State Loans and Guarantees Act
- Commenced on 1 July 1974
- [This is the version of this document at 31 December 2016 and includes any amendments published up to 31 December 2017.]
- [Note: This version of the Act was revised and consolidated by the Law Development Commission of Zimbabwe]
Part I – Preliminary
1. Short titleThis Act may be cited as the State Loans and Guarantees Act [Chapter 22:13].
2. InterpretationIn this Act—“bond” means a document issued in pursuance of Part II acknowledging a debt and binding the State to pay a specified sum at a stated time or on special conditions, and includes a debenture or other form of certificate of indebtedness;“financial year” means the period of twelve months ending on the 30th June in any year;“local authority” means a municipality, town or rural district council;“Minister” means the Minister of Finance or any other Minister to whom the President may, from time to time, assign the administration of this Act;“State loan” means a sum of money borrowed in terms of Part II;“statutory corporation” means a corporate body established directly by an enactment having the force of law in Zimbabwe for special purposes;“stock” means stock issued in pursuance of Part II;“Treasury bill” means a Treasury bill issued in pursuance of Part II.
Part II – Provisions relating to state loans
3. Borrowing powers
4. Manner of raising State loans
5. Certain State loans exempt from taxThe Minister may fix as a condition of a State loan that the capital and the interest payable thereon shall be exempt, either in whole or in part, from—
6. Proceeds of State loansThe proceeds of all State loans shall be brought to account in the Consolidated Revenue Fund or, if the Minister so directs, in the National Development Fund established in terms of section 30 of the Audit and Exchequer Act [Chapter 22:03].
7. Security for State loans and expenses in connection therewithAll State loans and expenses or charges incurred thereon or in connection therewith shall be secured and charged upon the assets and general revenues of Zimbabwe, and all such securities shall rank equally without priority.
8. Repayment of State loans and payment of expenses in connection therewithSubject to Part III, the Minister shall, as circumstances require, pay from the Consolidated Revenue Fund, which is hereby appropriated to the purpose, moneys required to repay any State loan and any expenses or charges incurred thereon or in connection therewith.
Part III – Sinking funds
9. Interpretation in Part IIIIn this Part—“cancelled”, in relation to bonds or stock, means cancelled in terms of subsection (3) of section thirteen;“sinking fund” means a sinking fund established in terms of section ten;“trustees” means trustees appointed in terms of section eleven.
10. Establishment of sinking fundsThe Minister, in the case of a State loan raised by means of the issue of bonds or stock—
11. Trustees for sinking funds
12. Payment into sinking funds
13. Application of moneys in sinking funds
Part IV – Provisions relating to guarantees by the state
14. Interpretation in Part IVIn this Part—“approved authority” means—(a)the government of a foreign country or territory approved by the Minister; or(b)a bank or other institution approved by the Minister which is incorporated in a foreign country or territory;“debtor” means the person whose indebtedness or other obligation is guaranteed by the Minister in terms of paragraph (a), (b) or (c) of subsection (1) of section fifteen;“guarantee” means a guarantee given in terms of subsection (1) of section fifteen;“Reserve Bank” means the Reserve Bank of Zimbabwe established by the Reserve Bank of Zimbabwe Act [Chapter 22:10].
15. Power to give guarantees
16. Security for guaranteesAny liability of the State in connection with a guarantee shall be secured and charged upon the assets and general revenues of Zimbabwe and all such securities shall rank equally without priority.
17. Payments in connection with guaranteesThe Minister shall—
18. Disclosure of information concerning guarantees
Part V – General
19. Minister to be exempt from certain obligationsThe Minister or a registrar or agent appointed in terms of this Act shall not be under any obligation as regards the due fulfilment of a trust, whether express, implied or constructive, to which bonds, stock or Treasury bills may be subject, notwithstanding that the Minister, registrar or agent has had notice that the bonds, stock or Treasury bills are held subject to the trust.
20. Registrar to make entries necessary to give effect to court ordersA registrar appointed in terms of this Act shall, upon being served with an order of a court of competent jurisdiction which relates to a bond or stock or has the effect of vesting a bond or stock in a person, make all entries in the appropriate register which it is necessary to make for the purpose of giving effect to the order.
21. Forgery of securities
22. Powers of MinisterThe Minister may—
23. RegulationsThe Minister may make regulations relating to the registration, issue and transfer of and the payment of interest on bonds or stock.
History of this document
01 July 1974