Local Loans Fund Act, 1935

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Number 16 of 1935.

LOCAL LOANS FUND ACT, 1935.

ARRANGEMENT OF SECTIONS

Number 16 of 1935.

LOCAL LOANS FUND ACT, 1935.

AN ACT TO MAKE PROVISION FOR THE ESTABLISHMENT, MAINTENANCE, FINANCING, AND MANAGEMENT OF A FUND TO BE THE SOURCE FROM WHICH LOANS FROM PUBLIC MONEYS TO LOCAL AUTHORITIES OR FOR LOCAL PURPOSES AND OTHER SIMILAR LOANS WILL BE MADE, AND TO PROVIDE FOR OTHER MATTERS CONNECTED WITH THE MATTERS AFORESAID, [17th April, 1935.]

BE IT ENACTED BY THE OIREACHTAS OF SAORSTAT EIREANN AS FOLLOWS:—

Definitions.

1.—In this Act—

the expression “the Minister” means the Minister for Finance;

the expression “local loan” means a loan (whether made before or after the passing of this Act) made out of public moneys for any purpose for which a loan might have been made in Ireland on the 31st day of March, 1922, out of the fund established in pursuance of section 7 of the National Debt and Local Loans Act, 1887 , or made by the Commissioners of Public Works in Ireland under an Act of the Oireachtas out of moneys provided by the Oireachtas or moneys under their control and applicable to loans, or made in pursuance of an Act passed after this Act out of the local loans fund established under this Act.

The appointed day.

2.—(1) The Minister may by order appoint a day to be the appointed day for the purposes of this Act.

(2) In this Act the expression “the appointed day” means the day appointed under this section to be the appointed day for the purposes of this Act.

Establishment of the local loans fund.

3.—(1) On the appointed day the Minister shall establish and thereafter maintain under his control a fund (in this Act referred to as the fund) which shall be known as the local loans fund.

(2) On the appointed day there shall be carried into the fund any unissued balance of moneys provided by the Oireachtas for local loans which is on that day in the hands of the Minister or of the Commissioners of Public Works in Ireland.

(3) On and after the appointed day there shall be carried into the fund, in such manner as the Minister shall from time to time direct, every sum which is paid or is by law applicable in or towards the discharge of the principal or the interest of a local loan made at any time, whether before or after the passing of this Act or before or after the appointed day, other than a local loan made before the appointed day which was remitted or written off before that day.

(4) Where a sum carried into the fund under the next preceding sub-section of this section is paid or applicable in or towards the discharge of any principal or interest which, at the time of such carrying, has already been made good out of the guarantee fund under the Land Purchase Acts either to the Exchequer before the appointed day or to the fund after the appointed day, the said sum so carried into the fund shall forthwith be paid out of the fund to the said guarantee fund.

Issues from the fund.

4.—(1) On and after the appointed day, all issues of money for local loans (including local loans agreed to but not made before the appointed day) shall be made out of the fund.

(2) No issue of money shall be made from the fund in respect of a local loan save under and in accordance with a British Statute or an Act of the Oireachtas authorising the making of such loan.

(3) During the period beginning on the appointed day and ending on such day as shall hereafter be appointed in this behalf by statute, there may be issued from the fund in respect of local loans all such moneys as shall be required for the purposes of such loans, but the aggregate amount of the moneys so issued during the said period shall not exceed the sum of five million pounds.

Borrowing on behalf of and advances to the fund.

5.—(1) For the purpose of making issues of money from the fund in respect of local loans the Minister may, as and when he thinks proper, borrow money on behalf of the fund and may, for the purpose of such borrowing, create and issue on behalf of the fund securities bearing interest at such rates and subject to such conditions as to repayment, redemption, or otherwise as he may determine, and the Minister may consolidate an issue of such securities with all or any similar issues or issue previously made.

(2) For the purpose of making issues of money from the fund in respect of local loans, the Minister may, as and when he thinks proper, make advances to the fund out of the Central Fund or the growing produce thereof, and for the purpose of making such advances the Minister may borrow money by means of the issue of such securities as he thinks proper.

