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Loan (Local) Act 1961

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650

Incorporating all amendments up to 1 January 2007

Revised up to ... ... ... ... ... ...

20 December 2011

Date of publication in the Gazette of this revised version ... ... ... ... ...

30 March 2006

Date appointed for coming into force of this revised version pursuant to paragraph 6(1)(xxiii) of the Revision of Laws Act 1968 [Act 1] ... ... ... ...

30 March 2006

Date of coming into operation ... ...

25 May 1961 - Peninsular Malaysia 20 May 1965 - Sabah and Sarawak

ACT 650 
LOAN (LOCAL) ACT 1961 

Part I PRELIMINARY

SECTION

1.Short title

2.Interpretation

Part II AUTHORIZATION AND APPLICATION OF LOAN

SECTION

3.Power to raise loan

4.Application of loan

5.Charge of principal and interest

Part III PROVISIONS APPLICABLE TO ISSUE AND REGISTRATION OF STOCK

SECTION

6.Issue and form of stock

7.Refusal of application

8.Register of Stock

9.Payment of interest

10.Fee payable to the Bank

Part IV PROVISIONS RELATING TO REDEMPTION OF STOCK

SECTION

11.Redemption of stock

12.Repayment of stock

13.Delivery up of stock on repayment

Part V GENERAL

SECTION

14.Acceptance of advance deposits

An Act to authorize a sum not exceeding one hundred million ringgit at any one time to be raised in Malaysia by way of loan.

[Peninsular Malaysia--25 May 1961; Sabah and Sarawak--20 May 1965]

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/1.Short title

Part I PRELIMINARY

1. Short title

This Act may be cited as the Loan (Local) Act 1961.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/2.Interpretation

2. Interpretation

In this Act, unless the context otherwise requires--

"advance deposit"

means such deposits as are received under subsection 14 (1);

"Bank"

means the Central Bank of Malaysia;

"Governor"

means the Governor of the Bank;

"Minister"

means the Minister for the time being charged with responsibility for finance.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/3.Power to raise loan

Part II AUTHORIZATION AND APPLICATION OF LOAN

3. Power to raise loan

(1) The Minister may from time to time raise, by the issue of stock in the manner provided in this Act, such sums of moneys as he may determine, provided that the total amount of such stock issued and not redeemed shall not exceed the sum of one hundred million ringgit at any one time.

(2) The loan hereby authorized shall be raised in Malaysia by the issue of registered stock under Part III.

(3) All stock issued under this Act shall be redeemable within a period not exceeding five years from the date of issue.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/4.Application of loan

4. Application of loan

The moneys received for stock issued under this Act shall be applied, and are hereby appropriated, to the following purposes :

(a) meeting the expenses relating to the issue of stock or arising from the acceptance of advance deposits under Part V;

(b) payment, with the prior approval of the Dewan Rakyat signified by resolution, into the Development Fund specified in the SecondSchedule to the Financial Procedure Act 1957 [Act 61], for the purposes of such fund; and

(c) redemption of stock issued under this Act, to such extent as the Minister may determine. 

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/5.Charge of principal and interest

5. Charge of principal and interest

The principal moneys and interest represented by stock issued under this Act are charged upon and shall be payable out of the Consolidated Fund.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/6.Issue and form of stock

Part III PROVISIONS APPLICABLE TO ISSUE AND REGISTRATION OF STOCK

6. Issue and form of stock

(1) Stock issued under this Act shall be issued on behalf of the Minister by the Bank, upon such terms as may be approved by the Minister, and shall be authenticated either by the signature of the Governor, or by a facsimile of such signature, or in such manner as may be approved by the Governor.

(2) Stock issued under this Act shall be in such form as the Governor may from time to time approve.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/7.Refusal of application

7. Refusal of application

Any application to take up stock issued under this Act may be refused by the Governor without reason assigned.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/8.Register of Stock

8. Register of Stock

(1) All stock issued under this Act shall be entered in a register to be kept for the purpose by the Bank in such form as may from time to time be approved by the Governor.

(2) All stock issued under this Act, and the right to receive the principal moneys and interest represented thereby, shall be transferable by an instrument of transfer registered by the Bank.

(3) No stock issued under this Act shall be registered except in the name of an individual person or persons or of a corporation.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/9.Payment of interest

9. Payment of interest

(1) The interest upon the principal moneys represented by stock issued under this Act shall be paid half-yearly at the office of the Bank.

(2) The Minister shall, in each half-yearly period ending with the day on which interest on stock issued under this Act falls due, appropriate out of the Consolidated Fund a sum equal to one-half year"s interest on the whole of the stock so issued in order that the interest for such half year may be paid from it.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/10.Fee payable to the Bank

10. Fee payable to the Bank

The Minister may fix such fee as he considers reasonable for the performance by the Bank of any powers or duties conferred or imposed under this Act, and the fee so fixed is charged on and appropriated out of the Consolidated fund.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/11.Redemption of stock

Part IV PROVISIONS RELATING TO REDEMPTION OF STOCK

11. Redemption of stock

Stock issued under this Act shall be redeemable at par on such dates as may be specified in the prospectus, after which dates all the interest on the principal moneys represented thereby shall cease and determine, whether payment of such principal moneys shall have been demanded or not.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/12.Repayment of stock

12. Repayment of stock

The repayment of all principal moneys represented by stock issued under this Act at the time when the same become due shall be made by the Minister out of the Consolidated Fund.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/13.Delivery up of stock on repayment

13. Delivery up of stock on repayment

Before the repayment of the principal moneys represented by any stock issued under this Act, such stock shall be delivered up for cancellation to the Bank.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/14.Acceptance of advance deposits

Part V GENERAL

14. Acceptance of advance deposits

(1) In anticipation of the raising of any loan under the authority of this Act the Minister may, if he thinks fit, authorize acceptance by the Bank on behalf of the Federation of deposits not exceeding the amount of such loan.

(2) Advance deposits shall be applied to the purchase of stock of the first loan issued under this Act after the date on which such deposits were received by the Bank, unless a depositor gives notice in writing within seven days after the date of issue of such loan that he wishes advance deposits or part of it made by him to be repaid.

(3) Whenever a depositor gives notice that he wishes the whole or part of the advance deposits made by him to be repaid, such deposits or part of it made by such depositor shall be repaid immediately, but no interest shall be payable on it.

(4) Advance deposits which are applied to the purchase of stock in accordance with subsection (2) shall carry interest at the rate applicable to such stock calculated from the date the deposit was received by the Bank, and such interest shall be charged on the Consolidated Fund and appropriated from it. 

(5) Any power to invest conferred on a person by any instrument or written law shall include the power to make advance deposits in accordance with this section.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1961 Act 650/LOAN (LOCAL) ACT 1961 ACT 650,,/PARTICULARS UNDER PARAGRAPHS 7(II) AND (III) OF THE REVISION OF LAWS ACT 1968 [ACT 1]