DEVELOPMENT BOND ACT
Arrangement of Sections
1. Short title
3. Power to raise loans by the issue of bonds
4. Moneys raised to be paid into and debts to be charged on general revenues
5. Secrecy concerning individual holders of bonds
7. Cap. 353 not to apply to loans raised under this Act
to empower the Minister to raise loans by the issue and sale of bonds within the Republic.
[7th June, 1968]
Act 32 of 1968,
Act 13 of 1994.
This Act may be cited as the Development Bond Act.
In this Act, unless the context otherwise requires—
“bond” means a development bond issued under this Act.
(1) The Minister may raise loans by the issue and sale within the Republic of bonds to be known as development bonds and may at any time withdraw from sale any such issue of development bonds.
(2) Subject to the provisions of this Act and regulations made thereunder, any issue of bonds made under this section shall be upon the terms and conditions set out in a prospectus for that issue which shall be published in the Gazette and shall be freely available at all places where bonds in that issue are sold.
All moneys raised under this Act shall be paid into the general revenues of the Republic and all debt charges arising in connection with the raising of such moneys shall, in accordance with of the Constitution, be charged on those revenues.
(a) for the purpose of the administration of this Act and regulations made thereunder;
(b) in accordance with the provisions of a written law, or
(c) with the consent of the lawful holder of bonds;
no person shall have or be given access to information in relation to the purchase, holding or sale of bonds by any other person or shall communicate any such information to a third person.
(2) Any contravention of the provisions of sub-section (1) shall be an offence punishable with imprisonment for a period not exceeding two years or with a fine not exceeding six thousand penalty units, or with both.
[S 5 am by Act 13 of 1994.]
The Minister may, by Statutory Instrument, make regulations for the better carrying into effect of this Act and, in particular and without prejudice to the generality of the foregoing power, may by regulations prescribe—
(a) the classes and forms of bonds;
(b) the terms and conditions relating to bonds of any issue which shall be set out in the prospectus for that issue;
(c) the persons who may or may not be holders of bonds and the conditions subject to which specified persons or classes of persons may be holders of bonds;
(d) the manner in which, the persons to whom and the places at which application for bonds may be made;
(e) the maximum value of bonds which may be held by any holder including different values for different classes of holders;
(f) the manner in which, and the conditions subject to which, bonds shall be registered;
(g) the manner in which, and the conditions subject to which, payments of interest or other benefits payable on bonds shall be made and bonds shall be redeemed;
(h) the manner in which, and the conditions subject to which, bonds may be transferred from a holder to any other person;
(i) the manner in which, and the conditions subject to which, bonds of one class may be converted to bonds of another class;
(j) the extent to which a register of particulars relating to the holding of bonds or any extract from that register shall be admissible in a court as evidence of the matters recorded in the register; and
(k) the functions, powers and duties of the Bank of Zambia as agents of the Minister in the raising of loans under this Act;
and such regulations may provide differently in relation to different classes or issues of bonds.
The Local Loans (Registered Stock and Securities) Act shall not have effect in relation to loans raised under this Act.