Education Loan Authority Act


Published: 2003-02-13

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Education Loan Authority Act
EDUCATION LOAN AUTHORITY [CH. 46B – 1



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LRO 1/2006 STATUTE LAW OF THE BAHAMAS

INTERPRETATION AND GENERAL CLAUSES
CHAPTER 46B

EDUCATION LOAN AUTHORITY

LIST OF AUTHORISED PAGES

1 – 10 LRO 1/2006



ARRANGEMENT OF SECTIONS

SECTION

1. Short title.
2. Interpretation.
3. Establishment of Education Loan Authority.
4. Functions and powers of the Education Loan Authority.
5. Funds and resources of the Education Loan Authority.
6. Surplus funds.
7. Reserve Fund.
8. Borrowing and raising capital.
9. Sinking fund.
10. Advances and guarantee of borrowings by the Government of The

Bahamas.
11. Payment of, and interest on advances and sums issued to meet

guarantee.
12. Accounts and audit.
13. Directions.

SCHEDULE
Incorporation.
Chairman and Members of the Education Loan Authority.
Tenure of office.
Chairman and Deputy Chairman.
Temporary appointment to Education Loan Authority.
Resignation.
Removal.
Publication.
Remuneration.
Seal.
Proceedings and meetings.
Exemptions.
The Education Loan Authority to regulate own proceedings.
Special provisions regarding the Chairman of the Education Committee.
Staff.
Pension of persons transferred from public service to the Education

Loan Authority.
Pensions, etc.


EDUCATION LOAN AUTHORITY [CH. 46B – 3



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LRO 1/2006 STATUTE LAW OF THE BAHAMAS

CHAPTER 46B

EDUCATION LOAN AUTHORITY

An Act to establish an education loan authority to

provide for the functions and powers of that authority
and for incidental matters.

[Assent 30th December, 2002]
[Commencement 13th February, 2003]


1. This Act may be cited as the Education Loan

Authority Act.
2. In this Act “Minister” means the Minister

responsible for Education.
3. (1) There is established a body corporate to be

known as the Education Loan Authority.
(2) The Schedule has effect with respect to the

constitution and proceedings of the Education Loan
Authority.

4. (1) The Education Loan Authority is charged
with the responsibility of raising moneys for the
educational loan guarantee scheme established under the
Educational Guarantee Fund Act.

(2) In carrying out its functions the Education Loan
Authority shall have the power to do all acts as appear to it
to be requisite, advantageous or convenient for or
incidental to its proper discharge and may carry on any
activities in that behalf alone or in association with any
other person.

(3) Without prejudice to the generality of subsection
(2), the Education Loan Authority shall assume all existing
liabilities incurred by the Government of The Bahamas
prior to the commencement of this Act in relation to the
funding of the educational loan guarantee scheme
established under the Educational Guarantee Fund Act.

5. (1) The funds and resources of the Education
Loan Authority shall consist of —

(a) any moneys as from time to time are provided
by Parliament;

32 of 2002

S.I. 6/2003

Short title.

Interpretation.

Establishment of
Education Loan
Authority.
Schedule.

Functions and
powers of the
Education Loan
Authority.
Ch. 46A.

Ch. 46A.

Funds and
resources of the
Education Loan
Authority.

CH. 46B – 4] EDUCATION LOAN AUTHORITY





STATUTE LAW OF THE BAHAMAS LRO 1/2006

(b) any moneys as from time to time are borrowed
by the Education Loan Authority or raised by
the Education Loan Authority pursuant to
section 8;

(c) any moneys as from time to time are advanced
to the Education Loan Authority pursuant to
section 10.

(2) Funds and revenues of the Education Loan
Authority shall be applied in the discharge of all
expenditure properly incurred in the carrying out of the
function mentioned in section 4, in the repayment of any
sums borrowed under section 8, and any interest payable in
respect of those sums, in the payment of interest on bonds
and dividends on shares and stock issued under section 8,
for disbursements towards the remuneration and
allowances to the officers, employees and members of the
Education Loan Authority, to repayment of any advance
made under section 10 and the payment of any sums issued
in fulfilment of any guarantee given under section 10 as
determined by the Education Loan Authority.

6. At the end of each financial year, any moneys
standing to the credit of the Education Loan Authority and
not required for any current purpose shall, after
consultation with the Minister of Finance, be paid into a
reserve fund.

