CHAPTER 372
INTERNATIONAL BANK LOAN APPROVAL ACT
Arrangement of Sections
Section
1. Short title
2. Interpretation
3. Loan Agreements approved and provisions thereof to be binding
AN ACT
to provide approval of a loan from the International Bank for Reconstruction and Development.
[8th May, 1953]
Act 21 of 1953.
SI 159 of 1965.
This Act may be cited as the International Bank Loan (Approval) Act.
In this Act, unless the context otherwise requires—
“Loan Agreements” means the Loan Agreement and Subsidiary Agreement set out in the Schedule.
3. Loan Agreements approved and provisions thereof to be binding
The Loan Agreements are hereby approved and notwithstanding the provisions of any written law now in force, the terms and conditions of the Loan Agreements shall be of full force and effect and binding upon the Government from the date of the execution thereof.
[Section 2]
LOAN NUMBER 74 N.R.
LOAN AGREEMENT (RHODESIA RAILWAYS PROJECT) BETWEEN TERRITORY OF NORTHERN RHODESIA AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT. DATED MARCH 11, 1953
LOAN AGREEMENT
Agreement, dated March 11, 1953, between TERRITORY OF NORTHERN RHODESIA (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank)
ARTICLE I
Loan Regulations; Special Definitions
SECTION 1.01. The parties to this Agreement accept all the provisions of Loan Regulations No. 4 of the Bank dated October 15, 1952, subject, however, to the modifications thereof set forth in Schedule 3 to this Agreement (such Loan Regulations No. 4 as so modified being hereinafter called the Loan Regulations), with the same force and effect as if they were fully set forth herein.
SECTION 1.02. Except where the context otherwise requires, the following terms have the following meanings wherever used in this Agreement or any Schedule hereto:
(a) The term “Subsidiary Agreement” means the agreement of even date herewith between the Borrower, the Colony of Southern Rhodesia and the Bank relating to the carrying out of the Project and certain other matters connected with the Loan.
(b) The term “Rhodesia Railways” means the Rhodesia Railways, a body corporate established and incorporated under the Rhodesia Railways Act, 1949, as amended, of the Colony of Southern Rhodesia.
(c) The term “Southern Rhodesia currency” means currency issued by the Southern Rhodesia Currency Board pursuant to the Coinage and Currency Act, 1938, of the Colony of Southern Rhodesia, as amended, or such other coin and currency as at the time referred to shall be legal tender for the payment of public and private debts in the territory of the Borrower.
ARTICLE II
The Loan
SECTION 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in this Agreement set forth or referred to, the sum of Fourteen Million dollars ($14,000,000), or the equivalent thereof in currencies other than dollars.
SECTION 2.02. The Bank shall open a Loan Account on its books in the name of the Borrower and shall credit to such Account the amount of the Loan. The amount of the Loan may be withdrawn from the Loan Account as provided in, and subject to the rights of cancellation and suspension set forth in, the Loan Regulations.
SECTION 2.03. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent. (3/4%) per annum on the principal amount of the Loan not so withdrawn from time to time.
SECTION 2.04. The Borrower shall pay interest at the rate of four and three-fourths per cent. (4 3/4%) per annum on the principal amount of the Loan so withdrawn and outstanding from time to time.
SECTION 2.05. Except as the Bank and the Borrower shall otherwise agree, the charge payable for special commitments entered into by the Bank at the request of the Borrower pursuant to Section 4.02 of the Loan Regulations shall be at the rate of one-half of one per cent. (1/2%) per annum on the principal amount of such special commitments outstanding.
SECTION 2.06. Interest and other charges shall be payable semi-annually on February 1 andAugust 1 in each year.
SECTION 2.07. The Borrower shall repay the principal of the Loan in accordance with the amortisation schedule set forth in Schedule 1 to this Agreement.
ARTICLE III
Use of Proceeds of the Loan
SECTION 3.01. The Borrower shall apply the proceeds of the Loan exclusively to the cost of goods which will be required to carry out the Project described in Schedule 2 to this Agreement. The specific goods to be purchased out of the proceeds of the Loan shall be determined by agreement between the Borrower and the Bank, and the list of such goods may be modified from time to time by agreement between them.
