*LOANS (INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT) ACT 1992

This Act shall apply throughout Malaysia.

Interpretation

All moneys borrowed by the Government under subsection

shall be paid into the Development Fund and shall, notwithstanding section 3 of the Development Funds Act 1966

[Act 406], be applied and are hereby appropriated to the purposes for which they were borrowed:

Provided that where any part of such moneys 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 Fund.

Any agreement between the Government and the Fund in respect of moneys borrowed under subsection (1) 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 in writing by the Minister.

A copy of any agreement referred to in subsection (3) shall as soon as practicable be laid before the Dewan Rakyat.

Nothing in this section shall affect or derogate from any other power to borrow possessed by the Government.

Power to issue instruments including bonds

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

Borrowing by statutory authority from Fund

Notwithstanding anything contained in the written law by which a statutory authority is established, any agreement between the statutory authority and the Fund shall be valid and binding on the statutory authority if signed on behalf of the statutory authority by a person authorized in writing under the seal of the statutory authority.

The power to borrow under this section shall be in addition to any power to borrow conferred on such statutory authority by any other written law.

Notwithstanding anything contained in the written law by which a statutory authority is established, the statutory authority may charge or mortgage all or any of its property (movable or immovable)

undertaking or revenue to secure any sum owing to the Fund in respect of sums borrowed under subsection (1).

Notwithstanding anything contained in any written law a statutory authority may issue such bonds, promissory notes and other instruments on such terms and conditions as may be necessary for the purpose of giving effect to any agreement which may be entered into by it with the fund in respect of any borrowing under subsection (1).

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Application of loan moneys by statutory authority

guarantee the discharge by a statutory authority of its obligations under any agreement which may be entered into by the statutory authority with the Fund in respect of any borrowing under subsection 5(1) or under any bond, promissory note or other instrument issued pursuant to any such agreement; and

undertake such other obligations as may be agreed between the Government and the Fund in relation to or pursuant to any such agreement, bond, promissory note or instrument.

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

A copy of any statement of any guarantee or undertaking referred to in this section shall be laid before the Dewan Rakyat.

Loans (International Fund For 9

Agricultural Development

Restriction on borrowing powers of statutory authority so far as guarantee outstanding

that a statutory authority is likely to fail or be unable to discharge any of its obligations under any agreement concluded by it with the Fund 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 or other undertaking given under subsection 7(1) in respect of such obligations, the Yang di-Pertuan Agong may, by order, give or authorize any other person to give such directions to the statutory authority as he or such other person may from time to time think necessary or desirable to ensure that satisfactory arrangements are made by the statutory authority to enable it to duly discharge its obligations under such agreement, bond, promissory note or instrument or under this Act.

The statutory authority shall, notwithstanding anything contained in the written law by which it is established, comply with any directions given by or under any such order.

Nothing in this section shall affect or derogate from any other power conferred by any written law on the Yang di-Pertuan Agong or any Minister or public officer in respect of the statutory authority.

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Statutory authority to repay to Government sums paid under guarantee

If any money 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 money was paid and ending with that in which all liability in respect thereof and any interest payable thereon is finally discharged by the statutory authority concerned, lay before the Dewan Rakyat a statement relating thereto.

Arbitration

Without prejudice to the generality of subsection (1)―

Neither the Government nor any agency thereof nor any statutory authority nor the Central Bank of Malaysia shall, except as shall be otherwise agreed between the Minister and the Fund, 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 ratebaly secure the payment―

In subsection (3)―

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“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 Malaysia whether such debt is payable absolutely or at the option of the creditor in such other medium.

For the purposes of subsection (3), the assets of the

Government include any right, interest or share which the

Government has or may have in the Currency Fund or any part of the assets thereof, established under the Malay British Borneo Currency

Agreement 1950.

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LIST OF AMENDMENTS

Amending law

Short Title

In force from

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Act 484

LIST OF SECTIONS AMENDED

Section

Amending authority

In force from

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