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Fiji Development Bank Guarantee (No. 3) Decree 1989

REPUBLIC OF FIJI

GOVERNMENT OF THE REPUBLIC OF FIJI DECREE NO. 16
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FIJI DEVELOPMENT BANK GUARANTEE (NO. 3) DECREE, 1989
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A DECREE TO AUTHORISE THE GOVERNMENT TO GUARANTEE THE REPAYMENT OF THE PRINCIPAL AND THE PAYMENT OF INTEREST ON MONEYS BORROWED UNDER BONDS AND PROMISSORY NOTES BY THE FIJI DEVELOPMENT BANK TO AN AMOUNT NOT EXCEEDING SIXTEEN MILLION DOLLARS.

IN exercise of the powers vested in me as President and Commander-in-Chief of the Republic of Fiji and acting in accordance with the advice of the Prime Minister and the Cabinet, I hereby make the following Decree -

Short title, etc.

1.-(1) This Decree may be cited as the Fiji Development Bank Guarantee (No. 3) Decree. 1989.

(2) In this Decree, unless the context otherwise requires -

"Bank" means the Fiji Development Bank;

"Government" means the Government of the Republic of Fiji.

Government guarantee

2.-(1) The Minister responsible for finance is authorised to guarantee, on behalf of the Government, the repayment by the Bank of the principal and the payment of interest at a rate not exceeding 10 percent, due under bonds and promissory notes, to total an amount not exceeding sixteen million dollars, to be issued by the Bank pursuant to section 16 of the Fiji Development Bank Act.

(2) The guarantee authorised by sub-section (1) of this section shall not relate to any bond or promissory note issued by the Bank after 31 December, 1989.

(3) The guarantee authorised by sub-section (1) of this section shall not relate to any bond or promissory note which is expressed to mature more than fifteen years from the date of its issue.

Guarantee to be evidenced by instrument

3. The guarantee authorised by section 2 of this Decree shall be evidenced by an instrument or instruments given under the hand of the Minister responsible for finance.

Conditions of guarantee

4. For the purpose of the protection of the financial interests of the Government, the Minister responsible for finance shall not give a guarantee under section 2 of this Decree unless the moneys are borrowed on terms and conditions that the Minister is satisfied are reasonable.

Commencement

5. This Decree shall come into force when it is made.

Made this 21st day of June, 1989.

PENAIA K. GANILAU

President and Commander-in-Chief
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