Loans and Guarantees (Authorisation) Act, 1969
This Act may be cited as the Loans and Guarantees (Authorisation) Act.
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- Zambia
- Instrument
- Act or statute
- Citation
- Act 28 of 1969
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- Language
- en
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Statute overview
About this statute
This Act may be cited as the Loans and Guarantees (Authorisation) Act. This section says the Act does not apply to raising loans under four named Acts. The Minister may raise loans for the Government, but only within limits set by National Assembly authorization. Loans raised under the Act for one year or less must go into the Special Deposit Account; loans over one year must go into the general revenues of the Republic; and loans raised for a specific purpose must be used only for that purpose. Debt charges from loans under this Act are charged to the Republic’s general revenues, with a special rule for loans of one year or less.
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Provisions of Loans and Guarantees (Authorisation) Act, 1969
Showing 29 of 29
Part
Part I – Preliminary
- 1 Verify source ↗
Short title .................................................................................................................................................................................................... 1
AI-assisted research summary: This Act may be cited as the Loans and Guarantees (Authorisation) Act.
1. Short title This Act may be cited as the loans and Guarantees (Authorisation) Act. - 2 Verify source ↗
Application .................................................................................................................................................................................................. 1
AI-assisted research summary: This section says the Act does not apply to raising loans under four named Acts.
2. Application Nothing in this Act shall apply in relation to the raising of any loan under — (a) the Bretton Woods Agreement Act; (b) the International Development Association Act; (c) the General Loans (International Bank) Act; or (d) the Development Bond Act. [Cap. 367; Cap. 363; Cap. 365; Cap. 379] [No. 39 of 1969] Part II – General borrowing powers
Part
Part II – General borrowing powers
- 3 Verify source ↗
Power to raise loans ............................................................................................................................................................................... 1
AI-assisted research summary: The Minister may raise loans for the Government, but only within limits set by National Assembly authorization.
3. Power to raise loans The Minister may raise from time to time, in the Republic and elsewhere, on behalf of the Government such loans as he may deem desirable, not exceeding in the amount outstanding at any one time — (a) in the case of loans raised under this Act for a period of not more than one year; or (b) in the case of loans raised under this Act for a period in excess of one year; such amount as he shall from time to time be authorised by resolution of the National Assembly to prescribe by statutory instrument. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 1 Loans and Guarantees (Authorisation) Act, 1969 (Chapter 366) Zambia Repealed - 4 Verify source ↗
Application of loans ................................................................................................................................................................................ 2
AI-assisted research summary: Loans raised under the Act for one year or less must go into the Special Deposit Account; loans over one year must go into the general revenues of the Republic; and loans raised for a specific purpose must be used only for that purpose.
4. Application of loans (1) The amount of all loans raised under this Act for a period of not more than one year shall be paid into an account (hereinafter referred to as " the Special Deposit Account") which is hereby established for that purpose. (2) The amount of all loans raised under this Act for a period in excess of one year shall be paid into the general revenues of the Republic. (3) Notwithstanding any other provision contained in this Act, any loan raised under this Act for a specific purpose shall be applied to that purpose and to no other purpose. [As amended by No. 30 of 1972] - 5 Verify source ↗
Debt charges .............................................................................................................................................................................................. 2
AI-assisted research summary: Debt charges from loans under this Act are charged to the Republic’s general revenues, with a special rule for loans of one year or less.
5. Debt charges (1) All debt charges arising from the raising of any loan under this Act shall be charged on the general revenues of the Republic: Provided that, in the case of loans raised for a period of not more than one year, the repayment or amortisation of debt shall be paid out of the funds in the Special Deposit Account, and the interest and all expenses necessarily incurred in connection with the raising or repayment of any loan under this subsection shall be charged on the general revenues of the Republic. (2) There shall be included in the financial report prepared in respect of any financial year pursuant to Article 118 of the Constitution, a statement showing the particulars of debt charges paid in that financial year in respect of any loan raised under this Act or any other written law. (3) For the purposes of this section, "debt charges" includes interest, sinking fund charges, the repayment or amortisation of debt and all expenses necessarily incurred in connection with the raising or the repayment of any loan under this Act. [As amended by No. 30 of 1972] Part III – Methods of raising loans
Part
Part III – Methods of raising loans
- 6 Verify source ↗
Methods of raising loans ...................................................................................................................................................................... 2
AI-assisted research summary: A loan may be raised under the Act by issuing bonds or stock, issuing treasury bills, or by written agreement.
