Loans (Asian Development Bank)
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LAWS OF MALAYSIA
REPRINT
Act 410
LOANS (ASIAN DEVELOPMENT
BANK) ACT 1968
Incorporating all amendments up to 1 January 2006
PUBLISHED BY
THE COMMISSIONER OF LAW REVISION, MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968
IN COLLABORATION WITH
PERCETAKAN NASIONAL MALAYSIA BHD
2006
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ACT 410
Laws of Malaysia
LOANS (ASIAN DEVELOPMENT BANK)
ACT 1968
First enacted... ...
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... 1968 (Act No. 32 of
1968)
Revised
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... 1989 (Act 410 w.e.f
14 December 1989
PREVIOUS REPRINT
First Reprint
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2001
Loans (Asian Development Bank)
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LAWS OF MALAYSIA
Act 410
LOANS (ASIAN DEVELOPMENT BANK)
ACT 1968
ARRANGEMENT OF SECTIONS
Section
1.
Short title and application
2.
Interpretation
3.
Power to borrow from the Asian Development Bank
4.
Power to issue instrument including bonds
5.
Borrowing by statutory authority from the Bank
6.
Application of loan moneys by statutory authority
7.
Power to guarantee loans by Bank to statutory authorities
8.
Restriction on borrowing powers of statutory authority so far as guarantee
outstanding
9.
Powers exercisable by Government in event or prospect of default by
statutory authority
10.
Statutory authority to repay Government sums paid under guarantee
11.
Arbitration
12.
Implementation of obligations under the agreement
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Laws of Malaysia
Loans (Asian Development Bank)
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LAWS OF MALAYSIA
Act 410
LOANS (ASIAN DEVELOPMENT BANK)
ACT 1968
An Act to provide for the raising of loans from the Asian Development
Bank by Malaysia or by certain statutory authorities and for matters
connected therewith.
[16 September 1968]
BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan
Agong with the advice and consent of the Dewan Negara and
Dewan Rakyat in Parliament assembled, and by the authority of
the same, as follows:
Short title and application
1. (1) This Act may be cited as the Loans (Asian Development
Bank) Act 1968.
(2) This Act shall apply throughout Malaysia.
Interpretation
2.
In this Act, unless the context otherwise requires--
"Bank" means the Asian Development Bank;
"Statutory authority" means a local authority and any body
incorporated directly by any written law and exercising powers
vested in such body by law for a public purpose;
"Minister" means the Minister of Finance.
Power to borrow from the Asian Development Bank
3. (1) Subject to the Federal Constitution and this Act, the
Government of Malaysia may in such manner and on such terms
and subject to such conditions as may be agreed between the
Government and the Bank borrow from the Bank from time to time
such sums as may be required by the Government.
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(2) Any sums borrowed by the Government under the powers
conferred by subsection (1) for the requirements of the Government
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 as specified in any agreement concluded with the bank
in respect of the sums so borrowed:
Provided that where any part of such sum 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 Bank.
(3) Any agreement between the Government and the Bank in
respect of sums borrowed under the powers conferred by 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 thereto in writing by the Minister.
(4) As soon as possible after the conclusion thereof a copy of
any agreement concluded with the Bank in respect of any sum
borrowed under the powers conferred by subsection (1) shall be
laid by the Minister before the Dewan Rakyat.
(5) Nothing in this section shall affect or derogate from any
other power to borrow money possessed by the Government.
Power to issue instrument including bonds
4 . ( 1 ) N o t w i t h s t a n d i n g anything contained in any law, the
Government may issue such bonds, promissory notes or other
instruments on such terms and conditions as may be necessary for
the purpose of giving effect to the terms of any agreement which
may be entered into by it with the Bank in respect of any borrowing
authorized by subsection 3(1).
(2) Any such bond, promissory note or other instrument may
be signed on behalf of the Government by the Minister or by any
other person authorized thereto in writing by the Minister.
Borrowing by statutory authority from the Bank
5. (1) Subject to the Federal Constitution and this Act, a statutory
authority may in such manner and on such terms and subject to
such conditions as may be agreed between the statutory authority
and the Bank and with the approval in writing first obtained of the
Minister borrow from the Bank from time to time such sums as
may be required by the statutory authority.
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(2) The power to borrow conferred by this section on a statutory
authority shall be in addition to any power to borrow conferred
on such statutory authority by any other written law.
(3) Notwithstanding anything contained in any written law, 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 Bank in respect of sums borrowed by it under
the powers conferred by subsection (1).
(4) 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 Bank in respect of any borrowing
authorized by subsection (1).
