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Government Loans Act 1980

NIUE LAWS
LEGISLATION AS AT DECEMBER 2006

GOVERNMENT LOANS ACT 1980

1980/56 – 25 June 1980

1 Short title

2 Interpretation

3 Authority to raise loans

4 Methods of raising loans

5 Charge on Niue Government Account

6 Issue of debentures

7 Redemption of debentures

8 Interest on debentures

9 Form of debentures and coupons

10 Transfer of debentures and coupons

11 Register of debentures

12 Redeemed debentures

13 Niue stock

14 Stock register

15 Stock certificates

16 Transfer and transmission of stock

17 Stock holders of unclaimed interests

18 Closing of register

19 Interest and payment

20 Redemption of stock

21 Withdrawal from Niue Government Account

22 Sinking fund

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To make provision for the raising of loans both locally and overseas by the Government

1 Short title
This is the Government Loans Act 1980.

2 Interpretation

In this Act –

"debenture" means any debenture issued under this Act;

"loans" means loans raised under this Act;

"register" includes any book kept by any registering authority under this Act;

"registering authority" means the Treasury;

"stock" means stock issued under this Act and includes any share or interest in such stock;

"stockholder" means any person holding stock and entered as proprietor of it in the register.

3 Authority to raise loans

(1) Cabinet is hereby empowered, subject to this Act, to raise internally or externally loans of such sums of money as the Assembly may authorise by resolution.

(2) All moneys borrowed under the authority of this Act shall be applied for such purposes as shall be specified by the resolution authorising the borrowing of such moneys.

4 Methods of raising loans

Loans may be raised under this Act –

(a) By the issue of securities in the form of debentures payable to bearer; or

(b) By the creation and issue of registered or inscribed stock which shall be known as Niue stock; or

(c) In such other manner as Cabinet may, in consultation with any lender, decide.

5 Charge on Niue Government Account

The principal moneys and interest represented by loans issued under this Act are hereby charged upon and shall be payable out of the Niue Government Account.

6 Issue of debentures

(1) Where Cabinet deems it expedient to raise money by debentures, such debentures may be issued by the Treasury on behalf of the Government upon the best and most favourable terms that can be obtained, and to such amounts and on such conditions, subject to this Act, as Cabinet may direct.

(2) Debentures shall be of such denominations as the Cabinet may determine.

7 Redemption of debentures

Debentures shall be redeemable either –

(a) At par on a fixed date to be declared on the issue of the debentures: Provided that Cabinet may reserve the option to redeem the debentures prior to such date on such conditions as may be declared at the time of issue; or

(b) By annual drawings at par; or

(c) At the option of Cabinet by purchase.

8 Interest on debentures

(1) The interest upon the principal represented by each debenture shall run from the date of issue named in that behalf in the debenture, and shall be paid half-yearly on the dates named in that behalf in the debenture.

(2) (a)There shall be attached to every debenture coupons for the payment of interest to become due in each half year upon the principal represented by the debenture.

(b) The coupons shall be sufficient in number to provide for the payment of interest either during the whole period for which the debenture has to run or for such limited period as Cabinet may determine.

9 Form of debentures and coupons

The debentures and coupons shall be in such form as Cabinet may direct.

10 Transfer of debentures and coupons

Every debenture and coupon, and the right to receive the principal and interest represented by it shall be transferable by delivery.

11 Register of debentures

Every debenture shall, before being issued, be registered in a register book to be kept for that purpose by the Treasury.

12 Redeemed debentures

(1) Upon the repayment of the principal moneys secured by any debenture, the debenture shall, and on the redemption by purchase of any debenture the debenture may, together in either case with all outstanding coupons, be delivered up to the issuing authority for cancellation.

(2) Debentures redeemed by purchase which are not delivered up for cancellation shall be deemed part of the sinking fund and may in all respects be dealt with as such.

13 Niue stock

Niue stock may be issued in Niue or elsewhere, upon the directions of Cabinet upon the best and most favourable terms that can be obtained, and to such amounts and on such conditions, subject to this Act, as Cabinet may before the issue direct.

14 Stock register

(1) A register shall be kept in which –

(a) All stock issues under this Act shall be registered, or, in the case of inscribed stock, inscribed;

(b) All transfers, transmissions and other dealings in such stock under this Act shall be registered; and

(c) All other matters and things which by this Act are required to be entered therein shall be entered.

(2) Issues of inscribed stock shall be inscribed in the register by entering the name of the stock holder, the amount of such stock and such other particulars as may be prescribed.

(3) The register shall be prima facie evidence of title of any person in respect of any stock of which he is entered as the stockholder.

(4) The register shall be kept by the Treasury.

15 Stock certificates

(1) (a) The registering authority shall within 30 days of receipt of the final instalment payable on any stock send to the stockholder a certificate, which shall be known as a stock certificate, showing that stock to the value specified in it has been registered or inscribed in the name of the stockholder.

