Debenture (Local) Act


Published: 1925-05-23

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DEBENTURES (LOCAL) 1

THE DEBENTURES (LOCAL) ACT

ARRANGEMENT OF SECTIONS

1. Short title.
2. Interpretation.
3. Power of Government to raise local loans by issue of debentures.
4. How debentures are to be styled and deemed.
5. When debentures issued locally provisions enumerated shall apply.
6. Trustees of sinking fund.
7. Principal and interest charged and payable out of Consolidated

8. Principal moneys to be paid out of Consolidated Fund when

9. Sinking Fund to bear expenses of management.
10. Payment into Consolidated Fund of unclaimed moneys.

Fund.

sinking funds insuflicient.

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

DEBENTURES (LOCAL) 3

THE DEBENTURES hP.92.
Acts

(LOCAL) ACT

1. This Act may be cited as the Debentures (Local) Act. sorttitle.

2 . 4 1 ) In this Act-
“the Special Act” means any enactment which shall be ~ 1 9 6 9

hereafter passed authorizing the Minister to raise money i??kj

incorporated.
by way of loan and with which this Act shall be r

(2) References in section 3 to debentures shall be iio/i%g
deemed to include references to promissory notes and, d. 2(b).
accordingly, the provisions of paragraphs (41, (8), (9), (ll),
(12), (13), (21), (221, (24) and (26) of section 5 and sections 7,
8 and 9 shall apply, in relation to any promissory note issued
pursuant to this Act as they apply to debentures, subject to
the terms of the note and with such other modifications as
may be necessary.

3. In each and every case in which, by any enactment owerof
O V C ~ C n t hereafter to be passed empowering the Minister to raise any

sum or sums of money locally by way of loan with which b7
this Act shall be incorporated, it shall be lawful for the ben-.
Government to raise the same or any part thereof by the .s.
issue of debentures under the provisions of this Act :

Provided that nothing herein contained shall affect the
power of the Minister to raise any such sum by the issue
of inscribed stock, or local inscribed stock.

4. Any such debentures as aforesaid shall be deemed and BOW
debentures

styled “Debentures under the provisions of the Debentures aretobe
(Local) Act, and the Special Act”, and thereupon the g1Zzd

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

4 DEBENTURES (LOCAL)

provisions hereinafter contained and set forth, save and
except such part or parts thereof as may be expressly
excepted or varied by the Special Act, shall apply to and
regulate the issue of any such debentures and everything
relating to them as if the several sections and provisions
hereof were specially repeated and enacted in and by the
Special Act.

When 5. In case the Minister shall determine to raise the whole
or any part of any such sum as aforesaid, by the issue of

locally visionspro- debentures locally, the following provisions shall apply
enumerated (that is to say)-

s. 5. (1) Every debenture shall be for a sum of not less than
one hundred dollars and shall bear interest pay-
able half-yearly at the rate fixed by the Minister
for any issue of such debentures.

(2) Every debenture issued in Jamaica shall be signed
by the Financial Secretary and be countersigned by
the Bank of Jamaica.

debentures
issued

shall apply.
521 1963

(3) Every debenture issued in Jamaica shall, before
being issued, be registered in a register book to be
kept for that purpose at the Bank of Jamaica.

(4) The interest upon the principal money secured by
each debenture shall run from the day named in
that behalf in the debenture, and shall be paid
half-yearly on the days named in that behalf in
the debenture out of the Revenues appropriated
as hereinafter provided.

(5) There shall be attached to every debenture, coupons
for the payment of the interest to become due in
each half-year upon the principal secured by the
debenture. The coupons shall be sufficient in
number to provide for the payment of the interest

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

DEBENTURES (LOCAL) 5

L

either during the whole period for which the
debenture is to run or for such limited period as
the Minister may determine.

The debentures and the coupons thereto shall be in
such form as the Minister may direct or approve.

Every debenture or coupon, and the right to
receive the principal and interest secured or
represented thereby shall be transferable by
delivery.

So long as any of the debentures issued under the
powers of borrowing conferred by the Special Act
remain outstanding, the Minister shall, in each
half-year ending with the day on which the
interest on such debentures falls due, appropriate
out of the Consolidated Fund and assets of this
Island a sum equal to one half-year’s interest on
the whole of such debentures theretofore issued,
including any which have been redeemed.

Out of the moneys so appropriated the Bank of
Jamaica shall pay the then due half-yearly interest
on such debentures as shall be then outstanding.

