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GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - LONG TITLE

An Act to consolidate the enactments relating to Government Loans.
[2nd July 1957]
Establishment of Government Loans Fund.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 1

1.(1) There shall be a Government Loans Fund (in this Act referred
to as "the Loans Fund") under the control of the Ministry of
Finance (in this Act referred to as "the Ministry") consisting of
such securities and such money, and applicable to such purposes, as
are provided by this Act.

(2) In the accounts of the Loans Fund the receipts and payments
shall be distinguished in respect of capital and in respect of
income.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 2
Advances by the Ministry for Government Loans.

2.(1) Under and subject to the provisions of this Act, the Ministry
may, if it thinks fit, advance money from the Loans Fund for the
purpose of any of the loans described in the First Schedule (in
this Act referred to as "Goverment Loans").

(2) The Ministry may from time to time issue for the purpose of
Government Loans such sums as may be for the time being required
therefor:

Provided that the amounts by which the aggregate of the sums so
issued exceeds the total amounts of principal repaid to the Loans
Fund in respect of such loans shall not at any time exceed [seven
hundred million pounds].(2) There shall be paid by the borrowers of
Government Loans fees of such amounts and at such times as may be
prescribed.

(3) Any such loan as is described in paragraph 2 or paragraph 3
of the First Schedule shall not be made for the purpose of
discharging any debt due and incurred before the making of an
application for the loan.

(4) The Ministry may from time to time publish in the Belfast
Gazette notices stating

(a)the rates of interest upon which it is prepared to consider
advancing money for the purpose of any Government Loan or class of
Government Loans specified in the notice; and

(b)the terms (including terms as to the amount of premium, if any,
to be paid to the Loans Fund) upon which it is prepared, during
such period or periods as may be mentioned in the notice, to agree
to the premature repayment of any Government Loan or class of
Government Loans specified in the notice.

[(5) In this section the reference to security includes a reference
to a charge imposed by any statutory provision for securing a loan
made in pursuance of an agreement under section 4.]

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 4
Provisions as to loans made to local authorities.

4. Where the Ministry agrees to make any such local loan as is
described in paragraph 1(a) of the First Schedule,

[(a)if the loan is advanced upon the security of a mortgage] the
mortgage for the purpose of securing repayment of the loan and
interest thereon shall be made by a deed according to the form set
out in Part I of the Second Schedule or in such other form as
the Ministry may direct; and

[(b)]in any deed of mortgage for the purpose aforesaid [or, if the
loan is advanced otherwise than upon the security of a mortgage, in
the agreement for the loan] there shall be implied and deemed to
be included by virtue of this section the covenants and agreements
set forth in Part II of the Second Schedule, except in so far as
may be otherwise expressly provided by such deed [or agreement].

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 5
Additional interest on arrears of Government Loans.

5.(1) Where any sum payable (whether for interest or as an
instalment of principal or as a periodical payment of an annuity or
rentcharge or otherwise) by the borrower in respect of any
Government Loan is in arrear for more than thirty-one days, the
Ministry may, notwithstanding any rule of law to the contrary,
charge and recover interest on that sum from that borrower.

(2) The rate of interest so charged shall be such rate, ..., as
the Ministry may from time to time determine [by an order made
subject to negative resolution] and, unless waived by the Ministry
under section six, the amount of such interest shall be paid and
recovered in like manner as the sum in arrear as aforesaid.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 6
Variation of terms of repayment of loans.

6.(1) The Ministry may, in such cases and to such extent, if any,
as it may think fit, waive the payment of interest on any
Government Loan (including interest imposed under section five) or
the payment of premium imposed under paragraph (b) of sub-section
(4) of section three.

(2) Notwithstanding anything in any enactment, the Ministry may by
agreement with the borrower or borrowers of any Government Loan or
class of Government Loans vary the terms of repayment of that loan
or class of loans in such respects and in such manner as may be
agreed upon; and any instrument or instruments securing the repayment
of any loan or class of loans in respect of which any such
variation has been agreed upon shall have effect subject to the
terms of that variation.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 7
Power to reduce obligations to the Loans Fund.