(b) In the case of inscribed stock a stock certificate need not be issued unless demanded by the stockholder.

(2) (a) Such stock certificate shall be prima facie evidence of the title of the stockholder to the stock specified in it.

(b) In the case of inscribed stock the want of such certificate shall not prevent the owner of any stock from disposing of it.

16 Transfer and transmission of stock

(1) Stock shall be transferable by an instrument of transfer to be approved by Cabinet, and a certificate issued, at the request of the transferee, by the registering authority in pursuance of such transfer and in respect of the stock so transferred shall be prima facie evidence of the title of the holder of the certificate to the stock specified.

(2) Any person to whom any stock is transmitted may apply in such form as may be approved by the Cabinet to the registering authority by which the register in which such stock is registered or inscribed to be registered as the proprietor of such stock.

(3) Every transmission application shall be verified by statutory declaration or in such other manner as may be approved by Cabinet and shall be supported by the production to the registering authority of the original or certified true copies of all documents under which the applicant claims to be entitled to be registered as the proprietor of the stock.

(4) If the registering authority is satisfied that a person applying under subsection (2) to be registered as the proprietor of any stock, is entitled so to be registered, it shall register such transmission by entering the name of such person in the register as the proprietor of such stock.

(5) No person shall have any claims against the Government in respect of any transmission registered under subsection (4) but nothing in this subsection shall relieve the person to whom the stock is transmitted from any liability to account for or deal with the stock in accordance with law.

17 Stock holders of unclaimed interests

The registering authority shall keep, in a separate book, a list of the stock holders on whose stock the interest has been unclaimed for 5 years, together with their registered addresses, and such list shall be open for inspection without payment of a fee.

18 Closing of register

(1) (a) The registering authority may, for a period not exceeding 14 days prior to each payment of interest on any stock registered or inscribed under this Act, close the register of that stock as regards transfer upon giving not less than 7 days notice of such closing.

(b) Such notice shall be published in the Gazette in the case of stock issued in Niue and in a newspaper circulating in the country concerned in the case of other stock.

(2) The persons who on the day of such closing are registered as stockholders shall, as between them and their transferees, be entitled to the interest then next payable on the stock.

19 Interest and payment

Interest shall be payable on stock half-yearly by the registering authority, at the rate fixed by Cabinet at the time of the issue of such stock.

20 Redemption of stock

(1) (a) Stock shall be redeemable at par on a date to be named in that behalf by Cabinet or the registering authority when issuing the stock.

(b) Cabinet or the registering authority may reserve the option to redeem the stock in whole or in part, by drawings or otherwise at any time prior to such date on such conditions as may be declared at the date of issue.

(2) From and after the date appointed for the redemption of the stock or any part of it all the interest on the principal moneys secured thereby shall cease and determine, whether payment of the principal shall have been demanded or not.

21 Withdrawal from Niue Government Account

So long as any portion of any loan remains outstanding, Cabinet shall in each half-year withdraw from the Niue Government Account a sum equal to one-half year’s interest on the whole of that loan outstanding, and shall authorise the payment out of such sum of the then current half-year’s interest on the date on which it falls due.

22 Sinking fund

(1) (a) Cabinet shall in each half-year ending with the day on which the interest on any loan falls due withdraw from the Niue Government Account for formation of a sinking fund for repayment of that loan at par a sum equal to one-half of the annual contribution specified in the prospectus, or in the case of a loan not issued publicly, in the terms of issue relating to the loan.

(b) The said contribution shall in respect of any money raised under this Act commence not later than 3 years after the date from which the interest on such money shall commence to run.

(2) The amounts withdrawn from the Niue Government Account under subsection (1), less any amounts utilised under subsection (5), shall be invested in investments approved by the Cabinet and, if invested in Niue, shall be invested in any one or more of the following –

(a) On deposit with the Niue Post Office;

(b) On deposit in any savings bank outside Niue; and

(c) In any security issued by the Government or by any statutory organisation in Niue.

(3) All investments made under subsection (2) shall be retained as a sinking fund for the final extinction of any loan for which the sinking fund has been formed and any dividends, interest or produce of or arising out of or in consequence of any such investments may be invested in any similar manner to that authorised by subsection (2) and any such investment may at any time with the approval of Cabinet be changed to any other investment authorised by subsection (2).

(4) In case the sinking fund provided for by this section shall be insufficient for the payment of all the principal moneys borrowed under the authority of this Act in respect of any particular loan at the time the same shall have become due Cabinet shall make good the deficiency out of the Niue Government Account or by a loan authorised by section 3.

(5) Cabinet may authorise the utilisation of any amount withdrawn from the Niue Government account for contribution to the sinking fund prescribed by subsection (1) for the purchase of debentures or Niue stock for which the sinking fund has been established.

(6) Cabinet may authorise the utilisation of the whole or any part of the sinking fund for the repayment in part or in whole of any loan for which the sinking fund has been established, whether or not such loan has become due for repayment.