General Local Loan
GENERAL LOCAL LOAN ACT

CHAPTER 71:02

L.R.O.

LAWS OF TRINIDAD AND TOBAGO

Act
29 of 1932

Amended by
30 of 1938
9 of 1951
19 of 1959
15 of 1960

Current Authorised Pages
Pages Authorised

(inclusive) by L.R.O.
1–9 ..

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

LAWS OF TRINIDAD AND TOBAGO

2 Chap. 71:02 General Local Loan

Note on Subsidiary Legislation

This Chapter contains no subsidiary legislation.

Note on Adaptation

Under paragraph 6 of the Second Schedule to the Law Revision Act (Ch. 3:03) the Commission
amended certain references to public officers in this Chapter. The Minister’s approval of the
amendments was signified by LN 52/1980, but no marginal reference is made to this Notice
where any such amendment is made in the text.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

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L.R.O.

LAWS OF TRINIDAD AND TOBAGO

General Local Loan Chap. 71:02 3

CHAPTER 71:02

GENERAL LOCAL LOAN ACT

ARRANGEMENT OF SECTIONS

SECTION

1. Short title.

2. Scope.

3. Loans to be raised by debentures.

4. Loans to be a charge upon Consolidated Fund.

5. Borrowing upon debentures.

6. Amount of each debenture.

7. Debentures may be either fixed-date or drawing debentures.

8. Interest coupons.

9. Form of debenture and coupons.

10. Debentures and coupons transferable by delivery.

11. Register of debentures.

12. Payment of interest.

13. Mode of providing for payment of interest on and for redemption of
debentures.

14. Creation of sinking fund for redemption of debentures payable on a
fixed date.

15. 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.

Mode of drawing.

Notice of debentures drawn for redemption.

Payment of drawn debentures.

16. Cesser of interest from day appointed for payment of principal.

17. Redeemed debentures to be cancelled.

18. Expenses of redemption to be borne by sinking fund.

UNOFFICIAL VERSION


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LAWS OF TRINIDAD AND TOBAGO

4 Chap. 71:02 General Local Loan

CHAPTER 71:02

GENERAL LOCAL LOAN ACT

An Act to declare the terms and conditions applicable to local
loans authorised to be raised by the Government of
Trinidad and Tobago.

[7TH DECEMBER 1932]

1. This Act may be cited as the General Local Loan Act.

2. This Act shall be applicable only to loans raised locally in
Trinidad and Tobago.

3. Whenever by an Act authority has been given to the
Minister to raise any sum of money for the purposes mentioned in
such Act, the Minister may, as he considers expedient, raise the
sum by debentures issued under the provisions of this Act.

4. The principal moneys and interest represented by such
debentures are hereby charged upon and shall be payable out of
the Consolidated Fund.

5. Such debentures shall be issued in Trinidad and Tobago
upon the best and most favourable terms that can be obtained and
shall be authenticated in such manner as may from time to time be
approved by the Minister.

6. Each debenture shall be for a sum of fifty dollars, one
hundred dollars, five hundred dollars, two thousand five hundred
dollars or five thousand dollars.

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; but the Minister
may reserve the option to redeem the debentures
prior to such date on such conditions as may be

1950 Ed.
Ch. 34 No. 2.

29 of 1932.

Commencement.

Short title.

Scope.

Loans to be
raised by
debentures.

Loans to be a
charge upon
Consolidated
Fund.

Borrowing upon
debentures.
[9 of 1951].

Amount of each
debenture.
[19 of 1959].

Debentures
may be either
fixed-date or
drawing
debentures.

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L.R.O.

LAWS OF TRINIDAD AND TOBAGO

General Local Loan Chap. 71:02 5

declared at the time of issue (the debentures being
referred to below as fixed-date debentures); or

(b) by annual drawings at par or at the option of the
Minister by purchase in the market as provided
below (the debentures being referred to below as
drawing debentures).

8. To every debenture there shall be attached coupons for
the payment of 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 periods as the Minister may determine from
time to time, not exceeding in their totality the whole period for
which the debenture has to run.

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

10. Every debenture and coupon, and the right to receive the
principal and interest represented by them, 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 of the
Comptroller of Accounts.

12. The interest upon the principal represented by each
debenture shall run from the day named in the debenture, and shall
be paid half-yearly on the days named in the debenture at the office
of the Comptroller of Accounts.

13. (1) So long as any of the debentures remain outstanding
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.

Interest
coupons.

Form of
debenture and
coupons.

Debentures and
coupons
transferable by
delivery.

Register of
debentures.

Payment of
interest.

Mode of
providing for
payment of
interest on and
for redemption
of debentures.
[9 of 1951].

UNOFFICIAL VERSION


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LAWS OF TRINIDAD AND TOBAGO

6 Chap. 71:02 General Local Loan

(2) 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
for the formation of a sinking fund an additional sum equal to one-
half of the annual contribution to be decided upon by the Minister
on the issue of the loan. Such contribution shall be in respect of
the total nominal amount of all the debentures issued, including
any which may have been redeemed.