(3) All moneys borrowed under the next preceding sub-section of this section shall be paid into the Exchequer, and the principal of and interest on all securities issued under that sub-section for the purpose of such borrowing shall be charged on and payable out of the Central Fund or the growing produce thereof.

(4) Advances may be made to the fund out of any Government fund or Government money as defined by section 1 of the Approved Investments Act, 1933 (No. 34 of 1933), and for the purpose of making any such advance all or any investments forming part of or representing such Government fund or Government money may be sold or otherwise converted into money.

(5) All advances made to the fund under this section shall bear interest at such rates and be subject to such conditions as to repayment, redemption, or otherwise as the Minister shall determine, but, in the case of an advance from a Government fund or Government money over the investment of which any other Minister has control, such determination shall be made only after consultation and agreement with such other Minister.

(6) The principal of and interest on all moneys borrowed under this section on behalf of the fund and the principal of and interest on all securities created and issued under this section for the purpose of such borrowing and all advances made to the fund under this section shall be charged on and repaid or paid out of the fund, and if and so far as the fund is insufficient for that purpose, a sum sufficient to make good the deficiency shall be advanced to the fund out of the Central Fund or the growing produce thereof.

(7) All moneys advanced to the fund out of the Central Fund or the growing produce thereof in pursuance of the next preceding sub-section of this section shall be repaid to the Central Fund out of the fund, and if and so far as such moneys are not so repaid they shall be repaid out of moneys provided by the Oireachtas.

Moneys outstanding in respect of local loans.

6.—(1) As soon as conveniently may be after the appointed day, the Minister shall determine the amount which (subject to the provisions of this section) is equivalent to the aggregate value of the following sums, that is to say:—

(a) all sums owing and unpaid on the appointed day (whether then due or thereafter to become due) in respect of local loans which were issued on or before the 31st day of March, 1922, and were either so issued out of the fund established in pursuance of section 7 of the National Debt and Local Loans Act, 1887 , or carried to that fund in pursuance of sub-section (2) of the said section 7, and were not fully repaid or remitted or written off before the appointed day, and

(b) all moneys provided by the Oireachtas which were, before the appointed day (whether before or after the passing of this Act), issued from the Exchequer and placed at the disposal of the Minister for the purpose of local loans, and

(c) all interest payable under sub-section (2) of section 33 of the Finance Act, 1931 (No. 31 of 1931), which on the appointed day had accrued due (including the accrued proportion of accruing gales) and was unpaid, but excluding any part of such interest which is payable by means of a set-off under sub-section (4) of the said section 33 .

(2) When determining under the next preceding sub-section of this section the amount mentioned in that sub-section, the Minister shall not include in such amount so much of any local loan as the Minister shall consider to be irrecoverable.

(3) Immediately upon the completion of the determination to be made by the Minister in pursuance of the foregoing sub-sections of this section, the Minister shall make and issue a certificate stating the amount determined by him on such determination.

(4) If at any time after the issue of the certificate mentioned in the next preceding sub-section of this section it shall appear to the Minister that the determination the subject of such certificate was erroneous by reason of an error in any calculation or estimation on which such determination was founded, the Minister may amend such determination, and in that case the Minister shall make and issue a new certificate revoking the first-mentioned certificate and stating the amount of such determination as so amended.

(5) The amount stated in the certificate made and issued by the Minister under the foregoing sub-sections of this section which is for the time being the latest such certificate shall be deemed to be an advance made under this Act to the fund by the Minister on the appointed day out of the Central Fund or the growing produce thereof for the purpose of making issues from the fund in respect of local loans.

(6) Every certificate made and issued by the Minister under this section shall, as soon as conveniently may be after it is made, be published in the Irish Oifigiúil and laid before each House of the Oireachtas·

(7) Nothing contained in or done under this section shall prejudice or affect the liability of any person to pay the principal of and the interest on a loan or part of a loan which is considered by the Minister under this section to be irrecoverable, and all such principal or interest which is actually recovered shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister shall direct.

Creation and issue of securities on behalf of the fund.

