650 - LOAN (LOCAL) ACT 1961

Loan (Local) Act 650.fm Page 1 Thursday, April 6, 2006 2:34 PM LAWS OF MALAYSIA Act 650 LOAN (LOCAL) ACT 1961 (Revised—2006) REVISED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH MALAYAN LAW JOURNAL SDN BHD AND PERCETAKAN NASIONAL MALAYSIA BHD 2006 Loan (Local) Act 650.fm Page 2 Thursday, April 6, 2006 2:34 PM 2 LOAN (LOCAL) ACT 1961 Revised up to … … … … … … 30 March 2006 Date of publication in the Gazette of this revised version … … … … … 30 March 2006 Date appointed for coming into force of this revised version pursuant to paragraph 6(1)(xxiii) of the Revision of Laws Act 1968 [Act 1] … … … … 30 March 2006 First enacted in 1961 as Act No. 18 of 1961 PREPARED FOR PUBLICATION BY MALAYAN LAW JOURNAL SDN BHD AND PRINTED BY PERCETAKAN NASIONAL MALAYSIA BERHAD KUALA LUMPUR BRANCH 2006 Loan (Local) Act 650.fm Page 3 Thursday, April 6, 2006 2:34 PM 3 LAWS OF MALAYSIA Act 650 LOAN (LOCAL) ACT 1961 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title 2. Interpretation PART II AUTHORIZATION AND APPLICATION OF LOAN 3. Power to raise loan 4. Application of loan 5. Charge of principal and interest PART III PROVISIONS APPLICABLE TO ISSUE AND REGISTRATION OF STOCK 6. Issue and form of stock 7. Refusal of application 8. Register of Stock 9. Payment of interest 10. Fee payable to the Bank Loan (Local) Act 650.fm Page 4 Thursday, April 6, 2006 2:34 PM 4 Laws of Malaysia ACT 650 PART IV PROVISIONS RELATING TO REDEMPTION OF STOCK Section 11. Redemption of stock 12. Repayment of stock 13. Delivery up of stock on repayment PART V GENERAL 14. Acceptance of advance deposits Loan (Local) Act 650.fm Page 5 Thursday, April 6, 2006 2:34 PM 5 LAWS OF MALAYSIA Act 650 LOAN (LOCAL) ACT 1961 An Act to authorize a sum not exceeding one hundred million ringgit at any one time to be raised in Malaysia by way of loan. [Peninsular Malaysia—25 May 1961; Sabah and Sarawak—20 May 1965] PART I PRELIMINARY Short title 1. This Act may be cited as the Loan (Local) Act 1961. Interpretation 2. In this Act, unless the context otherwise requires— “advance deposit” means such deposits as are received under subsection 14 (1); “Bank” means the Central Bank of Malaysia; “Governor” means the Governor of the Bank; “Minister” means the Minister for the time being charged with responsibility for finance. PART II AUTHORIZATION AND APPLICATION OF LOAN Power to raise loan 3. (1) The Minister may from time to time raise, by the issue of stock in the manner provided in this Act, such sums of moneys as Loan (Local) Act 650.fm Page 6 Thursday, April 6, 2006 2:34 PM 6 Laws of Malaysia ACT 650 he may determine, provided that the total amount of such stock issued and not redeemed shall not exceed the sum of one hundred million ringgit at any one time. (2) The loan hereby authorized shall be raised in Malaysia by the issue of registered stock under Part III. (3) All stock issued under this Act shall be redeemable within a period not exceeding five years from the date of issue. Application of loan 4. The moneys received for stock issued under this Act shall be applied, and are hereby appropriated, to the following purposes : (a) meeting the expenses relating to the issue of stock or arising from the acceptance of advance deposits under Part V; (b) payment, with the prior approval of the Dewan Rakyat signified by resolution, into the Development Fund specified in the Second Schedule to the Financial Procedure Act 1957 [Act 61], for the purposes of such fund; and (c) redemption of stock issued under this Act, to such extent as the Minister may determine. Charge of principal and interest 5. The principal moneys and interest represented by stock issued under this Act are charged upon and shall be payable out of the Consolidated Fund. PART III PROVISIONS APPLICABLE TO ISSUE AND REGISTRATION OF STOCK Issue and form of stock 6. (1) Stock issued under this Act shall be issued on behalf of the Minister by the Bank, upon such terms as may be approved by the Minister, and shall be authenticated either by the signature of Loan (Local) Act 650.fm Page 7 Thursday, April 6, 2006 2:34 PM Loan (Local) 7 the Governor, or by a facsimile of such signature, or in such manner as may be approved by the Governor. (2) Stock issued under this Act shall be in such form as the Governor may from time to time approve. Refusal of application 7. Any application to take up stock issued under this Act may be refused by the Governor without reason assigned. Register of Stock 8. (1) All stock issued under this Act shall be entered in a register to be kept for the purpose by the Bank in such form as may from time to time be approved by the Governor. (2) All stock issued under this Act, and the right to receive the principal moneys and interest represented thereby, shall be transferable by an instrument of transfer registered by the Bank. (3) No stock issued under this Act shall be registered except in the name of an individual person or persons or of a corporation. Payment of interest 9. (1) The interest upon the principal moneys represented by stock issued under this Act shall be paid half-yearly at the office of the Bank. (2) The