LOANS AND GUARANTEES (AUTHORISATION) ACT
Arrangement of Sections
Section
PART I
PRELIMINARY
1. Short title
2. Application
PART II
GENERAL BORROWING POWERS
3. Power to raise loans
4. Application of loans
5. Debt charges
PART III
METHODS OF RAISING LOANS
6. Methods of raising loans
7. Minister to determine terms, etc., of loans
8. Functions of Bank of Zambia
PART IV
SINKING FUNDS
9. Establishment of sinking funds for redemption of bonds or stock
10. Establishment of sinking funds in other cases
11. Annual contribution to sinking fund
12. Deficiency in sinking fund to be charged upon general revenues
13. Power of Minister to give directions in respect of sinking funds
PART V
GUARANTEES AND INDEMNITIES
14. Power to give guarantees
15. Maximum amount of guarantees
16. Indemnities
17. Guarantees and indemnities to be paid out of general revenues
18. Application of Part V to previous guarantees and indemnities
19. Information relating to guarantees to be included in financial report
PART VI
POWER TO GRANT LOANS
20. Power to grant loans out of cash balances
21. Power to grant loans out of general revenues
22. Application of Part VI to loans previously granted
23. Information relating to loans granted by Government to be included in financial report
PART VII
SUPPLEMENTAL
24. Minister or other persons not responsible for fulfilment of trusts attaching to bonds, stock or treasury bills
25. Trust funds
26. Power of Minister when National Assembly not sitting
27. Minister may delegate functions to public officer
28. Regulations
29. General restriction on raising of loans
AN ACT
to provide for the raising of loans, the establishment of sinking funds, the giving of guarantees and indemnities and the granting of loans by or on behalf of the Government; and to provide for matters incidental thereto and connected therewith.
[8th August 1969]
Act 28 of 1969,
Act 39 of 1969,
Act 30 of 1972,
Act 7 of 1977,
Act 2 of 1979,
Act 2 of 1982,
Act 13 of 1994.
PART I
PRELIMINARY
This Act may be cited as the Loans and Guarantees (Authorisation) Act.
Nothing in this Act shall apply in relation to the raising of any loan under—
(a) the Bretton Woods Agreement Act;
(b) the International Development Association Act;
(c) the General Loans (International Bank) Act; or
(d) the Development Bond Act.
[S 2 am by Act 39 of 1969.]
PART II
GENERAL BORROWING POWERS
The Minister may raise from time to time, in the Republic and elsewhere, on behalf of the Government such loans as he may deem desirable, not exceeding in the amount outstanding at any one time—
(a) in the case of loans raised under this Act for a period of not more than one year; or
(b) in the case of loans raised under this Act for a period in excess of one year;
such amount as he shall from time to time be authorised by resolution of the National Assembly to prescribe by statutory instrument.
(1) The amount of all loans raised under this Act for a period of not more than one year shall be paid into an account (hereinafter referred to as " the Special Deposit Account") which is hereby established for that purpose.
(2) The amount of all loans raised under this Act for a period in excess of one year shall be paid into the general revenues of the Republic.
(3) Notwithstanding any other provision contained in this Act, any loan raised under this Act for a specific purpose shall be applied to that purpose and to no other purpose.
[S 3 am by Act 30 of 1972.]
(1) All debt charges arising from the raising of any loan under this Act shall be charged on the general revenues of the Republic:
Provided that, in the case of loans raised for a period of not more than one year, the repayment or amortisation of debt shall be paid out of the funds in the Special Deposit Account, and the interest and all expenses necessarily incurred in connection with the raising or repayment of any loan under this sub-section shall be charged on the general revenues of the Republic.
(2) There shall be included in the financial report prepared in respect of any financial year pursuant to Article 118 of the Constitution, a statement showing the particulars of debt charges paid in that financial year in respect of any loan raised under this Act or any other written law.
(3) For the purposes of this section, "debt charges" includes interest, sinking fund charges, the repayment or amortisation of debt and all expenses necessarily incurred in connection with the raising or the repayment of any loan under this Act.
[S 3 am by Act 30 of 1972.]
PART III
METHODS OF RAISING LOANS
Subject to the provisions of this Act, a loan may be raised under this Act by any of the following methods, that is to say—
(a) by the issue of bonds or stock;
(b) by the issue of treasury bills; or
(c) by agreement in writing.
7. Minister to determine terms, etc., of loans
Any loan raised under this Act shall be raised in accordance with such conditions and upon such terms as the Minister shall, in respect of such loan, direct.