6. Methods of raising loans Subject to the provisions of this Act, a loan may be raised under this Act by any of the following methods, that is to say: (a) by the issue of bonds or stock; (b) by the issue of treasury bills; or (c) by agreement in writing. - 7 Verify source ↗
Minister to determine terms, etc., of loans .................................................................................................................................... 2
7. Minister to determine terms, etc., of loans Any loan raised under this Act shall be raised in accordance with such conditions and upon such terms as the Minister shall, in respect of such loan, direct. - 8 Verify source ↗
Functions of Bank of Zambia .............................................................................................................................................................. 2
AI-assisted research summary: The Bank of Zambia must carry out prescribed functions for certain loans and manage related sinking-fund functions as directed by the Minister.
8. Functions of Bank of Zambia In the case of any loan raised under this Act by the issue of bonds or stock or treasury bills, the Bank of Zambia shall, as the agent of the Minister — (a) undertake and perform such functions as may be prescribed in connection therewith; By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 2 Loans and Guarantees (Authorisation) Act, 1969 (Chapter 366) Zambia Repealed (c) perform such functions relating to the investment and management of any sinking fund established in respect of the loan as the Minister may from time to time direct. [Please note: numbering as in the original.] Part IV – Sinking funds
Part
Part IV – Sinking funds
- 9 Verify source ↗
Establishment of sinking funds for redemption of bonds or stock ....................................................................................... 3
AI-assisted research summary: The Minister must set up a sinking fund for bonds or stock issued for loans over ten years, and may do so for loans of ten years or less if it is in the public interest.
9. Establishment of sinking funds for redemption of bonds or stock (1) Whenever any bonds or stock are issued in respect of a loan raised under this Act for a period of more than ten years, the Minister shall cause to be established a sinking fund for the purpose of redeeming such bonds or stock. (2) Whenever any bonds or stock are issued in respect of a loan raised under this Act for a period of not more than ten years, the Minister may, if it appears to him desirable in the public interest, cause to be established a sinking fund for the purpose of redeeming such bonds or stock. - 10 Verify source ↗
Establishment of sinking funds in other cases .......................................................................................................................... 3
AI-assisted research summary: The Minister may establish a sinking fund to redeem loans covered by this Act or by another written law.
10. Establishment of sinking funds in other cases The Minister may cause to be established a sinking fund for the purpose of redeeming any loan raised under this Act by agreement in writing or any loan raised under the provisions of any other written law. - 11 Verify source ↗
Annual contribution to sinking fund .............................................................................................................................................. 3
AI-assisted research summary: If a sinking fund is set up for a loan, the annual contribution rate must be enough to redeem at least 75% of the loan principal by the time the loan period ends.
11. Annual contribution to sinking fund Whenever a sinking fund is established under section nine or ten in respect of any loan, the annual rate of contribution to such sinking fund shall be sufficient to provide for the redemption, upon the expiry of the period of such loan, of not less than seventy-five per centum of the principal of such loan. - 12 Verify source ↗
Deficiency in sinking fund to be charged upon general revenues ...................................................................................... 3
AI-assisted research summary: If a sinking fund is not enough when a loan must be repaid, the shortfall must be covered from the Republic’s general revenues.
12. Deficiency in sinking fund to be charged upon general revenues In the event of any sinking fund established under this Act being found, at the time fixed for the repayment of any loan in respect of which it is established, to be insufficient for such redemption, the deficiency shall be a charge upon, and shall be made good out of, the general revenues of the Republic. - 13 Verify source ↗
Power of Minister to give directions in respect of sinking funds ........................................................................................ 3
AI-assisted research summary: The Minister may issue directions about sinking funds under this Act.
13. Power of Minister to give directions in respect of sinking funds (1) The Minister may give directions in respect of the establishment, management and control of any sinking fund required or permitted to be established under this Act, and such directions may include directions that a joint sinking fund shall be established in respect of two or more loans or, in the case of any loan raised partly from sources in Zambia and partly from sources outside Zambia, that different sinking funds shall be established in respect of different portions of such loan. (2) The power of the Minister to give directions under this section in relation to any sinking fund shall be deemed to be in addition to any other power conferred upon him under this Act to make provision in relation to the same matter. Part V – Guarantees and indemnities
Part
Part V – Guarantees and indemnities
- 14 Verify source ↗
Power to give guarantees ................................................................................................................................................................... 3
AI-assisted research summary: The Minister may guarantee certain loans or payment-related contractual obligations if it is in the public interest and section 15 is satisfied.
