General Loan and Stock Act


Published: 1952-07-21

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General Loan and Stock Act
GENERAL LOAN AND STOCK [CH.383 – 1





LRO 1/2008 STATUTE LAW OF THE BAHAMAS

GENERAL LOAN AND STOCK
CHAPTER 383

GENERAL LOAN AND STOCK

LIST OF AUTHORISED PAGES
1 - 2 LRO 1/2008
3 - 8 Original
9 - 10 LRO 1/2008
11 Original


ARRANGEMENT OF SECTIONS

SECTION

1. Short title.
2. Interpretation.
3. Loans to be raised by debentures or stock.
4. Loans to be a charge upon general revenue.
5. Borrowing upon debentures.
6. Amount of each debenture.
7. Debentures may be redeemed by annual drawings or by purchase in the market or on a date

fixed.
8. Interest coupons.
9. Form of debentures and coupons.
10. Debentures and coupons transferable by delivery.
11. Registry of debentures.
12. Payment of interest.
13. Mode of providing for payment of interest on debentures.
14. Further sums to be remitted for the redemption of the debentures.
15. Application of sinking fund.
16. Creation of sinking fund for redemption of debentures payable on a fixed date.
17. Disposal of sinking fund when debentures are redeemed by purchase or by annual

drawings.
18. Appointment of day for drawings of debentures.
19. Notice of time and place appointed for drawing.
20. Mode of drawing.
21. Notice of debentures drawn for redemption.
22. Payment of drawn debentures.
23. Cesser of interest from day appointed for payment of principal.
24. Redeemed debentures to be cancelled.
25. Borrowing upon stock.
26. When the principal is to be repaid.
27. Mode of providing for the payment of interest on stock.
28. Mode of providing for payment of principal of stock.
29. Creation of sinking fund.
30. Charge upon Consolidated Fund.
31. Expenses to be paid out of sinking fund.
32. Powers of Minister.
33. Exchange of securities for stock.
34. Converted securities to be cancelled.

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STATUTE LAW OF THE BAHAMAS LRO 1/2008

35. Trustees to apportion amount of sinking funds released by conversion.
36. Sinking funds released: how to be disposed of.
37. Creation, inscription, registration, issue, conversion and transfer of stock.
38. Regulations.
39. Saving.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

CHAPTER 383

GENERAL LOAN AND STOCK
An Act to declare the terms and conditions applicable to

loans authorised to be raised in England by the Government of
The Bahamas and to provide for the creation of inscribed
stock.

[Commencement 21st July, 1952]
1. This Act may be cited as the General Loan and

Stock Act.
2. In this Act, unless the context otherwise requires —
“Crown Agents” means the persons for the time being

acting as Crown Agents for Oversea Govern-
ments and Administrations in England, or any of
them;

“Minister” means the Minister of Finance;
“Registered Stock” means stock transferable by

instrument in writing;
stock” includes both inscribed and registered stock.
3. Whenever by any Act authority shall have been

given, or shall hereafter be given, to raise any sum of
money in England for the purposes mentioned in such Act,
the Minister or the Crown Agents acting on his behalf, may
from time to time, as he or they may deem expedient, raise
such sum either by debentures or by stock or partly by
debentures and partly by stock.

4. The principal moneys and interest represented
by debentures or stock issued under the provisions of this
Act are hereby charged upon and shall be payable out of
the general revenues and assets of The Bahamas.

5. When the Minister or the Crown Agents acting
on his behalf, shall deem it expedient to raise money by
debentures, such debentures shall be issued in London on
behalf of the Government of The Bahamas by the Crown
Agents, upon the best and most favourable terms that can
be obtained, and shall be signed by any one of them on
that behalf.

8 of 1952
8 of 1953
G.N. 172/1964
E.L.A.O., 1974

Short title.

Interpretation.

E.L.A.O., 1974.

Loans to be
raised by
debentures or
stock.
E.L.A.O., 1974.

Loans to be a
charge upon
general revenue.

Borrowing upon
debentures.
E.L.A.O., 1974.

CH.383 – 4] GENERAL LOAN AND STOCK





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

6. Every debenture issued under the provisions of
this Act shall be for the sum of not less than one hundred
pounds sterling.

7. The debentures shall be redeemable either —
(a) at par on a fixed date to be declared on the issue

of the debentures such date not being later than
sixty years from the date of issue:

Provided that the Minister or the Crown
Agents acting on his behalf, may reserve the
option to redeem the debentures prior to such
date on such conditions as may be declared at
the time of issue; or

(b) by annual drawings at par or at the option of the
Minister or the Crown Agents acting on his
behalf, by purchase at or below par.

