THE LOCAL BODIES' LOANS GUARANTEE ACTS, 1923 to 1957

Transcription

1 821 THE LOCAL BODIES' LOANS GUARANTEE ACTS, 1923 to 1957 Local Bodies' Loans Guarantee Act of 1923, 14 Geo. 5 No.8 Amended by Local Bodies' Loans Guarantee Act and Audit Acts Amendment Act of 1936, 1 Edw. 8 No. 28 Local Bodies' Loans Guarantee Acts Amendment Act of 1957, 6 Eliz. 2 No. 24 An Act to Authorise the Treasurer on behalf of the Government to Guarantee the Repayment of Moneys borrowed by Local Bodies from Banks or other Financial Institutions, and for other consequential purposes [Assented to 28 August 1923] 1. Short title. This Act may be cited as "The Local Bodies' Loans Guarantee Act of 1923." Collective title conferred by Act of 1957, 6 Eliz. 2 No. 24, s. 1 (3). 2. Interpretation-"Local body." In this Act the term "Local body" includes any Local Authority, Water Authority, Water Board, Water Supply Board, Harbour Board, Trust, and any Board or other body for the management of any pool, and any Co-operative Association, Corporate Body, Commission, Society, or Association, whether in any case any such body as aforesaid is corporate or unincorporate- Which body has been created by or pursuant to the provisions of any Act; and Which under the provisions of such Act is empowered to borrow money from the Governor in Councilor the Treasurer, or to borrow money or to obtain advances or to make financial arrangements otherwise than from or with the Governor in Councilor the Treasurer for the purposes of exercising any powers or discharging any functions or duties conferred or imposed by such Act or any other Act upon such body. As amended by Act of 1936, 6 Eliz. 2 No. 24, s. 4. For the borrowing powers of Local Authorities, see Local Government Acts, 1936 to 1965, ss. 22, 28, title LOCAL AUTHORITIES. pp. 383, 419, ante. As to borrowing by Harbour Boards, see Harbours Acts, 1955 to 1966, ss. 107 et seq., title HARBOURS, Vol. 6, p Local bodies within this Act include Public Abattoir Boards and District Boards, (see Meat Industry Act of 1965, s. 74 (5), title MEAT INDUSTRY) and the Fish Board (Fish Supply Management Act of 1965, s. 49, title FISHERIES, 1965 Annual Volume).

2 822 LOCAL BODIES LOANS GUARANTEE Vol Treasurer may guarantee loan, etc., raised by local body. Notwithstanding the provisions of any Act to the contrary, in any case where by any Act- (i) The Governor in Councilor the Treasurer is authorised to advance moneys by way of loan to any local body, or any local body is authorised to borrow money by way of loan from the Government, then the Treasurer on behalf of the Government, in lieu of making any such advance by way of loan to such local body, may authorise such local body to obtain such advance by way of loan from any person or body corporate or unincorporate (hereinafter referred to as "the lender"), and guarantee to the lender thereof the amount or any part of the amount so borrowed with interest at the agreed rate; (ii) Any local body is authorised to borrow money, or to obtain advances, or to make financial arrangements otherwise than from or with the Governor in Councilor the Treasurer, and such local body is unable to offer sufficient security for a loan, the Treasurer on behalf of the Government may guarantee to the lender thereof the amount or any part of the amount of such loan with interest at the agreed rate. As amended by Act of 1936, 1 Edw. 8 No. 28, s. 5. See further s. 4A. 4. Terms, etc., of guarantee. Any guarantee by the Treasurer under this Act shall be limited to such amount and to such period of time and be subject to such other terms, reservations, and conditions as the Governor in Council shall prescribe. As amended by Act of 1957, 6 Eliz. 2 No. 24, s. 2. 4A. Guarantee of loans. Notwithstanding anything to the contrary contained in this Act or any other Act or law or rule or process of law, when pursuant to the provisions of any Act, the borrowing of money by a local body declared by that Act to be or to be deemed to be a local body under and within the meaning of this Act or as defined by this Act has been authorised or is hereafter authorised by the Governor in Council and in any of the cases mentioned in section three of this Act, the Treasurer on behalf of the Government has agreed to guarantee to the lender the amount or any part of the amount so borrowed with interest at the agreed rate, then upon the publication in the Gazette of the Order in Council authorising such borrowing the amount when borrowed or such part thereof (as the case may be) with interest thereon at the agreed rate (and whether borrowed before, on, or after the passing of "The Local Bodies' Loans Guarantee Acts Amendment Act of 1957," and whether so borrowed from a bank, financial institution, body corporate or un incorporate or person) shall be and be deemed to be and to have always been guaranteed by the Treasurer on behalf of the

