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LOANS GUARANTEE AND BORROWING REGULATION ACT (NORTHERN IRELAND) 1946

LOANS GUARANTEE AND BORROWING REGULATION ACT (NORTHERN IRELAND) 1946
- LONG TITLE

An Act to enable the Ministry of Finance to guarantee loans for
industrial purposes, to provide for the regulation in Northern
Ireland of the borrowing and raising of money, the issue of
securities, and the circulation of offers of securities for
subscription, sale or exchange, and for purposes connected with the
matters aforesaid.{1}
[29th August 1946]
Power of the Ministry of Finance to guarantee loans.

LOANS GUARANTEE AND BORROWING REGULATION ACT (NORTHERN IRELAND) 1946
- SECT 1

1.(1) The Ministry of Finance (in this Act referred to as "the
Ministry"), may, if satisfied that it is expedient in the public
interest so to do for the purpose of facilitating the reconstruction
or development of an industry or part of an industry in Northern
Ireland, guarantee any loan:

Provided that the aggregate capital amount of the loans in respect
of which guarantees are issued in any one financial year under this
section (excluding any part of that amount which is guaranteed
neither as to principal nor as to interest) shall not exceed two
million five hundred thousand pounds.

(2) Any guarantee given under this section may be given in such
form and manner and on such terms and subject to such conditions
as the Ministry thinks fit.

(3) Any moneys required for fulfilling a guarantee given under this
section shall be charged on and issued out of the Consolidated Fund
and any moneys paid in or towards repayment of any sum issued out
of the Consolidated Fund under this section shall be paid into the
Exchequer.

(4) For the purpose of providing any sums issued out of the
Consolidated Fund under the preceding sub-section, the Ministry may,
if it thinks fit, borrow any sum ....

[(5) The Ministry shall include with the Finance Accounts presented
to Parliament under sub-section (2) of section ten of the Exchequer
and Financial Provisions Act (Northern Ireland), 1950

(a)a statement of the total amount of the guarantees, if any, given
under sub-section (1) of this section during the then last preceding
financial year;

(b)an account up to the end of that financial year of the total
sums, if any, which under sub-section (3) of this section have been

(i)issued out of the Consolidated Fund;

(ii)paid to the Exchequer in or towards repayment of any sums so
issued.]

(6) In this section, references to the guaranteeing of a loan shall
be construed as references to guaranteeing, whether wholly or in
part and whether solely or jointly with other guarantors, the
payment either of the interest, or of both the interest and the
principal, of the loan, and the expression "guaranteed" shall be
construed accordingly, and references to an industry shall be
construed as including references to any undertaking for the time
being engaged in the provision of any description of supplies or
services.

LOANS GUARANTEE AND BORROWING REGULATION ACT (NORTHERN IRELAND) 1946
- SECT 2
Regulation of borrowing, etc.

2.(1) The Ministry may make orders for regulating, subject to such
exemptions as may be specified in the orders, all or any of the
following transactions, that is to say

(a)the borrowing of money in Northern Ireland;

(b)the raising of money in Northern Ireland by the issue, whether
in Northern Ireland or elsewhere, by any body corporate, of any
shares in that body corporate;

(c)the issue for any purposes

(i)by any body corporate of any shares in or debentures or other
securities of that body corporate, if either the body corporate is
incorporated under the law of Northern Ireland or the shares,
debentures or other securities are or are to be registered in
Northern Ireland; or

(ii)by any Government, other than His Majesty's Government in the
United Kingdom or the Government of Northern Ireland, of any
securities of that Government which are or are to be registered in
Northern Ireland;

(d)the circulation in Northern Ireland of any offer for subscription,
sale or exchange of

(i)any shares in or debentures or other securities of any body
corporate not incorporated under the law of Northern Ireland; or

(ii)any securities of any Government other than His Majesty's
Government in the United Kingdom or the Government of Northern
Ireland:

Provided that paragraph (a) of this sub-section shall not apply to
the borrowing of money by any person (other than a [district
council or a joint committee appointed by two or more such councils
for a purpose in which they are jointly interested]) in the
ordinary course of his business from a person carrying on a banking
undertaking.

