Local Loans Act

Chapter number: 
117
In force: 
No

EDITORS' NOTE: The digital versions of legislation accessible through SeyLII are UNOFFICIAL and provided solely in the interests of increasing access to legal information.  Their currency and accuracy cannot be warranted.  Official versions of Seychelles legislation can only be obtained in hard copy from the Attorney-General’s Chambers, Department of Legal Affairs
 
This Act was repealed by the Public Debt Management Act with effect from 29 December 2008.
 

CHAPTER 117
 
                               LOCAL LOANS ACT
                                 [31st December, 1960]
 
Act 30 of 1960.
Act  1 of 1962.
S.I.95 of 1975.
Act 13 of 1975.
S.I.72 of 1976.
Act 23 of 1976.
Dec.19 of 1978.
Act  9 of 1981.
Act 23 of 1985.
S.I.61 of 1988.
S.I.39 of 1989.
S.I.41 of 1991.
S.I.66 of 1991.
 
 
ARRANGEMENT OF SECTIONS
 
SECTION                                                                                  
1.            Short title.                                                                   
2.            Interpretation.                                                             
3.            Authority by resolution of the People's                       
Assembly to raise loans.                                             
4.            Methods of raising loans.                                            
5.            Issue and redemption of debentures.                          
6.            Interest on debentures.                                                
7.            Debentures and coupons transferable                         
by delivery.
8.            Register of debentures.
9.            Redeemed debentures to be cancelled.
10.          Stock to be issued on the direction of the President.
11.          Principal Secretary to keep register of stock.
12.          Stock certificates.
13.          List of stockholders of unclaimed interest.
14.          Transfer of stock.
15.          Pledging of stocks and debentures.
16.          Replacement of damaged, defaced, lost or destroyed certificates and debentures.
17.          Closing of register.
18.          Loans to be a charge upon general revenues and assets of Government.
19.          Interest and payment thereof.
20.          Redemption of stock.
21.          Appropriation out of general revenues of sums to meet interest when due.
22.          Sinking fund.

23.          Exemption from stamp duty.
24.          Power to make regulations.
 
Short title.                 1.   This Act may be cited as the Local Loans Act.
3/23/1976.
 
Interpretation.           2.   In this Act, unless the context otherwise requires ‑
S.I.95/1975.
3/23/1976.                      "bond" means Treasury Bond issued under section 4.
2/9/1981.
2/23/1985.                      "bondholder" means a person entered as the holder of a bond
S.I.61/1988.                   in a register kept pursuant to section 11.
S.I.41/1991.
"debenture" means any debenture issued under the provisions of this act;
 
"loans" means loans raised under the provisions of this Act;
 
"Principal Secretary" means the Principal Secretary of the Ministry of Finance;
 
"register" includes any book kept by the Principal Secretary under the provisions of this Act;
 
"stock" means Seychelles stock issued under the provisions of this Act and includes any share or interest in such stock;
 
"stockholder" means any person holding stock who is entered as proprietor thereof in the register.
 
Authority                  3(1)   Subject to this Act, the Minister may raise loans in
to raise                     Seychelles on behalf of the Republic.
loans.

 (2)No agreement for a loan raised under this section shall have effect until there is published in the Gazette, with respect to that loan, an order made by the Minister giving particulars of ‑
 
(a)  the amount of the loan;
 
(b)  the purposes for which the loan will be applied;
 
(c)  the person making the loan;
 
(d)  the terms of repayment of the loan;
 
(e)  the security (if any) issued in respect the loan;
 
(f)  the interest (if any) payable on the loan;
 
(g)  the manner in which the loan shall be accounted for; and
 
(h)  such other particulars of the loan as the Minister may decide to include in the order.
 
Methods of               4.   Loans may be raised under the provisions of this Act
raising                      in the following ways:‑
loans.
3/23/1976.                (a)  by the creation and issue of registered stock which
3/23/1985.                      shall be known as Seychelles stock;
 
(b)  by the issue of securities in the form of debentures payable to bearer.
 
(c)  by the issue of bond which shall be known as Treasury Bond.
 
 

Issue and                  5(1)   Debentures may from time to time be issued in
redemption               Seychelles by the Minister, upon the directions of the
of debentures.          President, upon the best and most favourable terms that can be
S.I.95/1975.             obtained, and to such amounts and on such conditions subject
S.I.72/1976.             to the provisions of this Act, as the President may before the issue thereof from time to time direct.
 
 (2)Debentures shall be of such denomination as the Minister may from time to time direct.
 
 (3)Debentures shall be redeemable at par on a fixed date to be declared on the issue of the debentures:
 
Provided that the Minister may reserve the option to redeem the debentures prior to such dates on such conditions as may be specified as the time of issue.
 
 (4)Each debenture shall be signed by the President and countersigned by the Minister or such other persons as they may respectively appoint:
Provided that it shall be sufficient compliance with the provisions of this section if the signature and designa‑ tion of the President and the Minister or other person appointed as aforesaid are stamped on the debentures.
 
Interest on                6(1)   The interest upon the principal represented by each
debentures.               debenture shall run from the date of issue of that debenture,
S.I.95/1975.             and shall be paid half‑yearly by the Principal Secretary on
S.I.72/1976.             dates to be specified by the President.
S.I.61/1988.
S.I.41/1991.             (2)There shall be attached to each debenture coupons for the payment of interest to become due in each half‑year upon the principal moneys represented by the debenture.
 

Debentures               7.   Every debenture and coupon, and the right to receive
and coupons             the principal and interest represented thereby shall be
transferable              transferable by delivery.
by delivery.
 
Register of                8.   Every debenture shall, before being issued, be
debentures.               registered by the Principal Secretary in a register kept for
S.I.95/1975.             that purpose.
S.I.61/1988.
S.I.41/1991.
 
Redeemed                9.   Upon the repayment of the principal moneys secured by
debentures                any debenture, the debenture shall together with all outstand‑
to be                         ing coupons be delivered up to the Principal Secretary for
cancelled.                 cancellation by him.
S.I.95/1975.
S.I.61/1988.
S.I.41/1991.
 
Stock or bond           10(1)Stock and bond shall from time to time be issued in
to be issued              Seychelles upon the direction of the President by any two of
on the                       the public officers, specified in subsection (2), acting
direction of              jointly, upon the best and most favorable terms that can be
the                            obtained and to such amounts and on such conditions subject to
President.                 the provisions of this Act, as the President may direct before
S.I.95/1975.             the issue thereof.
S.I.72/1976.
3/23/1976.                  (2)   The public officers referred to in subsection (1) are‑
4/23/1985.
S.I.39/1989.             (a)  the Government of the Central Bank;
S.I.66/1991.
S.I. 87/1995             (b)  the General Manger of the Central Bank;
S.I. 59/1996

  1. the Director General Banking Services;

 
(d)Director of Banking and Currency Operations;
 

  1. Director Bank Supervision; and

 

  1. Assistant Banking and Public Debt Officer.

 
Principal                   11(1)The Principal Secretary shall keep such register as he
Secretary to             may deem necessary in which all stock or bond issued under the
keep register            provisions of this Act shall be registered, and in which all
of stock or               transfers and all dealings in such stock or bond under the
bond.                       provisions of this Act shall be registered and in which shall
S.I.95/1975.             be entered all matters and things which by this Act are
5/23/1985.                required to be entered therein.
S.I.61/1988.
S.I.41/1991.               (2)   Such registers shall be prima facie evidence of the title of any person in respect of any stock or bond of which he is entered therein as the stockholder or bondholder.
 
Stock or bond          12.The Principal Secretary shall within thirty days of
certificates.              receipt of the final instalment payable on any stock or bond
S.I.95/1975.             send to the stockholder or bondholder a certificate to the
5/23/1985.                effect that stock or bond to the value specified therein has
S.I.61/1988.             been registered in the name of the stockholder or bondholder.
S.I.41/1991.             Such stock or bond certificate shall be prima facie evidence of the title of the stockholder or bondholder specified therein.
 