7. If at any time the Ministry is satisfied that the position of
the Loans Fund in respect both of the capital and the income
thereof so justifies, the Ministry may, if it thinks fit, direct
that such relief be given either by way of reduction of interest
or in respect of the principal of such Government Loans upon such
conditions as the Ministry may from time to time determine.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 8
Writing off and payment by Parliament of losses of principal of
Government Loans.

8. Where the whole or any part of the principal of any Government
Loan is, by reason of its being unlikely to be recovered, directed
by Parliament to be written off from the assets of the Loans Fund,
any sum so directed to be written off shall be charged on and
issued to the Loans Fund out of the Consolidated Fund.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 9
Saving in event of default.

9.(1) Nothing in section six, section seven or section eight shall
alter the liability of any person to pay the principal of, or
interest or premium payable on, any Government Loan, nor operate so
as to prejudice or affect the right of the Ministry, in the event
of any default by the borrower of any Government Loan, to recover
from the borrower or any surety the full amount of any principal
outstanding on foot of any such loan, or of any interest or
premium payable in respect of that loan (including any interest
payable under section five).

(2) Where any principal sum is directed by Parliament to be written
off from the assets of the Loans Fund, any sum afterwards recovered
whether for principal or interest or premium in respect of such
principal sum shall be paid into the Exchequer.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 10
Exercise of borrowing powers for the Loans Fund by the Ministry.

10.(1) For the purposes of the Loans Fund, the Ministry may borrow
money in any one or more than one of the following ways, that is
to say

(a)by the creation and issue of Ulster Loans stock under section
eleven and regulations made thereunder;

(b)by the creation and issue of Ulster Loans securities under
section twelve;

(c)by borrowing from the Exchequer;

(d)by obtaining a loan out of any other Fund which in pursuance of
any enactment is under the control of any department of the
Government of Northern Ireland;

(e)by borrowing temporarily from the Exchequer Bank;

<[(f)by the creation of overdrafts on the account of the Loans Fund by agreement with the Exchequer Bank].

(2) Sums required at any time for the redemption or repayment of
moneys borrowed under this section or the payment of interest
thereon shall, if the Loans Fund is at that time insufficient, be
charged on and issued to the Loans Fund out of the Consolidated
Fund.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 11
Ulster Loans stock.

11.(1) The Ministry may from time to time create, under such
designation as it thinks fit, a capital stock (in this Act referred
to as "Ulster Loans stock") yielding interest at the prescribed rate
on the nominal amount of the capital.

(2) Ulster Loans stock shall be created by a warrant under the
hand of the Minister addressed to the Exchequer Bank or other
prescribed joint stock bank, directing any such Bank to register, as
from the date of creation specified in the warrant, Ulster Loans
stock of the amount so specified.

(3) Interest on Ulster Loans stock shall be payable half-yearly at
such times in each year as may be fixed by the warrant creating
the stock.

(4) Ulster Loans stock shall be redeemable after the expiration of
the prescribed period; and such redemption shall be at the rate of
one hundred pounds sterling for every one hundred pounds of the
nominal amount of the capital in respect of which the interest is
payable, together with the payment of any arrears of interest,
including any interest accrued since the last half-yearly date of
payment of interest.

Not less than one month's notice shall be given of such redemption.

(5) All Ulster Loans stock shall be transferable in the books of
the Exchequer Bank, and of any other prescribed joint stock bank.

(6) The Ministry may, in relation to Ulster Loans stock, make
provision by regulations with respect to the payment of interest,
transfers, stock certificates, unclaimed interest, redemption moneys,
or otherwise, as it may think fit.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 12
Ulster Loans securities.

12. The Ministry may from time to time create, under such
designation as it thinks fit, such securities (in this Act referred
to as "Ulster Loans securities") bearing such rate of interest and
subject to such conditions as to redemption, repayment, or otherwise
as the Ministry may determine.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 13
Conditions for borrowing for Loans Fund.