8. Functions of Bank of Zambia
In the case of any loan raised under this Act by the issue of bonds or stock or treasury bills, the Bank of Zambia shall, as the agent of the Minister—
(a) undertake and perform such functions as may be prescribed in connection therewith;
(c) perform such functions relating to the investment and management of any sinking fund established in respect of the loan as the Minister may from time to time direct.
PART IV
SINKING FUNDS
9. Establishment of sinking funds for redemption of bonds or stock
(1) Whenever any bonds or stock are issued in respect of a loan raised under this Act for a period of more than 10 years, the Minister shall cause to be established a sinking fund for the purpose of redeeming such bonds or stock.
(2) Whenever any bonds or stock are issued in respect of a loan raised under this Act for a period of not more than 10 years, the Minister may, if it appears to him desirable in the public interest, cause to be established a sinking fund for the purpose of redeeming such bonds or stock.
10. Establishment of sinking funds in other cases
The Minister may cause to be established a sinking fund for the purpose of redeeming any loan raised under this Act by agreement in writing or any loan raised under the provisions of any other written law.
11. Annual contribution to sinking fund
Whenever a sinking fund is established under section 9 or 10 in respect of any loan, the annual rate of contribution to such sinking fund shall be sufficient to provide for the redemption, upon the expiry of the period of such loan, of not less than 75 per centum of the principal of such loan.
12. Deficiency in sinking fund to be charged upon general revenues
In the event of any sinking fund established under this Act being found, at the time fixed for the repayment of any loan in respect of which it is established, to be insufficient for such redemption, the deficiency shall be a charge upon, and shall be made good out of, the general revenues of the Republic.
13. Power of Minister to give directions in respect of sinking funds
(1) The Minister may give directions in respect of the establishment, management and control of any sinking fund required or permitted to be established under this Act, and such directions may include directions that a joint sinking fund shall be established in respect of two or more loans or, in the case of any loan raised partly from sources in Zambia and partly from sources outside Zambia, that different sinking funds shall be established in respect of different portions of such loan.
(2) The power of the Minister to give directions under this section in relation to any sinking fund shall be deemed to be in addition to any other power conferred upon him under this Act to make provision in relation to the same matter.
PART V
GUARANTEES AND INDEMNITIES
(1) Subject to the provisions of section 15, the Minister may, if it appears to him necessary or expedient in the public interest, guarantee, on such terms and conditions as he may think fit, the repayment to any person ordinarily resident in Zambia of any loan or any portion of a loan borrowed from such person by—
(a) any body specified, or belonging to a class specified, in the Schedule;
(b) any person for or in connection with the purchase or provision of housing under any housing scheme approved by the Minister;
(c) any person approved for the purpose of this sub-section by resolution of the National Assembly.
(2) Subject to the provisions of section 15, the Minister may, if it appears to him necessary or expedient in the public interest, guarantee, on such terms and conditions as he may think fit, the repayment to any person ordinarily resident outside Zambia of any loan or portion of a loan borrowed from such person by—
(a) any body specified, or belonging to a class specified in the Schedule;
(b) any person approved for the purpose of this sub-section by resolution of the National Assembly.
(3) Subject to the provisions of section 15, the Minister may, if it appears to him necessary or expedient in the public interest, guarantee, on such terms and conditions as he may think fit, the performance of any contractual obligation involving or relating to the payment of money in favour of any person ordinarily resident outside Zambia by—
(a) any body specified, or belonging to a class specified in the Schedule;
(b) any person approved for the purpose of this sub-section by resolution of the National Assembly.
(4) The terms and conditions on which any guarantee may be given under the provisions of this section shall include the payment in Zambian currency of two per centum of the amount involved in the loan or, as the case may be, in the contractual obligation to which the guarantee relates:
Provided that the Minister may, by statutory notice, exempt any loan or contract from the condition contained in this sub-section.
(5) All the monies collected under sub-section (4) shall be paid into the general revenues of the Republic.
[S 14 am by Act 7 of 1977; 2 of 1979.]
15. Maximum amount of guarantees
(1) The total contingent liability at any one time under all guarantees given under sub-section (1) of section 14 shall not exceed such amount as the Minister shall from time to time be authorised by resolution of the National Assembly to prescribe by statutory instrument.
(2) The total contingent liability at any one time under all guarantees given under sub-sections (2) and (3) of section 14 shall not exceed such amount as the Minister shall from time to time be authorised by resolution of the National Assembly to prescribe by statutory instrument.