List of                      13.The Principal Secretary shall keep, in a special book, a
stockholders            list of the stockholders or bondholders on whose stock or bond
or bondholders        the interest has been unclaimed for two years, together with
of unclaimed            their registered addresses and descriptions and such list
interest.                    shall be open for inspection by stockholders or bondholders or
S.I.95/1975.             their duly authorised agents upon payment of a fee of one
5/23/1985.                rupee.

S.I.61/1988.
S.I.41/1991.
 
Transfer of               14.Stock shall be transferable by an instrument of
stock.                       transfer in such form as shall be approved by the Principal 
S.I.95/1975.             Secretary, and a certificate issued by the Principal Secretary
5/23/1985.                in pursuance of such transfer and in respect of the stock or 
S.I.61/1988.             bond so transferred shall be prime facie evidence of the
S.I.41/1991.             title of the holder of the certificate to the stock or bond specified therein.
 
Pledging of              15.Stocks, bonds and debentures issued under this Act may
stocks, bonds           be given in pledge in all civil and commercial transactions. 
and                           Such pledging shall be sufficiently proved by a transfer
debentures.              inscribed in a special register kept for that purpose by the
S.I.95/1975.             Principal Secretary setting forth that the pledgee holds the
2nd Sch./13/1975.   said stocks, bond and debentures as the case may be as the owner
3/23/1976.                thereof but in pledge of a debt, the amount of which shall be
6/23/1985.                shown.  The said transfer shall be signed by the pledger and the
S.I. 61/1988.            pledgee or by the holders of their powers of attorney, and by
S.I. 41/1991.            the Principal Secretary and mention of such pledging shall be endorsed on the stock or bond certificates or debentures, as the case may be.
 
Such pledging shall, to all intents and purposes, be valid as regards the parties to the contract and all third
Cap. 33                    parties, articles 2074 and 2075 of the Civil Code of Seychelles to the contrary notwithstanding.
 
Replacement of       16(1)In case any stock or bond certificate or debenture
damaged,                 issued under this Act is damaged or defaced, it shall be
defaced, lost            lawful for the Principal Secretary to cause a new stock or 

or destroyed            bond certificate or debenture, as the case may be, to be made and
certificates               delivered to the person entitled thereto and to cause the
and                           damaged or defaced stock or bond certificate or debenture to
debentures.              be cancelled.
S.I.95/1975.
3/23/1976.                  (2)   The Principal Secretary, on proof to his satisfaction
5/23/1985.                that any stock or bond certificate or debenture issued under
S.I.61/1988.             this Act has been lost or destroyed before the same has been
S.I.41/1991.             redeemed, may if the number and amount of stock or bond certificate or debenture are ascertained, and on due security being given to his satisfaction for indemnifying the Government of Seychelles for any loss to which the Government may at any time be subjected by reason thereof, issue a new stock or bond certificate or debenture, as the case may be, corresponding in all respects with the stock or bond certificate or debenture so lost or destroyed.
 
  (3)   The new stock or bond certificate or debenture shall, to all intents and purposes, have the same effect as the original stock or bond certificate or debenture.
 
Closing of                17(1)The Principal Secretary, may for a period not exceeding
register.                    fourteen days immediately preceding the date of each payment
S.I.95/1975.             of interest on any stock or bond registered under the
3/23/1976.                provisions of this Act, close the register of that stock or
5/23/1985.                bond as regards transfers upon giving not less than seven
S.I.61/1988.             days' notice of such closing.  Such notice shall be published in
S.I.41/1991.             the Gazette.
 
  (2)   The persons who on the day of such closing are registered as stockholders or bondholders shall, as between them and their transferees, be entitled to the interest then next payable on the stock or bond.
 

Loans to be a           18.The principal moneys from, and interest on, loans are
charge upon             hereby charged upon and shall be payable out of the general
general                     revenues and assets of the Government of seychelles.
revenues and
assets of the
Government.
 