Application of loan moneys by statutory authority
6.  Any sums borrowed by a statutory authority under the powers
conferred by subsection 5(1) shall be applied by the authority to
the purposes for which the sums were borrowed as specified in any
agreement concluded with the Bank in respect of the sums so
borrowed:
Provided that where any part of such sum cannot be applied to
the purposes aforesaid such part may be applied by the statutory
authority to such other purposes as may be approved by the Minister
and the Bank.
Power to guarantee loans by Bank to statutory authorities
7. (1) The Government may in such manner and on such terms
and subject to such conditions as may be agreed between it and
the Bank--
(a) guarantee the discharge by a statutory authority of its
obligations under any agreement which may be entered
into by the statutory authority with the Bank in respect
of any borrowing authorized by subsection 5(1) or under
any bond, promissory note or other instrument issued
pursuant to any such agreement; and
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(b) undertake such other obligations as may be agreed between
the Government and the Bank in relation to or pursuant
to any such agreement, bond, promissory note or instrument.
(2) Any guarantee or undertaking given under this section shall
be given in writing in the name of the Government of Malaysia
and it and any indorsement on any bond, promissory note or other
instrument of any guarantee given under this section may be signed
on behalf of the Government by the Minister or by any person or
persons authorized thereto in writing by the Minister.
(3) As soon as possible after a guarantee or undertaking is
given under this section, the Minister shall lay before the Dewan
Rakyat a statement of the guarantee or undertaking.
Restriction on borrowing powers of statutory authority so far
as guarantee outstanding
8.  So long as the Government shall continue liable under any
guarantee or other undertaking given in exercise of the powers
conferred by subsection 7(1) in respect of any borrowing by a
statutory authority the statutory authority shall not except with the
consent of the Minister exercise any other power to borrow possessed
by it.
Powers exercisable by Government in event of prospect of
default by statutory authority
9. (1) Where it is made to appear to the Yang di-Pertuan Agong
that there is reasonable cause to believe--
(a) 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 Bank or under any bond,
promissory note or other instrument issued pursuant to
any such agreement; and
(b) that the Government is or may become liable under any
gurantee or other undertaking given in exercise of the
powers conferred by subsection 7(1) in respect of such
obligation,
the Yang di-Pertuan Agong may by order give or authorize any
other person to give such direction 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 duly to discharge its obligations
under such agreement, bond, promissory note or instrument or
under this Act.
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(2) The statutory authority shall notwithstanding any provision
contained in the written law by which it is established comply with
any directions given by or under any such order.
(3) Nothing in this section shall affect or derogate from any
other power conferred by law on the Yang di-Pertuan Agong or
any Minister or public officer in respect of the statutory authority.
Statutory authority to repay Government sums paid under
guarantee
10. (1) If any sum is paid out of the Consolidated Fund in respect
of any liability incurred by the Government under a guarantee or
other undertaking given in exercise of the powers conferred by
subsection 7(1) in respect of any borrowing by a statutory authority
the statutory authority shall repay such sum (together with interest
thereon at the same rate as that payable on the loan under the
a g r e e m e n t by the statutory authority with the Bank) to the
Consolidated Fund in such manner and at such time or by such
instalments as the Minister may direct.
(2) If any sum 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 sum 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
11.  If any dispute between the Bank on the one part and the
Government or a statutory authority or both on the other part arises
under any agreement concluded or guarantee or undertaking given
in exercise of the powers conferred by this Act or under any bond,
promissory note or such instrument issued pursuant to any such
agreement it shall be determined by arbitration in the manner
agreed between the parties and any award made in such arbitration
shall be enforceable in Malaysia in all respects as if it had been
validly made in an arbitration under the Arbitration Act 1952 [Act
93], or any other written law relating to arbitration for the time
being in force in Malaysia and for the purposes of this section such
Act or law shall be binding on the Government.
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Implementation of obligations under the agreement
12. (1) Subject to the Federal Constitution but notwithstanding
anything contained in any other existing law any agreement concluded
w i t h the Bank 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 provide by order published in the Gazette
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 remission is 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 Bank
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 rateably secure the payment of the principal of and interest
and other charges on any loan made by or any bonds, promissory
notes or instruments issued pursuant to any loan made by the Bank
to the Government or to a statutory authority.
(4) In subsection (3)--
"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.
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(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 Malaya British Borneo Currency Agreement
1950.
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Laws of Malaysia
LAWS OF MALAYSIA
Act 410
LOANS (ASIAN DEVELOPMENT BANK) ACT 1968
LIST OF AMENDMENTS
Amending law
Short title
In force from
NIL
Loans (Asian Development Bank)
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LAWS OF MALAYSIA
Act 410
LOANS (ASIAN DEVELOPMENT BANK) ACT 1968
LIST OF SECTIONS AMENDED
Section
Amending authority
In force from
NIL
DICETAK OLEH
PERCETAKAN NASIONAL MALAYSIA BERHAD,
KUALA LUMPUR
BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA