LOANS (ISLAMIC DEVELOPMENT BANK) ACT 1977

Any sums borrowed by the Government under the powers conferred by subsection (1) for the requirements of the Government shall be paid into the Development Fund and shall, notwithstanding the provisions of section 3 of the Development Funds Act 1966

[Act 406], be applied and are hereby appropriated to the purposes for which they were borrowed as specified in any agreement concluded with the Bank in respect of the sums so borrowed:

Provided that where any part of such sum cannot be applied to the purposes aforesaid such part may be applied to such other purposes as may be approved by the Minister and the Bank.

Any agreement between the Government and the Bank in respect of sums borrowed under the powers conferred by subsection

shall be made in the name of the Government of Malaysia and may be signed on behalf of the Government by the Minister or by any person authorized thereto in writing by the Minister.

As soon as possible after the conclusion thereof a copy of any agreement concluded with the Bank in respect of any sum borrowed under the powers conferred by subsection (1) shall be laid by the Minister before each House of Parliament.

Nothing in the provisions of this section shall affect or derogate from any other existing power of the Government to borrow money.

Power to issue instrument including bonds

Any such bond, promissory note or other instrument may be signed on behalf of the Government by the Minister or by any other person authorized thereto in writing by the Minister.

Arbitration

Without prejudice to the generality of the provisions of subsection (1)—

Neither the Government nor any agency thereof nor the

Central Bank of Malaysia shall except as shall be otherwise agreed between the Minister and the Bank create any lien on any of its assets as security for any external debt unless it is expressly provided that the lien will ipso facto equally and rateably secure the payment of the principal of and charges on any loan made by or any bonds, promissory notes or instruments issued pursuant to any loan made by the Bank to the Government.

*NOTE—This Act has replaced the Arbitration Act 1952 [Act 646]–see s. 51 of Act 646.

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In subsection (3)—

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

“external debt” means any debt payable in any medium other than currency which at the time in question is legal tender for the payment of private and public debt in the Federation whether such debt is payable absolutely or at the option of the creditor in such other medium.

Loans (Islamic Development Bank)

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Act 187

LIST OF AMENDMENTS

Amending law

Short title

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ACT 187 10

Act 187

LIST OF SECTIONS AMENDED

Section

Amending authority

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