13.(1) Where the Ministry borrows money for the purposes of the
Loans Fund, such borrowing shall be subject to such rate of
interest and such conditions as to repayment or otherwise

(a)where the money is borrowed under paragraph (c) or paragraph (d)
of sub-section (1) of section ten, as the Ministry may from time
to time determine;

(b)where the money is borrowed under paragraph (e) or paragraph (f)
of the said sub-section, as may be agreed upon between the Ministry
and the Exchequer Bank.

(2) Any enactment authorising the investment of moneys belonging to
such a Fund as is described in paragraph (d) of sub-section (1) of
section ten shall be deemed to authorise the making of loans to
the Loans Fund.

S.14 rep. by 1971 c.6 (NI) s.9(3) sch.3

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 15
Capital receipts in the Loans Fund.

15. There shall be credited to the capital account of the Loans
Fund

(a)sums received in or towards the repayment or redemption of the
principal of any Government loan;

Para.(b) rep. by 1971 c.6 (NI) s.9(3) sch.3

(c)capital sums borrowed by the Ministry under sub-section (1) of
section ten;

(d)sums issued from the Consolidated Fund

(i)in respect of the principal of a Government Loan written off by
direction of Parliament; or

(ii)for the repayment or redemption of the principal of moneys
borrowed under section ten;

(e)capital sums received on the realisation or redemption of stock
or securities purchased under section twenty;

(f)sums transferred from the income account of the Loans Fund under
paragraph (d) of section eighteen;

(g)all other sums received, if any, which are determined by the
Ministry to be of the nature of capital receipts of the Loans
Fund.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 16
Capital issues from the Loans Fund.

16. There shall be charged on and issued out of the capital
account of the Loans Fund

(a)advances on foot of Government Loans made under section two;

(b)capital sums required for the repayment or redemption of moneys
borrowed under sub-section (1) of section ten;

(c)capital sums required for the repayment to the Consolidated Fund
of issues made from that Fund under sub-section (2) of section ten;

(d)capital sums required for the expenses of issue of Ulster Loans
stock or Ulster Loans securities;

(e)capital sums required for the purchase of stock or securities
under section twenty;

(f)such other sums, if any, as may be determined by the Ministry
to be of the nature of capital issues from the Loans Fund.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 17
Income of the Loans Fund.

17. There shall be credited to the income account of the Loans
Fund

(a)sums received in or towards the interest on any Government Loan,
including interest charged under section five;

(b)fees received under sub-section (2) of section three from the
borrowers of Government Loans;

(c)sums issued from the Consolidated Fund

(i)under sub-section (2) of section ten, for the payment of interest
on moneys borrowed; or

(ii)under sub-section (2) of section nineteen for the purpose of
making good a deficiency in the income account of the Loans Fund;

(d)interest received from stock or securities purchased under section
twenty;

(e)all other sums received, if any, which are determined by the
Ministry to be of the nature of income of the Loans Fund.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 18
Issues chargeable against the income of the Loans Fund.

18. There shall be charged on and issued out of the income account
of the Loans Funds

(a)interest payable on moneys borrowed under section ten;

Para.(b) rep. by 1978 NI 11 art.14 sch.3 Pt.I

(c)interest included in the price of stock or securities purchased
under section twenty;

(d)such sums as the Ministry may determine to be transferred to the
capital account of the Loans Fund under this section towards making
good any net deficiency in the capital of the Loans Fund (other
than a capital deficiency arising from default in the repayment of
the principal of any Government Loan) ... or towards providing a
reserve for that purpose;

(e)such expenses of the management and redemption of Ulster Loans
stock and Ulster Loans securities, and the administration of
Government Loans, as the Ministry may from time to time determine;

(f)such other sums, if any, as the Ministry may determine to be of
the nature of issues chargeable to the income account of the Loans
Fund.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 19
Income and expenditure account of the Loans Fund.