7. (1) The Education Loan Authority shall establish
a reserve fund.

(2) The management of the reserve fund and the
application thereof, shall be as the Education Loan
Authority may determine, but no part of the fund shall be
applied otherwise than for the purpose of the Education
Loan Authority.

8. (1) The Education Loan Authority may, with the
prior approval of the Minister after the Minister has
consulted with the Minister of Finance, borrow or raise
capital required by it for meeting its obligations or
discharging its function and may in respect of any
borrowing issue debentures, debenture stock or raise
capital by the issue of bonds, shares or stock of such class
and value and upon such terms as the Education Loan
Authority may deem expedient.

(2) An approval given for the purposes of
subsection (1) may be either general or limited to a

Surplus funds.

Reserve Fund.

Borrowing and
raising capital.

EDUCATION LOAN AUTHORITY [CH. 46B – 5



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LRO 1/2006 STATUTE LAW OF THE BAHAMAS

particular borrowing or otherwise and may be either
unconditional or subject to conditions.

(3) Notwithstanding subsection (1), the Education
Loan Authority may not borrow or raise capital of an
amount exceeding one hundred million dollars.

(4) The Education Loan Authority may, with the
prior approval of the Minister, make regulations to provide
for such matters in connection with bonds, shares, stock,
debentures or debenture stock issued under this Act as may
appear necessary or expedient to the Education Loan
Authority, and, in particular, for regulating the method of
issue, transfer, redemption, or other dealing with such
bonds, shares, stock, debentures or debenture stock.

9. Notwithstanding subsection (4) of section 8, the
Education Loan Authority shall establish a sinking fund for
the redemption of any security so issued and may postpone
a sinking fund contribution for such period or periods of
time as may be approved by the Minister after the Minister
has consulted with the Minister of Finance.

10. (1) Subject to subsection (3), the Minister of
Finance may make advances to the Education Loan
Authority for the purposes of enabling the Education Loan
Authority to defray expenditure properly chargeable to its
capital account, including provision of working capital.

(2) Subject to subsection (3), the Minister of
Finance may guarantee, in writing on any such conditions
as he thinks fit, the repayment of the principal of, and the
payment of interest and other charges on, any authorised
borrowings of the Education Loan Authority made under
section 8.

(3) No advance shall be made and no guarantee
shall be given under this section unless prior approval
thereof has been signified by the House of Assembly in
accordance with section 17 of the Financial Administration
and Audit Act.

(4) Where a sum is paid pursuant to a guarantee
given under this section, the Minister of Finance shall as
soon as possible after the end of each financial year
beginning with that in which the sum is issued and ending
with that in which all liability in respect of the principal of
the sum and in respect of interest thereof is finally
discharged, lay before the House of Assembly a statement
relating to that sum.

Sinking fund.

Advances and
guarantee of
borrowings by
the Government
of The Bahamas.

Ch. 359.

CH. 46B – 6] EDUCATION LOAN AUTHORITY





STATUTE LAW OF THE BAHAMAS LRO 1/2006

(5) A sum required by the Minister of Finance for
making an advance and discharging a guarantee under this
section shall be charged on and issued out of the
Consolidated Fund.

11. (1) The Education Loan Authority shall make to
the Minister of Finance at such times and in such manner
as the Minister of Finance may direct, payments of any
amount as may be so directed in or towards repayment of
an advance made to the Education Loan Authority under
section 10 and of any sums issued in fulfillment of a
guarantee given under section 10 and payments of interest
on what is outstanding for the time being in respect of any
sums so issued at such rate as the Minister of Finance may
direct, and different rates of interest may be directed with
respect to different periods.

(2) The Minister of Finance shall lay before the
House of Assembly a statement of any payments due from
the Education Loan Authority under subsection (1) that is
not duly paid to him as required thereunder.

12. (1) The Education Loan Authority shall keep
proper accounts and other records in relation thereto, and
shall prepare in respect of each financial year of the
Education Loan Authority a statement of accounts in such
form as the Minister may direct.

(2) The accounts of the Education Loan Authority
for each financial year shall be audited by an auditor
appointed by the Minister.

(3) Three months after the end of each financial
year the Education Loan Authority shall submit a copy of
the audited accounts to the Minister together with a copy of
any report made by the auditor.

