LOCAL LOANS (REGISTERED STOCK) LAW
ARRANGEMENT OF SECTIONS
LOCAL LOANS (REGISTERED STOCK) LAW
A Law to make provision for the creation and issue of registered stock for the purpose of raising loans in Nigeria
(29th September, 1954)
(1) Whenever by any Law authority is given to raise any sum of money by way of loan for any purpose mentioned in that Law, or whenever it is necessary to raise any sum of money for the purpose of repaying any loan raised by the Ministry under this or any other Law the Ministry may, from time to time, raise such sum or part thereof under the provisions of this Law by the creation and issue of registered stock.
(2) Each issue of registered stock under this Law for the purpose of raising any specified sum of money shall be deemed to be stock issued in respect of a separate loan notwithstanding that the sum of money so raised is part only of a sum of money authorised by any other law to be raised by way of loan.
The principal moneys and interests represented or secured by any registered stock issued under this Law are hereby charged upon and shall be payable out of the Consolidated Revenue Fund and assets of Cross River State of Nigeria.
(1) The Ministry shall, in respect of each loan to be raised under this Law, specify by direction published in the Gazette—
(a) the sum of money to be raised by that loan;
(b) the mode or modes of raising the loan;
(c) the rate of interest payable on the loan;
(d) the dates in each year on which the half-yearly interest on the loan shall be payable;
(e) the rate, being a rate of not less than two per centum per annum of the sum authorized to be raised, at which a half-yearly appropriation out of the Consolidated Revenue Fund and assets of the Cross River State of Nigeria shall be made as a contribution to the sinking fund established for the purpose of redeeming that loan and the date from which such contributions shall commence;
(f) the date of redemption of the registered stock to be issued for the purpose of raising that loan.
(2) The date of redemption of any registered stock shall not be later than forty years from the date of issue of such stock.
(3) Where the Ministry deems it expedient to reserve an option to redeem any registered stock at any date earlier than the date of redemption specified for such stock by the directions under subsection (1), it shall by such directions further specify the terms and conditions on which such stock may be redeemed at any earlier date.
Upon the publication under section 5 of the directions of the Ministry in respect of any loan to be raised under this Law, the Accountant-General may, subject to the provisions of such directions and to such further directions as the Ministry may give in that behalf, make all such arrangements as may be necessary to raise that loan upon the most favourable terms that can be obtained.
The Accountant-General shall keep a register in respect of each issue of registered stock under this Law in which all such stock and all transfers of and dealing in such stock shall be registered and in which shall be entered all matters and things which by this Law are required to be entered in the register.
The Accountant-General shall be bound to pay on behalf of the Cross River State to the person registered for the time being as the stock holder the principal sum represented by that stock and the interest due thereon, in accordance with the provisions of this Law, at the rate and on the dates directed by the Ministry under section 5 or in pursuance of an option to redeem such stock reserved in such directions.
For the purposes of this Law, no person shall be entitled to any registered stock unless he is registered as a stock holder in respect thereof.
No person shall be registered as a first stock holder of any registered stock except upon payment in full of the purchase price of that stock.
Every stock holder shall be entitled to obtain from the Accountant-General a stock certificate and no stock holder other than the first stock holder of any stock shall be entitled to obtain a stock certificate save upon payment of the prescribed fee.
(1) For the purposes of this Law the title of any stock holder to any registered stock shall not be deemed to be transferred to any other person save upon the execution of an approved instrument of transfer and upon the registration of the transferee as the stock holder under section 11.
(2) Interest which has fallen due in respect of any registered stock but which has not been paid to the stock holder for the time being shall not be deemed to be payable to a transferee of that stock unless the instrument of transfer expressly provides for the payment of that interest to that transferee.
(1) No person shall be registered as the transferee of any registered stock except upon surrender to the Accountant-General of the stock certificate and the instrument of transfer relating to that stock and upon payment of the prescribed fee.
(2) The Accountant-General may register a lien on any registered stock in accordance with such provisions as are prescribed by regulations and upon payment of the prescribed fee.
(3) Any such lien which is registered under this Law shall have priority over any lien not so registered.