Interest and             19.Interest shall be payable on stock or bond by warrant
payment                   half‑yearly by the Minister on behalf of the Government of
thereof.                    seychelles at such rate as shall have been fixed by the
S.I.95/1975.             President at the time of the issue of the stock or bond.
S.I.72/1976.
5/23/1985.
 
Redemption             20(1)Stock or bond shall be redeemable in the office of the
of stock.                   Principal Secretary at par on a date to be fixed by the President
S.I.95/1975.             at the time of issue of the stock or bond provided that the
S.I.72/1976.             Minister may reserve the option to redeem the stock or bond in
S.I.23/1985.             whole or in part, by drawings or otherwise at any time prior
S.I.61/1988.             to such date on such conditions as may be specified at the time
S.I.41/1991.             of issue.
 
  (2)   From and after the date appointed for the redemption of stock or bond or any part of it all the interest on the principal moneys secured thereby shall cease and determine, whether payment of the principal shall have been demanded or not.
 
Appropriation          21  So long as any portion of any loan remains outstanding
out of general          the President shall in each half‑year ending with the day on
revenues of              which the interest on that loan falls due appropriate out of
sums to meet            the general revenues and assets of the Government of
interest when           Seychelles a sum equal to one half‑year's interest on the
due.                          whole of that loan outstanding, and shall authorize the
S.I.95/1975.             Principal Secretary to pay out of such sum the current half‑

S.I.72/1976.             years's interest on the date on which it falls due.
S.I.61/1988.
S.I.41/1991.
 
Sinking fund.           22(1)The Principal Secretary shall have ‑
2/Dec.19/1978.
S.I.61/1988.             (a)  discretion as to whether a Sinking Fund shall be
S.I.41/1991.                   established under this Act;
 
(b)  discretion to close any Sinking Fund established under paragraph (a).
 
  (2)   Where the establishment of a Sinking Fund is approved, the President shall in each half year ending with the day on which the interest on any loan falls due appropriate out of the general revenues and assets of the Government of Seychelles for payment into a sinking fund an additional sum equal to one half of the annual contribution specified in the prospectus, or, in the case of a loan not issued publicly, in the terms of issue relating to the loan and such sum shall be invested by the Principal Secretary as a sinking fund for the final extinction of the debt and the Principal Secretary shall also invest the dividends, interest or produce of such investments and may from time to time change such investments and shall hold such fund in trust for the payment of principal monies for the time being represented by the investments:
 
Provided that if at any time the Principal Secretary  is satisfied that the value of the fund will be sufficient with further accumulations of interest but without further payments of contributions to enable the loan to be redeemed out of the proceeds of the sinking fund when the same shall fall to be redeemed, the President may suspend further payment of contributions to the said sinking fund:

Provided further that contributions to the sinking fund shall be recommenced if the Principal Secretary shall at any time inform the President that it is necessary.
 
Exemption               23.Anything to the contrary notwithstanding in the Stamp
from stamp              Duty Act, no stamp duty shall be payable on the transfer of
duty.                        any debenture or stock or bond.
5/23/1985.
Cap. 226
 
Power to                  24(1)The Minister may make regulations generally for
make                        carrying out the objects and provisions of this Act.
regulations.
S.I.95/1975.               (2)   In particular and without prejudice to the generality
3/23/1976.                of the foregoing provisions, such regulations may provide for‑
7/23/1985.
(a)  the registration of debentures, bond or stock in registers;
 
(b)  the persons who may be registered as stock holders, bondholders or debenture holders;
 
(c)  the method by which any payment in respect of stock, bond or debentures shall be made;
 
(d)the method by which stock and bond may be transferred;
 
(e)  the registration, payment of interest, repayment of principal, and transfer of stock, bond and debentures in the case of persons who are under legal disability;
 
(f)  the replacement of lost debentures, stock or bond certificates;
 

(g)  the circumstances in which alterations may be made in registers;
 
(h)  the disposal of unclaimed interest;
 
(i)   the conditions subject to which debentures, bond or stock may be exchanged, consolidated or subdivided;
 
(j)   the fees to be paid in respect of anything to be done under the provisions of this Act.