(2) The provisions of this section shall apply in relation to units
under a unit trust scheme as they apply in relation to shares in
a body corporate, but as if

(a)any reference to the issue of shares in a body corporate by
that body corporate were a reference to an issue of units for the
purposes of the scheme; and

(b)any reference to shares in a body corporate incorporated, or not
incorporated, under the law of Northern Ireland were a reference to
units issued under a scheme governed, or not governed, by the law
of Northern Ireland.

(3) The provisions of the Schedule to this Act (which relate to
enforcement and penalties) shall have effect in relation to orders
made under this section but the rights of the persons concerned in
any transaction shall not be affected by the fact that the
transaction was in contravention of any such orders.

LOANS GUARANTEE AND BORROWING REGULATION ACT (NORTHERN IRELAND) 1946
- SECT 3
Provisions as to orders.

3.(1) All orders made under this Act shall, so soon as may be
after they are made, be laid before each House of Parliament. If
either House of Parliament within the statutory period next after
any order made as aforesaid has been laid before such House,
resolves that the order shall be annulled, the order shall, after
the date of resolution, be void, but without prejudice to the
validity of anything previously done thereunder or to the making of
a new order.

Subs.(2) rep. by SLR 1980

LOANS GUARANTEE AND BORROWING REGULATION ACT (NORTHERN IRELAND) 1946
- SECT 4
Short title.

4.(1) In this Act, unless the context otherwise requires, the
following expressions have the meanings hereby assigned to them, that
is to say:

"issue" includes re-issue;

Definition rep. by 1973 NI 2 art.60(2) sch.4; SRO (NI) 1973/340

"registered", in relation to any security, includes inscribed,
"registered in Northern Ireland," means in relation to securities,
registered in a register in Northern Ireland, and "a register," in
relation to securities, includes any book in which securities are
registered;

"security" includes shares, bonds, notes, debentures, debenture stock
and units under a unit trust scheme;

"share" includes stock and any perpetual debenture or perpetual
debenture stock;

"statutory period" means ...

definition in 1954 c.33 (NI) s.41(2) substituted by 1979 NI 12
art.10

"the Ministry" means the Ministry of Finance;

"unit trust scheme" means any arrangements made for the purpose, or
having the effect, of providing facilities for the participation by
persons, as beneficiaries under a trust, in profits or income
arising from the acquisition, holding, management or disposal of
securities or any other property whatsoever;

"unit" means, in relation to a unit trust scheme, any right or
interest (whether described as a unit or otherwise) which may be
acquired under the scheme, being a right or interest created or
issued for the purpose of raising money for the purposes of the
scheme or a right or interest created or issued in substitution
(whether directly or indirectly) for any right or interest so
created or issued.

(2) Any reference in this Act to the borrowing of money

(a)includes a reference to the making of any arrangement by which a
sum which would otherwise be payable at any date is payable at a
later date, and includes in particular the making of any arrangement
by which the whole or any part of the price of any property is
allowed to remain unpaid either for a fixed period or indefinitely,
but

(b)does not include a reference to the acceptance by a person
carrying on a banking undertaking of moneys to be placed to the
credit of a current or deposit account.

(3) A person shall be deemed for the purposes of this Act to
borrow or raise money in Northern Ireland if the money is made
available in Northern Ireland, or, in any such case as is mentioned
in sub-section (2) of this section, if the money would, but for
the arrangement in question, have been payable in Northern Ireland,
and, without prejudice to the preceding provisions of this
sub-section, a person shall also be deemed for the purposes of this
Act to borrow money in Northern Ireland if the money is borrowed
on the security of property in Northern Ireland.

(4) An arrangement for the giving of security, or further or other
security, for the repayment of any sum borrowed before the
arrangement is made, being a sum which is already due when the
arrangement is made or which is payable not later than six months,
or such longer or shorter period as may be prescribed by order of
the Ministry, after the arrangement is made, shall be deemed for
the purposes of the two last preceding sub-sections to be an
arrangement by which that sum is payable at a date later than it
would otherwise have been payable.

In this sub-section, the expression "security" means any sort of
security, including, in particular, security by way of guarantee.

