Caribbean Community Development Loans and Guarantee

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Caribbean Community Development Loans and Guarantee
L.R.O.

LAWS OF TRINIDAD AND TOBAGO

Act
38 of 1979

Amended by
41/1981

Current Authorised Pages
Pages Authorised

(inclusive) by L.R.O.
1–8 ..

CARIBBEAN COMMUNITY DEVELOPMENT
LOANS AND GUARANTEE ACT

CHAPTER 70:04

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

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LAWS OF TRINIDAD AND TOBAGO

2 Chap. 70:04 Loans and Guarantee
Caribbean Community Development

Note on Subsidiary Legislation
This Chapter contains no subsidiary legislation.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

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L.R.O.

LAWS OF TRINIDAD AND TOBAGO

Loans and Guarantee Chap. 70:04 3
Caribbean Community Development

CHAPTER 70:04

CARIBBEAN COMMUNITY DEVELOPMENT
LOANS AND GUARANTEE ACT

ARRANGEMENT OF SECTIONS
SECTION

1. Short title.
2. Interpretation.
3. Government authorised to borrow to finance Caribbean Community

Development.
4. Loan to be a charge on Consolidated Fund.
5. Issue of securities.
6. Government authorised to guarantee repayment of loans.
7. Limit on amounts of guarantee.
8. Corporation to repay to Government sums paid on its behalf.
9. Minister may exempt obligations from stamp duty.

10. General power of Minister.
11. Minister to inform Parliament of securities issued.
12. Ch. 71:01 not to apply.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

LAWS OF TRINIDAD AND TOBAGO

4 Chap. 70:04 Loans and Guarantee
Caribbean Community Development

CHAPTER 70:04

CARIBBEAN COMMUNITY DEVELOPMENT
LOANS AND GUARANTEE ACT

An Act to authorise the Government of Trinidad and Tobago to
borrow money in Trinidad and Tobago or elsewhere, jointly
with the Governments of other Member States of the
Caribbean Community or independently of such States or
to guarantee the repayment of loans, for the purpose of
financing development projects in the Community as a whole.

[12TH OCTOBER 1979]

WHEREAS there was established by the Treaty done at Chaguaramas
on 4th July 1973, a Caribbean Community of which Trinidad and
Tobago is a Member State:

And whereas the Government of Trinidad and Tobago in
pursuance of its obligations under the Treaty is desirous of entering
into loan or guarantee agreements jointly with other Member States
or independently of such States:

And whereas it is necessary and expedient to authorise the
Government of Trinidad and Tobago to borrow or to guarantee
loans jointly (or severally) with the Governments of other Member
States of the Caribbean Community for the purpose of financing
development projects within the said Community:

1. This Act may be cited as the Caribbean Community
Development Loans and Guarantee Act.

2. In this Act—
“Caribbean Community” or “Community” means the Community

established under the Treaty done at Chaguaramas on 4th
July 1973;

“Co-guarantor” means the Government of any other Member State
of the Caribbean Community which may enter jointly with
the Government of Trinidad and Tobago into a guarantee
agreement with a lending agency;

38 of 1979.

Commencement.

Short title.

Interpretation.

UNOFFICIAL VERSION


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L.R.O.

LAWS OF TRINIDAD AND TOBAGO

Loans and Guarantee Chap. 70:04 5
Caribbean Community Development

“corporation” means any corporation established in pursuance of
a development project and includes the Caribbean
Development Bank;

“debt charges” means interest, the repayment or amortisation of
debt and all expenditure in connection with the raising of
loans under this Act and the service and redemption of debt
thereby created;

“development project” means a project established and undertaken
as a joint venture by Member States for the purpose of
general development of the Community;

“lending agency” means a lending Government or an international
financial organisation or a bank or an insurance company or
any other source of financing;

“securities” means stocks (including inscribed stocks, registered
stocks and stocks transferable by delivery), bonds,
promissory notes, certificates, debentures, debenture stocks
and other securities of any description issued under this Act.

3. (1) For the purpose of financing development projects
within the Caribbean Community or of repaying borrowings
effected for such projects, the Government may borrow money in
Trinidad and Tobago or elsewhere in such sum or sums not
exceeding in the aggregate fifty million Trinidad and Tobago dollars
or the equivalent thereof in any foreign currency or currencies and
thereafter may borrow such further sum or sums as may be specified
by resolution passed in the Senate and the House of Representatives.

(2) For the purpose of determining whether any borrowing
is within any limit prescribed in or pursuant to subsection (1), the
equivalent in Trinidad and Tobago dollars of any borrowing in
any foreign currency shall be computed so as to take into account
the prevailing rates of exchange effective on the date which the
Minister certifies as the date on which all the terms and conditions
of the loan have been determined.