(3) Debentures shall not be deemed to be outstanding for
the purposes 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) In the case of fixed-date debentures, so much of the
moneys appropriated as mentioned above as shall not be required
for the immediate payment of interest shall be placed at interest or
invested by the appropriate officer in the purchase of such securities
as the Minister may under subsection (2) approve as a sinking
fund for the final extinction of the debt and the appropriate officer
shall also place at interest or invest the accumulations of interest
or the dividends, interest or produce of such investments in the
purchase of like securities, and may from time to time with the
approval of the Minister, 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.

(2) The Minister may approve of any securities in which
trustees in England may invest under any law in force from time
to time.

(3) Investments in any of the securities approved by the
Minister under subsection (2) may be made by the Crown Agents
acting at the request and on behalf of the appropriate officer.

(4) Notwithstanding the provisions of subsection (1)
if at any time the appropriate officer is satisfied that the value
of the sinking fund will be sufficient with further accumulations
of interest but without further payments of contributions to

Creation of
sinking fund for
redemption of
debentures
payable on a
fixed date.
[9 of 1951
15 of 1960].

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

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LAWS OF TRINIDAD AND TOBAGO

General Local Loan Chap. 71:02 7

enable the debentures to be redeemed out of proceeds of the
sinking fund when the same falls due to be redeemed, the
Minister may suspend further payment of contributions to the
sinking fund, but such payments shall be recommenced if the
Minister considers it necessary.

(5) All investments held by the Crown Agents at the
commencement of the General Local Loan (Amendment)
Ordinance 1960 (that is, 4th August 1960) as a sinking fund in
respect of a loan raised locally in Trinidad and Tobago under or in
accordance with this Act shall be deemed to have been made at the
request and on behalf of the appropriate officer in accordance with
section 14.

(6) In this section—

“appropriate officer” means such officer in the Ministry of Finance
as the Minister may designate for the purpose;

“Minister” means the Minister responsible for Finance.

15. In the case of drawing debentures, so much of the moneys
appropriated as above as shall not be required for the immediate
payment of interest and the accumulations on them shall be held
by the Comptroller of Accounts in trust to apply them 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, in the following manner:

(a) after the commencement of the contributions to
the sinking fund in respect of any loan and
subsequently so long as any of the debentures
remain outstanding, the Minister 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;

(b) if a day is appointed for drawing, the Comptroller
of Accounts shall give, by advertisement in the
Gazette and in at least one of the local newspapers

15 of 1960.

Disposal of
sinking fund
when debentures
are redeemed by
purchase or by
annual
drawings.
[19 of 1959].

Appointment of
day for drawing
of debentures.

Notice of time
and place
appointed for
drawing.

UNOFFICIAL VERSION


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LAWS OF TRINIDAD AND TOBAGO

8 Chap. 71:02 General Local Loan

circulating in Trinidad and Tobago, not less than
fifteen days’ previous notice, specifying the day
on which, and the hour and place at which, the
drawing will take place;

(c) on the day and at the hour and place so specified
the Permanent Secretary to the Minister of
Finance and the Comptroller of Accounts or any
other officers appointed by the Minister for the
purpose 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 as may attend, draw by lot, out of the
whole number of debentures for the time being
outstanding, debentures of the specified
nominal amount;

(d) the Permanent Secretary to the Minister of
Finance and the Comptroller of Accounts or other
officers appointed as above shall thereupon
declare the distinguishing numbers of the
debentures drawn for redemption, and the
Comptroller of Accounts shall, as soon as may
be, by advertisement in the Gazette and at least
one of the local newspapers circulating in Trinidad
and Tobago 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
on them is payable, on which the principal moneys
represented by the debentures so distinguished
will be repaid;

(e) from and after the day so appointed the
Comptroller of Accounts shall, at his office, pay
on demand to the holders of the debentures drawn
for repayment the principal moneys represented
by those debentures, with all interest payable on
them up to the appointed day.

Mode of
drawing.

Notice of
debentures
drawn for
redemption.

Payment of
drawn
debentures.

UNOFFICIAL VERSION


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LAWS OF TRINIDAD AND TOBAGO

General Local Loan Chap. 71:02 9

16. From and after the day appointed for the repayment of
any debenture, whether a fixed-date or a drawing debenture, all
interest on the principal moneys represented by them shall cease
and determine, whether payment of the principal has been
demanded or not.

17. Upon the repayment of the principal moneys represented
by any debenture, such debenture with all the coupons thereunto
belonging, shall be delivered up to the Comptroller of Accounts to
be by him cancelled and retained.

Any drawing debenture redeemed by purchase shall in the same
manner be cancelled and retained.

18. All expenses of or incidental to the redemption of the
debentures and the costs and expenses of all notices required by
this Act to be given may be paid out of the sinking fund.

Cesser of
interest from
day appointed
for payment of
principal.

Redeemed
debentures to be
cancelled.

Expenses of
redemption to
be borne by
sinking fund.

UNOFFICIAL VERSION


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