(5) A sum which, at the time of, or by virtue of, the making of
any arrangement, is payable on demand or on the expiration of a
fixed period after demand shall be deemed for the purposes of the
three last preceding sub-sections to be payable at the time of the
making of the arrangement, or, as the case may be, on the
expiration of the fixed period after the making of the arrangement,
notwithstanding that no demand has been made.

S.5 rep. by SLR 1980

LOANS GUARANTEE AND BORROWING REGULATION ACT (NORTHERN IRELAND) 1946
- SECT 6
Section 2(3).

6. This Act may be cited as the Loans Guarantee and Borrowing
Regulation Act (Northern Ireland), 1946.

1. Any person who contravenes or attempts to contravene any
provision of any order made under this Act shall be liable on
summary conviction to imprisonment for not more than three months or
to a fine not exceeding five hundred pounds or to both such
imprisonment and such fine and on conviction on indictment to
imprisonment for not more than two years or to such fine or to
both such last-mentioned imprisonment and such fine.

2.(1) The Ministry may give to any person directions requiring him,
within such time and in such manner as may be specified in the
directions, to furnish to it, or to any person designated in the
directions as a person authorised to require it, any information in
his possession or control which the Ministry or the person so
authorised, as the case may be, may require for the purpose of
securing compliance with, or detecting evasion of, any order made
under this Act:

Provided that if a person required to give any information under
this paragraph objects to the giving thereof on the ground that it
might tend to incriminate [that person or the husband or wife of
that person, that person] shall not be bound to give that
information.

(2) The Ministry may give to any person directions requiring him,
within such time and in such manner as may be specified in the
directions, to produce such books, accounts or other documents
(hereinafter referred to as "documents") in his possession or control
as may be required by the Ministry or by any person designated in
the directions as a person authorised to require them and any
documents produced by a person in compliance with any such
requirements may be given in evidence against him notwithstanding
that they may tend to incriminate him.

(3) If a resident magistrate is satisfied by information on oath
that there is reasonable ground for suspecting that there are at
any premises any documents which a person ought to have produced
under the last preceding sub-paragraph but has failed or refused to
produce, he may grant a search warrant authorising any police
officer or constable, together with any other persons named in the
warrant and any other police officers or constables, to enter the
premises specified in the information (using such force as is
reasonably necessary for the purpose) at any time within one month
from the date of the warrant, and to search the premises and take
possession of any documents appearing to be such documents as
aforesaid or take in relation thereto any other steps which may
appear necessary for preserving them and preventing interference
therewith.

(4) Any person who

(a)fails or refuses to comply with any requirement to furnish
information or produce documents imposed on him by or under this
paragraph; or

(b)with intent to evade the provisions of this paragraph or of any
order made under this Act destroys, mutilates, defaces, secretes or
removes any documents; or

(c)obstructs any person exercising any powers conferred on him by or
under this paragraph,

3.(1) Proceedings for an offence under this Act shall not be
instituted except by or with the consent of the Attorney-General for
Northern Ireland.

(2) Any proceedings under the Summary Jurisdiction Acts (Northern
Ireland) which may be taken against any person under this Act may,
notwithstanding anything to the contrary in those Acts, be taken at
any time not later than twelve months from the date on which
evidence sufficient in the opinion of the Ministry to justify the
proceedings comes to the knowledge of the Ministry, or, where the
person in question was outside Northern Ireland at that date, within
twelve months from the date on which he first comes into Northern
Ireland thereafter.

For the purposes of this sub-paragraph, a certificate of the
Ministry as to the date on which such evidence as aforesaid came
to the knowledge of the Ministry shall be conclusive evidence
thereof.

(3) Proceedings against any person in respect of an offence under
this Act may be taken before the appropriate court in Northern
Ireland having jurisdiction in the place where that person is for
the time being.

(4) Where any offence under this section has been committed by a
body corporate, then, notwithstanding and without prejudice to the
liability of that body, every person who at the time of such
commission was a director or other officer of the body corporate or
was purporting to act in any such capacity shall be liable to be
prosecuted as if he had personally committed that offence and shall,
if on such prosecution it is shown that he consented to, or
connived at, or did not exercise all such diligence as he ought in
the circumstances to have exercised to prevent, the offence, be
liable to the like conviction and punishment as if he had
personally been guilty of that offence.