8. There shall be attached to every debenture
coupons for the payment of the interest to become due in
each half year upon the principal represented by the
debenture. The coupons shall be sufficient in number to
provide for the payment of the interest, either during the
whole period for which the debenture has to run, or for
such limited period as the Crown Agents, acting on behalf
of the Government of The Bahamas, may determine.

9. The debentures and the coupons thereto shall be in
such form as the Minister, or the Crown Agents acting on his
behalf, may direct or approve.

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

11. Every debenture shall, before being issued, be
registered in a register book to be kept for that purpose at
the office in London of the Crown Agents.

12. The interest upon the principal represented 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, at the office in
London of the Crown Agents.

Amount of each
debenture.

Debentures may
be redeemed by
annual drawings
or by purchase in
the market or on
a date fixed.
E.L.A.O., 1974.

Interest coupons.

Form of
debentures and
coupons.
E.L.A.O., 1974.

Debentures and
coupons
transferable by
delivery.

Registry of
debentures.

Payment of
interest.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

13. So long as any of the debentures remain out-
standing, the Minister shall, in each half-year ending with the
day on which the interest on the debentures falls due,
appropriate out of the Consolidated Fund, a sum equal to one-
half year’s interest on the whole of the debentures issued,
including any which may have been redeemed, but exclusive of
any which may have been at any time exchanged for stock, and
shall remit that sum to the Crown Agents at such time as will
enable them to pay thereout the then current half-year’s interest
on the day on which it falls due. 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 presented for
payment on the day appointed for payment and have, in
consequence, not been paid.

14. (1) The Minister shall, in the half year ending on
the date specified in the terms of issue of the loan as that
on which the first contribution to the sinking fund shall be
taken and in each subsequent half year, appropriate out of
the Consolidated Fund of The Bahamas for the formation
of a sinking fund an additional sum equal to one-half of the
annual contribution 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 all the debentures issued, including any which may have
been redeemed, but exclusive of any which may have been
at any time exchanged for stock, and shall remit that sum
to the Crown Agents with the remittance hereinbefore
mentioned.

(2) Notwithstanding anything to the contrary
contained in subsection (1) of this section, if any time the
trustees of the sinking fund of any loan issued under the
provisions of this Act are satisfied that the value 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
Minister may suspend further contributions to the said
sinking fund:

Provided always that contributions to the sinking
fund shall be recommended if the trustees shall at any time
inform the Minister that this is necessary.

E.L.A.O., 1974.

Mode of
providing for
payment of
interest on
debentures.

Further sums to
be remitted for
the redemption
of the
debentures.
8 of 1953, s. 2;
E.L.A.O., 1974.

E.L.A.O., 1974.

E.L.A.O., 1974.

CH.383 – 6] GENERAL LOAN AND STOCK





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

15. 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 to be given, and in the next
place, and subject to the aforesaid payments, in repayments
of the principal moneys for the time being represented by
the debentures.

16. In the case of debentures redeemable on a fixed
date the Crown Agents shall place at interest or invest in
the purchase of such securities so much of the money so
remitted to them as aforesaid as shall not be required for
the payment of interest for the current half year, as a
sinking fund for the final extinction of the debt, and the
Crown Agents shall also place at interest or invest in the
purchase of like securities the accumulations of interest or
the dividends, interest or produce of such investments and
may, from time to time, change any such investments and
shall hold such fund in trust for the repayment of the
principal moneys for the time being represented by the
debentures.

17. In the case of debentures redeemable by annual
drawings, the Crown Agents shall place and keep the
moneys so remitted to them, or so much thereof as may not
be required for immediate payments, at interest, and shall
hold all such moneys and the accumulation thereon in trust
to apply them 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.

18. After the date specified in the Act authorising a
loan as that on which the contribution to the sinking fund
shall commence in respect of that loan, and so long
thereafter as any of the debentures remain outstanding and
unsatisfied, the Crown Agents shall in every year, unless
the whole of the money applicable in that year to the
redemption 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.

19. If a day is appointed for drawing, the Crown
Agents shall give, by advertisement in the London Times
newspaper, not less than fifteen days’ previous notice,
specifying the day on which, and the hour and place at
which, the drawing will take place.

Application of
sinking fund.

Creation of
sinking fund for
redemption of
debentures
payable on a
fixed date.
E.L.A.O., 1974.

Disposal of
sinking fund
when debentures
are redeemed by
purchase or by
annual drawings.

Appointment of
day for drawing
of debentures.

