Malaysia legislation
Section 4
Section 4
External Loans
(a)
in such manner;
(b)
by such arrangement; or
(c)
by the creation and issue of such securities, as the Minister thinks fit.
(1A)
Without prejudice to subsection (2), any external loan raised under subsection (1) shall be subject to such terms and conditions as may be determined by or with the authority of the Minister.
(2)
The securities issued for raising any external loan under paragraph (1)(c) shall bear such rate of interest, and be subject to such terms and conditions as to repayment, redemption and other matters (including provision for a sinking fund) as may be determined by or with the authority of the Minister.
(3)
In connection with the raising of any external loan under paragraph (1)(c), the Minister may make such arrangements as he sees fit for the underwriting of any offer for subscription or sale of the securities.
(4)
Subsections (1), (1A) and (2) shall authorize the Minister to include among the terms and conditions of any external loan provisions for exemptions from taxes or for exempting from exchange control the debt charges or any description of debt charges in respect of an external loan; and the Minister shall by order make such provision as he considers necessary to give effect to any such exemption from tax or from exchange control, and any such order shall have effect notwithstanding anything in any written law relating to the tax, or to exchange control, as the case may be.
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(5)
Without prejudice to any of the foregoing provisions, the terms and conditions authorized by subsections (1), (1A) and (2)
may include provision for the following matters:
(a)
for charging on any assets (whether originally or in the event of other debts of Malaysia being charged thereon)
the debt charges or any description of debt charges in respect of an external loan;
(b)
for Malaysia, in proceedings relating to an external loan, to submit to the jurisdiction of the courts of the country in which the loan is raised.
(6)
All debt charges in respect of any external loan shall be charged on the Federal Consolidated Fund (as provided by Article 98 of the Federal Constitution), and subsections (1), (1A) and (2)
have effect subject to that Article.
(7)
In this section “debt charges” includes interest, sinking fund charges, the repayment or amortization of debt, and all expenditure in connection with the raising of loans and the service and redemption of debt created thereby.
Management of external loans