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CHAPTER 379 - DEVELOPMENT BOND ACT: SUBSIDIARY LEGISLATION

INDEX TO SUBSIDIARY LEGISLATION

Development Bond Regulations

DEVELOPMENT BOND REGULATIONS

[Section 6]

[Currency mentioned in this regulation should be re-denominated as stipulated under S 4 of Re-denomination Act, 2012, read with S 29 of Bank of Zambia Act, 1996.]

Arrangement of Regulations

   Regulation

   1.   Short title

   2.   Interpretation

   3.   Particulars of prospectus

   4.   Forms of bonds

   5.   Persons who may be holders of bonds

   6.   Maximum holdings of bonds

   7.   Manner of purchase of bonds

   8.   Register of bonds

   9.   Evidence

   10.   Interest not payable in certain circumstances

   11.   Holder of bonds becoming subject to legal disability or dying

   12.   Encashment of bonds

   13.   Bond certificates not negotiable

   14.   Notice of trust not receivable by Bank

   15.   Transfer of bonds

   16.   Payment of Bank

   17.   Lost or damaged bond certificates

   18.   Indemnity

      SCHEDULE

SI 255 of 1968.

 

1. Short title

These Regulations may be cited as the Development Bond Regulations.

 

2. Interpretation

In these Regulations, unless the context otherwise requires—

“the Bank” means the Bank of Zambia;

“bond certificate” means a certificate in Form 2 of the Schedule;

“the register” means the register of bonds provided for in regulation 8.

 

3. Particulars of prospectus

Every prospectus shall include the following particulars relating to bonds of the issue to which the prospectus relates—

      (a)   the title of the bonds;

      (b)   the units of currency in relation to which the bonds shall be issued;

      (c)   the rate of interest and any other benefits payable on the bonds and the dates upon which or the intervals after which such payments shall be made;

      (d)   the period or periods after the purchase of the bonds upon the expiration of which benefits thereon shall cease to accrue; and

      (e)   the persons authorised to accept applications and subscriptions for the bonds and to issue receipts for such subscriptions.

 

4. Forms of bonds

Bonds shall take the form of an acknowledgment by registration under regulation 8 of the ownership of capital sums lent to the Government under the Act.

 

5. Persons who may be holders of bonds

Any individual or any association of individuals which is approved for the purpose by the Bank shall be entitled to hold bonds, and no other person shall be so entitled.

 

6. Maximum holdings of bonds

   (1) No person other than an association of individuals shall hold bonds to a value exceeding one thousand kwacha in aggregate:

Provided that such limitation shall not have effect in relation to the Worker's Compensation Commissioner in so far as purchases made by him are made in the exercise of his functions under the Worker's Compensation Act.


{mprestriction ids="2,3,5"}

   (2) No association of individuals shall hold bonds to a value exceeding one thousand kwacha in aggregate without the consent of the Bank.

 

7. Manner of purchase of bonds

   (1) Applications for the purchase of bonds of any issue may be made to any person described in the prospectus for that issue and shall be submitted in Form 1 of the Schedule together with the particulars of the bonds required.

   (2) The applicant shall then be given a receipt by the person to whom the application is made who shall forward the application to the Bank.

   (3) On receipt of an application for bonds made under this regulation the Bank shall, unless the holding of the bonds by the person described in the application would be in conflict with any provision of the Act or these Regulations, enter the appropriate particulars in the register and that person shall thereupon be deemed to have been the holder of the bonds applied for from the date of the application and the Bank shall send to him a certificate in Form 2 of the Schedule.

 

8. Register of bonds

   (1) The Bank shall maintain a register of bonds which shall record the name and address of every holder of bonds and the value of bonds held by him, details of every transfer and encashment of bonds and may changes in the particulars recorded.

   (2) The Bank may, on application by, or with the consent of, the holder of any bonds, make such amendments to the register as may necessary to correct any error in the particulars recorded therein.

 

9. Evidence

The register or any copy of an entry therein which is duly certified by or on behalf of the Governor of the Bank shall be prima facie evidence of the particulars recorded therein.

 

10. Interest not payable in certain circumstances

No interest or other benefits shall be payable on any bonds—

      (a)   in respect of any period after the benefits payable on the bonds have, in terms set out in a prospectus, ceased to accrue;

      (b)   held in excess of the amount permitted under these Regulations;

      (c)   held by any person who is not entitled under these Regulations to hold bonds;

      (d)   which are encashed before they have been held for a period of six months; or

      (e)   in respect of any period after the death of the holder.

 

11. Holder of bonds becoming subject to legal disability or dying

Where any holder of bonds becomes of unsound mind or otherwise subject to any legal disability or dies, anything which in accordance with these Regulations may be done by or to him may be done by or to the person having power in law to administer his property or estate.

 

12. Encashment of bonds

   (1) On making application on Form 3 of the Schedule, any holder may encash bonds which he has held for a period of not less than six months and, subject to this regulation, the Bank shall forthwith pay to the holder the purchase price of the bonds.