(3) In determining the total contingent liability under sub-sections (1) and (2) of this section, no account shall be taken of any interest or other sum accrued or which may accrue (other than the principal sum) and which may become payable in respect of any loan or any portion of a loan guaranteed pursuant to section 14.
(4) Any guarantee given pursuant to section 14 shall be valid if, after taking such guarantee into account, the total contingent liability determined in accordance with sub-section (3) of this section is within the limit prescribed under sub-section (1) of this section or sub-section (2) of this section, as the case may be, at the date when such guarantee is given.
(5) sub-sections (3) and (4) of this section shall have effect in relation to all guarantees which are outstanding at the commencement of this Act as well as to all guarantees entered into after the commencement of this Act.
[S 15 am by Act 2 of 1982.]
The Minister may, if it appears to him necessary or expedient in the public interest, indemnify any person, by agreement in writing and subject to such terms and conditions as the Minister may think fit, against any claim directly arising from any act or omission on the part of such person or his servants or agents in the performance by such person or his servants or agents of any agreement between such person and the Government.
17. Guarantees and indemnities to be paid out of general revenues
Whenever he is authorised to do so by resolution of the National Assembly, the Minister shall pay out of the general revenues of the Republic any sum required for discharging any liability incurred by the Government under any guarantee or indemnity given under this Act:
Provided that any sum paid to the Government in respect of any such guarantee or indemnity by way of repayment of the sum guaranteed or indemnified or any portion thereof shall be paid into the said general revenues.
18. Application of Part V to previous guarantees and indemnities
For the purposes of this Part, any guarantee or indemnity given prior to the commencement of this Act, other than a guarantee or indemnity given under any written law, shall be deemed to have been given under this Act if such guarantee or indemnity—
(a) is a guarantee or indemnity subsisting at the commencement of this Act; and
(b) is a guarantee or indemnity in respect of which the Government may incur any liability for the payment of money.
19. Information relating to guarantees to be included in financial report
There shall be included in the financial report prepared in respect of any financial year pursuant to the Constitution a statement showing the particulars of all guarantees given under this Act, or any other written law, and subsisting at the end of that year.
PART VI
POWER TO GRANT LOANS
20. Power to grant loans out of cash balances
(1) Subject to the provisions of sub-section (2), loans may be granted out of the cash balances of the Republic up to the amount standing at any time to the credit of the Special Deposit Account by debiting the loans to a Special Advance Account which is hereby established for that purpose.
(2) On such terms and conditions as he may think fit, the Minister may by agreement in writing, if it appears to him necessary or expedient in the public interest, grant loans under sub-section (1) to—
(a) any body specified, or belonging to a class specified, in the Schedule;
(b) any person approved for the purpose of this section by resolution of the National Assembly:
Provided that no loan shall be granted under this section for a period exceeding one year.
[S 20 am by Act 30 of 1972.]
21. Power to grant loans out of general revenues
(1) Save as may be provided by any other written law, no loan shall be granted out of the general revenues of the Republic except in accordance with this section.
(2) After a warrant is issued by the President, under the Constitution, the Minister may, by agreement in writing, grant loans out of the general revenues of the Republic, not exceeding in the aggregate such amount as may be so authorised, to any person or body specified in such warrant.
(3) Any loan granted under this section may be granted upon such terms and subject to such conditions as the Minister may deem fit.
[S 21 am by Act 30 of 1972.]
22. Application of Part VI to loans previously granted
For the purposes of this Part, any loan granted by the Government to any person prior to the commencement of this Act, other than a loan granted under any written law, shall be deemed to have been granted under this Act.
23. Information relating to loans granted by Government to be included in financial report
There shall be included in the financial report prepared in respect of any financial year pursuant to Article 118 of the Constitution, a statement showing the particulars of any loan granted under this Act or any other written law in respect of which there was a balance outstanding at any time during that year:
Provided that the provisions of this section shall be deemed to have been complied with if there is included in the financial report an aggregate of the particulars of any loan or loans granted to a borrower or to a class of borrowers.
[S 23 am by Act 30 of 1972.]
PART VII
SUPPLEMENTAL
24. Minister or other persons not responsible for fulfilment of trusts attaching to bonds, stock or treasury bills
Neither the Minister nor any person appointed to perform any functions under this Act shall be under an obligation as regards the due fulfilment of any trust, whether expressed, implied or constructive, to which any bond, stock or treasury bill issued under this Act may be subject, notwithstanding that the Minister or such person has had notice that the bond, stock or treasury bill is held subject to a trust.
Any bonds or stock issued under this Act shall be deemed for all purposes to be an authorised investment for trust funds.