The register shall be closed for a period of twenty-one days immediately preceding each date upon which interest on any stock falls due and no transfer of that stock shall be registered during that period.
(1) The entries in the register kept under the provisions of this Law shall be conclusive evidence of the facts, matters, particulars and transactions to which those entries relate.
(2) Notwithstanding the provisions of any other written law, a copy of any entry in the register certified under the hand of the Accountant-General to be a true copy of the original entry shall be receivable in evidence in any judicial proceeding.
So long as any interest is payable under this Law in respect of any stock, the Ministry shall, in each half-year ending with the date on which the interest on such stock falls due, appropriate out of the Consolidated Revenue Fund and assets of Cross River State of Nigeria a sum sufficient to meet all interest payable on that date and shall authorise the Accountant-General to pay such interest out of the sum so appropriated.
(1) The interest due on any registered stock shall be payable half-yearly on the dates specified by the directions of the Ministry under section 3.
(2) Where any amount has become payable on any date as interest due on any registered stock, no interest on that amount shall, after that date, be paid or payable by the Accountant-General to any person in any circumstances.
No person shall be entitled to claim interest on any registered stock in respect of any period which has elapsed after the earliest date on which demand could lawfully have been made for the payment of the principal amount due on such stock.
All payments of interest and all payments of the principal amount due on any registered stock shall be made at the Treasury in Calabar: Provided that the Accountant-General or any person authorised by the Accountant- General in that behalf may pay any such interest or principal amount at any other place, whether within or without Nigeria, in pursuance of any arrangement which the Accountant-General may make for that purpose.
After the date specified in the directions of the Ministry under section 3 as the date from which contributions to the sinking fund for any loan shall commence, the Ministry shall, in each half-year ending with the date specified in those directions for the payment of the half yearly interest on any stock issued in respect of that loan, appropriate out of the general revenue and assets of the State a sum determined in accordance with the rate specified in those directions as the contribution to the sinking fund established for the purpose of redeeming that loan.
A separate sinking fund shall be established for each loan raised under this Law.
(1) All moneys appropriated under section 18 as contributions to the sinking fund established for any loan shall be paid to the Crown Agents, and may then be placed at interest or invested in the purchase of such securities as may from time to time be approved by the Ministry.
(2) The Crown Agents may from time to time, with the approval of the Ministry, vary any investment made under subsection (1) or may realise and place at interest or reinvest any moneys invested under that subsection.
(3) The dividends, interest, bonus and other profits of any investment of any part of any sinking fund shall be placed at interest or invested by the Accountant-General so as to form part of that sinking fund in a like manner as moneys appropriated under section 18 as contributions to that sinking fund.
(4) In addition, the Ministry may, at any time or times, authorise the utilisation of the sinking fund or the appropriation for contribution to the sinking fund prescribed under section 18 hereof for the purchase of registered stock of the loan for which the sinking fund was established: Provided that in the utilisation of such appropriation for the purchase of registered stock the contribution remitted to the Accountant-General shall be the balance, if any, of such appropriation not utilised for the purpose aforesaid.
Notwithstanding anything to the contrary contained in this Law, if at any time the Accountant-General is satisfied that the sinking fund of any loan raised under the provisions of this Law will be sufficient with further accumulations of interest, but without further payments of contributions, to enable the loan to be redeemed at the time fixed for its redemption, he shall inform the Ministry accordingly, and the Ministry is hereby authorised in such event to suspend further payment of half-yearly contributions to that sinking fund: Provided, however, that the contributions to that sinking fund shall be recommenced if the Accountant-General at any time thereafter informs the Governor that he is no longer satisfied that the sinking fund with further accumulations of interest will be sufficient for the redemption of that loan.
There shall be paid out of the sinking fund all expenses specifically incurred in, or incidental to, the investment and management of that fund and the repayment of the loan for which that fund was established.
In the event of the sinking fund established for any loan under this Law being found, at the time fixed for the repayment of that loan, to be insufficient for such redemption, the deficiency shall be made good out of the Consolidated Revenue Fund and assets of the State.
(1) The Accountant-General may issue duplicate stock certificates in such circumstances as may be prescribed.