3 LOCAL BODIES LOANS GUARANTEE ACTS ss Government, limited however to such amount and to such period of time and subject to such other terms, reservations, and conditions as the Governor in Council may have prescribed or may prescribe. Inse~ted by Act of 1957, 6 Eliz. 2 No. 24, s. 3. Act referred to: Local Bodies' Loans Guarantee Acts Amendment Act of 1957 (not reprinted). For some local bodies within the Act, see notes to s. 2. 4B. When gnarantee not affected by transfer of liability. The transfer pursuant to any Act (including any Act passed before the enactment of this section) from one local body, declared by any Act to be or to be deemed to be a local body under and within the meaning of this Act or as defined by this Act, to another such local body of any liability guaranteed by the Treasurer under this Act shall not affect (and, in the case of such a transfer pursuant to an Act passed before the enactment of this section, shall be deemed never to have affected) that guarantee. In every such case the guarantee shall on and from the date of the transfer of the liability have and continue to have operation and effect (and, in every case where that date preceded the enactment of this section, be deemed always to have had operation and effect thereon and thereafter) as if it had been entered into by the Treasurer under this Act in relation to the local body to which the liability is or has been transferred as aforesaid. Inserted by Act of 1957, 6 Eliz. 2 No. 24, s. 4. For some local bodies within the Act, see notes to s Recovery of moneys paid under guarantee. In respect of all moneys paid by the Treasurer under any guarantee under this Act, the Treasurer shall have the following rights and powers:- (i) He may recover from the local body the amount of all such moneys, with interest at six dollars per centum per annum, by action in any court of competent jurisdiction; (ii) He shall have and may exercise all the powers vested in the Treasurer under the laws in force relating to Local Authorities in any case where a Local Authority has made default in the repayment of a loan made to it by the Government; (iii) He shall, to the extent of any payment made by him, be entitled to the benefit of any securities held by the lender as security for the loan, so that- (a) Where the Treasurer has paid to the lender the whole of the moneys secured by such securities, the lender shall hand over such securities to the Treasurer, who may exercise all the powers of the lender in respect of such securities; (b) Where the Treasurer has paid only part of the moneys so secured, the lender shall, as and when directed by the Treasurer, realise such securities and, after satisfying its own claims out of the proceeds thereof, shall pay the balance (if any) to the Treasurer.

4 824 LOCAL BODIES LOANS GUARANTEE Vol. 10 The powers and remedies of the Treasurer under this section shall be exercisable singly or concurrently as in his discretion he thinks proper. As amended by Act of 1936, 1 Edw. 8 No. 28, s. 6; Act of 1957, 6 Eliz. 2 No. 24, s. 5. Decimal currency reference substituted pursuant to section 7 of Decimal Currency Act of For the powers of the Treasurer where a local authority makes default in repayment of borrowed money, see Local Government Acts, 1936 to 1965, s. 28 (12), title LOCAL AUTHORITIES, p. 423, {It//e. 6. Act not to exonerate local body from complying with preliminary conditions before borrowing. Where under any Act authorising a local body to raise moneys by way of loan it is enacted that any conditions shall be performed or observed by such local body preliminary to the exercise by it of its borrowing powers, nothing in this Act shall exonerate such local body from performing or observing all such conditions. 7. Appropriation. All moneys payable by the Treasury under any guarantee under this Act shall be paid out of moneys to be from time to time appropriated by Parliament for the purpose. As amended by Act of 1957, 6 Eliz. 2 No. 24, s. 6. By Authority: S. G. RUD. Government Printer, Rrish"ne

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