   (2) Notwithstanding the provisions of sub-regulation (1)—

      (a)   if the period during which benefits accrue to the holder in terms of the prospectus has not yet expired, the Bank may withhold the payment to a holder until the expiration of one month from receipt of the application for encashment; and

      (b)   the Bank may in its discretion allow a holder to encash bonds at any time.

   (3) Whenever the Bank makes a payment under this regulation to a holder of bonds it shall pay to the holder all unpaid interest and other benefits accrued.

 

13. Bond certificates not negotiable

A bond certificate shall not be negotiable and no claim shall lie against the Bank in respect of any bonds save a claim by the holder.

 

14. Notice of trust not receivable by Bank

No notice of any trust, express, implied or constructive, shall be receivable by the Bank or recorded in the register.

 

15. Transfer of bonds

   (1) Bonds may not be transferred from the holder to any other person without the consent of the Bank which may in its discretion refuse such consent.

   (2) In the event of a transfer of bonds, the register shall be amended accordingly and thereupon the previous holder shall cease to be a holder and the transferee shall be the holder of the bonds transferred and shall be provided with a fresh bond certificate.

 

16. Payment by bank

   (1) Subject to sub-regulation (2), the Bank may make any payment in respect of bonds by cheque sent by registered mail to the last address furnished by the holder to the Bank, and the paid cheque shall be a full discharge to the Bank in respect of the sum for which the cheque was drawn.

   (2) No payment due in respect of bonds held by an individual under the age of sixteen years shall be made otherwise than by payment to the credit of the holder in a bank account or post office savings bank account.

 

17. Lost or damaged bond certificates

   (1) A holder shall forthwith notify the Bank in the event of a bond certificate issued to him under these Regulations being lost, damaged or destroyed.

   (2) The Bank may issue a duplicate bond certificate in any case of loss, damage or destruction of the original.

 

18. Indemnity

   (1) No liability shall attach to the Government, the Bank or any officer of the Government or the Bank in respect of any payment made or act done in accordance with these Regulations.

   (2) Nothing in these Regulations provided shall prejudice the rights of any third person against the person to whom a payment has been made in accordance with these Regulations.

SCHEDULE

[Regulations 7 and 12]

PRESCRIBED FORMS

FORM 1

APPLICATION TO PURCHASE FIVE-YEAR ZAMBIA REGISTERED DEVELOPMENT BONDS

FIRST ISSUE

This Form to be completed in triplicate

Date..................

I, (Surname) .........................................................................................................................................
(BLOCK CAPITALS PLEASE)

(Given Names)......................................................................................................................................

apply for five-year Zambian Registered Development Bonds (First Issue) to the value of K................... for which amount I enclose my cheque/payment.

      Please send my Official Receipt to the under-noted address which will be my registered address.

      Please note that the maximum individual holding of development bonds permissible is K1,000.

      Bonds will be dated by the Registrar as at the date that the application form and cash value are received by the agent.

      Bonds are neither negotiable nor normally transferable.

The temporary receipt, being the authenticated duplicate of this form, should be surrendered to the Registrar, The Development Bond Office, Lusaka, when the official receipt is received.

 

National Registration Card Number 

 

Please detail Postal Address below



 

Signature or left-hand thumbprint of applicant.


 

If an address other than one in Zambia is given then this application must be made through a bank.

FORM 2

NOT NEGOTIABLE

ZAMBIAN REGISTERED DEVELOPMENT BONDS

FIRST ISSUE

This is to certify that (name and address of bondholder) ..................................................................................................... .......................................................................................................................................................................... is the holder of Zambian Registered Development Bonds described below for which the full purchase price has been paid.

 

Date 

Bond Numbers 

Holding 

Value 

From 

To 

 

 

 

 

   K

 

.............................................................. 

 

(value of holding thereafter) 

Bonds are not normally transferable, mature five years from the date shown here on, and earn no benefits thereafter.

 

 

.................................................................. 

.............................................................. 

Governor, 

Registrar 

Bank of Zambia, Lusaka

FORM 3

APPLICATIONS FOR ENCASHMENT

FIVE-YEAR REGISTRERED DEVELOPMENT BONDS

If forwarded through an Agent,

his stamp to appear here.

The Registrar,

The Development Bond Office,

Bank of Zambia,

Lusaka.

I, (Surname) ................................................. (Given Names).................................................................

.................................................................................................................................................................

enclose the receipt(s) in respect of

 

Bond(s) numbered and registered in my name and 

FOR OFFICE USE ONLY 

request encashment of of these Bonds total 

 

 

Initials 

value K plus any interest accrued thereon.

   Please make payment:

*(a) To my bankers for the credit of my current/savings account at Bank.................................................
................................................................Branch
………………………………………………..

*(b) By cheque, to the undermentioned address. 

Signature
Checked 

Amount of Interest 


Worker 


Checker

 

National Registration Card
Number 

 

Please detail Postal Address to which the cheque should be sent 

Signature or left-hand thumbprint of applicant. 

 

.................................................................. 

..................................................................

*Delete as necessary.{/mprestriction}