14. Power to give guarantees (1) Subject to the provisions of section fifteen, the Minister may, if it appears to him necessary or expedient in the public interest, guarantee, on such terms and conditions as he may think fit, By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 3 Loans and Guarantees (Authorisation) Act, 1969 (Chapter 366) Zambia Repealed the repayment to any person ordinarily resident in Zambia of any loan or any portion of a loan borrowed from such person by— (a) any body specified, or belonging to a class specified, in the Schedule; (b) any person for or in connection with the purchase or provision of housing under any housing scheme approved by the Minister; (c) any person approved for the purpose of this subsection by resolution of the National Assembly. (2) Subject to the provisions of section fifteen, the Minister may, if it appears to him necessary or expedient in the public interest, guarantee, on such terms and conditions as he may think fit, the repayment to any person ordinarily resident outside Zambia of any loan or portion of a loan borrowed from such person by— (a) any body specified, or belonging to a class specified in the Schedule; (b) any person approved for the purpose of this subsection by resolution of the National Assembly. (3) Subject to the provisions of section fifteen, the Minister may, if it appears to him necessary or expedient in the public interest, guarantee, on such terms and conditions as he may think fit, the performance of any contractual obligation involving or relating to the payment of money in favour of any person ordinarily resident outside Zambia by— (a) any body specified, or belonging to a class specified in the Schedule; (b) any person approved for the purpose of this subsection by resolution of the National Assembly. (4) The terms and conditions on which any guarantee may be given under the provisions of this section shall include the payment in Zambian currency of two percentum of the amount involved in the loan or, as the case may be, in the contractual obligation to which the guarantee relates: Provided that the Minister may, by statutory notice, exempt any loan or contract from the condition contained in this subsection. (5) All the monies collected under subsection (4) shall be paid into the general revenues of the Republic. [As amended by Act No. 7 of 1977 and No. 2 of 1979] - 15 Verify source ↗
Maximum amount of guarantees .................................................................................................................................................... 4
AI-assisted research summary: The total contingent liability under guarantees must stay within limits set by the Minister by statutory instrument.
15. Maximum amount of guarantees (1) The total contingent liability at any one time under all guarantees given under subsection (1) of section fourteen shall not exceed such amount as the Minister shall from time to time be authorised by resolution of the National Assembly to prescribe by statutory instrument. (2) The total contingent liability at any one time under all guarantees given under subsections (2) and (3) of section fourteen shall not exceed such amount as the Minister shall from time to time be authorised by resolution of the National Assembly to prescribe by statutory instrument. (3) In determining the total contingent liability under subsections (1) and (2) of this section, no account shall be taken of any interest or other sum accrued or which may accrue (other than the principal sum) and which may become payable in respect of any loan or any portion of a loan guaranteed pursuant to section fourteen. (4) Any guarantee given pursuant to section fourteen shall be valid if, after taking such guarantee into account, the total contingent liability determined in accordance with subsection (3) of this section is within the limit prescribed under subsection (1) of this section or subsection (2) of this section, as the case may be, at the date when such guarantee is given. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 4 Loans and Guarantees (Authorisation) Act, 1969 (Chapter 366) Zambia Repealed (5) Subsections (3) and (4) of this section shall have effect in relation to all guarantees which are outstanding at the commencement of this Act as well as to all guarantees entered into after the commencement of this Act. [As amended by Act No. 2 of 1982] - 16 Verify source ↗
Indemnities .............................................................................................................................................................................................. 5
AI-assisted research summary: The Minister may indemnify a person against certain claims if the Minister thinks it is necessary or expedient in the public interest.
16. Indemnities The Minister may, if it appears to him necessary or expedient in the public interest, indemnify any person, by agreement in writing and subject to such terms and conditions as the Minister may think fit, against any claim directly arising from any act or omission on the part of such person or his servants or agents in the performance by such person or his servants or agents of any agreement between such person and the Government. - 17 Verify source ↗
Guarantees and indemnities to be paid out of general revenues ........................................................................................ 5
AI-assisted research summary: The Minister may pay government liabilities under guarantees or indemnities from general revenues if authorised by a resolution of the National Assembly.
17. Guarantees and indemnities to be paid out of general revenues Whenever he is authorised to do so by resolution of the National Assembly, the Minister shall pay out of the general revenues of the Republic any sum required for discharging any liability incurred by the Government under any guarantee or indemnity given under this Act: Provided that any sum paid to the Government in respect of any such guarantee or indemnity by way of repayment of the sum guaranteed or indemnified or any portion thereof shall be paid into the said general revenues. - 18 Verify source ↗
Application of Part V to previous guarantees and indemnities ............................................................................................ 5
AI-assisted research summary: Certain pre-commencement guarantees or indemnities are treated as if they were given under this Act if they were still in force at commencement and may create government liability.