(4) The Minister shall lay a copy of the audited
accounts before each House of Parliament, together with a
copy of any report made by the auditor on the accounts.

13. The Minister may give written directions to the
Education Loan Authority concerning the performance of
its function, powers and duties, either generally or in
relation to a particular matter, and the Educational Loan
Authority shall give effect to those directions.

Payment of, and
interest on
advances and
sums issued to
meet guarantee.

Accounts and
audit.

Directions.

EDUCATION LOAN AUTHORITY [CH. 46B – 7



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LRO 1/2006 STATUTE LAW OF THE BAHAMAS

SCHEDULE (Section 3 (2))

A BODY CORPORATE
1. (1) The Education Loan Authority shall be a body

corporate established for public purposes having perpetual
succession and a common seal, with power to purchase, lease or
otherwise acquire and hold and dispose of land and other
property of whatsoever kind.

(2) The Education Loan Authority may sue and be sued
in its corporate name and may for all purposes be described by
such name, and service upon the Education Loan Authority of
any document of whatsoever kind must be made by delivering
the document to or sending it by prepaid registered post
addressed to the secretary of the Education Loan Authority at
the office of the Education Loan Authority.

(3) All property acquired or becoming vested in the
Education Loan Authority shall be held by the Education Loan
Authority in trust for Her Majesty in right of Her Government of
the Commonwealth of The Bahamas for public purposes.

2. The Education Loan Authority shall consist of —
(a) the following persons to be appointed by the

Governor-General after consultation with the
Minister, that is to say, a Chairman, a Deputy
Chairman and four other members, being persons who
have wide experience in, and have shown capacity in
financial or commercial matters, education, industry,
law or administration; and

(b) the Educational Guarantee Fund Act’s Chairman of
the Education Committee, ex-officio,

and paragraphs 1 and 3 to 12 of this Schedule shall have effect
in relation to the Education Loan Authority, but subject, in the
case of the Chairman of the Education Committee to the special
provisions of paragraph 14.

3. Subject to paragraphs 8 and 9, a member of the
Education Loan Authority shall hold office for such period, not
exceeding three years, as the Governor-General may direct in
the instrument appointing such member, but such member shall
be eligible for re-appointment.

4. The Governor-General shall appoint a Chairman and
Deputy Chairman of the Education Loan Authority from among
members and, if the Chairman is absent or unable to act, the

Incorporation.

Chairman and
Members of the
Education Loan
Authority.

Ch. 46A.

Tenure of office.

Chairman and
Deputy
Chairman.

CH. 46B – 8] EDUCATION LOAN AUTHORITY





STATUTE LAW OF THE BAHAMAS LRO 1/2006

Deputy Chairman shall act as Chairman during the time such
absence or inability continues.

5. The Governor-General may by instrument in writing
appoint some suitable person as a member of the Education
Loan Authority to act temporarily in the place of any member of
the Education Loan Authority in the case of the absence or
inability of such member to act.

6. (1) A member of the Education Loan Authority other
than the Chairman may at any time resign his office by
instrument in writing addressed to the Chairman, who shall
forthwith cause it to be forwarded to the Governor-General and
from the date of the receipt by the Chairman of the instrument,
the member shall cease to be a member of the Education Loan
Authority.

(2) The Chairman of the Education Loan Authority may
at any time resign his office by instrument addressed to the
Governor-General and, from the date of the receipt by the
Governor-General of the instrument, the Chairman shall cease to
be Chairman or a member of the Education Loan Authority.

7. The Governor-General may by instrument in writing
revoke the appointment of any member of the Education Loan
Authority if the Governor-General thinks it expedient so to do.

8. The appointment, removal, death or resignation of a
member of The Education Loan Authority shall be notified in
the Gazette.

9. There shall be paid from the funds of the Education Loan
Authority to the Chairman and other members of the Education
Loan Authority such remuneration, if any, whether by way of
honorarium, salary or fees, and such allowances, if any, as the
Minister may determine.

10. (1) The seal of the Education Loan Authority shall
be kept in the custody of an officer of the Education Loan
Authority as the Education Loan Authority may approve, and
may be affixed to instruments pursuant to a resolution of the
Education Loan Authority and in the presence of the Chairman
or the Deputy Chairman and one other member.

(2) All documents, other than those required by law to
be made under seal and all decisions of the Education Loan
Authority may be signified under the hand of the Chairman or
Deputy Chairman.