26. Power of Minister when National Assembly not sitting
If, during any period when the National Assembly is not sitting, the Minister considers that there is such an urgent need to raise any loan or to give any guarantee under this Act that it would not be in the public interest to delay the raising of such loan or the giving of such guarantee until the National Assembly next sits, the Minister may, if so authorised by the President, amend any statutory instrument promulgated in terms of section 3 or 15 by varying any sum specified in such statutory instrument to the extent necessary to permit the raising of such loan or the giving of such guarantee, as the case may be.
27. Minister may delegate functions to public officer
The *Minister may, by statutory order, delegate to such public officer as may be specified in the order the performance of any function conferred upon the Minister under this Act:
Provided that the Minister shall not delegate the power to make any statutory instrument under this Act.
(1) The Minister may, by statutory instrument, make regulations to provide for the better carrying out of this Act, and, generally, providing for the raising of loans, the establishment and management of sinking funds, the giving of guarantees and indemnities, the granting of loans out of the general revenues of the Republic and for such other matters in respect of which provision is made in this Act.
(2) Regulations under this section may provide in respect of any contravention thereof that the offender shall be guilty of an offence and shall be liable to a fine not exceeding seven thousand five hundred penalty units or to a term of imprisonment not exceeding five years, or to both.
[S 28 am by Act 13 of 1994.]
29. General restriction on raising of loans
(1) As from the commencement of this Act, no loans shall be raised for or on behalf of the Government except under the authority of this Act or of any written law thereafter enacted which specifically authorises the raising of any such loan:
Provided that nothing hereinbefore contained shall affect the operation of any written law in force immediately prior to the commencement of this Act in relation to any loan raised under the authority of such written law.
(2) For the purposes of this Act and for the avoidance of doubt, any loan raised prior to the commencement of this Act under any written law shall be deemed to have been raised under the authority of section 3, and any function performed by the Bank of Zambia in connection with the issue and registration of any securities issued in respect of any such loan shall be deemed to have been performed in pursuance of section 8, but, save as so provided, the provisions of the said written law shall continue to apply in relation to any such loan.
[Sections 14 and 20]
SPECIFIED BODIES
1. Any body corporate directly established by any written law.
2. Any co-operative society registered under the Co-operative Societies Act .
3. Any local authority established under the Local Government Act.
4. Public utilities.
5. Any body corporate in which shares are held by or on behalf of the Government.
INDEX TO SUBSIDIARY LEGISLATION
Loans (Local Registered Stock) (No. 3 and No. 4) Regulations
Loans (Stock, Bonds and Treasury Bills) Regulations
Loans and Guarantees (Maximum Amounts) Order
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 1996
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 1996
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 1996
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 1997
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 1997
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 4) Order, 1997
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 6) Order, 1997
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 1998
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 1999
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 1999
Loans and Guarantees (Authorisation) (Delegation of Function) Order, 2000
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2000
Loans and Guarantees (Authorisation) (Delegation of Function) (No. 3) Order, 2000
Loans and Guarantees (Authorisation) (Delegation of Function) (No. 4) Order, 2000
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 4) Order, 2000
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 5) Order, 2000
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 6) Order, 2000
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 7) Order, 2000
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2001
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2001
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2001
Loans and Guarantee (Authorisation) (Delegation of Functions) Order, 2002
Loans and Guarantees (Authorisation) (Delegation of Function) (No. 2) Order, 2002
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2002
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 4) Order, 2002
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 5) Order, 2002
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2003
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2003
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2003
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 4) Order, 2003
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2004
Loans and Guarantees (Authorisation) (Delegation of Functions (No. 2) Order, 2004
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2004
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 4) Order, 2004
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2005
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2005
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2005
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2005
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2006
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2006
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 4) Order, 2006
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 5) Order, 2006
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2007
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2007
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2007
Loans And Guarantees (Authorisation) (Delegation of Functions) (No. 4) Order, 2007
