Local Government Loans Act

Short title.
Interpretation.
Date of
commencement.
AN ORDINANCE TO FACILITATE THE BORROWING
BY LOCAL GOVERNMENT AUTHORITIES OF
MONEY FOR CAPITAL DEVELOPMENT, TO
ESTABLISH A LOCAL GOVERNMENT LOANS
AUTHORITY AND A FUND FOR THAT PURPOSE;
AND FOR PURPOSES CONNECTED THEREWITH
20th March, 1953
ENACTED by the Governor of the Collony of Kenya,
with the advice and consent of the Legislative Council there-
of, as follows :—
1. This Ordinance may be cited as the Local Govern-
ment Loans Ordinance, 1953.
2. In this Ordinance, unless the context otherwise re-
quires—
"the Authority" means the Local Government Loans
Authority established by section 3 of this Ordinance;
"the Fund" means the Local Government Loans Fund
established by section 6 of this Ordinance;

ans
Authority established by section 3 of this Ordinance;
"the Fund" means the Local Government Loans Fund
established by section 6 of this Ordinance;

"statutory securities" means any securities in whichto invest
trustees are for the time being authorized by law authority
trust moneys, and any security created by a local
other than securities transferable by delivery.
- 3. (1) There is hereby established a Local GovernmenttLoansAuthoritywhichshallbeabodycorporatebytha
name with perpetual succession and a common seal, andred
which shall exercise the duties and have the powers confer
upon it by this Ordinance.
(2) The Authority shall consist of—
(a)the Member, who shall be Chairman of the Authority;
Finance;
(b)a person to be appointed by the Member for
(c)the Commissioner for Local Government;
(d)the Local Government Inspector; and
(e)such other persons as the Member may from time to
time appoint.
(3) In the case of his absence from, or inability to attend
any meeting of the Authority an officer mentioned in para-
graph (c) or paragraph (d) of sub-section (2) of this section
may be represented at such meeting by a deputy nominated by
such officer, and any such Authority foretheepurposes of such
deputy shall b demed to be auly
appointed member of the
meeting.
Establishment
and constitution
of Local
Government
Loans Authority

eepurposes of such
deputy shall b demed to be auly
appointed member of the
meeting.
Establishment
and constitution
of Local
Government
Loans Authority

(3) The Member, or other person acting as chairman of
any meeting of the Authority, shall have a deliberative vote
and, in the case of an equality of votes, shall also have a cast-
ing vote; a decision of the majority of the members present
and voting at a meeting of the Authority shall be deemed to
be the decision of the Authority. (4) The Authority shall have power to act notwithstand-
ing a vacancy among the members thereof, and all acts done
at any meeting of the Authority shall, notwithstanding that it
was afterwards discovered that there was some defect in the
appointment of a person purporting to be a member of the
Authority, be as valid as if that defect had not existed. (5) Subject to the provisions of this section the Authority
shall have power to regulate its own procedure. (6) The seal of the Authority shall be authenticated by
the signatures of the Member and the Commissioner for Local
Government and such seal shall be officially and judiciallynoticed. (7) All documents, other than those required by law to
be under seal, made by, and all decisions of the Authority
may be signified under the hand of the Commissioner forLocal Government.

required by law to
be under seal, made by, and all decisions of the Authority
may be signified under the hand of the Commissioner forLocal Government.

(8) It shall be the duty of the Commissioner for Local
Government to carry into effect the decisions of the Authority.

(8) It shall be the duty of the Commissioner for Local
Government to carry into effect the decisions of the Authority.

6. (1) There is hereby established a Local Government
Loans Fund under the control of the Authority, consisting of
such securities and moneys and applicable to such purposes as
are provided for by this Ordinance. (2) There shall, by virtue of this Ordinance and with-
out further assurance, become vested in the Authority the right
of the Government to demand, sue for and recover, and give
receipts for, and the benefit of all securities for such loans
made to local authorities by the Government out of the public
revenues of the Colony as may be approved from time to time
by Resolution of the Legislative Council to the extent to which
such loans, at the date of the commencement of this Ordin-
ance, remain outstanding; and all moneys received by the
Authority on account of every such loan shall be carried to
the Fund.

encement of this Ordin-
ance, remain outstanding; and all moneys received by the
Authority on account of every such loan shall be carried to
the Fund.

(3) There shall also be paid to the Authority and carried
to the Fund—
(a) all such moneys as may from time to time be voted or
appropriated by the Legislative Council for the pur-
pose of providing loans to local authorities;
(b)all repayments of principal or interest made by any
local authority on account of any loan referred to in
sub-section (2) of this section;
Establishment
of Local
Government
Loans Fund.

erest made by any
local authority on account of any loan referred to in
sub-section (2) of this section;
Establishment
of Local
Government
Loans Fund.

la (Ordinance No. 59 of 1954 :)
(2) The Authority may from time to time make to a local
authority advances of moneys required for the proper dis-
charge of the functions of the local authority. (3) The Authority may from time to time make loans to
the Central Housing Board appointed under the provisions of
Cap. 142. section 12 of the Housing Ordinance upon such terms and
conditions as may be directed by the Member for Finance. (4) Every loan made by the Authority under this Ordin-
ance to a local authority shall bear interest at such rate and
shall be repaid at such time and in such manner as the
Authority may determine. Charge of
loan on rates
and revenues
of local
authority. Powers in
relation to
rate where
default made. 8. All moneys borrowed by a local authority from the
Authority and all such loans as are referred to in sub-section
(2) of section 6 of this Ordinance shall be charged indifferently
on all the rates and revenues of the local authority. 9.

referred to in sub-section
(2) of section 6 of this Ordinance shall be charged indifferently
on all the rates and revenues of the local authority. 9.

