LOANS GUARANTEE (BODIES CORPORATE) ACT 1965

(Omitted).

Power to guarantee loans

Any guarantee given under this section shall be given in writing in the name of the Government and the guarantee and any endorsement on any bond, promissory note or other instrument of any guarantee given under this section may be signed on behalf of the Government by the Minister or by any person authorized thereto in writing by the Minister.

Subject to subsection (4) the Minister shall, as soon as possible after a guarantee under this section is given, lay before the Dewan Rakyat a statement of the guarantee together with a copy of the agreement aforesaid.

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Subsection (3) shall not apply to a guarantee or to any agreement which is certified by the Minister to contain confidential matters; and it shall not apply to such a guarantee until and unless those matters cease to be confidential.

Bodies corporate

Any agreement between the body corporate and the authority from which the loan guaranteed under this Act was raised shall be made in the name of the body corporate.

Issue of bonds, etc., and securities

Notwithstanding anything contained in the written law by which a body corporate is established, the body corporate may charge or mortgage all or any of its property (movable or immovable), undertaking or revenue to secure any sum raised by way of loan and guaranteed under this Act.

Loans Guarantee (Bodies Corporate)

7

Restriction on borrowing powers of body corporate so long as guarantee outstanding

that a body corporate is likely to fail or be unable to discharge any of its obligations under any agreement concluded by it under this Act or under any bond, promissory note or other instrument issued pursuant to any such agreement; and

that the Government is or may become liable under any guarantee given under this Act in respect of that obligation, the Yang di-Pertuan Agong may by order give or authorize any other person to give such directions to the body corporate as he or that other person may from time to time think necessary or desirable to ensure that satisfactory arrangements are made by the body corporate to enable it duly to discharge its obligations under such agreement, bond, promissory note or instrument or under this

Act.

The body corporate shall notwithstanding any provisions contained in the written law by which it is established comply with any directions given by or under any such order.

Body corporate to repay to Government sums paid under guarantee

If any sum is so paid out of the Consolidated Fund the

Minister shall as soon as possible after the end of each financial year beginning with that in which the sum was paid and ending with that in which all liability in respect thereof and any interest payable thereon is finally discharged by the body corporate concerned, lay before the Dewan Rakyat, a statement relating thereto.

Terms and conditions which may be agreed to or approved

Nothing in the Exchange Control Act 1953 [Act 17], shall apply to any transaction required to effect payment in any currency of any sum in accordance with the terms of any such agreement, bond, promissory note, instrument or guarantee.

Save as agreed to between the Minister and the authority from which the loan is raised, no lien on any of the assets of the body corporate shall be created as security for any debt unless it is expressly provided that the lien will ipso facto equally and rateably secure the payment of the principal, interest and other charges on any loan, or any bonds, promissory notes or instruments issued pursuant to any loan, guaranteed under this Act.

In subsection (3)—

“lien” includes mortgages, pledges, charges, privileges and priorities of any kind.

Loans Guarantee (Bodies Corporate)

9

Act 96

LIST OF AMENDMENTS

Amending law

Short title

In force from

Act A232

External Loans Guarantee (Bodies 01-09-1973

Corporate) (Amendment) Act 1974

Act A548

Loans Guarantee (Bodies Corporate)

18-02-1983

(Amendment) Act 1983

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KUALA LUMPUR

Act 96

LIST OF SECTIONS AMENDED

Section

Amending authority

In force from

Short title

Act A232 01-09-1973 2

Act A232 01-09-1973 9

Act A548 18-02-1983 10

Act A232 01-09-1973