18. Application of Part V to previous guarantees and indemnities For the purposes of this Part, any guarantee or indemnity given prior to the commencement of this Act, other than a guarantee or indemnity given under any written law, shall be deemed to have been given under this Act if such guarantee or indemnity— (a) is a guarantee or indemnity subsisting at the commencement of this Act; and (b) is a guarantee or indemnity in respect of which the Government may incur any liability for the payment of money. - 19 Verify source ↗
Information relating to guarantees to be included in financial report .............................................................................. 5
AI-assisted research summary: The financial report for a financial year must include a statement with the particulars of all guarantees given under this Act or any other written law that are still in force at year-end.
19. Information relating to guarantees to be included in financial report There shall be included in the financial report prepared in respect of any financial year pursuant to the Constitution a statement showing the particulars of all guarantees given under this Act, or any other written law, and subsisting at the end of that year. [Cap. 1] Part VI – Power to grant loans
Part
Part VI – Power to grant loans
- 20 Verify source ↗
Power to grant loans out of cash balances ................................................................................................................................. 5
AI-assisted research summary: The Minister may grant loans from the Republic’s cash balances, subject to conditions, to specified bodies or approved persons, and no loan may last longer than one year.
20. Power to grant loans out of cash balances (1) Subject to the provisions of subsection (2), loans may be granted out of the cash balances of the Republic up to the amount standing at any time to the credit of the Special Deposit Account by debiting the loans to a Special Advance Account which is hereby established for that purpose. (2) On such terms and conditions as he may think fit, the Minister may by agreement in writing, if it appears to him necessary or expedient in the public interest, grant loans under subsection (1) to— (a) any body specified, or belonging to a class specified, in the Schedule; By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 5 Loans and Guarantees (Authorisation) Act, 1969 (Chapter 366) Zambia Repealed (b) any person approved for the purpose of this section by resolution of the National Assembly: Provided that no loan shall be granted under this section for a period exceeding one year. [As amended by Act No. 30 of 1972] - 21 Verify source ↗
Power to grant loans out of general revenues .......................................................................................................................... 6
AI-assisted research summary: The Minister may grant loans from the Republic’s general revenues only after a Presidential warrant, and only by written agreement, within the authorised aggregate amount.
21. Power to grant loans out of general revenues (1) Save as may be provided by any other written law, no loan shall be granted out of the general revenues of the Republic except in accordance with this section. (2) After a warrant is issued by the President, under the Constitution, the Minister may, by agreement in writing, grant loans out of the general revenues of the Republic, not exceeding in the aggregate such amount as may be so authorised, to any person or body specified in such warrant. [Cap. 1] (3) Any loan granted under this section may be granted upon such terms and subject to such conditions as the Minister may deem fit. [As amended by No. 30 of 1972] - 22 Verify source ↗
Application of Part VI to loans previously granted .................................................................................................................. 6
AI-assisted research summary: Loans granted by the Government before this Act started are treated as loans granted under this Act, unless they were granted under another written law.
22. Application of Part VI to loans previously granted For the purposes of this Part, any loan granted by the Government to any person prior to the commencement of this Act, other than a loan granted under any written law, shall be deemed to have been granted under this Act. - 23 Verify source ↗
Information relating to loans granted by Government to be included in financial report .......................................... 6
AI-assisted research summary: A financial report must include details of any loan granted under the Act or another written law that had an outstanding balance at any time during the financial year.
23. Information relating to loans granted by Government to be included in financial report There shall be included in the financial report prepared in respect of any financial year pursuant to Article 118 of the Constitution, a statement showing the particulars of any loan granted under this Act or any other written law in respect of which there was a balance outstanding at any time during that year: Provided that the provisions of this section shall be deemed to have been complied with if there is included in the financial report an aggregate of the particulars of any loan or loans granted to a borrower or to a class of borrowers. [As amended by No. 30 of 1972] Part VII – Supplemental
Part
Part VII – Supplemental
- 24 Verify source ↗
Minister or other persons not responsible for fulfilment of trusts attaching to bonds, stock or treasury bills
AI-assisted research summary: The Minister and appointed persons are not responsible for carrying out trusts attached to bonds, stock, or treasury bills issued under this Act.