(1) If any local authority having power to levy rates
or taxes or impose and collect dues or cesses shall neglect to
pay any moneys due to the Authority in respect of any loan
granted under this Ordinance, the Governor in Council may,
at any time after the expiry of sixty days from the date on
which such moneys become due and payable, forthwith impose

e, the Governor in Council may,
at any time after the expiry of sixty days from the date on
which such moneys become due and payable, forthwith impose

the powers conferred by this section or otherwise by reason
of the default in payment of the sum due to the Authority as
aforesaid. (4) If, after payment out of the proceeds of any such rate
or tax or dues or cesses of the sum due to the Authority as
aforesaid and of the expenses of and incidental to the imposi-
tion, levy and recovery of such rate or tax or dues or cesses,
there remains any balance, such balance shall be paid over to
the local authority whose default led to the exercise by the
Governor in Council of his powers under this section. 10. Upon all money due from a local authority to the
Authority being fully paid the Authority shall, when required,
give to the local authority a receipt in writing for the same,
and such further sufficient discharge (if any) as may seem to
the Authority to be necessary, and upon such receipt being
given the rates and revenues of the local authority shall be
released from the charge created by section 8 of this
Ordinance. Discharge of
security on
repayment of
the loan. 11.

s of the local authority shall be
released from the charge created by section 8 of this
Ordinance. Discharge of
security on
repayment of
the loan. 11.

Where a loan is made by the Authority to meet any Charge of
serv
an i roofexpenditure of a local authority which is chargeable to a par- lo t
ticular account, there shall be debited to that account all sums particular
required for repayment of the principal of the loan, or for acwunt•
payment of interest thereon.

shall be debited to that account all sums particular
required for repayment of the principal of the loan, or for acwunt•
payment of interest thereon.

(b)subject to the approval of the Minister for
Finance, applied in the exercise of the
powers conferred by section 7 of this
Ordinance.
Stock
Regulations.
Provisions as
to local bonds.
12B. The Authority may from time to time
invest any moneys for the time being in the Fund
which are not immediately required for the discharge
of its functions under this Ordinance in any invest-
ment for the time being authorized by any law in
force in the Colony for the investment of trust
moneys, and any such investments may from time to
time be varied or transposed.
011" W. lalfgrgillalege akkeN..52..PLIY541 11,41-Ill 11
or non-application of the Ordinances in the Colony relating to
stamp duties (subject to the provisions of sections 14 and 16
of this Ordinance) and to cheques, and for the disposal a, un-
claimed dividends.
14. For the purposes of any borrowing by the Authority
by means of an issue of local bonds under this Ordinance the
following provisions shall have effect, that is to say, the bonds
shall—
(a) be secured upon all the peepsay–siati revenues of the
Authority;
Investment
of surplus
moneys.

shall have effect, that is to say, the bonds
shall—
(a) be secured upon all the peepsay–siati revenues of the
Authority;
Investment
of surplus
moneys.

16. Transfers of any stock or local bonds issued by the dbeatno
Authority under this Ordinance shall be exempt from all stamp sbtoocnIl
duties. exempt from
stamp duty. 17. If at any time hereafter an Ordinance is passed certain
which appears to Her Majesty's Government in the Unitedrad; nparno ep ee say
Kingdomtoalteranyoftheprovisionsaffectinganysuchbe disallowed
stock as aforesaid to the injury of the holder thereof, or to
involve a departure from the original contract in regard to
such stock, that Ordinance may properly be disallowed. 18. (1) If at any time any interest due on any stock re-
mains unpaid for three months after demand in writing, the
person entitled thereto may, without prejudice to any other
remedy, apply to the Supreme Court of Kenya for a receiver
to be appointed, and the court may, if it thinks fit, appoint a
receiver on such terms as the court thinks fit.

Supreme Court of Kenya for a receiver
to be appointed, and the court may, if it thinks fit, appoint a
receiver on such terms as the court thinks fit.

(2) The court may confer on the receiver any of the
powers of collecting, receiving and recovering the revenues of
the Authority which are conferred upon the Authority by this
Ordinance and any of the powers of imposing and levying
rates and taxes and imposing and recovering dues and cesses
which are conferred on the Governor in Council by this
Ordinance. Appointment
of receiver.

amendment of
Ordinances.
hereby repealed.
(2) The Ordinances specified in the first column of the
Schedule to this Ordinance are amended in the manner
specified in the second column of that Schedule.

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