Section 16
Liability of Government in respect of Treasury Bills
of Treasury Bills (Local) Act 1946
The Government shall be liable for all repayments due in respect of Treasury Bills, issued under and in accordance with this
Act, and in respect of all Treasury Bills dealt with under and in accordance with section 10 of the Treasury Bills (Local)
(Amendment) Act 1990, but where such liability of the Government arises in consequence, or by reason, of any default of a participating investing institution in the performance of its duties and obligations under this Act, including its duties and obligations as a primary investing institution or a depository institution, as may be applicable, such institution shall be liable on demand by the Government to indemnify the Government in full in relation to the liability.
(2)
For the purposes of subsection (1), “default” includes—
(a)
any negligence or failure in the carrying out of any function, or the exercise of any power, or the discharge of any duty, under this Act; and
(b)
any offence under this Act, or any offence under any other written law in relation to any matter dealt with under this
Act, regardless—
(i)
whether or not there has been any prosecution in respect of such offence; or
(ii)
whether such default was committed by the participating investing institution, or any director, officer, or controller (as those words are defined in subsection 13(6)), or any clerk, servant, or agent of such participating investing institution, or any clerk, or servant of such agent.