4. The repayment of all loans raised and all sums payable
pursuant to a guarantee given under this Act together with
interest and other debt charges shall be a charge upon the
Consolidated Fund.

Government
authorised to
borrow to
finance
Caribbean
Community
Development.

Loan to be a
charge on
Consolidated
Fund.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

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LAWS OF TRINIDAD AND TOBAGO

6 Chap. 70:04 Loans and Guarantee
Caribbean Community Development

5. All loans under this Act shall be raised by the creation and
issue of securities which shall be in such forms and of such
denominations and subject to such terms and conditions as may be
determined by or with the authority of the Minister, including—

(a) the rate of interest payable thereon;
(b) the maturity date; and
(c) the place where and the currency in which

principal and interest shall be paid.

6. (1) Subject to section 7, the Government may in such
manner and subject to such terms and conditions as may be agreed
between it and a lending agency, jointly or severally with other
co-guarantors—

(a) guarantee the repayment by a corporation of any
sum which the corporation may borrow from a
lending agency;

(b) undertake such other obligation as may be agreed
between the Government and a lending agency
in relation to or in pursuance of any agreement
for such borrowing.

(2) A guarantee or undertaking given under this section
shall be given in writing in the name of the Government of Trinidad
and Tobago and may be signed on behalf of the Government by
the Minister or by any person authorised in writing by the Minister
in that behalf.

7. (1) The aggregate amount of all sums that are guaranteed
by the Government under this Act shall not exceed the sum of one
hundred and thirty million Trinidad and Tobago dollars (without
taking into account any amount in respect of interest, commissions
and other expenses secured by the guarantees) whether the sums
guaranteed are expressed in any foreign currency or not.

(2) For the purpose of subsection (1), before any further
guarantee is entered into—

(a) the amount of all borrowings by a corporation
secured by guarantees by the Government shall

Issue of
securities.

Government
authorised to
guarantee
repayment of
loans.

Limit on
amounts of
guarantee.
[41/1981].

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

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L.R.O.

LAWS OF TRINIDAD AND TOBAGO

Loans and Guarantee Chap. 70:04 7
Caribbean Community Development

be computed on the date of such further guarantee
in accordance with subsection (1) and the
aggregate amount of all such borrowings in
foreign currency shall be computed so as to take
into account the prevailing rates of exchange on
the date of such further guarantee;

(b) the Minister shall certify in each further guarantee
that the aggregate amount of all borrowings
guaranteed by the Government under this Act
does not exceed the limits imposed for the time
being by or under subsection (1); and

(c) a certification under paragraph (b) shall be
conclusive evidence of the facts stated therein.

(3) The limit on the amount of guarantee specified under
subsection (1) may be varied by resolution of the Senate and the
House of Representatives.

8. Where any sum is paid out of the Consolidated Fund as a
result of any liability incurred by the Government under this Act
in respect of any borrowing by or on behalf of a corporation, such
corporation shall repay to the Consolidated Fund such sum, together
with interest thereon at such rate and time and in such manner as
the Minister may direct.

9. Any obligation by the Government or a corporation under
this Act including any security therefor whether principal, auxiliary,
collateral or supplemental which the Government undertakes or
guarantees may be exempted in whole or in part from the provisions
of the Stamp Duty Act by Order of the Minister.

10. The Minister may, in order to give full effect to this
Act, take any action or issue any order not specifically herein
provided for in relation to any agreement for a loan or guarantee
save that any such action or order shall not be inconsistent with
this Act or the terms and conditions of any loan raised or
guarantee given hereunder.

Corporation to
repay to
Government
sums paid on its
behalf.

Minister may
exempt
obligations
from stamp
duty.

Ch. 76:01.

General power
of Minister.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

LAWS OF TRINIDAD AND TOBAGO

8 Chap. 70:04 Loans and Guarantee
Caribbean Community Development

11. (1) Where any securities are issued for the raising of any
loan under this Act, the Minister shall lay before Parliament all
reports and other details relating to the terms and conditions of
such loan as soon as practicable after such issue and in any event
not later than thirty days after such issue.

(2) Where within any part of the period specified in
subsection (1) Parliament is not sitting, the Minister shall lay the
reports and other details within thirty days of the commencement
of the next sitting of Parliament.

12. The General Loan and Stock Act shall not apply to
securities issued under this Act.

Minister to
inform
Parliament of
securities
issued.

Ch. 71:01 not
to apply.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt
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