Local Authorities Loans Fund Act

Section 1. Interpretation Section " board " means the Local Authorities Loans Fund Board established by section 2 ;

Section 10. Borrowing by theboard Section 10(1) The board may, with the approval of the Minister , borrow such sums as it may require in the exercise of the powers conferred upon it by this Act either— Section 10(1)(a) by stock issued under this Act; Section 10(1)(b) by local bonds issued under this Act; or Section 10(1)(c) in such other manner as it deems fit. Section 10(2) All monies borrowed by the board under this Act shall be charged indifferently on all the revenues of the fund .

Section 11. Establishment and application of sinkingfund Section 11(1) The board may, with the approval of the Minister , from time to time, establish and maintain such sinking funds as may be necessary or desirable for the efficient discharge of its functions under this Act. Section 11(2) The board , with the approval of the Minister , shall supply all monies for the time being comprised in a sinking fund maintained under subsection (1) in redemption of the borrowing by the board in respect of which such application, any such monies may be— Section 11(2)(a) invested in a manner provided by section 15 ; or Section 11(2)(b) applied in the exercise of the powers conferred by section 6 .

Section 12. Investment Section The board may, with the approval of the Minister , from time to time, invest any monies for the time being in the fund which are not immediately required for the discharge of its functions under this Act in any investment for the time being authorised by any law in force for the investment of trust monies, and any such investments may from time to time be varied or transposed.

Section 13. Stock regulations Section 13(1) For the purpose of any borrowing by the board by means of an issue of stock under this Act, stock may be created, issued, transferred, dealt with and redeemed in such manner as may be prescribed by regulations made by the Minister after consultation with the Minister responsible for finance. Section 13(2) Without prejudice to the generality of subsection (1), the regulations made under this section may provide for the discharge of any loan as raised and may provide for the consent of owners under disability and for the application or nonapplication of the Acts relating to stamp duty (subject to sections 14 and 16 ) and to cheques, and for the disposal of unclaimed dividends.

Section 14. Provisions as to local bonds Section be secured upon all the revenues of the fund ;

Section 15. Stock and bonds to be trustee securities Section A trustee, as defined in the Trustees Act, may invest any trust funds in his or her hands, whether at the time in a state of investment or not, in any stock or local bonds issued by the board under this Act.

Section 16. Transfers of stock and bonds exempt from stamp duty Section Transfers of any stock or local bonds issued by the board under this Act shall be exempt from all stamp duties.

Section 17. Regulations Section Subject to this Act, the Minister may make regulations prescribing anything to be prescribed by this Act and generally for carrying out the provisions of this Act.

Section 18. Power ofMinisterto give directions to theboard Section 18(1) The Minister may at any time and on any matter give directions to the board as to the exercise of its powers or the carrying out of its duties and functions under this Act. Section 18(2) If the Minister is, at any time, satisfied that the board is exercising its powers or is carrying out its duties and functions under this Act in a manner prejudicial to the public interest, the Minister may require the board to exercise its powers or carry out its duties and functions in such manner as the Minister may direct; and the board shall thereafter exercise its powers or carry out its duties and functions, as the case may be, in the manner so directed.

Section 2. Theboard Section 2(1) There is established a board to be known as the Local Authorities Loans Fund Board consisting of— Section 2(1)(a) the Permanent Secretary to the Ministry responsible for local administrations and urban authorities as chairperson or his or her representative; Section 2(1)(b) the Permanent Secretary to the Ministry responsible for finance or his or her representative; Section 2(1)(c) the Permanent Secretary to the Ministry responsible for planning and economic development or his or her representative; Section 2(1)(d) the Permanent Secretary to the Ministry responsible for health or his or her representative; Section 2(1)(e) the Permanent Secretary to the Ministry responsible for education or his or her representative; Section 2(1)(f) the Permanent Secretary to the Ministry responsible for works, communications and housing or his representative; and Section 2(1)(g) such other members not exceeding five as may be determined and appointed from time to time by the Minister . Section 2(2) Every appointed member of the board under subsection (1)(g) shall hold office during the pleasure of the Minister . Section 2(3) The board shall be a body corporate with...

