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Loans Securities Regulation 1960

This reprint of this Statutory Instrument incorporates all amendments, if any, made before25 November 2006 and in force at 1 July 2001.

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Legislative Counsel
Dated 25 November 2006

INDEPENDENT STATE OF PAPUA NEW GUINEA.

Chapter 134.

Loans Securities Regulation 1960

ARRANGEMENT OF SECTIONS.

Loans Securities Regulation 1960

MADE under the Loans Securities Act.

Dated 200 .

PART I. – PRELIMINARY.

INTERPRETATION.

In this Regulation, unless the contrary intention appears, “owner” means an owner of stock or the owners in a join account of stock.

FORMS.

Where this Regulation requires the use of a form, a form to the like effect approved by the Departmental Head may be used.

PART II. – ADMINISTRATION.

DUTIES OF REGISTRAR AND OFFICERS.

The Registrar and any other person acting under the Act or this Regulation shall exercise his powers and functions in accordance with the Act and this Regulation and with such instructions as are given to him by the Departmental Head.

SECRECY.

An officer of the Registry shall not divulge any information coming to his knowledge in the course of his duties, except as required by law or as authorized by the Act, this Regulation or the Departmental Head.

DELEGATION.

The Departmental Head may, by writing under his hand, delegate to any person any of his powers and functions under this Regulation (except this power of delegation).

HOURS OF BUSINESS AT REGISTRY.

The Registry shall be open for the transaction of business on such days and during such hours as the Departmental Head determines.

RETURNS.

(1) The Registrar shall furnish to the Departmental Head such returns and information as the Departmental Head requires.

(2) The Registrar shall forward a copy of each return under Subsection (1) to the Auditor-General.

PART III. – STOCK.

STOCK LEDGERS.

Stock Ledgers shall be in accordance with a form approved by the Departmental Head, and may be kept in a loose-leaf system or in some other system approved by him.

CHANGE OF ADDRESS OF STOCK OWNER.

Where the owner of any stock changes his address, he shall give written notice of the change to the Registrar, and the Registrar shall–

(a) record the change of address in the Stock Ledger; and

(b) promptly forward a notice of acknowledgement to the stock owner at the address previously recorded in the Stock Ledger.

STOCK INSCRIBED IN NAME OF INFANT.

Stock inscribed in the name of an infant under the age of 14 years, whether solely or jointly with some other person, shall not be transferred without the consent of the infant’s parent or guardian.

REPAYMENT WHERE STOCK IN NAMES OF INFANT AND ADULT.

Where stock is inscribed in the name of an infant jointly with one or more adult persons, the principal may be paid–

(a) if an infant has attained the age of 14 years–to the infant jointly with the other person or persons in whose names the stock is inscribed; and

(b) if the infant has not attained the age of 14 years–to the infant’s parent or guardian jointly with the other person or persons in whose names the stock is inscribed.

EXECUTORS, ADMINISTRATORS AND TRUSTEES.

Executors, administrators and trustees shall not be registered as such, but in their individual names without reference to any trusteeship.

CORPORATIONS.

(1) Before stock is inscribed in the name of a corporation, there shall be furnished to the Registrar–

(a) a copy of the certificate of incorporation or, if the corporation is specifically established by any law or by Royal Charter or similar instrument, a copy of the law, Royal Charter or instrument; and

(b) a copy of the seal of the corporation authenticated in Form 1; and

(c) a copy of any regulations or resolution of the corporation governing the affixing of the seal, certified or authenticated to the satisfaction of the Registrar.

(2) In the case of a corporation incorporated outside Papua New Guinea, the Departmental Head may determine that it is not necessary for the corporation to furnish a copy of its seal authenticated in Form 1 if it furnishes to the Registrar a power of attorney executed under the seal of the corporation and notarially attested, authorizing dealings in stock on behalf of the corporation.

ASSOCIATIONS.