7.—(1) For the purpose of repaying any advance made or deemed by this Act to have been made to the fund by the Minister under this Act out of the Central Fund or the growing produce thereof, the Minister may create and issue on behalf of the fund securities bearing interest at such rates and subject to such conditions as to repayment, redemption, or otherwise as he may determine and the Minister may consolidate an issue of such securities with all or any similar issues or issue previously made.

(2) The principal of and interest on all securities created and issued by the Minister under this section shall be charged on and paid out of the fund and, if and so far as the fund is insufficient for that purpose, a sum sufficient to make good the deficiency shall be advanced to the fund out of the Central Fund or the growing produce thereof.

(3) All moneys advanced to the fund out of the Central Fund or the growing produce thereof in pursuance of the next preceding sub-section of this section shall be repaid to the Central Fund out of the fund, and if and so far as such moneys are not so repaid they shall be repaid out of moneys provided by the Oireachtas.

(4) The Minister may by agreement exchange, on such terms and in such manner as he shall think proper (including a payment of money out of the fund), any securities created and issued under this section for any securities the service of which is charged on the Central Fund or any liability or money which is, under the Telephone Capital Acts, 1924 to 1931, dischargeable or payable out of the Central Fund or out of moneys provided by the Oireachtas.

(5) All securities received by the Minister on an exchange under the next preceding sub-section of this section shall be cancelled and the annual appropriation for the service of the issue of which such securities form part shall be abated accordingly, and all liabilities and moneys in exchange for which securities are issued under the said next preceding sub-section shall be cancelled and the annual appropriation for the service thereof shall (as the case may require) cease or be abated.

(6) A warrant issued by the Minister shall be sufficient authority to the Bank of Ireland to make such transfers and do all such other things as may be required to be done by it to give effect to any exchange agreed upon under this section.

Accounts of the fund.

8.—(1) The Minister shall cause accounts, in such form as he shall from time to time think proper, to be kept in relation to the fund.

(2) The accounts kept in pursuance of this section shall distinguish between receipts and expenditure in respect of the capital of the fund and receipts and expenditure in respect of the income of the fund.

(3) Notwithstanding anything contained in the next preceding sub-section of this section, but subject to the other provisions of this Act, any money for the time being standing to the account of the fund may be applied in payment of any sums charged on the fund or in making any payments or issues which fall to be made out of the fund.

(4) Within one year after the expiration of every year of account of the fund, the accounts kept in pursuance of this section for that year shall be submitted for audit to the Comptroller and Auditor-General, and shall be audited in due course by the Comptroller and Auditor-General and when so audited shall be laid, together with the report of the Comptroller and Auditor-General, before each House of the Oireachtas as soon as conveniently may be after the completion of such audit.

The capital of the fund.

9.—(1) All sums paid to the fund in or on account of repayment of the principal of any local loan shall be included in and credited to the capital of the fund and shall be regarded and dealt with as a sinking fund for the redemption of securities issued under this Act on behalf of the fund.

(2) Such portion as the Minister shall from time to time direct of expenses incurred by the Minister in or in connection with the issue of securities under this Act on behalf of the fund shall be charged to and paid out of the capital of the fund.

The income of the fund.

10.—(1) All sums paid to the fund in respect of the interest on any local loan or by way of dividend or interest on investments held by the fund shall be included in and credited to the income of the fund.

(2) All dividends and interest on securities issued under this Act on behalf of the fund and all interest on moneys borrowed under this Act on behalf of the fund shall be charged to and paid out of the income of the fund, and, where any such dividend or interest is paid in the first instance out of the Central Fund, all sums paid out of the fund to the Central Fund in respect of such dividend or interest shall be charged to and paid out of the income of the fund.

(3) Such portion as the Minister shall from time to time direct of the expenses incurred by the Minister in or in connection with the issue of securities under this Act on behalf of the fund shall be charged to and paid out of the income of the fund.

Investment of the fund.

11.—(1) All balances standing from time to time to the credit of the capital of the fund or of the income of the fund and not immediately required for making payments out of the fund may be invested at the discretion of the Minister in all or any of the following ways, that is to say, in the purchase of securities issued under this Act on behalf of the fund, or in making advances to the Exchequer on the credit of ways and means, or in Exchequer Bills or in any investment authorised by sub-section (1) of section 17 of the Finance Act, 1930 (No. 20 of 1930), for the investment of moneys standing to the credit of the Exchequer account.

