INTERNATIONAL BANK LOAN APPROVAL ACT
Arrangement of Sections
1. Short title
3. Loan Agreements approved and provisions thereof to be binding
to provide approval of a loan from the International Bank for Reconstruction and Development.
[8th May, 1953]
Act 21 of 1953.
SI 159 of 1965.
This Act may be cited as the International Bank Loan (Approval) Act.
In this Act, unless the context otherwise requires—
“Loan Agreements” means the Loan Agreement and Subsidiary Agreement set out in the Schedule.
The Loan Agreements are hereby approved and notwithstanding the provisions of any written law now in force, the terms and conditions of the Loan Agreements shall be of full force and effect and binding upon the Government from the date of the execution thereof.
LOAN NUMBER 74 N.R.
LOAN AGREEMENT (RHODESIA RAILWAYS PROJECT) BETWEEN TERRITORY OF NORTHERN RHODESIA AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT. DATED MARCH 11, 1953
Agreement, dated March 11, 1953, between TERRITORY OF NORTHERN RHODESIA (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank)
Loan Regulations; Special Definitions
SECTION 1.01. The parties to this Agreement accept all the provisions of Loan Regulations No. 4 of the Bank dated October 15, 1952, subject, however, to the modifications thereof set forth in Schedule 3 to this Agreement (such Loan Regulations No. 4 as so modified being hereinafter called the Loan Regulations), with the same force and effect as if they were fully set forth herein.
SECTION 1.02. Except where the context otherwise requires, the following terms have the following meanings wherever used in this Agreement or any Schedule hereto:
(a) The term “Subsidiary Agreement” means the agreement of even date herewith between the Borrower, the Colony of Southern Rhodesia and the Bank relating to the carrying out of the Project and certain other matters connected with the Loan.
(b) The term “Rhodesia Railways” means the Rhodesia Railways, a body corporate established and incorporated under the Rhodesia Railways Act, 1949, as amended, of the Colony of Southern Rhodesia.
(c) The term “Southern Rhodesia currency” means currency issued by the Southern Rhodesia Currency Board pursuant to the Coinage and Currency Act, 1938, of the Colony of Southern Rhodesia, as amended, or such other coin and currency as at the time referred to shall be legal tender for the payment of public and private debts in the territory of the Borrower.
SECTION 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in this Agreement set forth or referred to, the sum of Fourteen Million dollars ($14,000,000), or the equivalent thereof in currencies other than dollars.
SECTION 2.02. The Bank shall open a Loan Account on its books in the name of the Borrower and shall credit to such Account the amount of the Loan. The amount of the Loan may be withdrawn from the Loan Account as provided in, and subject to the rights of cancellation and suspension set forth in, the Loan Regulations.
SECTION 2.03. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent. (3/4%) per annum on the principal amount of the Loan not so withdrawn from time to time.
SECTION 2.04. The Borrower shall pay interest at the rate of four and three-fourths per cent. (4 3/4%) per annum on the principal amount of the Loan so withdrawn and outstanding from time to time.
SECTION 2.05. Except as the Bank and the Borrower shall otherwise agree, the charge payable for special commitments entered into by the Bank at the request of the Borrower pursuant to Section 4.02 of the Loan Regulations shall be at the rate of one-half of one per cent. (1/2%) per annum on the principal amount of such special commitments outstanding.
SECTION 2.06. Interest and other charges shall be payable semi-annually on February 1 andAugust 1 in each year.
SECTION 2.07. The Borrower shall repay the principal of the Loan in accordance with the amortisation schedule set forth in Schedule 1 to this Agreement.
Use of Proceeds of the Loan
SECTION 3.01. The Borrower shall apply the proceeds of the Loan exclusively to the cost of goods which will be required to carry out the Project described in Schedule 2 to this Agreement. The specific goods to be purchased out of the proceeds of the Loan shall be determined by agreement between the Borrower and the Bank, and the list of such goods may be modified from time to time by agreement between them.
SECTION 3.02. The Borrower shall cause all goods purchased in whole or in part with the proceeds of the Loan to be used exclusively in the carrying out of the Project.
SECTION 4.01. The Borrower shall execute and deliver Bonds representing the principal amount of the Loan as provided in the Loan Regulations.
SECTION 4.02. The Governor of the Borrower in office at the time in question and such person or persons as he shall appoint in writing are designated as authorised representatives of the Borrower for the purposes of Section 6.12(a) of the Loan Regulations.
SECTION 5.01. The Borrower shall make the proceeds of the Loan available to the Rhodesia Railways on terms and conditions satisfactory to the Bank.
SECTION 5.02. It is the mutual intention of the Borrower and the Bank that no debt other than debt payable in Southern Rhodesia currency shall enjoy any priority over the Loan by way of a lien on governmental assets. To that end, the Borrower undertakes that, except as the Bank shall otherwise agree, if any lien shall be created on any of the assets of the Borrower as security for any such debt, such lien will ipso facto equally and rateably secure the payment of the principal of, and interest and other charges on, the Loan and the Bonds, and that in the creation of any such lien express provision will be made to that effect, provided, however, that the foregoing provisions of this Section shall not apply to—
(i) any lien created on property, at the time of purchase thereof, solely as security for the payment of the purchase price of such property;
(ii) any lien on commercial goods to secure a debt maturing not more than one year after the date on which it is originally incurred and to be paid out of the proceeds of sale of such commercial goods; or
(iii) any lien arising in the ordinary course of banking transactions tosecure a debt maturing not more than one year after the date on which it is originally incurred.
The word Borrower as used in this Section means the Borrower or any of its political subdivisions or any agency of any of the foregoing.
SECTION 5.03. The principal of, and interest and other charges on, the Loan and the Bonds shall be paid without deduction for and free from any taxes or fees imposed under the laws of the Borrower or laws in effect in its territories; provided, however, that the provisions of this
Section shall not apply to taxation of, or fees upon, payments under any Bond to a holder thereof other than the Bank when such Bond is beneficially owned by an individual or corporate resident of the Borrower.
SECTION 5.04. The Loan Agreement and the Bonds shall be free from any taxes or fees that shall be imposed under the laws of the Borrower or laws in effect in its territories on or in connection with the execution, issue, delivery or registration thereof and the Borrower shall pay all such taxes and fees, if any, imposed under the laws of the country or countries in whose currency the Loan and the Bonds are payable or laws in effect in the territories of such country or countries.
SECTION 5.05. The principal of, and interest and other charges on, the Loan and the Bonds shall be paid free from all restrictions imposed under the laws of the Borrower or laws in effect in its territories.
SECTION 5.06. The Borrower shall satisfy the Bank that adequate arrangements have been made to insure the goods financed with the proceeds of the Loan against risks incident to their purchase and delivery for use in the Project.
Remedies of the Bank
SECTION 6.01. If any event specified in paragraph (a) or paragraph (b) of Section 5.02 of the Loan Regulations shall occur and shall continue for a period of thirty days or if any event specified in paragraph (c) of Section 5.02 of the Loan Regulations shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Bank to the Borrower, then at any subsequent time during the continuance thereof, the Bank, at its option, may declare the principal of the Loan and of all the Bonds then outstanding to be due and payable immediately, and upon any such declaration such principal shall become due and payable immediately, anything in this Loan Agreement or in the Bonds to the contrary notwithstanding.
Effective Date; Termination
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