(1) Before stock is inscribed in the name of an association, a certificate in Form 2 shall be furnished to the Registrar.

(2) Where any change occurs in the persons authorized under Form 2 a fresh certificate in accordance with that form shall be furnished to the Registrar.

CHANGE OF NAME, ETC., ON MARRIAGE.

(1) On application to the Registrar in Form 3 by a female owner of stock, her name and description on marriage shall be altered in the Stock Ledger with respect to stock standing in her name solely or in the name of herself and any other person jointly.

(2) The Registrar shall forward to the owner a notification of the alteration made.

CORRECTION OF MISTAKES.

(1) If on a written request to correct a mistake in the Stock Ledger, the Registrar is satisfied that any stock is inscribed incorrectly owing to a mistake in a request for inscription or transfer, or for any other reason, he may correct the Stock Ledger.

(2) If the Registrar so requires, a statutory declaration as to the circumstances shall be furnished.

SPECIMEN SIGNATURES OF STOCK OWNERS.

(1) The Registrar shall take steps to secure, by post or personally, specimen signatures of all owners of stock.

(2) Specimen signatures obtained by post shall be witnessed.

(3) Where the signing of documents by owners of stock does not take place before the Registrar, the Registrar shall satisfy himself as to the genuineness of the signatures before accepting or acting on the documents.

(4) Where he thinks fit to do so, the Registrar may require a document to be signed before him.

INSPECTION OF STOCK LEDGER.

An owner or part owner of stock is entitled at all reasonable times, on written application, to inspect his account of stock in the Stock Ledger.

SALES AND TRANSFER BOOK.

The Registrar shall keep a Sales and Transfer Book in which he shall enter particulars of all transactions in respect of stock.

CERTIFICATES AS TO OWNERSHIP OF STOCK.

(1) On the inscription of any stock, the Registrar shall notify the persons concerned of the inscription.

(2) On written request, the Registrar shall issue a certificate in Form 4 as to the ownership of any stock, and shall keep a record of each certificate so issued.

(3) If the Registrar so approves, the request may be signed by, and the certificate issued to, a person authorized to act on behalf of the owner.

TRANSFERS OF STOCK BETWEEN PERSONS.

(1) Stock may be transferred from one person to another by instrument of transfer and acceptance in Form 5.

(2) Signatures to a transfer and acceptance shall be attested by–

(a) a Commissioner for Affidavits; or

(b) a Commissioner for Declarations; or

(d) a Notary Public; or

(e) a lawyer; or

(f) a Consul for Papua New Guinea; or

(g) a British Consul; or

(h) a member of a recognized Stock Exchange in Australia; or

(i) an officer of the Registry; or

(j) a bank manager; or

(k) any other person approved by the Departmental Head.

(3) A person other than an officer of the Registry shall not attest the signature to a transfer and acceptance unless the person signing is personally known to him.

(4) Where a signature to a transfer and acceptance is attested by a person, he shall indicate the capacity in which he has attested.

(5) On the registration of a transfer and acceptance, the transferor and the transferee shall be notified, in Forms 6 and 7 respectively, of the completion of the transaction.

(6) Where stock is inscribed in the names of persons jointly, it is sufficient if the owner whose name is first inscribed is so notified.

DEALINGS WITH TRANSFERRED STOCK.

(1) In this section, “the prescribed period”, in relation to any particular transfer of stock, means the period after it is marked under Subsection (2) fixed by the Departmental Head by written notice to the Registrar on the transfer.

(2) The Registrar may mark a transfer of any stock that has been properly executed by the transferor with the words “Stock held against this transfer for K . . . for (the prescribed period) from . . . 20...”.

(3) Where a transfer is marked in accordance with Subsection (2), the Registrar may refuse to give effect to any dealing in any stock to which the transfer relates during the prescribed period.

DEATH OF SOLE OWNER OF STOCK.