(2) Moneys available for investment under the next preceding sub-section of this section shall be a Government fund within the meaning of the Approved Investments Act, 1933 (No. 34 of 1933), and that Act shall apply in regard thereto accordingly.

(3) All sums from time to time held in the fund by way of sinking fund may be invested at the discretion of the Minister in all or any of the following ways, that is say, in advances in respect of local loans, or in the purchase of securities issued under this Act on behalf of the fund, or in the purchase of any stock, fund, or security in which trustees are authorised by section 18 of the Adaptation of Enactments Act, 1922 (No. 2 of 1922), to invest trust funds, or in the purchase of any stock, shares, or security the principal and interest of which is guaranteed under statutory authority by the Government of Saorstát Eireann.

(4) Moneys liable to investment under the next preceding sub-section of this section shall be a Government fund within the meaning of the Approved Investments Act, 1933 (No. 34 of 1933), and that Act shall apply in regard thereto accordingly.

(5) Whenever money forming part of a sinking fund is invested in pursuance of this section in the purchase of securities issued under this Act on behalf of the fund, the securities so purchased shall forthwith be cancelled.

(6) Whenever money is invested under or in pursuance of this section in the purchase of securities (other than securities which are required by this section to be cancelled), the Minister may sell such securities whenever the money represented thereby is required for making any payment, and the Minister may also from time to time vary as he shall think proper the investment of any money so invested and for that purpose sell all or any of the securities in which such money is invested and reinvest the proceeds of such sale in any manner authorised by this section in respect of such money.

Interest on and repayment of future local loans.

12.—(1) Notwithstanding anything contained in any other Act, the rate of interest on and the method and period of repayment of every local loan made after the passing of this Act shall be such as the Minister shall direct, either generally or in any particular case.

(2) The rate of interest fixed by the Minister under the next preceding sub-section of this section shall, in every case, be sufficient, in the opinion of the Minister, to enable the loans or loan to which such rate applies to be made without loss to the fund.

Variation of interest on and repayment of existing and future local loans.

13.—(1) Notwithstanding anything contained in any other Act, it shall be lawful for the Minister to vary, by agreement with the person for the time being liable to defray the service of a local loan (whether made before or after the passing of this Act), all or any of the following things, that is to say, the rate of interest on and the method and period of repayment of such loan.

(2) Every variation under this section of the rate of interest on or the method or period of repayment of a local loan shall be of such character and made in such manner as will, in the opinion of the Minister, ensure, so far as is practicable, that no loss will be occasioned thereby to the fund.

Writing off assets of the fund.

14.—(1) No part of the principal of or the interest on any local loan shall be written off the assets of the fund save in pursuance of an express direction in that behalf contained in an Act of the Oireachtas passed after this Act.

(2) Where any part of the principal of a local loan is written, off the assets of the fund, the amount so written off shall forthwith be recouped and paid to the fund out of money provided by the Oireachtas.

(3) The writing off of any part of the principal of or the interest on a local loan shall not prejudice or affect the liability of any person to pay the principal or the interest so written off or any penal interest which may be payable in respect thereof, and any money which may subsequently be received or recovered in respect of such principal or interest shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister shall direct.

Penal interest.

15.—(1) This section applies only to the following local loans, that is to say:—

(a) local loans made before the appointed day to which section 5 of the Public Works Loans Act, 1897 , applies immediately before the appointed day, and

(b) local loans made under the Drainage Maintenance Acts, 1866 to 1924, before the appointed day to which section 16 of the Drainage Maintenance Act, 1866, applies immediately before the appointed day, and

(c) all local loans made on or after the appointed day.

(2) Where any sum which accrues due and payable on or after the appointed day by any person to the fund on foot of the principal of or the interest on a local loan to which this section applies or partly on foot of such principal and partly on foot of such interest is not paid on or before the thirty-first day after the day on which such sum became payable, there shall be paid by the person liable to pay the said sum so unpaid interest (in this Act referred to as penal interest) on the said sum at the rate of five per cent, per annum from the day on which such sum became payable until such sum is paid.

