

9. So long as the Government shall continue liable under Restriction
any guarantee or other undertaking given in exercise of ing powers
the powers conferred by subsection (1) of section 7 in res- ~~~~~~~
pect of any borrowing by a statutory authority the statutory t$zntee
authority shall not, except with the consent of the Minister, outstanding.
exercise any other power to borrow possessed by it.

on borrow-

10.-(1) Where it is made to appear to the Minister that Powers
exercisable
by Minister
in event or

(a) that a statutory authority is likely to fail or be p rospect of default by
authonty.

there is reasonable cause to believe-

unable to discharge any of its obligations under statutoy
any agreement concluded by it with the Bank or
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 arrange-
ments are made by the authority to enable it duly to dis-

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10 LOANS (WORLD BANK)

charge its obligations under such agreement, bond, prom-
issory 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.

(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 statu-
tory authority.

(4) Where any sum becomes payable by the Govern-
ment pursuant to a guarantee or undertaking given in
exercise 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 Con-
solidated Fund accordingly.

statutory 11.-( 1) If any sum is paid out of the Consolidated Fund
to repay in respect of any liability incurred by the Government
ment sums under a guarantee or other undertaking given in exercise
paid of the powers conferred by subsection (1) of section 7 in

respect of any borrowing by a statutory authority the statu- ’
tory authority shall repay such sum (together with interest
thereon 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.

authority

to Govern-

guarantee.

(2) If any sum is so paid out of the Consolidated
Fund the Minister shall as soon 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.

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t
t

LOANS (WORLD BANK) 11

12. If any dispute between the Bank on the one part Arbitration.
and the Government or a statutory authority or a company 20/1966
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 pursuant
to any such agreement it shall be determined by arbitration
in the manner agreed between the parties.

s. 4.

13.-( 1) Notwithstanding anything to the contrary- Implementa-
tion of ob-

under the
(a) any agreement concluded with the Bank in respect ligations

of any borrowing authorized by subsection (1) of agreement.
section 3 or subsection (1) of section 5 and any 20/1966
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

(b) 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.

S.S. (a).

20/1966
s. 5 (b).

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

and priorities of any kind;
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12 LOANS (WORLD BANK)

“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.

201 1966
s. 5 (c).

(4) Without prejudice to the generality of the provi-
sions of subsection (1) the Minister may provide, by order
published in the Gazerte, 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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