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National Loans Board (Amendment) Act 1983

REPUBLIC OF KIRIBATI
(No. 6 of 1983)

I assent,

I. Tabai
Beretitenti.

19 May 1983

AN ACT TO AMEND THE NATIONAL LOANS BOARD ORDINANCE (CAP. 59)

Commencement: 19 May 1983

MADE by the Maneaba ni Maungatabu and assented to by the Beretitenti.

Short title

1. This Act may be cited as the National Loans Board (Amendment) Act 1983.

Amends section 15 of Cap. 59. Guarantees

2. Section 15 of the National Loans Board Ordinance is amended by adding a new section 15(3)-

"Section 15(3) Where a loan, advance or overdraft facility is made or provided for any of the purposes set out in Section 15(1) by any person or body other than the Board, the Board may guarantee such loan, advance or overdraft PROVIDED THAT any such guarantee shall not (or in the case of more than one guarantee, in the aggregate) be for a sum exceeding $6000 without the prior consent of the Minister."

Amends section 10 of Cap. 59

3. Section 10 of the National Loans Board Ordinance is amended by adding after section 10(e) the following new subsection 10(f)-

"10. (f) Monies borrowed by the Board with the approval of the Minister acting on the advice of Cabinet for general and specific purposes under this Ordinance PROVIDED ALWAYS THAT: The Board may borrow such monies from sources in Kiribati or elsewhere and may with the aforesaid approval give security."

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NATIONAL LOANS BOARD (AMENDMENT) ACT 1983

EXPLANATORY MEMORANDUM

The National Loans Board Ordinance gives power for the NLB to make loans, but not to guarantee a loan i.e. to give a guarantee where the loan has been made by someone else.

The amendment therefore to S.15(1) of Chapter 59 provides that there is power to give a guarantee. The effect is to widen the powers of the NLB. An example where this power may be used is where the Bank gives a loan to a person or Company and the amendment provides that the NLB may guarantee such a loan.

Further, Chapter 59 does not give the NLB power to borrow money e.g. for relending and the new S.10(f) provides that the NLB may borrow from sources in Kiribati or abroad. There is an in-built safeguard in that the approval of the Minister acting on the advice of Cabinet must first be obtained.

R.L. Davey
Attorney General