SECTION 3.02. The Borrower shall cause all goods purchased in whole or in part with the proceeds of the Loan to be used exclusively in the carrying out of the Project.
ARTICLE IV
Bonds
SECTION 4.01. The Borrower shall execute and deliver Bonds representing the principal amount of the Loan as provided in the Loan Regulations.
SECTION 4.02. The Governor of the Borrower in office at the time in question and such person or persons as he shall appoint in writing are designated as authorised representatives of the Borrower for the purposes of Section 6.12(a) of the Loan Regulations.
ARTICLE V
Particular Covenants
SECTION 5.01. The Borrower shall make the proceeds of the Loan available to the Rhodesia Railways on terms and conditions satisfactory to the Bank.
SECTION 5.02. It is the mutual intention of the Borrower and the Bank that no debt other than debt payable in Southern Rhodesia currency shall enjoy any priority over the Loan by way of a lien on governmental assets. To that end, the Borrower undertakes that, except as the Bank shall otherwise agree, if any lien shall be created on any of the assets of the Borrower as security for any such debt, such lien will ipso facto equally and rateably secure the payment of the principal of, and interest and other charges on, the Loan and the Bonds, and that in the creation of any such lien express provision will be made to that effect, provided, however, that the foregoing provisions of this Section shall not apply to—
(i) any lien created on property, at the time of purchase thereof, solely as security for the payment of the purchase price of such property;
(ii) any lien on commercial goods to secure a debt maturing not more than one year after the date on which it is originally incurred and to be paid out of the proceeds of sale of such commercial goods; or
(iii) any lien arising in the ordinary course of banking transactions tosecure a debt maturing not more than one year after the date on which it is originally incurred.
The word Borrower as used in this Section means the Borrower or any of its political subdivisions or any agency of any of the foregoing.
SECTION 5.03. The principal of, and interest and other charges on, the Loan and the Bonds shall be paid without deduction for and free from any taxes or fees imposed under the laws of the Borrower or laws in effect in its territories; provided, however, that the provisions of this
Section shall not apply to taxation of, or fees upon, payments under any Bond to a holder thereof other than the Bank when such Bond is beneficially owned by an individual or corporate resident of the Borrower.
SECTION 5.04. The Loan Agreement and the Bonds shall be free from any taxes or fees that shall be imposed under the laws of the Borrower or laws in effect in its territories on or in connection with the execution, issue, delivery or registration thereof and the Borrower shall pay all such taxes and fees, if any, imposed under the laws of the country or countries in whose currency the Loan and the Bonds are payable or laws in effect in the territories of such country or countries.
SECTION 5.05. The principal of, and interest and other charges on, the Loan and the Bonds shall be paid free from all restrictions imposed under the laws of the Borrower or laws in effect in its territories.
SECTION 5.06. The Borrower shall satisfy the Bank that adequate arrangements have been made to insure the goods financed with the proceeds of the Loan against risks incident to their purchase and delivery for use in the Project.
ARTICLE VI
Remedies of the Bank
SECTION 6.01. If any event specified in paragraph (a) or paragraph (b) of Section 5.02 of the Loan Regulations shall occur and shall continue for a period of thirty days or if any event specified in paragraph (c) of Section 5.02 of the Loan Regulations shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Bank to the Borrower, then at any subsequent time during the continuance thereof, the Bank, at its option, may declare the principal of the Loan and of all the Bonds then outstanding to be due and payable immediately, and upon any such declaration such principal shall become due and payable immediately, anything in this Loan Agreement or in the Bonds to the contrary notwithstanding.
ARTICLE VII
Effective Date; Termination
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SECTION 7.01. The following events are specified as additional conditions to the effectiveness of this Agreement within the meaning of Section 9.01(c) of the Loan Regulations:
(a) Arrangements satisfactory to the Bank shall have been made for the exchange of information on work in progress in Southern Rhodesia and the Portuguese Province of Mozambique for the construction of the connecting railway lines described in paragraph (i) of Schedule 2 to this Agreement, and for mutual assistance where practicable and desirable between the bodies in Southern Rhodesia and the Province of Mozambique charged with the carrying out of such construction for the completion of such railway lines.