Notice of time
and place
appointed for
drawing.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

20. On the day and at the hour and place so specified
the Crown Agents shall hold a meeting, at which the holder
of any debenture, may, if he thinks fit, be present, and shall
then in the presence of such debenture holders, if any, as
may attend, and of a notary public, draw by lot, out of the
whole number of debentures for the time being
outstanding, debentures of the specified nominal amount.

21. The Crown Agents shall thereupon declare the
distinguishing numbers of the debentures drawn for
redemption, and shall, as soon as may be, by advertisement
in the London Times newspaper, specify those numbers
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
represented by the debentures so distinguished will be
repaid.

22. On the day so appointed the Crown Agents shall,
at their office in London, on demand, pay to the holders of
the debentures drawn for repayment the principal moneys
represented by those debentures, with all interest payable
thereon up to that day.

23. From and after the day appointed for the
repayment of any debenture all interest on the principal
moneys represented thereby shall cease and determine,
whether payment of the principal shall have been
demanded or not.

24. Upon the repayment of the principal moneys
represented by any debenture, the debenture, with all
coupons thereunto belonging, shall be delivered up to the
Crown Agents, to be by them cancelled and forwarded to
the Minister. Any debenture redeemed by purchase shall
likewise be so cancelled and disposed of.

25. When the Minister or the Crown Agents acting
on his behalf shall deem it expedient to raise money by the
issue of stock, then such stock shall be issued in England
by the Crown Agents under the provisions of the Act of the
Imperial Parliament entitled the Colonial Stock Act, 1877,
upon the best and most favourable terms that can be
obtained.

Mode of
drawing.

Notice of
debentures
drawn for
redemption.

Payment of
drawn
debentures.

Cesser of interest
from day
appointed for
payment of
principal.

Redeemed
debentures to be
cancelled.
E.L.A.O., 1974.

Borrowing upon
stock.
E.L.A.O., 1974.

40 and 41 Vict.
c. 59.

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STATUTE LAW OF THE BAHAMAS [Original Service 2001]

26. All the stock which may be created under the
provisions of this Act shall be redeemable at par on a date
to be named in that behalf by the Crown Agents when
issuing the stock, such date not being later than sixty years
from the date of issue:

Provided that the Minister, or the Crown Agents
acting on his behalf, may reserve the option to redeem the
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. From and after the date
appointed for the redemption of the stock or any part of it
all the interest on the principal moneys represented thereby
shall cease and determine, whether payment of the
principal shall have been demanded or not.

27. So long as any of the stock shall remain
unredeemed, the Minister shall, in each half-year ending
with the day on which the interest on such stock falls due,
appropriate out of the Consolidated Fund a sum equal to
one half year’s interest on the whole of such stock, and
shall remit that sum to the Crown Agents at such time as
will enable them to pay thereout the then current half
year’s interest on the day when it falls due.

28. (1) The Minister shall, in the half year ending on
the date specified in the terms of issue of the loan as that
on which the first contributions to the sinking fund shall be
taken and in each subsequent half year, appropriate out of
the said Consolidated Fund for the formation of a sinking
fund an additional sum equal to one-half of the annual
contribution 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 such
stock including any such stock which may at any time have
been issued in exchange for debentures under the authority
of this Act, and shall remit the sum to the Crown Agents
with the remittance hereinbefore mentioned.

(2) Notwithstanding anything to the contrary
contained in subsection (1) of this section, if at any time
the trustees of the sinking fund of any loan issued under the
provisions of this Act are satisfied that the value 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, th

When the
principal is to be
repaid.

E.L.A.O., 1974.

Mode of
providing for the
payment of
interest on stock.
E.L.A.O., 1974.

Mode of
providing for
payment of
principal of
stock.
E.L.A.O., 1974.

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LRO 1/2008 STATUTE LAW OF THE BAHAMAS

Minister may suspend further contributions to the said
sinking fund:

Provided always that contributions to the sinking
fund shall be recommenced if the trustees shall at any time
inform the Minister that this is necessary.

29. The Crown Agents shall, for the purpose of
forming such sinking fund, from time to time place at
interest or invest in the purchase of such securities so much
of the money so remitted to them as aforesaid as shall not
be required for the payment of interest for the current half
year and shall also place at interest or invest in the
purchase of like securities, the accumulations of interest or
the dividends interest or produce of such investments, and
may from time to time, change any such investments, and
shall hold such fund in trust for the repayment of the
principal moneys for the time being represented by the
stock.

30. 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 Governor-
General shall make good the deficiency out of the
Consolidated Fund.

31. 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.

