Guarantee of Loans (Statutory Authorities)
GUARANTEE OF LOANS
(STATUTORY AUTHORITIES) ACT

CHAPTER 71:81

LAWS OF TRINIDAD AND TOBAGO

Current Authorised Pages
Pages Authorised

(inclusive) by L.R.O.
1–6 ..

L.R.O.

Act
17 of 1968

Amended by
20 of 1987
*29 of 1989

*See Note on page 2

UNOFFICIAL VERSION


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LAWS OF TRINIDAD AND TOBAGO

2 Chap. 71:81 Guarantee of Loans (Statutory Authorities)

Note on Subsidiary Legislation

Note on section 7
Subsidiary Legislation made under section 7 has been omitted.

Note on Act No. 29 of 1989
The Eric Williams Medical Sciences Complex Authority is an Authority for the purposes

of this Act (See section 45 of Act No. 29 of 1989).

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UPDATED TO DECEMBER 31ST 2014

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L.R.O.

LAWS OF TRINIDAD AND TOBAGO

Guarantee of Loans (Statutory Authorities) Chap. 71:81 3

CHAPTER 71:81

GUARANTEE OF LOANS
(STATUTORY AUTHORITIES) ACT

ARRANGEMENT OF SECTIONS

SECTION

1. Short title.
2. Interpretation.
3. Power of Government to guarantee loans by Lending Agency to

statutory authorities.
4. Restriction on borrowing powers of statutory authority so far as

guarantee outstanding.
5. Powers exercisable by Minister in event or prospect of default by

statutory authority.
6. Statutory authority to repay to Government sums paid under guarantee.
7. Minister may remit tax, etc., by Order.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

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LAWS OF TRINIDAD AND TOBAGO

4 Chap. 71:81 Guarantee of Loans (Statutory Authorities)

CHAPTER 71:81

GUARANTEE OF LOANS
(STATUTORY AUTHORITIES) ACT

An Act to provide for the guarantee by the Government of
Trinidad and Tobago of loans to the statutory authorities
by Lending Agencies.

[29TH MAY 1968]

1. This Act may be cited as the Guarantee of Loans (Statutory
Authorities) Act.

2. In this Act—
“borrowing ” includes the obtaining of any credit or the undertaking

to pay any debt or to discharge any pecuniary obligation;
“Lending Agency” means an International Financial Organisation

or any bank, Insurance Company or other source of financing;
“statutory authority” means any body established by statute and

exercising powers vested in such body by law for the
provision of essential services, housing, transport or for
any other public purpose.

3. (1) The Government may in such manner and on such
terms and subject to such conditions as may be agreed between it
and a Lending Agency—

(a) guarantee the discharge by a statutory authority
of its obligations under any agreement which
may be entered into by the statutory authority
with a Lending Agency in respect of any
borrowing authorised by the statute establishing
the authority or under any bond, promissory note
or other instrument issued pursuant to any such
agreement; and

(b) assume such other obligation as may be agreed
between the Government and a Lending Agency
in relation to or pursuant to any such agreement,
bond, promissory note or instrument.

17 of 1968.

Commencement.

Short title.

Interpretation.
[20 of 1987].

Power of
Government to
guarantee loans
by Lending
Agency to
statutory
authorities.

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LAWS OF TRINIDAD AND TOBAGO

Guarantee of Loans (Statutory Authorities) Chap. 71:81 5

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

4. So long as the Government shall continue liable under any
guarantee or other undertaking given in exercise of the powers
conferred by section 3(1) in respect of any borrowing by a statutory
authority, the statutory authority shall not, without the consent of
the Minister, exercise any other power to borrow possessed by it
except the power to borrow by way of overdraft or otherwise for a
period not exceeding twelve months.

5. (1) Where in the opinion of the Minister there is
reasonable cause to believe—

(a) that a statutory authority is likely to fail or be
unable to discharge any of its obligations under
any agreement concluded by it with the Lending
Agency or under any bond, promissory note or
other instrument issued pursuant to any such
agreement; and

(b) that the Government is or may become liable
under any guarantee or other undertaking given
by it in respect of such obligation,

the Minister may give or authorise any other person to give such
directions in writing to the statutory authority as may from time to
time be necessary or desirable to ensure that such arrangements
are made by the authority as will enable it to discharge its
obligations under such agreement, bond, promissory note or
instrument or under this Act, and the statutory authority shall,
notwithstanding any provision contained in any other statute,
comply with the directions.

(2) Nothing in this section shall affect or derogate from
any other power conferred by law on the Minister to whom
responsibility for that statutory authority has been assigned or any
public officer in respect of such statutory authority.

Restriction on
borrowing
powers of
statutory
authority so far
as guarantee
outstanding.

Powers
exercisable by
Minister in
event or
prospect of
default by
statutory
authority.

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LAWS OF TRINIDAD AND TOBAGO

6 Chap. 71:81 Guarantee of Loans (Statutory Authorities)

(3) Where any sum becomes payable by the Government
pursuant to a guarantee or undertaking given in exercise of the
powers conferred by section 3, that sum shall be charged on the
Consolidated Fund or on any other Fund established by Act of
Parliament for a specific purpose, and the Minister shall direct
payment to issue out of the Consolidated Fund or such other Fund,
as the case may be.

6. If any sum is paid out of the Consolidated Fund or other
Fund referred to in section 5(3) in respect of any liability incurred
by the Government under a guarantee or other undertaking given
in exercise of the powers conferred by section 3(1) in respect of
any borrowing by a statutory authority, the authority shall repay
such sum (together with interest thereon at such rate as the Minister
may prescribe) to the Consolidated Fund or other appropriate Fund,
as the case may be, in such manner and at such time as the Minister
may direct.

*7. The Minister may provide by Order that any tax, duty or
fee payable under the Income Tax Act or the Stamp Duty Act or
any other written law shall be remitted where the remission is, in
his opinion necessary to give full effect to any guarantee or
undertaking under this Act.

Statutory
authority to
repay to
Government
sums paid under
guarantee.

Minister may
remit tax, etc.,
by Order.
Ch. 75:01.
Ch. 76:01.

* See Note on page 2.

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UPDATED TO DECEMBER 31ST 2014

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