Loans And Guarantees (Authorisation) (Delegation of Functions) Order, 2009
Loans And Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2009
Loans And Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2009
Loans And Guarantees (Authorisation) (Delegation of Functions) (No. 4) Order, 2009
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 5) Order, 2009
Loans And Guarantees(Authorisation) (Delegation of Functions) (No. 6) Order, 2009
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2010
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2011
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2011
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2011
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2011
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2012
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2012
Loans and Guarantees (Authorisation) (Exemption) Notice, 2012
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2012
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2013
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2014
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2014
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2014
Loans and Guarantees (Authorisation) (Exemption) Notice, 2014
Loans and guarantees (Authorisation) (Delegation of Functions) order, 2014
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2015
Loans and Guarantees (Authorisation) (Exemption) Notice, 2015
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 2015
Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 3) Order, 2015
Loans and Guarantees (Authorisation) (Exemption) (No. 2) Notice, 2015
Loans and Guarantees (Authorisation) (Exemption) (No. 3) Notice, 2015
Loans and Guarantees (Authorisation) (Maximum Amounts) Order
Loans and Guarantees (Authorisation) (Exemption) Notice, 2016
Loans and Guarantees (Authorisation) (Exemption) Notice, 2017
Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 2017
Loans and Guarantees (Authorisation) (Exemption) Notice, 2017
Loans and Guarantees (Authorisation) (Exemption) Notice, 2018
Loans and Guarantees (Authorisation) (Exemption) Notice, 2018
Loans and Guarantees (Authorisation) (Exemption) (No. 2) Notice, 2018
Loans and Guarantees (Authorisation) (Exemption) (No. 3) Notice, 2018
LOANS (LOCAL REGISTERED STOCK) (NO. 3 AND NO. 4) REGULATIONS
[Section 28]
Arrangement of Regulations
Regulation
1. Title
2. Application
3. Interpretation
4. General duty of Bank of Zambia
5. Register
6. Liability of Government for payment of principal and interest
7. Stockholder
8. Stock certificate
9. Transfer of stock
10. Registration of transfer of stock
11. Payment of interest after transfer
12. Closing of register
13. Register conclusive evidence
14. Cessation of liability to pay interest
15. Payments
16. Discharge of liability for payment
17. Consolidation and subdivision
18. Issue of duplicates and renewals
19. Indemnity bonds
20. Application of Local Loans (Registered Stock) Regulations
21. Signature of registrar may be printed on stock certificates
22. Notice of trust not receivable
23. Form of documents, etc.
24. Inspection of register and documents
SI 459 of 1969.
[Regulations by the Minister]
These Regulations may be cited as the Loans (Local Registered Stock) (No. 3 and No. 4) Regulations.
These Regulations shall apply to Issue No. 3 of 1969 and Issue No. 4 of 1969.
In these Regulations, unless the context otherwise requires—
"register" means the register kept in relation to stock pursuant to these Regulations;
"registered stock" means stock registered under these Regulations;
"registrar" means the Bank of Zambia and includes any person for the time being authorised by the Bank of Zambia to exercise and perform the functions of the registrar under these Regulations;
"stock" means Issue No. 3 of 1969 and Issue No. 4 of 1969 referred to respectively in the preamble to these Regulations;
"stockholder" means a person holding registered stock who is entered as the owner thereof in the register.
4. General duty of Bank of Zambia
The Bank of Zambia shall, in accordance with the directions of the Minister, make all such arrangements as may be necessary in connection with the issue of the stock and shall prepare and publish in respect of each issue thereof a prospectus setting forth the terms and conditions and such other particulars relating thereto as the Minister may direct.
The Bank of Zambia shall keep a register in respect of each issue of stock in which such stock and all transfers and dealings in such stock shall be registered, and in which there shall be entered all such matters as are required by these Regulations to be entered in the register.
6. Liability of Government for payment of principal and interest
(1) The Government shall be bound to pay to any person registered for the time being as a stockholder the principal sum represented by his registered stock, and the interest due thereon, at the rate and on the dates specified in the prospectus relating thereto or, where an option to redeem such stock at an earlier date is reserved by direction of the Minister in such prospectus, in pursuance of such option.
(2) Where any amount has become payable on any date as interest due on any registered stock, no interest on that amount shall, after that date, be paid or payable to any person in any circumstances.
(1) No person shall be entitled to any registered stock unless he is registered as a stockholder in respect thereof.
(2) No person shall be registered as a first stockholder of any stock except upon payment in full of the purchase price of that stock.
(1) Every stockholder shall be entitled to obtain from the registrar a stock certificate in respect of his stock.
(2) No stockholder, other than the first stockholder of any stock, shall be entitled to obtain a stock certificate save upon payment of such fee as the registrar may from time to time determine.
(3) Stock certificates in respect of any stock shall be in such form as the registrar may determine.
The title of any stockholder to any registered stock shall not be deemed to be transferred to any other person save upon the execution of such instrument of transfer as may be approved by the registrar and upon the registration of the transferee as the stockholder.