Debentures shall not be deemed to be outstanding
for the purpose of this Act by reason only that
one or more of the debentures have not been pre-
sented for payment on the day appointed for pay-
ment, and have, in consequence, not been paid.
After the day specified in the Act authorizing the
loan as that on which the contributions to the
sinking fund shall commence, the Minister shall,
in each half-year ending as aforesaid, appro-
priate, out of the said Fund and assets of the
Island for the formation of a sinking fund an
additional sum equal to one-half of the annual

me inclusion of this page is authorized by L.N. 480/19731

6 DEBENTURES (LOCAL)

contributions specified in the prospectus, or, in the/
case of a loan not issued publicly, in the terms of
issue relating to the loan in respect of the total
nominal amount of the debentures issued, includ-
ing any which may have been redeemed.

The sinking fund shall be applied in the first place
in payment of all expenses of or incidental to the
redemption of the debentures and the cost and
expenses of all notices required by this Act or the
Special Act to be given, and in the next place and
subject to the aforesaid payments, in repayment
of the principal moneys for the time being repre-
sented by the debentures.
Debentures issued under this Act shall, at the
option of the Bank of Jamaica, subject to the
direction of the Minister, be redeemed on a date
to be named when issuing the debentures, or by
purchase in the open market or by annual
drawings.
In the case of debentures redeemable on a date to
be named when issuing the debentures, the
Bank of Jamaica shall remit to the trustees
appointed pursuant to section 6 the money appro-
priated for the formation of a sinking fund as
aforesaid and the trustees aforesaid shall invest that
money in the purchase of such securities as may be
approved by the Minister as a sinking fund for the
final extinction of the debt, and the trustees afore-
said shall also invest the dividends, interest, or pro-
duce of such investments in the purchase of like
securities, and may from time to time, with the
approval of the Minister change any such invest-
ment, and shall hold such fund in trust for the
repayment of the principal moneys for the time
being represented by the debentures.

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DEBENTURES (LOCAL) 7

In the case of debentures redeemable by annual
drawings the Bank of Jamaica shall, with the
approval of the Minister, place and keep at
interest so much of the money appropriated as
aforesaid for the payment of interest as may not
be required for immediate payments together with
the money appropriated for the formation of a
sinking fund as aforesaid to apply those moneys
in the first place to the purchase of the debentures
when they can be obtained at a price not exceeding
par, and, secondly, to the redemption of the
debentures by means of annual drawings.
After the date specified in the Special Act authoriz-
ing the loan as that on which the contributions to
the sinking fund shall commence in respect of that
loan, and so long thereafter as any of the deben-
tures remain outstanding and unsatisfied, the Bank
of Jamaica shall, in every year, unless the whole of
the money applicable in that year to the redemp
tion of debentures has been applied in the purchase
thereof, appoint a day in that year for the drawing
by lot of the debentures to be redeemed.
If a day is appointed for drawing, the Bank of
Jamaica shall give by advertisement in the Gazette
and in not less than two newspapers published in
the Island not less than fifteen days’ previous
notice, specifying the days on which and the hours
and place at which the drawings will take place,
and the nominal amount of the debentures to be
redeemed at those drawings respectively.
On the day and at the hour and place so specified
the Bank of Jamaica shall hold a meeting (at
which the holder of any debenture may if he think
fit be present), and shall then, in the presence of
such debenture holders (if any) as may attend,

Mu&on of this page is authorid by L.N. 480/1973]

8

521 1963
s. 5.

DEBENTURES (LOCAL)

and of a Notary Public draw by lot, out of the
whole number of debentures of that issue for the
time being outstanding, debentures of the specified
nominal amount.

(19) The Bank of Jamaica shall thereupon declare
the distinguishing numbers of the debentures
drawn for redemption, and shall, as soon as may
be, by advertisement in the Gazette, and in not
less than two newspapers published in the Island,
specify those numbers and the Special Act under
which they were issued, and appoint a day not
being later as to each debenture than the day on
which the then current half-year’s interest thereon
is payable, on which the principal moneys secured
by the debentures so distinguished will be repaid.

(20) On the day so appointed, the Bank of Jamaica shall
on demand pay to the holders of the debentures
drawn for repayment the principal moneys secured
by those debentures with all interest payable there-
on up to that day.