On production to the Registrar of–

(a) probate of the will or letters of administration of the estate of the sole owner of any stock; and

(b) if required by the Registrar–a declaration by a person approved by the Registrar as to the identity of the deceased person as the owner,

the Registrar may record the death of the owner in the Stock Ledger.

DEATH OF JOINT OWNER OF STOCK.

On production to the Registrar of–

(a) probate of the will, letters of administration of the estate or a certificate of the death of one of the joint owners of any stock; and

(b) if required by the Registrar–a declaration by a person approved by the Registrar as to the identity of the deceased as the owner,

the stock shall be registered in the name of the survivor or survivors.

PRODUCTION OF PROBATES, ETC.

(1) All probates, letters of administration, orders of sequestration, vesting orders and other such orders shall be produced at the Registry at least two clear days before the stock affected by them may be dealt with.

(2) Particulars of all documents referred to in Subsection (1) shall be entered in a register, and the documents shall be forwarded to the Auditor-General, or to a person appointed by him for the purpose, for notation before their return to the person by whom they were produced.

TRANSMISSION APPLICATIONS.

(1) A transmission application shall be in Form 8.

(2) On the registration of a transmission, the Registrar shall forward to the person making the request for transmission a notice in Form 9.

(3) The Registrar may require the signature of a person who claims transmission of stock by virtue of his appointment as executor, administrator or trustee to be verified to his satisfaction.

TRANSFER OF STOCK TO PUBLIC CURATOR, ETC.

Where the Departmental Head is satisfied that stock is inscribed in the name of a person whose property is required by law to be administered by the Public Curator or other officer charged with the duty of administering the estates of missing persons or persons under disability (other than bankruptcy or insolvency), the Departmental Head may, on receiving such indemnity from the Public Curator or other officer as he thinks necessary, authorize the transfer of the stock to the name of the Public Curator or other officer.

PAYMENT OF INTEREST.

(1) Subject to Subsection (3), interest on stock shall be paid by interest warrant.

(2) Unless otherwise requested, warrants shall be made payable to the owner, or in the case of a joint account to the owner whose name is inscribed first in the Stock Ledger, and shall be forwarded by pose to the payee.

(3) On written request, interest may be paid into a bank account (including a savings bank account).

(4) Where a request referred to in Subsection (3) reaches the Registrar less than seven clear days before any interest is due, the Registrar may decline to act on the request until after payment of that interest.

(5) A request referred to in Subsection (3) shall be signed by the owner of the stock, or in the case of a joint account by all the owners or by the owner whose name is inscribed first in the Stock Ledger.

PAYMENT OF INTEREST TO PERSONS SPECIFIED BY STOCK OWNERS.

If a request in Form 10 is made by the owner, or in the case of a joint account by all the owners or by the owner whose name is inscribed first in the Stock Ledger, interest warrants may be made payable to, and may be transmitted by post to, a person specified in the request, a specimen of whose signature shall be supplied to the Registrar.

PAYMENT OF INTEREST WARRANTS.

(1) Interest warrants shall be made payable to order, and shall be signed by the payee before payment.

(2) Where the Registrar receives, less than seven clear days before the next interest is due, notice of the change of address of a person to whom an interest warrant is to be sent, the Registrar may decline to act on the notice until after the payment of that interest.

PAYMENT OF INTEREST WHERE INFANT IS SOLE OWNER.

Interest on stock inscribed in the name of an infant solely shall be paid as directed by him, but if the infant has not attained the age of 14 years interest may be paid, at the discretion of the Registrar, to the infant’s parent or guardian, whose receipt is a valid discharge.

PAYMENT OF INTEREST WHERE INFANT IS JOINT OWNER.

Where stock is inscribed in the name of an infant jointly with one or more other persons, the interest on the stock may be paid–

(a) if the infant has attained the age of 14 years–to the infant jointly with that other person or those other persons; and

(b) if the infant has not attained the age of 14 years–to the infant’s parent or guardian jointly with that other person or those other persons.