10. Registration of transfer of stock
No person shall be registered as the transferee of any registered stock except upon surrender to the registrar of the stock certificate and the instrument of transfer relating to that stock and upon payment of such fee in respect thereof as the registrar may from time to time determine.
11. Payment of interest after transfer
Interest which has fallen due in respect of any registered stock at the date of any transfer of such stock, but which has not been paid to the stockholder for the time being, shall not be deemed to be payable to a transferee of that stock unless the instrument of transfer expressly provides for the payment of that interest to that transferee.
The register relating to any stock shall be closed for a period of 21 days immediately preceding each date upon which interest on that stock falls due and no transfer of that stock shall be registered during that period.
13. Register conclusive evidence
Entries in a register shall be conclusive evidence of the facts, matters, particulars and transactions to which those entries relate, and a copy of any entry in a register shall, if certified under the hand of any person thereunto authorised by the registrar to be a true copy of such entry, be admissible in evidence in any proceedings before a court.
14. Cessation of liability to pay interest
No person shall be entitled to claim interest on any registered stock in respect of any period which has elapsed after the earliest date on which demand could lawfully have been made for the payment of the principal amount due on such stock.
All payments of interest and all payments of the principal amount due on any registered stock shall be made by the Bank of Zambia.
16. Discharge of liability for payment
The liability of the Government in respect of any registered stock redeemed on or after the date on which payment of the principal amount becomes due shall be discharged after the lapse of six years from that date.
17. Consolidation and subdivision
(1) Subject to the directions of the Minister, the registrar may, on the application of any person claiming to be entitled to any registered stock and on surrender to the registrar of the stock certificate relating to such stock, consolidate or subdivide such stock and issue to the applicant one or more new stock certificates as may be required.
(2) There shall be payable in respect of an application under sub-regulation (1) such fee as the registrar may determine.
18. Issue of duplicates and renewals
The registrar may issue duplicate stock certificates and renewals of stock certificates in such circumstances as the Minister may, by direction, specify.
Where application is made to the registrar for the issue of a duplicate stock certificate or for the renewal of any stock certificate or for the consolidation or subdivision of any registered stock, the registrar may require the applicant, as a condition precedent to the grant of the application, to execute a bond with or without sureties undertaking to indemnify the Government against the claims of all persons claiming under the original stock certificate or under the stock consolidated or subdivided, as the case may be.
20. Application of Local Loans Registered Stock Regulations
Save in so far as any provision thereof is inconsistent with these Regulations, the Local Loans (Registered Stock) Regulations shall apply, mutatis mutandis, in relation to any stock to which these Regulations apply as those Regulations apply in relation to stock issued under the Local Loans (Registered Stock and Securities) Act, and any reference in those Regulations to the Minister shall, for the purpose of this regulation, be read and construed as a reference to the registrar.
21. Signature of registrar may be printed on stock certificates
The signature of the registrar may be printed, stamped, engraved or impressed by any mechanical process on any stock certificate, and a signature so printed, stamped, engraved or impressed shall be as valid as if it had been inscribed under the hand of the registrar.
22. Notice of trust not receivable
No notice of any trust in respect of any registered stock shall be receivable by the registrar.
All documents or instruments made or used for the purposes of these Regulations shall be in such form as the registrar may, subject to these Regulations and to the directions of the Minister, determine.
24. Inspection of register and documents
(1) No person shall be entitled to inspect, or to receive information derived from, any registered stock in the possession of the registrar or of the Government or any register, book or other document kept or maintained by or on behalf of the Government in relation to registered stock save on payment of such fee and in such circumstances as the registrar may determine.
(2) Nothing in sub-regulation (1) shall apply to the Auditor-General or the Commissioner of Taxes.
LOANS (STOCK, BONDS AND TREASURY BILLS) REGULATIONS
[Section 28]
Arrangement of Regulations
Regulation
PART I
PRELIMINARY
1. Title
2. Interpretation
3. General duty of Bank of Zambia
PART II
TREASURY BILLS
4. Bank of Zambia to be agent of Minister
PART III
REGISTRATION OF STOCK AND BONDS
5. Registers to be kept
6. Registration of holders of stock or bonds
7. Stock certificates and bond certificates
8. Transfer of stock or bonds
9. Registration of transfers
10. Closing of register
11. Register conclusive evidence
12. Consolidation and subdivision
13. Issue of duplicates and renewals
14. Indemnity bonds
15. Signature on certificate
16. Notice of trust not receivable
17. Inspection of register and documents
PART IV
PAYMENT OF INTEREST
18. Liability of Government for payment of principal and interest
19. Cessation of liability to pay interest
20. Payment of interest after transfer
21. Payments to be made by Bank of Zambia
22. Discharge of liability of Government
23. Method of payment, and acknowledgement
PART V
GENERAL PROVISIONS
24. Form of documents, etc.
25. Notice of loss or destruction of certificates
26. Provisions relating to joint holders
27. Alterations in register
28. Persons under legal disability
29. Appointment of agents
30. Death of holder
31. Information as to stock or bonds account
32. Indemnity
33. Saving of rights of third parties
[Regulations by the Minister]
SI 85 of 1970.
