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Section 12

Implementation of obligations under the agreement

of Loans (International Fund for Agricultural Development) Act 1992

ActIn forceProvision 12 of 12
Section 12
(1)

Subject to the Federal Constitution but notwithstanding anything contained in any other law, any agreement concluded with

* NOTE—The Arbitration Act 1952 [Act 93] has since been repealed by the Arbitration Act 2005 [Act 646]

Loans (International Fund For 11

Agricultural Development the Fund in respect of any borrowing authorized by subsection 3(1)

or subsection 5(1) and any bond, promissory note or other instrument issued pursuant to any such agreement and any guarantee or undertaking given in respect of any such agreement, bond, promissory note or instrument by the Government or a statutory authority shall be valid and enforceable and have full force and effect in Malaysia in accordance with their respective terms.

(2)

Without prejudice to the generality of subsection (1)―

(a)

the Minister may, by order published in the Gazette, provide that any tax or duty payable under the Income Tax

Act 1967 [Act 53] or the Stamp Act 1949 [Act 378]

respectively shall be remitted where such remissions are necessary to give full and complete effect to any such agreement, bond, promissory note, instrument or guarantee;

(b)

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, instrument, bond or guarantee in any currency.

(3)

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―

(a)

of the principal of any loan; and

(b)

of interest and other charges on any loan; or

(c)

of any bonds, promissory notes or instrument issued pursuant to any loan.

made by the Fund to the Government or to a statutory authority.

(4)

In subsection (3)―

12 Laws of Malaysia ACT 484

“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.

(5)

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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12

Act 484

LIST OF AMENDMENTS

Amending law

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13

Act 484

LIST OF SECTIONS AMENDED

Section

Amending authority

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