32. The Minister shall also have, and may from time
to time exercise, the following powers and authorities or
any of them:

(a) he may authorise the Crown Agents when issuing
any loan in the form of debentures to declare
that such debentures will be convertible into
stock at such dates and on such terms and
conditions as may be prescribed by the Crown
Agents at the time of the issue of the debentures;

(b) he may declare all or any of the Bahamas loans,
whether existing in the form of stock or
debentures, and whether issued before or after
the commencement of this Act, to be convertible
into stock, to be issued under the provisions of
this Act;

8 of 1953, s. 2.

Creation of
sinking fund.
E.L.A.O., 1974.

Charge upon
Consolidated
Fund.
E.L.A.O., 1974.

Expenses to be
paid out of
sinking fund.
8 of 1953, s. 2.

Powers of
Minister.
E.L.A.O., 1974.

Debentures
convertible into
stock on
conditions
prescribed by the
Crown Agents at
time of issue.

Conversion of
loans generally.

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STATUTE LAW OF THE BAHAMAS LRO 1/2008

(c) he may authorise the creation and issue of such
an amount of stock in exchange for the securities
held for such loans as may be necessary;

(d) he may authorise the creation and sale of any
such stock or debentures for the purpose of
raising money for redeeming any outstanding
loans whether issued before or subsequent to the
passing of this Act, for paying any expense in
the creation of stock, and otherwise for carrying
out the provisions of this Act;

(e) any conversion so authorised may be effected
either by an arrangement with the holders of
existing securities or by purchase thereof out of
moneys raised by the sale of stock, or partly in
one way and partly in the other.

33. Nothing in this Act contained shall authorise an
increase of the capital or of the annual charge on any loan,
except —

(a) when securities exchanged for stock bear a rate of
interest not less than the stock, an additional
amount of stock may be created and issued to
make up the difference in saleable value between
the securities and the stock;

(b) in the case of the conversion of securities into
stock the Crown Agents shall issue such an
amount of stock as may be required to defray the
stamp duties and all other expenses incidental to
the conversion;

(c) in accordance with such terms and conditions as
may be prescribed under paragraph (a) of section
32 of this Act.

34. The securities exchanged or otherwise con-
verted into stock under the provisions of this Act shall be
forthwith cancelled by the Crown Agents, and the
debentures surrendered shall be cancelled and transmitted
to the Minister.

35. The trustees of the sinking fund appointed under
this Act, and acting under any Act authorising the issue of
any securities which may be exchanged into stock or
cancelled or purchased under the provisions of this Act,
shall determine what amount of the sinking fund held by
them and created for repayment of such securities shall be

Creation and
issue of stock in
exchange for
other securities.
Creation and sale
of stock or
debentures to
raise loans and
other purposes.

Arrangements for
conversion.

Exchange of
securities for
stock.

Converted
securities to be
cancelled.
E.L.A.O., 1974.

Trustees to
apportion
amount of
sinking funds
released by
conversion.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS


released and in the determination of such question the
trustees shall take into consideration the value of the whole
investments held by them on account of such sinking
funds, the amount of the debt remaining a charge on such
sinking funds, and such matters as the trustees may think
fit to take into account.

36. So much of the sinking funds as may be released
shall either be transferred unto the trustees of the stock
sinking fund or be disposed of in such a manner as the
Minister may direct.

37. The Crown Agents may from time to time, at the
request of the Minister, make arrangements for all or any
of the following things —

(a) for inscribing and registering stock in their
books;

(b) for managing the creation, inscription, registra-
tion and issue of stock, including the issue of
certificates of title in respect of such stock;

(c) for effecting the conversion of loans into stock;
(d) for paying interest on stock and managing the

transfers thereof;
(e) for issuing stock certificates to bearer, and, as

often as occasion shall require, re-inscribing or
re-registering them;

(f) for effecting the exchange or conversion of
inscribed stock into registered stock.

38. Authority is hereby given for the making of
regulations under section 16 of the Colonial Stock Act
1877, to provide that, in accordance with section 1 of the
Colonial Stock Act 1848, stock issued (whether before or
after the passing of the last mentioned Act) under the
provisions of this Act shall be transferable by instrument in
writing in accordance with the regulations and in no other
manner.

39. Nothing in this Act or in the repeal of the General
Loan and Inscribed Stock Act shall affect the rights of any
person who holds stock or bonds under the authority of
that Act.

Sinking funds
released: how to
be disposed of.
G.N. 172/1964;
E.L.A.O., 1974.

Creation,
inscription,
registration,
issue, conversion
and transfer of
stock.

Regulations.
8 of 1953, s. 2.
40 & 41 Vict c.
59.; 12, 13 and 14,
Geo. 6, c. 1.

Saving.
44 of 1927.

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