PAYMENT OF INTEREST WHERE PERSON UNDER DISABILITY IS JOINT OWNER.

On sufficient proof of legal disability being lodged with the Registrar, interest on stock inscribed in the name of an infant, or in the name of a person of unsound mind, jointly with other persons who are not under legal disability, may be paid as directed by such of the owners as are not under legal disability, and without the concurrence of the infant or person of unsound mind.

NOTICE OF DEALING WITH STOCK.

Where for any reason the Registrar thinks it desirable, he may, before giving effect to any transaction in connection with stock, forward to the owner a written notice informing him of the proposed dealing, and shall not give effect to the transaction until he is satisfied that there is no objection to the dealing.

GENERAL REGISTER OF TREASURY BONDS.

A General Register of Treasury Bonds in respect of each loan shall be kept at the Registry in a form approved by the Departmental Head.

SAVINGS CERTIFICATES.

Treasury Bonds known as Savings Certificates, referred to in Section 64(2) of the Act, shall be in the prescribed form.

PURCHASE OF TREASURY BONDS BY INFANTS.

(1) Treasury Bonds may be purchased by an infant, and his receipt for them is a valid discharge.

(2) If the infant has not attained the age of 14 years, the Registrar may deliver the Treasury Bonds to the parent or guardian of the infant, whose receipt for them is a valid discharge.

DELIVERY OF TREASURY BONDS NOT EXCEEDING K1,200 ON BEHALF OF DECEASED PERSONS.

(1) On the death of a person who is entitled to receive from the Registrar any Treasury Bonds not exceeding a face value of K1,200.00, the Departmental Head may authorize the delivery of the bonds to any person whom he thinks proper.

(2) No person has a claim against the State in respect of any Treasury Bonds delivered under this section, but this section does not relieve the person to whom the Bonds are delivered from accounting for or dealing with the Bonds in accordance with law.

DELIVERY OF TREASURY BONDS THROUGH BANK, ETC.

(1) Where the Registrar thinks it desirable, he may arrange for any Treasury Bonds that it is not convenient to deliver personally to the owner at the Registry to be delivered to the owner through a bank, postmaster or Government Cash Office.

(2) The owner shall furnish to the Registrar a receipt for any Treasury Bonds delivered in accordance with Subsection (1).

PART IV. – POWERS OF ATTORNEY.

PRESCRIBED FORMS OF POWER OF ATTORNEY.

(1) For the purposes of the Act, a power of attorney may be in Form 11, executed and attested in accordance with the instructions contained in that form.

(2) Where a power of attorney not in Form 11 contains full power to act for any purpose in relation to any stock, and in the opinion of the Registrar it is inconvenient to obtain a power of attorney in Form 11, the Registrar may act on that power of attorney.

NOTATION OF POWERS OF ATTORNEY.

A power of attorney shall be left at the Registry for notification at least two clear days before it is to be acted on, and particulars of the power of attorney shall be entered in a register.

RELIANCE ON POWERS OF ATTORNEY.

(1) If the Registrar is satisfied that a power of attorney has been properly executed and attested, and that the signatures are genuine, the Registrar may act on the authority contained in the power of attorney.

(2) In case of doubt, the Registrar shall forward to the owner of the stock a notice that an application to deal with the stock has been made, and the Registrar shall not act under the power of attorney until he is satisfied that there is no objection.

PART V. – MISCELLANEOUS.

SAFE CUSTODY.

It is the duty of the Registrar to take steps to secure the safe custody of all bonds, and of all books, forms and other records relating to stock and bonds, in his charge, and no person other than an officer of the Registry acting in the course of his duty shall, unless authorized for the purpose by the Departmental Head, be permitted to have access to such bonds, books, forms or records.

MARKSMEN.

Where a person is unable to sign his name, instruments required for the purposes of this Regulation shall be executed by him and attested in such manner as the Registrar requires.