Section 3. Meetings and procedure of theboard Section 3(1) In the absence of the chairperson from any meeting of the board , the members present at the meeting may choose a person from among themselves to preside at the meeting. Section 3(2) At all meetings of the board , five members shall form a quorum. Section 3(3) The chairperson of any meeting of the board shall have a deliberative vote and, in the case of an equality of votes, shall have a casting vote; a decision of the majority of the members present and voting at a meeting of the board shall be deemed to be the decision of the board . Section 3(4) The board may act notwithstanding a vacancy among its members, and all acts done at any meeting of the board shall, notwithstanding that it is afterwards discovered that there was some defect in the appointment of a person purporting to be a member of the board , be as valid as if that defect had not existed. Section 3(5) Subject to this section, the board may regulate its own procedure. Section 3(6) The chairperson may appoint any public officer as secretary to the board .

Section 4. Accounts and audit Section 4(1) The board shall prepare books of account and proper records in relation thereto. Section 4(2) Subject to such directions as to form as the Minister may direct, the board shall prepare in respect of each financial year , a statement of account which shall include— Section 4(2)(a) a balance sheet, a statement of income and expenditure and a statement of surplus or deficit containing such information as, had the board been a company registered under the Companies Act, would be required to be laid before the company by the directors at the annual general meeting; and Section 4(2)(b) such other information in respect of the financial affairs of the board as the Minister may require. Section 4(3) The books and account of the board shall be submitted within a period of four months after the end of each financial year to the Auditor General to be audited by him or her, or by an auditor appointed by him or her. Section 4(4) The Auditor General shall, not later than the thirtieth day of November, forward to the Minister a copy of the audited accounts and his or her report thereon. Section 4(5) The Auditor General shall report annually to the Ministe...

Section 5. Establishment of Local Authorities Loans Fund Section 5(1) There is established a Local Authorities Loans Fund under the control of the board , consisting of such securities and monies and applicable to such purposes as are provided for by this Act. Section 5(2) There shall, by virtue of this Act and without further assurance, become vested in the board — Section 5(2)(a) all the funds which immediately before the commencement of this Act were standing to the credit of the Local Authorities Loans Fund established by the Public Finance Act; and Section 5(2)(b) the right of the Government to demand, sue for and recover the benefits of all loans granted to local authorities pursuant to any law, to the extent of which such loans, at the commencement of this Act, remain outstanding. Section 5(3) All monies received by the board on account of any loan referred to in subsection (2)(b) shall be credited to the fund . Section 5(4) For the purposes of this section, "benefit of a loan" includes the interest on, the security for, and any other money or thing accruing or acquired under such loan. Section 5(5) There shall also be paid to the fund — Section 5(5)(a) all such monies as ma...

Section 6. Loans by theboardand repayments of the loans Section 6(1) The board may, with the approval of the Minister , from time to time, make loans to local authorities for such purposes as local authorities may be authorised by law to borrow money. Section 6(2) Every loan made by the board under this Act to a local authority shall bear interest at such rate and shall be repaid at such time and in such manner as the board , with the approval of the Minister , may determine.

Section 7. Advances Section The board may, with the approval of the Minister , from time to time, make to a local authority temporary loans of monies required for the proper discharge of the functions of the local authority .

Section 8. Charge of loan on rates and revenues oflocal authority Section All monies borrowed by a local authority from the board and all such loans as are referred to in section 5 (2) shall be charged indifferently on all the rates and revenues of the local authority.

Section 9. Discharge of security on repayment of the loan Section Upon all monies due from a local authority to the fund being fully paid, the board shall give to the local authority a receipt in writing for the monies and such further sufficient discharge, if any, as may seem to the board to be necessary, and upon the receipt being given the rates and revenues of the local authority shall be released from the charge created by section 8 .