PART I
PRELIMINARY
These Regulations may be cited as the Loans (Stock, Bonds and Treasury Bills) Regulations.
In these Regulations, unless the context otherwise requires—
"bonds" means any bonds issued under the Act in respect of a loan;
"certificate" includes a duplicate or renewal of any certificate issued in respect of any stock or bonds under these Regulations;
"holder", in relation to stock or bonds, means a person holding registered stock or bonds who is registered as the owner thereof;
"register" means a register kept in relation to stock or bonds pursuant to these Regulations, and
"registered" and "registration" shall be construed accordingly;
"Registrar" means the Bank of Zambia;
"stock" means any stock issued under the Act in respect of a loan;
"treasury bills" means any treasury bills issued under the Act.
3. General duty of Bank of Zambia
The Bank of Zambia shall, in accordance with the directions of the Minister, make all such arrangements as may be necessary from time to time in connection with the issue and management of stock, bonds or treasury bills.
PART II
TREASURY BILLS
4. Bank of Zambia to be agent of Minister
In the case of any loan raised under the Act by the issue of treasury bills, the Bank of Zambia shall, as the agent of the Minister, undertake and perform such functions as may be necessary, proper or advantageous in connection with the issue and subsequent administration of such treasury bills.
PART III
REGISTRATION OF STOCK AND BONDS
The Bank of Zambia shall keep a register in respect of each issue of stock or bonds in which such stock or bonds and all transfers of and dealings in such stock or bonds shall be registered, and in which there shall be entered all such matters as are required by these Regulations to be entered in the register.
6. Registration of holders of stock or bonds
(1) No person shall be entitled to any registered stock or bonds unless he is registered as the holder thereof.
(2) No person shall be registered as a first holder of any stock or bonds except upon payment in full of the purchase price of such stock or bonds.
7. Stock certificates and bond certificates
(1) Every holder of stock or bonds shall be entitled to obtain from the registrar a certificate in respect of his stock or bonds.
(2) No holder of stock or bonds other than the first holder thereof shall be entitled to obtain a stock certificate or bond certificate save upon payment of such fee as the registrar may from time to time determine.
(3) Stock certificates or bond certificates in respect of any stock or bonds shall be in such form as the registrar may determine.
The title of any holder to any registered stock or bonds shall not be deemed to be transferred to any other person save upon the execution of such instrument of transfer as may be approved by the registrar and upon the registration of the transferee as the holder of such stock or bonds.
No person shall be registered as the transferee of any registered stock or bonds except upon the surrender to the registrar of the appropriate stock certificate or bond certificate and the instrument of transfer relating to such stock or bonds and upon payment of such fee in respect thereof as the registrar may from time to time determine.
The register relating to any stock or bonds shall be closed for a period of 21 days immediately preceding each date upon which interest on such stock or bonds falls due and no transfer of such stock or bonds shall be registered during that period.
11. Register conclusive evidence
Entries in a register shall be conclusive evidence of the fact, matters, particulars and transactions to which those entries relate, and a copy of any entry in a register shall, if certified under the hand of any person thereunto authorised by the registrar to be a true copy of such entry, be admissible in evidence in any proceedings before a court.
12. Consolidation and subdivision
(1) The registrar may, on the application of any person claiming to be entitled to any registered stock or bonds and on surrender to the registrar of the stock or bond certificate relating to such stock or bonds, consolidate or subdivide such stock or bonds and issue to the applicant one or more new stock or bond certificates as may be required.
(2) There shall be payable in respect of an application under sub-regulation (1) such fee as the registrar may determine.
13. Issue of duplicates and renewals
The registrar may issue duplicates and renewals of certificates relating to stock or bonds in such circumstances as the Minister may, by direction, specify.
Where application is made to the registrar for the issue of a duplicate stock or bond certificate or for the renewal of any stock or bond certificate or for the consolidation or subdivision of any registered stock or bonds, the registrar may require the applicant, as a condition precedent to the grant of the application, to execute a bond with or without sureties undertaking to indemnify the Government against the claims of all persons claiming under the original certificate or under the stock or bonds consolidated or subdivided, as the case may be.