19.[(1) If the income of the Loans Fund received or accrued in
respect of any financial year is in excess of the expenditure
charged or chargeable to the income account of the Loans Fund in
respect of that year, the excess shall, on such date as the
Department may determine, be transferred to the Consolidated Fund.]

(2) If the expenditure charged or chargeable to the income account
of the Loans Fund in respect of any financial year is in excess
of the income of the Loans Fund received or accrued in respect of
that year (including any balance in the Income Account brought
forward from the preceding financial year) a sum equal to such
deficiency of income shall be charged on and issued to the Loans
Fund out of the Consolidated Fund.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 20
Investments.

20.(1) The Ministry may from time to time invest or apply any
moneys standing for the time being to the account of the Loans
Fund

(a)in the purchase or redemption of Ulster Loans stock or Ulster
Loans securities; or

(b)in the purchase of such other securities as the Ministry may
determine;

(2) The Ministry may from time to time determine that any Ulster
Loans stock or Ulster Loans securities created and issued under
section eleven or section twelve shall, to such extent, if any, as
it may direct, be held for the account of the Loans Fund.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 21
General availability of balances.

21. Subject to the provisions of this Act, any moneys for the time
being standing to the account of the Loans Fund may be applied in
payment of any sums charged on the Loans Fund and in any advances
under this Act for the purpose of Government Loans.

S.22 spent

Consolidated Fund borrowing powers.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 23

23. The Ministry may borrow money for the purpose of providing for
issues to the Loans Fund from the Consolidated Fund under section
eight, paragraph (c) of sub-section (1) and sub-section (2) of
section ten, or sub-section (2) of section nineteen.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 24
Unclaimed balances in respect of Ulster Loans stock, etc.

24.(1) Where any balances to the credit of any person in respect
of the principal or interest or otherwise of Ulster Loans stock,
Ulster Loans securities or moneys borrowed for the Loans Fund have
remained dormant or unclaimed in the hands of the Ministry for a
period of six years at least before the first day of January then
last past, the Ministry may direct that such balances be transferred
to the Exchequer.

(2) Where the Ministry is satisfied that any person making a claim
in that behalf is entitled to any payment in respect of sums
transferred to the Exchequer under this section, the Ministry may
issue to that person out of the Consolidated Fund such sum as may
appear to it to be necessary to provide for the said payment.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 25
Accounts and statements.

25.(1) The Ministry shall keep such annual accounts of the Loans
Fund in such form as it may from time to time determine; and
those accounts shall be examined by the Comptroller and
Auditor-General, and shall, together with his report thereon, be laid
before Parliament.

(2) The Ministry shall from time to time lay before Parliament a
statement of all losses which the Exchequer suffers by reason of
Government Loans in consequence of issues out of the Consolidated
Fund.

S.26(1) rep. by SLR 1973; subs.(2) spent

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 27
Interpretation.

27. In this Act the expression

"Government Loans" has the meaning assigned to it by sub-section (1)
of section two;

"Loans Fund" has the meaning assigned to it by section one;

"prescribed" means prescribed by regulations made by the Ministry;

"statutory provision" has the meaning assigned to it by paragraph
(f) of section one of the Interpretation Act (Northern Ireland),
1954;

"the Ministry" has the meaning assigned to it by section one.

GOVERNMENT LOANS ACT (NORTHERN IRELAND) 1957 - SECT 28
Short title.

28. This Act may be cited as the Government Loans Act (Northern
Ireland), 1957.

1. Local or Public Loans:

(a)any local authority [(including any district council and any joint
committee appointed by two or more such councils for a purpose in
which they are jointly interested)]; or

(b)any other public authority, board, commissioners or public body of
any kind constituted by or under any statutory provision, whether of
a general or a special nature.3. Loans for educational purposes,
etc:

(a)the purchase, erection, extension, improvement or alteration of
premises (including playgrounds and playing fields) and buildings
(including residences for teachers employed in or caretakers having
the care of such buildings) for primary or secondary schools or for
training colleges (not being schools or colleges in respect of which
local or public loans may be made) or for training schools within
the meaning of the Children and Young Persons Act (Northern
Ireland), [1968];