11. (1) The Education Loan Authority shall meet at such
times as may be necessary or expedient for the transaction of

Temporary
appointment to
Education Loan
Authority.

Resignation.

Removal.

Publication.

Remuneration.

Seal.

Proceedings and
meetings.

EDUCATION LOAN AUTHORITY [CH. 46B – 9



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business, and such meetings shall be held at such places and
times and on such days as the Chairman may determine.

(2) The Chairman, or in his absence the Deputy
Chairman shall preside at all meetings of the Education Loan
Authority.

(3) The Chairman, or in his absence, the Deputy
Chairman and three other members of the Education Loan
Authority shall form a quorum.

(4) The decisions of the Education Loan Authority are
by a majority of votes and, in addition to an original vote, in any
case in which the voting is equal the Chairman or the Deputy
Chairman presiding at the meeting has a casting vote.

(5) Minutes in proper form of each meeting are to be
kept by the secretary or any officer the Education Loan
Authority may appoint for that purpose, and confirmed by the
Education Loan Authority at the next meeting and signed by the
Chairman or the Deputy Chairman as the case may be.

(6) The Education Loan Authority may co-opt any one
or more persons to attend any particular meeting of the
Education Loan Authority for the purpose of assisting or
advising the Education Loan Authority in any matter with which
the Education Loan Authority is dealing, but no co-opted person
has the right to vote.

(7) The validity of any proceedings of the Education
Loan Authority shall not be affected by any vacancy amongst
the members thereof or by any defect in the appointment of a
member thereof.

12. The Education Loan Authority is exempt from
liability for any tax, duty, rate, levy or other charge whatsoever.

13. Subject to this Schedule the Education Loan
Authority has the power to regulate its own proceedings.

14. The following provisions of this Schedule shall not
apply to the Chairman of the Education Committee, that is to
say, paragraph 3; paragraph 5; paragraph 6; and paragraph 7.

15. (1) The Education Loan Authority may appoint and
employ on such terms and conditions as it thinks fit, any officer,
servant or agent that the Education Loan Authority considers
necessary for the proper carrying out of the provisions of this
Act.

Exemptions.

The Education
Loan Authority
to regulate own
proceedings.

Special provi-
sions regarding
the Chairman of
the Education
Committee.
Staff.

CH. 46B – 10] EDUCATION LOAN AUTHORITY





STATUTE LAW OF THE BAHAMAS LRO 1/2006

(2) Notwithstanding subsection (1), the Minister may
appoint and employ on such terms and conditions as the
Minister thinks fit, a chief administrative officer and a financial
officer.

16. (1) Where a public officer holding a pensionable
office under the Government of The Bahamas, ceases to be the
holder of that office by reason of his transfer with his consent to
the service of the Education Loan Authority and that person
subsequently retires from the service of the Education Loan
Authority in such circumstances that, had he remained a public
officer, he would have been eligible for pension under the
Pensions Act, then in any such case subsections (2) and (3) shall
have effect.

(2) A pension payable to a person mentioned in
subsection (1) by the Education Loan Authority to whose service
he has been transferred shall be calculated and granted to him in
respect of his total service under the Government of The
Bahamas and with the Education Loan Authority taken together
and such service shall be reckoned as continuous for pension
purposes.

(3) There shall be payable out of the Consolidated Fund
upon the warrant of the Minister of Finance to the Education
Loan Authority a contribution to every pension paid in
accordance with subsection (2), such amounts as would have
been payable to the person concerned by way of pension under
the Pensions Act, if that person had retired from the public
service and if he has been granted a pension under the Pensions
Act upon the date of his ceasing to be a public officer.

17. (1) The Education Loan Authority may, as regards
any officer, servant or agent in whose case it may be determined
by the Education Loan Authority, with the approval of the
Minister of Finance, to make provision for the payment on the
death, injury or retirement of that officer, servant or agent,
pension, gratuity or other like benefit, pay or provide for the
payment of that pension, gratuity or other like benefit to the
officer, servant or agent or to others by reference to their service
as may be determined.

(2) Provision for pensions, gratuities or other like
benefits under this section may be either by contributory or non-
contributory arrangements or partly by the one or by the other.



Pension of
persons
transferred from
public service to
the Education
Loan Authority.

Ch. 43.

Ch. 43.

Ch. 43

Pensions, etc.