(21) From and after the day appointed for the repay-
ment of any debenture all interest on the principal
moneys secured thereby shall cease and determine
whether payment of the principal shall have been
demanded or not.

(22) Upon the repayment of the principal moneys
secured by the debentures, the debenture with all
the coupons thereunto belonging shall be delivered
up to the Bank of Jamaica to be cancelled and
forwarded to the Auditor-General.

Any debentures redeemed by purchase shall like-
wise be so cancelled and forwarded.

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DEBENTURES (LOCAL) 9

No money applied in redemption of a debenture
shall be re-borrowed and no debenture shall be
issued in respect of or in substitution for any
cancelled debenture.
Debentures issued under this Act shall not be
liable to stamp duty.
If any debenture shall become defaced or worn,
or if the coupons thereunto attached shall have 5$/1963
become exhausted, it shall be lawful for the Min- ’+’*
ister to cause a fresh debenture to be made in
manuscript and issued instead of such old deben-
ture; and the new debenture shall be of the same
number and date as the old debenture, and shall
correspond therewith in every respect, and shall
be for all purposes in substitution therefor,
but a note shall be made on the face thereof, shew-
ing that it is a renewed debenture, and stating the
date of such renewal, and the old debenture shall
be cancelled in the presence of the Auditor-
General, and deposited in his office.
Upon proof to the satisfaction of the Minister, I
that any debenture has been lost or destroyed
before the same shall have been paid off and
discharged, the Minister may direct that a new
debenture, which shall bear the same number and
date, and shall correspond in every respect with
the debenture lost or destroyed, be given to the
person entitled thereto; and if any debenture, so
proved to have been lost or destroyed shall be due,
the Minister may direct the same to be paid off:

Provided that in every such case the Minister
shall cause notice to be inserted in the Gazette,
for six consecutive weeks, of the particulars of
such debentures and shall take good security to
indemnify the public against any loss which might

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

10 DEBENTURES (LOCAL)

Trustees
of sink-
ing fund.
521 1963
s. 3.
421 1965
s. 2.

Prinapal
and mterest
charged and
payable out
of Consoli-
dated Fund.

Principal
moneys to
be paid out
of Consoli-
dated Fund
when sink-
ing funds
insutficient.
521 1963 s. 5.

Sinking
fund to bear
expenses of
manage-
ment.

otherwise be incurred in case any debenture, stated
to have been lost or destroyed, should at any time
afterwards be presented for payment, or interest
should be claimed as due thereon.

6.-(1) The trustees of any sinking fund established pur-
suant to section 5 shall be the Trustees for Jamaica Govern-
ment Securities established by the Local Registered Stock
Act who shall have power to do all things necessary for the
performance of the functions of trustees under this Act
in like manner as they perform their functions under the
Local Registered Stock Act.

(2) The Minister may give to the trustees such direc-
tions of a general character as to the policy to be followed
by them in the performance of their functions under this
Act as appear to the Minister to be necessary in the public
interest.

7. The principal moneys and interest represented by the
debentures issued under the provisions of this Act are
hereby charged upon and shall be payable out of the
Consolidated Fund and assets of the Government of
Jamaica.

8. In case the sinking funds provided for by this Act
shall be insufficient for the payment of all the principal
moneys borrowed under the authority of this Act at the
time the same shall have become due, the Minister shall
make good the deficiency out of the Consolidated Fund and
assets of this Island.

9. All expenses of or incidental to the management of the
sinking fund or to the payment of the principal moneys
borrowed shall be paid out of the sinking fund.

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DEBENTURES (LOCAL) 11

10.41) Where the Bank of Jamaica holds any sum for Payment
into Con-

the purpose of paying- solidated
Fund of

(a) the principal amount of any debenture due for re- unclaimed
demption on a date named when the debentures Fz$i
were issued or pursuant to paragraph (20) of S-4.
section 5; or

(b) interest accrued due on any debenture,
and that sum is not claimed by the holder of the debenture
within two years from the date on which that sum became
due, the Bank of Jamaica shall, if the Minister so directs,
pay that sum into the Consolidated Fund.

(2) Notwithstanding the payment of any sum into
the Consolidated Fund pursuant to subsection (11, the Bank
of Jamaica may pay to any person showing his right
thereto to the satisfaction of the Bank the amount of any
sum so transferred and the Minister shall thereupon direct,
without further appropriation than that provided by this
subsection, that the Bank be reimbursed from the Consoli-
dated Fund.

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

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