24. Minister or other persons not responsible for fulfilment of trusts attaching to bonds, stock or treasury bills Neither the Minister nor any person appointed to perform any functions under this Act shall be under an obligation as regards the due fulfilment of any trust, whether expressed, implied or constructive, to which any bond, stock or treasury bill issued under this Act may be subject, notwithstanding that the Minister or such person has had notice that the bond, stock or treasury bill is held subject to a trust. - 25 Verify source ↗
Trust funds ............................................................................................................................................................................................... 6
AI-assisted research summary: Bonds or stock issued under the Act are treated as authorised investments for trust funds.
25. Trust funds Any bonds or stock issued under this Act shall be deemed for all purposes to be an authorised investment for trust funds. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 6 Loans and Guarantees (Authorisation) Act, 1969 (Chapter 366) Zambia Repealed - 26 Verify source ↗
Power of Minister when National Assembly not sitting ......................................................................................................... 7
AI-assisted research summary: When the National Assembly is not sitting, the Minister may, if authorised by the President, amend certain statutory instruments to change specified sums so a loan or guarantee can be raised without delay.
26. Power of Minister when National Assembly not sitting If, during any period when the National Assembly is not sitting, the Minister considers that there is such an urgent need to raise any loan or to give any guarantee under this Act that it would not be in the public interest to delay the raising of such loan or the giving of such guarantee until the National Assembly next sits, the Minister may, if so authorised by the President, amend any statutory instrument promulgated in terms of section three or fifteen by varying any sum specified in such statutory instrument to the extent necessary to permit the raising of such loan or the giving of such guarantee, as the case may be. - 27 Verify source ↗
Minister may delegate functions to public officer ..................................................................................................................... 7
AI-assisted research summary: The Minister may delegate functions to a specified public officer by statutory order, but cannot delegate the power to make statutory instruments under the Act.
27. Minister may delegate functions to public officer The *Minister may, by statutory order, delegate to such public officer as may be specified in the order the performance of any function conferred upon the Minister under this Act: * Provided that the Minister shall not delegate the power to make any statutory instrument under this Act. - 28 Verify source ↗
Regulations ............................................................................................................................................................................................... 7
AI-assisted research summary: The Minister may make regulations by statutory instrument to better carry out the Act, including on loans, sinking funds, guarantees, indemnities, and loans from general revenues.
28. Regulations (1) The Minister may, by statutory instrument, make regulations to provide for the better carrying out of this Act, and, generally, providing for the raising of loans, the establishment and management of sinking funds, the giving of guarantees and indemnities, the granting of loans out of the general revenues of the Republic and for such other matters in respect of which provision is made in this Act. (2) Regulations under this section may provide in respect of any contravention thereof that the offender shall be guilty of an offence and shall be liable to a fine not exceeding seven thousand five hundred penalty units or to a term of imprisonment not exceeding five years, or to both. [ As amended by Act No. 13 of 1994] - 29 Verify source ↗
General restriction on raising of loans ......................................................................................................................................... 7
AI-assisted research summary: Loans for or on behalf of the Government may not be raised unless authorised by this Act or later written law that specifically permits the loan.
29. General restriction on raising of loans (1) As from the commencement of this Act, no loans shall be raised for or on behalf of the Government except under the authority of this Act or of any written law thereafter enacted which specifically authorises the raising of any such loan: Provided that nothing hereinbefore contained shall affect the operation of any written law in force immediately prior to the commencement of this Act in relation to any loan raised under the authority of such written law. (2) For the purposes of this Act and for the avoidance of doubt, any loan raised prior to the commencement of this Act under any written law shall be deemed to have been raised under the authority of section three, and any function performed by the Bank of Zambia in connection with the issue and registration of any securities issued in respect of any such loan shall be deemed to have been performed in pursuance of section eight, but, save as so provided, the provisions of the said written law shall continue to apply in relation to any such loan. Schedule (Sections 14 and 20) Specified bodies (1) Any body corporate directly established by any written law. (2) Any co-operative society registered under the Co-operative Societies Act (Cap. 397). * Functions delegated to Permanent Secretary, Ministry of Finance, by S.I. No. 363 of 1969. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 7 Loans and Guarantees (Authorisation) Act, 1969 (Chapter 366) Zambia Repealed (3) Any local authority established under the Local Government Act (Cap. 281). (4) Public utilities. (5) Any body corporate in which shares are held by or on behalf of the Government. By Laws.Africa and contributors. Licensed under CC-BY. Share widely and freely. 8
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