The signature of any authorised officer of the registrar may be printed, stamped, engraved or impressed by any mechanical process on any stock certificate or bond certificate, and a signature so printed, stamped, engraved or impressed shall be as valid as if it had been inscribed under the hand of such officer.
16. Notice of trust not receivable
No notice of any trust in respect of any registered stock or bonds shall be receivable by the registrar.
17. Inspection of register and documents
(1) No person shall be entitled to inspect or to receive information derived from any registered stock or bonds in the possession of the registrar or of the Government or any register, book or other document kept or maintained by or on behalf of the Government in relation to registered stock or bonds save on payment of such fee and in such circumstances as the registrar may determine. Inspection of register and documents.
(2) Nothing in sub-regulation (1) shall apply to the Auditor-General or the Commissioner of Taxes.
PART IV
PAYMENT OF INTEREST
18. Liability of Government for payment of principal and interest
(1) The Government shall be bound to pay to any person registered for the time being as the holder of any stock or bonds the principal sum represented by his registered stock or bonds, and the interest due thereon, at the rate and on the dates specified in the prospectus relating thereto or, where an option to redeem such stock or bonds at an earlier date is reserved by direction of the Minister in such prospectus, in pursuance of such option.
(2) Where an amount has become payable on any date as interest due on any registered stock or bonds, no interest on that amount shall, after that date, be paid or payable to any person in any circumstances.
19. Cessation of liability to pay interest
No person shall be entitled to claim interest on any registered stock or bonds in respect of any period which has elapsed after the earliest date on which demand could lawfully have been made for the payment of the principal amount due on such stock or bonds.
20. Payment of interest after transfer
Interest which has fallen due in respect of any registered stock or bonds at the date of any transfer of such stock or bonds but which has not been paid to the holder for the time being of such stock or bonds shall not be deemed payable to a transferee of such stock or bonds unless the instrument of transfer expressly provides for the payment of that interest to that transferee.
21. Payments to be made by Bank of Zambia
All payments of interest and all payments of the principal amount due on any registered stock or bonds shall be made by the Bank of Zambia.
22. Discharge of liability of Government
The liability of the Government in respect of any registered stock or bonds redeemed on or after the date on which payment of the principal amount becomes due shall be discharged after the lapse of six years from that date.
23. Method of payment, and acknowledgement
(1) The interest due on any registered stock or bonds shall be paid by warrant to the registered holder thereof or to any branch of any bank within Zambia, person or body of persons to whom the holder has by request duly made to the registrar authorised the registrar to issue such warrant.
(2) No warrant shall be paid until the receipt thereon for the amount thereby payable has been duly signed, and such receipt shall be a full discharge to the Government and to the registrar for the payment of the sum named in the warrant.
(3) The posting of a letter containing a warrant sent by the registrar in pursuance of these Regulations addressed to any person at the last address furnished by that person to the registrar shall, as regards the liability of the Government and of the registrar, be equivalent to the delivery of the warrant to the person to whom the letter was addressed.
(4) Where in pursuance of these Regulations or in accordance with any authority given thereunder any payment is to be made by the registrar to a firm or a body of persons whether corporate or unincorporate, a receipt for the payment given by any person purporting to be an agent or officer of that firm or body and to be authorised to receive the payment shall be a full discharge to the Government and the registrar for the amount paid.
(5) Where any stock or bonds are registered in the names of two or more persons as joint holders, the registrar may, unless other arrangements with respect to the payment of interest have been made in accordance with these Regulations, pay any interest thereon to the holder whose name appears first in the register.
(6) A receipt for the payment of interest on any stock or bonds which is given by any one of two or more joint holders of such stock or bonds shall, unless notice in writing to the contrary has been received by the registrar from any other joint holder of such stock or bonds, be a full discharge to the registrar and the Government for the payment of that interest.
PART V
GENERAL PROVISIONS
All documents or instruments made or used for the purpose of these Regulations shall be in such form as the registrar may, subject to these Regulations, determine.
25. Notice of loss or destruction of certificates
(1) The loss or destruction of any stock certificate or bond certificate issued by the registrar shall be notified in writing to him as soon as practicable by the person entitled to the possession thereof.
(2) Upon receipt of such notification the registrar shall cause to be published in the Gazette a notice stating that the certificate has been lost or destroyed, as the case may be, and that he proposes, after the expiration of two calendar months from the date of such notice, to issue a duplicate of such certificate.
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