Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648

Incorporating all amendments up to 1 January 2007

(Revised--2006)

LOAN ( LOCAL ) ACT 1957 (REVISED--2006)
ACT 648

Part I PRELIMINARY

SECTION

1.Short title

2.Interpretation

Part II AUTHORIZATION AND APPLICATION OF LOAN

SECTION

3.Power to raise loan

4.Principal and interest charged on Consolidated Fund

5.Application of loan

6.Omitted or Deleted Section

Part III PROVISIONS APPLICABLE TO STOCK

SECTION

7.Issue and form of stock

8.Refusal of application

9.Register of stock

10.Interest

11.Redemption of stock

12.Sinking fund

13.Application of sinking fund

14.Procedure if sinking fund insufficient

15.Delivery up of stock on repayment

Part IV general

SECTION

16.Omitted or Deleted Section

17.Power to issue Treasury Bills and to repay expenditure in respect thereof from loan

First Schedule

Second Schedule

An Act to authorize a sum of two hundred million ringgit to be raised in Malaysia by way of loan for certain public works and for other purposes.

[19 December 1957]

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/1.Short title

Part I PRELIMINARY

1. Short title

This Act may be cited as the Loan (Local) Act 1957.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/2.Interpretation

2. Interpretation

(1) In this Act, unless the context otherwise requires--

"local stock"

means any stock issued in Malaysia under this Act or under any of the written laws set out in the First Schedule;

"Minister"

means the Minister for the time being charged with the responsibility for finance;

"trustee stock"

means any of the securities mentioned in section 4 of the Trustee Act 1949 [Act 208].

(2) (Omitted).

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/3.Power to raise loan

Part II AUTHORIZATION AND APPLICATION OF LOAN

3. Power to raise loan

(1) The Minister may from time to time raise, by the issue of stock in the manner hereinafter provided, a sum of money not exceeding in the whole the sum of two hundred million ringgit to be applied in the manner provided and such further sums as may be necessary to defray the expenses of issues of stock or Treasury Bills under this Act.

(2) The loan hereby authorized shall be raised in Malaysia by the issue of registered stock under Part III.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/4.Principal and interest charged on Consolidated Fund

4. Principal and interest charged on Consolidated Fund

The principal moneys and interest represented by stock issued under this Act are charged upon and shall be payable out of the Consolidated Fund.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/*5Application of loan

^*5 Application of loan

The money raised under this Act other than sums required to defray the expenses of issues of stock or Treasury Bills under this Act shall be paid into the Development Fund specified in the Second Schedule to the Financial Procedure Act 1957 [Act 61] and shall be applied only to the purposes of such fund.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/6.Omitted or Deleted Section

6. Omitted or Deleted Section

(Deleted by Ordinance No. 18 of 1958).

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/7.Issue and form of stock

Part III PROVISIONS APPLICABLE TO STOCK

7. Issue and form of stock

(1) Stock issued under this Act shall be issued by the Treasury upon such terms as may be approved by the Minister and shall be authenticated either by the signature of the Secretary General to the Treasury or by a facsimile of such signature or in such manner as may be approved by the Secretary General to the Treasury.

(2) Stock issued under this Act shall be in such form as the Secretary General to the Treasury may from time to time approve.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/8.Refusal of application

8. Refusal of application

Any application to take up stock issued under this Act may be refused by the Secretary General to the Treasury without reason assigned.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/9.Register of stock

9. Register of stock

(1) All stock issued under this Act shall be entered in a register to be kept for the purpose by the Treasury in such form as may from time to time be approved by the Secretary General to the Treasury.

(2) All stock issued under this Act and the right to receive the principal moneys and interest represented thereby shall be transferable by an instrument of transfer registered by the Treasury.

(3) No stock issued under this Act shall be registered except in the name of an individual person or persons or of a corporation.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/10.Interest

10. Interest

(1) The interest upon the principal moneys represented by any stock issued under this Act shall be paid half-yearly at the office of the Treasury.

(2) The Minister shall in each half-year ending with the day on which interest on stock issued under this Act falls due, appropriate out of the Consolidated Fund a sum equal to one-half year"s interest on the whole of the stock so issued in order that the interest for such half-year may be paid from it.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/11.Redemption of stock

11. Redemption of stock

Stock issued under this Act shall be redeemable on such dates as may be specified in the prospectus, after which dates all the interest on the principal moneys represented thereby shall cease and determine, whether payment of such principal moneys shall have been demanded or not.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/12.Sinking fund

12. Sinking fund

(1) Commencing not later than two years after the date on which interest on stock issued under this Act shall commence to run, the Minister shall in each half-year ending on the day on which interest on such stock falls due in addition to the sum appropriated in accordance with subsection 10(2), appropriate out of the Consolidated Fund for the formation of a sinking fund a sum equal to one half of the annual contributions specified in the prospectus relating to the issue of such stock.

(2) If at any time the Minister is satisfied that the value of the sinking fund will be sufficient with further accumulations of interest but without further payment of such contribution to enable the loan to be redeemed out of the proceeds of the sinking fund when the same falls due to be redeemed, the Minister may suspend further payments of such contribution to the sinking fund:

Provided that the Minister may at any time recommence payment of such contribution if he considers this to be necessary.

(3) The Minister may, at any time, apply all or any part of the moneys in the sinking fund created under this section to the purchase of trustee stock or local stock forming part of a loan which matures not later than the loan raised under this Act.

(4) The Accountant General shall in each year pay into the sinking fund created under this section a sum equivalent to the annual interest which would have been payable on any local stock purchased under subsection (3) if such stock had not been purchased as aforesaid.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/13.Application of sinking fund

13. Application of sinking fund

The sinking fund created under section 12 shall be applied in the first place in payment of all expenses of, or incidental to, the management of the sinking fund and the redemption of the stock issued under this Act, and then in repayment of principal moneys represented by the stock.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/14.Procedure if sinking fund insufficient

14. Procedure if sinking fund insufficient

In case the sinking fund created under section 12 is insufficient for the repayment of all principal moneys represented by stock issued under this Act at the time when the same becomes due, the Minister shall make good the deficiency out of the Consolidated Fund.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/15.Delivery up of stock on repayment

15. Delivery up of stock on repayment

Before the repayment of the principal moneys represented by any stock issued under this Act, such stock shall be delivered up to the Treasury for cancellation.

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/16.Omitted or Deleted Section

Part IV general

16. Omitted or Deleted Section

(Deleted by Ordinance No. 18 of 1958).

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/17.Power to issue Treasury Bills and to repay expenditure in respect thereof from loan

17. Power to issue Treasury Bills and to repay expenditure in respect thereof from loan

(1) In anticipation of raising any loan or any part of any loan under the authority of this Act, the Minister may, if he thinks fit, raise such sum not exceeding the amount of such loan or part of a loan as he may deem necessary by the issue of Treasury Bills under the Treasury Bills (Local) Act 1946 [Act 188].

(2) Every sum raised under subsection (1) shall be applied in the manner authorized for the loan or part of the loan in respect of which such sum is raised and upon the raising of such loan or part of such loan the Minister may--

(a) expend from it such amounts as may from time to time be necessary to meet the liabilities of the Government in respect of any Treasury Bills issued under subsection (1); or

(b) where any such liabilities in respect of Treasury Bills have been met in the first instance out of the Consolidated Fund, refund to the Consolidated Fund such sums as may have been expended from it for that purpose. 

Unannotated Statutes of Malaysia - Principal Acts/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) Act 648/LOAN ( LOCAL ) ACT 1957 (REVISED--2006) ACT 648,,/First Schedule