LOCAL LOANS and development ORDINANCE

Arrangement of Sections

1. Short title.

2. Commissioners.

3. Staff.

4. Duty of Commissioners.

5. Assignment of existing loans.

6. Commissioner may obtain loans from Consolidated Fund, banks.

7. Repealed.

8. Constitution of fund.

9. Purposes for which loans may be granted.

10. Limits of borrowing powers.

11. Regulations.

12. Minutes and proceedings.

13. Report.

14. Application of the provisions of the Finance Act, No. 38 of 1971.

14A. Financial year of the Board of Commissioners.

15. Security for loans.

16. Power of local authority to mortgage rate or tax.

17. Charge on property and priority of loan.

18. Power where rate or tax in default.

19. Loans by Commissioner a Crown debt.

20. Security for completion of works partly finished or not commenced.

21. Examination as to proper application of money lent.

22. Order of Commissioners upon examination.

23. Misapplication of loan.

24. Enforcement of securities.

25. Power to administer oaths.

26. Suspension of payment of principal and interest.

27. Change of security.

28. Power to extend time, compound, or release.

29. Payment of loan before the same is due.

30. Conversion of existing loans.

31. Service of Notices.

32. Meaning of mortgagor.

33. In Ordinance, unless the context otherwise requires.

22 of 1916,

6 of 1930,

25 of 1931,

43 of 1938,

21 of 1942,

9 of 1974,

29 of 1949,

24 of 1993.

AN ORDINANCE to provide facilities for the granting of loans for local purposes of public utility.

[Date of Commencement: 5th August, 1916]

1. Short title.

This Ordinance may be cited as the Local Loans and Development Ordinance.

2. Commissioners.

(1) For the purposes of this Ordinance the Minister may appoint a Board of Commissioners to be called "The Local Loans and Development Commissioners” (hereinafter referred to as "the Commissioners”).

(2) The Commissioners shall consist of at least thirteen persons all of whom shall be appointed by the Minister, and

(a) one of whom shall be the Secretary to the Ministry who shall also be the Chairman thereof;

(b) one of whom shall be a public officer nominated, by name or by office, by the Minister in charge of the subject of Finance;

(c) eight of whom shall be members of the provincial public services of the respective provinces nominated, by name or by office, by the respective Governors of such provinces;

(d) three other persons nominated by the Minister, of whom at least one shall be a person who has had experience in banking;

[S 2(2) subs by s 2(1) of Act 24 of 1993.]

(3) The Commissioners from time to time so appointed, including all persons appointed to fill temporary and casual vacancies, shall constitute a body corporate, and shall have perpetual succession and a common seal, and may sue and be sued in the name of "The Local Loans and Development Commissioners”.

[S 2(4) re-numbered as s 2(3) by s 2(2) of Law 9 of 1974.]

(4) The Commissioners shall meet as often as may be deemed necessary by the Chairman:

Provided however that a meeting of the Commissioners shall be held at least once in every three months.

[S 2(4) ins by s 2(2) of Act 24 of 1993.]

(5) The quorum for any meeting of the Commissioners shall be five, of whom at least one shall be a Commissioner appointed under paragraph (c) of subsection (2).

[S 2(5) ins by s 2(2) of Act 24 of 1993.]

3. Staff.

(1) The Commissioners may from time to time appoint or employ a secretary, and such number of professional, clerical, or other officers as they may, with the consent of the Minister, deem necessary, and may from time to time assign to any persons so appointed or employed by them such salary or remuneration as they, with the sanction of the Minister given with the concurrence of the Minister in charge of the subject of Finance, may think proper.

(2) The Commissioners may be paid remuneration at such rates as may be determined by the Commissioners, with the approval of the Minister, in addition to such traveling allowances or other, expenses as may be authorised to be paid to them, by regulations made under this Ordinance.

[S 3(2) subs by s 3 of Act 24 of 1993.]

4. Duty of Commissioners.

It shall be the duty of the Commissioners out of the fund provided by this Ordinance from time to time, in accordance with the provisions of this Ordinance, to make loans for any of the purposes thereby authorised, on such terms as to security and repayment and otherwise as they may determine.

5. Assignment of existing loans.

(1) The Minister may by Order published in the Gazette assign to the Commissioners any loan already granted by the Government to any person, society, or body of persons, or to any local authority, including any loan converted under section 30 of this Ordinance, and thereupon all sums due in respect of the said loans shall become payable to the Commissioners on the same terms and conditions as those on which prior to such assignment they were payable to the Government, and all securities for the payment of such sums shall be enforceable in the same manner as if they had been given in respect of a loan under this Ordinance.

[S 5(1) subs by s 3 of Law 9 of 1974.]

(2) Every such loan shall for the purposes of this Ordinance be deemed to be a loan under this Ordinance.

6. Commissioner may obtain loans from Consolidated Fund, banks.

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