(3) Penal interest shall be payable and recoverable in the like manner in all respects as the sum in respect of which such penal interest is chargeable under this section is payable and recoverable.

(4) All sums paid or recovered in respect of penal interest shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister shall direct.

(5) Where any penal interest is payable in relation to a local loan, all moneys paid to or for the benefit of the fund by or on behalf of the person liable to pay such penal interest shall be deemed (notwithstanding any direction to the contrary by or on behalf of such person) to be paid in or towards discharge of such penal interest but, where such moneys exceed the amount of such penal interest, only so far as may be necessary to discharge such penal interest.

(6) Section 16 of the Drainage Maintenance Act, 1866, shall not apply or have effect in relation to any such sum as is mentioned in that section which accrues due and payable on or after the appointed day.

(7) Section 5 of the Public Works Loans Act, 1897 , shall not apply or have effect in relation to any such sum as is mentioned in that section which accrues due and payable on or after the appointed day.

Deduction from local grants, etc., of moneys due to the fund.

16.—(1) Where any sum (including a sum which consists wholly or partly of penal interest) is due and payable to the fund by a local authority, the amount of such sum may be deducted from any money payable to such local authority by any Minister for any purpose whatsoever, but such deduction shall, in the case of money payable out of the local taxation (Ireland) account, be made subject and without prejudice to the claims of the guarantee fund under the Land Purchase Acts.

(2) Every amount deducted under this section shall if or so far as it is so deducted in respect of money owing otherwise than for penal interest be paid into the fund and credited in the accounts of the fund as a payment by the local authority from whose money the said amount was so deducted, and shall, if or so far as it is so deducted in respect of money owing for penal interest, be paid into or disposed for the benefit of the Exchequer in such manner as the Minister shall direct.

Regulations.

17.—(1) The Minister may by order make regulations for all or any of the following purposes, that is to say:—

(a) requiring the payment of fees on applications for local loans and fixing the amounts of such fees and the persons by whom and the time and manner at and, in which such fees are to be paid;

(b) providing for the payment by persons obtaining local loans of the preliminary expenses of the issue of such loans, prescribing the manner in which the amount of such expenses is to be ascertained, and appointing the time and manner at and in which they are to be paid;

(c) authorising the deduction of such fees and expenses as aforesaid payable in respect of a local loan from the first issue on foot of such loan;

(d) authorising the allowance of discount on the repayment of a local loan before the time at which it is lawfully repayable and prescribing the method of calculating the amount of such discount and the manner of allowance of such discount, including the allowance thereof by remission of part of the principal of such loan;

(e) authorising the charging of a premium on the repayment of a local loan before the time at which it is lawfully repayable and prescribing the method of calculating such premium and the time and manner at and in which it is to be paid;

(f) prescribing any matter or thing which may be necessary or proper for the due management of the fund in accordance with this Act.

(2) All fees and expenses paid in pursuance of regulations made under this section shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister shall direct.

(3) The Public Offices Fees Act, 1879, shall not apply in respect of any fees or expenses payable in pursuance of regulations made under this section.

(4) Every regulation made under this section shall be published in the Iris Oifigiúil and laid before each House of the Oireachtas as soon as conveniently may be after it is made.

Expenses.

18.—(1) The amount by which the expenses incurred by the Minister in any financial year in or in relation to the management of the fund (including the audit of the accounts of the fund and the issue and management of securities issued under this Act on behalf of the fund) exceed the aggregate amount received in that financial year by the Minister by way of fees, preliminary expenses, and penal interest paid in pursuance of this Act shall, to such extent as shall be determined by the Minister, be recoverable by the Minister from the fund.

(2) All moneys recovered by the Minister from the fund under this section shall be paid into or disposed for the benefit of the Exchequer in such manner as the Minister shall direct.

Repeal.

19.— Section 33 of the Finance Act, 1931 (No. 31 of 1931), is hereby repealed as on and from the appointed day.

Short title.

20.—This Act may be cited as the Local Loans Fund Act, 1935.