LOANS (LOCAL AUTHORITIES) ACT

ARRANGEMENT OF SECTIONS

   1   Short title

   2   Interpretation

   3   Power to borrow

      Loan to be charged upon assets of local authority

      Repayment of amount of principal moneys or interest guaranteed in default

   4   Power to exempt from stamp duty upon transfer

   5   Power of local authority to convert debentures

   6   Exchange of debentures for stock

   7   Cancellation of converted debentures

   8   Payment of fees

   9   Regulations

   10   Saving

      SCHEDULE

 

THE LOANS (LOCAL AUTHORITIES) ACT

[Date of Commencement: 17th February, 1958]

Law 2 of 1958.

LN 241/1964.

1   Short title

   This Act may be cited as the Loans (Local Authorities) Act.

2   Interpretation

   In this Act-

   "local authority" means the Parish Council of any parish of this Island and includes the Council of the Kingston and Saint Andrew Corporation and the National Water Commission;

   "registered stock" means registered stock of a local authority issued under the provisions of this Act.

3   Power to borrow

   (1) A local authority may, with the approval of the Minister, raise loans from such sources within the Island and for such purposes as the Minister may authorise.

Loan to be charged upon assets of local authority.

   (2) Any loan approved under subsection (1), or any part of such loan, may be raised by the issue of stock or debentures or both, in such form and on such conditions as may be approved by the Minister, or by such other means as may be approved by the Minister; and the principal moneys and interest represented by any such loan are hereby charged upon and shall be payable out of the revenue and assets of the local authority.

Repayment of amount of principal moneys or interest guaranteed in default.

   (3) The principal moneys and interest represented by any loan raised in accordance with the provisions of subsections (1) and (2) may be guaranteed by the Minister with the prior approval of the House of Representatives, and thereupon, in the event of default in payment thereof by the local authority shall be charged upon and be payable out of the Consolidated Fund and assets of the Government of Jamaica.

4   Power to exempt from stamp duty upon transfer

   (1) Wherever any loan is about to be raised by the issue of stock under the provisions of this Act by a local authority the Minister may by order declare that notwithstanding anything to the contrary no stamp duty shall be payable upon the transfer, whenever such transfer may occur, of any such stock issued within such period as may be specified in such order.

   (2) Notwithstanding anything to the contrary, no order under subsection (1) shall be revoked or be amended in such manner as to render any stamp duty payable upon the transfer of any stock to which such order relates on which stamp duty would not have been payable if such transfer had occurred immediately before the amendment or revocation of such order.

5   Power of local authority to convert debentures

   (1) Subject to the prior approval of the Minister, a local authority may-

   (a)   declare that any debentures issued by such local authority, under this Act, are convertible at the option of the holders thereof, into registered stock on such terms as may from time to time be determined;

   (b)   authorise the creation of registered stock-

         (i)   in exchange for debentures issued by such local authority under the provisions of this Act; or

         (ii)   in order to raise money for the redemption of any outstanding loans, whether issued before or after the coming into operation of this Act, or

         (iii)   for paying any expenses in the creation of registered stock; or

         (iv)   for carrying out the provisions of this Act.

   (2) Any conversion authorised under this section may be effected either by arrangement with the holders of existing securities, or by purchase thereof out of moneys raised by the sale of registered stock, or partly in one way and partly in the other.

   (3) Any power conferred on a local authority by this section may be exercised from time to time, and the local authority may alter any terms or conditions as often as the occasion may require:

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