(b) The execution and delivery of the Subsidiary Agreement on behalf of the Borrower and on behalf of the Colony of Southern Rhodesia shall have been duly authorised or ratified by all necessary governmental action.
SECTION 7.02. The following is specified as an additional matter within the meaning of Section 9.02(d) of the Loan Regulations, to be included in the opinion or opinions to be furnished to the Bank: That the Subsidiary Agreement has been duly authorised or ratified by, and executed and delivered on behalf of the Borrower and the Colony of Southern Rhodesia and constitutes a valid and binding obligation of the Borrower and of the Colony of Southern Rhodesia in accordance with its terms.
SECTION 7.03. May 31, 1953, is hereby specified for the purposes of Section 9.04 of the Loan Regulations.
ARTICLE VIII
Miscellaneous
SECTION 8.01. The Closing Date shall be December 31, 1954.
SECTION 8.02. May 1, 1953, or the Effective Date, whichever shall be the earlier, is hereby specified for the purpose of Section 2.02 of the Loan Regulations.
SECTION 8.03. The following addresses are specified for the purposes of Section 8.01 of the Loan Regulations:
For the Borrower:
The Financial Secretary to the Government of Northern Rhodesia,
The Secretariat,
Lusaka,
Northern Rhodesia.
For the Bank:
International Bank for Reconstruction and Development,
1818 H Street, N.W.,
Washington 25, D.C.,
United States of America.
SECTION 8.04. The Governor of the Borrower in office at the time in question is designated for the purposes of Section 8.03(a) of the Loan Regulations, set forth in Schedule 3 to this Agreement.
IN WITNESS WHEREOF the parties hereto, acting through their representatives thereunto duly authorised, have caused this Loan Agreement to be signed in than respective names and delivered in the District of Columbia, United States of America, as of the day and year first above written.
TERRITORY OF NORTHERN RHODESIA
by J. B. Ross
Authorised Representative
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
by R. L. GARNER Vice President
SCHEDULE 1
Amortisation Schedule
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Date Payment Due Principal amount Payment of (Principal (expressed in dollars)* outstanding after each payment (expressed in dollars)* August 1, 1955 $000,000 $14,000,000 February 1, 1956 284,000 13,716,000 August 1, 1956 291,000 13,425,000 February 1, 1957 298,000 13,127,000 August 1, 1957 305,000 12,822,000 February 1, 1958 312,000 12,510,000 August 1, 1958 320,000 12,190,000 February 1, 1959 327,000 11,863,000 August 1, 1959 335,000 11,528,000 February 1, 1960 343,000 11,185,000 August 1, 1960 351,000 10,834,000 February 1, 1961 359,000 10,475,000 August 1, 1961 368,000 10,107,000 February 1, 1962 377,000 9,730,000 August 1, 1962 386,000 9,344,000 February 1, 1963 395,000 8,949,000 August 1, 1963 404,000 8,545,000 February 1, 1964 414,000 8,131,000 August 1, 1964 424,000 7,707,000 February 1, 1965 434,000 7,273,000 August 1, 1965 444,000 6,829,000 February 1, 1966 455,000 6,374,000 August 1, 1966 465,000 5,909,000 February 1, 1967 476,000 5,433,000 August 1, 1967 488,000 4,945,000 February 1, 1968 499,000 4,446,000 August 1, 1968 511,000 3,935,000 February 1, 1969 523,000 3,412,000 August 1, 1969 536,000 2,876,000 February 1, 1970 548,000 2,328,000 August 1, 1970 562,000 1,766,000 February 1, 1971 575,000 1,191,000 August 1, 1971 589,000 602,000 February 1, 1972 602,000 - *To the extent that any part of the Loan is repayable in a currency other than dollars (see Loan Regulations, Section 3.02), the figures in these columns represent dollar equivalents determined as for purposes of withdrawal. Premiums on Prepayment and Redemption The following percentages are specified as the premiums payable on repayment in advance of maturity of any part of the principal amount of the Loan pursuant to Section 2.05(b) of the Loan Regulations or on the redemption of any Bond prior to its maturity pursuant to Section 6.16 of the Loan Regulations:
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