(2) The Accountant-General may issue renewals of stock certificates in such circumstances as may be prescribed.
Subject to such conditions as may be prescribed the Accountant-General may—
(a) on the application of a person claiming to be entitled to any stock; and
(b) on being satisfied of the justice of the claim of such applicant; and
(c) on surrender of the stock certificate relating to such stock; and
(d) on payment of the prescribed fee, consolidate or subdivide such stock and issue to the applicant one or more new stock certificates as may be required.
Where application is made to the Accountant-General under this Law for the issue of a duplicate stock certificate or for the renewal, consolidation or sub-division of any stock, the Accountant-General may require the applicant, as a condition precedent to the grant of the application, to execute a bond with or without sureties undertaking to indemnify the Accountant-General against the claims of all persons claiming under the original stock certificate or under the stock so exchanged, renewed, consolidated or sub-divided, as the case may be.
Save as otherwise provided in this Law the liability of the Accountant-General shall—
(a) in respect of any registered stock redeemed on or after the date on which payment of the principal amount becomes due, be discharged after the lapse of six years from that date;
(b) in respect of stock in place of which new stock is issued upon a consolidation or sub-division under section 25, be discharged after the lapse of six years from the date of the issue of the new stock.
The signature of the Accountant-General may be printed, stamped, engraved or impressed by any mechanical process on any stock certificate and a signature so printed, stamped, engraved or impressed shall be as valid as if it had been inscribed in the proper handwriting of the Accountant-General.
Save as otherwise provided in or under this Law, no notice of any trust in respect of any registered stock shall be receivable by the Accountant-General.
All documents or instruments made or used under the provisions of this Law shall be in such form as may be prescribed.
(1) No person shall be entitled to inspect, or to receive information derived from any register, book or other document kept or maintained by or on behalf of the Accountant-General in relation to registered stock, save on payment of such fee and save in such circumstances and on such terms and conditions as may be prescribed.
(2) Nothing in this section shall apply to the Auditor-General or any person authorised by him, or to the Commissioner of Income Tax, or any person nominated by him.
(1) The Ministry may make regulations for the purpose of giving effect to the provisions of this Law.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters—
(a) the manner in which payment of interest in respect of stock is to be made and acknowledged;
(b) the issue of duplicate stock certificates;
(c) the renewal of stock certificate;
(d) the manner of payment of interest to joint holders of stock;
(e) the circumstances in which alterations may be made in the register;
(f) the payment of principal or interest and transfer of stock in the case of persons under a legal disability;
(g) the disposal of unclaimed interest;
(h) the conditions subject to which stock may be exchanged, consolidated or subdivided;
(i) to enable holders of registered stock to be described in the register as trustees and either as trustees of any particular trust or as trustees without qualification and the recognition of powers of attorney granted by holders of stock so described;
(j) the fees to be paid in respect of anything to be issued or done under the provisions of this Law;
(k) all matters required by this Law to be prescribed and all matters incidental to or connected with the matters hereinbefore enumerated.
(3) Nothing in any regulation made hereunder shall, as between any trustees or as between any trustees and beneficiaries under a trust, be deemed to authorise the trustees to act otherwise than in accordance with the rules of law applying to the trust and the terms of the instrument constituting the trust; and neither the Accountant-General nor any person holding or acquiring any interest in any registered stock shall by reason only of any entry in the register of stock of anything in any document or instrument relating to registered stock, be affected with notice of any trust or of the fiduciary character of any stock holder or of any fiduciary obligation attaching to the holding of any registered stock.
In this Law—
“the Accountant-General” means the Accountant-General of Cross River State of
“the Ministry” means the Ministry of Finance incorporated by the Incorporation (Ministry of Finance) Law;
“the register” means the register of stock kept by the Accountant-General for the purpose of this Law;
“registered stock” or “stock” means stock issued under the provisions of this Law;
“stock holder” means a person holding registered stock who is entered as the owner thereof in the register.
This Law may be cited as the Local Loans (Registered Stock) Law.
LOCAL LOANS (REGISTERED STOCK) LAW
No Subsidiary Legislation