Minister shall, in each half-yearly period ending with the day on which interest on stock issued under this Act falls due, appropriate out of the Consolidated Fund a sum equal to one-half year's interest on the whole of the stock so issued in order that the interest for such half year may be paid from it. Fee payable to the Bank 10. The Minister may fix such fee as he considers reasonable for the performance by the Bank of any powers or duties conferred or imposed under this Act, and the fee so fixed is charged on and appropriated out of the Consolidated fund. Loan (Local) Act 650.fm Page 8 Thursday, April 6, 2006 2:34 PM 8 Laws of Malaysia ACT 650 PART IV PROVISIONS RELATING TO REDEMPTION OF STOCK Redemption of stock 11. Stock issued under this Act shall be redeemable at par on such dates as may be specified in the prospectus, after which dates all the interest on the principal moneys represented thereby shall cease and determine, whether payment of such principal moneys shall have been demanded or not. Repayment of stock 12. The repayment of all principal moneys represented by stock issued under this Act at the time when the same become due shall be made by the Minister out of the Consolidated Fund. Delivery up of stock on repayment 13. Before the repayment of the principal moneys represented by any stock issued under this Act, such stock shall be delivered up for cancellation to the Bank. PART V GENERAL Acceptance of advance deposits 14. (1) In anticipation of the raising of any loan under the authority of this Act the Minister may, if he thinks fit, authorize acceptance by the Bank on behalf of the Federation of deposits not exceeding the amount of such loan. (2) Advance deposits shall be applied to the purchase of stock of the first loan issued under this Act after the date on which such deposits were received by the Bank, unless a depositor gives notice in writing within seven days after the date of issue of such loan that he wishes advance deposits or part of it made by him to be repaid. Loan (Local) Act 650.fm Page 9 Thursday, April 6, 2006 2:34 PM Loan (Local) 9 (3) Whenever a depositor gives notice that he wishes the whole or part of the advance deposits made by him to be repaid, such deposits or part of it made by such depositor shall be repaid immediately, but no interest shall be payable on it. (4) Advance deposits which are applied to the purchase of stock in accordance with subsection (2) shall carry interest at the rate applicable to such stock calculated from the date the deposit was received by the Bank, and such interest shall be charged on the Consolidated Fund and appropriated from it. (5) Any power to invest conferred on a person by any instrument or written law shall include the power to make advance deposits in accordance with this section. Loan (Local) Act 650.fm Page 10 Thursday, April 6, 2006 2:34 PM 10 LAWS OF MALAYSIA Act 650 LOAN (LOCAL) ACT 1961 (Revised—2006) Particulars under paragraphs 7(ii) and (iii) of the Revision of Laws Act 1968 [Act 1] LIST OF AMENDMENTS Amending law Short title In force from Act 31 of 1963 Loan (Advance Deposits) Act 12-09-1963 1963 Act 160 Malaysian Currency (Ringgit) Act 29-08-1975 1975 LIST OF LAWS OR PARTS THEREOF REPEALED No. Title –NIL– Loan (Local) Act 650.fm Page 11 Thursday, April 6, 2006 2:34 PM 11 LAWS OF MALAYSIA Act 650 LOAN (LOCAL) ACT 1961 (Revised—2006) LIST OF SECTIONS AMENDED Section Amending authority In force from 14(5) Loan (Advance Deposits) 12-09-1963 Act 1963 Loan (Local) Act 650.fm Page 12 Thursday, April 6, 2006 2:34 PM 12 LAWS OF MALAYSIA Act 650 LOAN (LOCAL) ACT 1961 (Revised—2006) LIST OF AMENDMENTS MADE BY THE COMMISSIONER OF LAW REVISION UNDER SECTION 6 OF THE REVISION OF LAWS ACT 1968 [ACT 1] Provision Particulars of amendment Authority for amendment Effective date Words “25 May 1961” substituted for s.6(l)(iii) “25th May, 1961” Enacting clause Omitted s.6(l)(i)(f) s. l Comma after word “Act” omitted s.6(l)(xvi) s. 2 1. In definition “advance deposit” words s.6(l)(iii) “subsection 14(1)” substituted for “sub-section (1) of section 14” 2. In definition of “Bank” words “Central s.6(l)(xvii) Bank of Malaysia” substituted for “Bank Negara Tanah Melayu” s. 3(1) Words “provided in this Act” s.6(l)(xxb) substituted for “hereinafter provided” s. 3(3) Word “thereof” omitted s.6(l)(xxb) s. 4(b) 1.Words “ Dewan Rakyat” substituted s.6(l)(iii) for “Dewan Ra’ayat” 2.Words “Financial Procedure Act s.6(l)(v) 1957” substituted for “Financial Procedure Ordinance, 1957” Loan (Local) Act 650.fm Page 13 Thursday, April 6, 2006 2:34 PM Loan (Local) 13 Provision Particulars of amendment Authority for amendment s. 5 Word “hereby” omitted s.6(l)(xxi) s.14(4) Word “subsection (2)” substituted for s.6(l)(iii) “sub-section (2)” Throughout the 1. Word “Malaysia” substituted for s.6(l)(iii) Act “the Federation” 2. Word “ringgit” substituted for s.6(l)(iii) “dollars” 3. Words “of it” substituted for s.6(l)(xxi) “thereof” except in subsection 3(3) 4. Words “from it” substituted for s.6(l)(xxi) “therefrom” 5. Words “the provision of” omitted s.6(l)(xxi) 6. Words “on it” substituted for s.6(l)(xxi) “thereon”