(b)the equipment of such primary or secondary schools or training
colleges or of such training schools as aforesaid (including the
establishment and equipment of libraries therefor).[5. Loans to
Department for purposes of loans pool or consolidated loans fund:

TO HOLD unto the Ministry from the day of the date hereof until
the said loan of

PROVIDED ALWAYS and it is hereby agreed that the provisions
specified in the third column of the Schedule hereto shall apply to
the said Loan in addition to or in variation of the Covenants and
Agreements set forth in Part II of the Second Schedule to the
Government Loans Act (Northern Ireland), 1957.

1. The following covenants on the part of the mortgagors:

(a)that the mortgagors shall comply with all such statutory
provisions as may be applicable to the expenditure of the moneys
advanced on foot of the loan or to the purposes for which the
loan has been made, and with any directions given by the
appropriate Government department in pursuance of any such statutory
provision;

(b)that the mortgagors shall repay to the Ministry when due, and by
such method and in such manner as may be agreed upon, the
principal moneys advanced on foot of the loan together with the
interest payable in respect of the loan;

(c)that the mortgagors shall cause all sums payable under the
mortgage to be paid at the office of the Ministry or at such
other place as the Ministry may direct;

(d)that the mortgagors shall pay to the Ministry interest in respect
of the loan at the following rates:

(i)if the loan is made by means of a single advance, at such rate
as, under sub-section (1) of section three, may be in force at the
time when the loan is advanced; and

(ii)if the loan is made by means of several advances issued to the
mortgagors on different dates, at such rate in respect of each
advance as may be in force under the said sub-section on the date
when that advance is issued;

(d)and that the expression "local loans rate" contained in the deed
of mortgage shall be construed accordingly.

2. An agreement that the Ministry shall have the following powers
with respect to any loan secured by the mortgage, that is to say:

(a)power at its discretion to make the loan either by means of a
single advance or by means of several advances, and to issue any
advance at such time as appears to the Ministry to be proper or
expedient;

(b)power to refuse wholly, or for so long as the Ministry may
think fit, to issue any advance on foot of the loan if

(i)any sum is in arrear which is payable in respect of the loan,
or of any previous loan or advance made by or through the Ministry
or to which section six of the Public Works Loans Act, 1952,
applies, to the mortgagors or their predecessors for any purpose
(whether such sum is payable as interest or as an instalment of
principal or as a periodical payment of any annuity or rentcharge
or otherwise); or

(ii)any covenants implied on the part of the mortgagors by virtue
of this Part of this Schedule are not duly observed;

(c)power, at the discretion of the Ministry, at any time before the
full amount of the loan has been advanced, to reduce the amount,
or delay the issue, of any further advance;

(d)power, at the discretion of the Ministry, to refuse to make
advances on foot of the loan if, within five years from the
execution of the mortgage, the full amount of the loan has not
been advanced to and taken up by the mortgagors.

3. An agreement that if the mortgagors at any time make default

(a)in the payment of any moneys due in respect of the loan for a
period exceeding ten days after such moneys become due; or

(b)in the performance of any of the covenants implied on the part
of the mortgagors by virtue of this Part of this Schedule;

(i)interest thereon at the appropriate rate or rates; and

(ii)any such interest as may be charged under section five on any
sum which is in arrear at the time of default; and

<(iii)an amount equivalent to the premium which would have been payable by the mortgagors to the Ministry if the Ministry had agreed at the request of the mortgagors to the premature repayment of the loan on the date on which the loan and interest is repaid to it by virtue of the provisions of this paragraph;

[4. In this Part, in relation to a loan advanced otherwise than
upon the security of a mortgage,

"ortgage' or "eed of mortgage' includes the agreement for the loan,
or, in the expression "oan secured by the mortgage' includes any
statutory provision for securing the loan;

"ortgagor' includes any borrower.]

Third Schedule rep. by SLR 1973