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Housing Authority Loan Guarantee Decree 1991

FIJI

GOVERNMENT OF THE SOVEREIGN DEMOCRATIC REPUBLIC OF FIJI
DECREE NO. 36
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HOUSING AUTHORITY LOAN GUARANTEE DECREE, 1991
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A DECREE TO AUTHORISE THE GOVERNMENT TO GUARANTEE THE REPAYMENT BY THE HOUSING AUTHORITY OF THE PRINCIPAL AND INTEREST ON A LOAN TO BE RAISED BY THE AUTHORITY FROM THE FIJI NATIONAL PROVIDENT FUND BOARD REPAYABLE OVER A PERIOD OF FIFTEEN YEARS AND FIVE YEARS AT A REVIEWABLE INTEREST RATE OF 9.475%

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

Short title

1. This Decree may he cited as the Housing Authority Loan Guarantee Decree, 1991.

Interpretation

2. In this Decree, unless the context otherwise requires:

"Fiji National Provident Fund Board" means the Fiji National Provident Fund Board established under the provision of Section 3 of the Fiji National Provident Fund Act (Cap. 219):

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

"Housing Authority" means the Housing Authority established under the provisions of Section 3 of the Housing Act (Cap. 267).

Government to guarantee loan

3. (a) The Government is authorised to guarantee the repayment by the Housing Authority of the principal and interest on a loan of four million dollars to be raised by the Housing Authority from the Fiji National Provident Fund Board, on terms and conditions as follows:

(i) $2 million at 9.475% for a maximum term of 15 years;

(ii) $2 million at 9.475% for a maximum term of 5 years.

(b) The interest rate is to be reviewed at each anniversary of the commencement date of the loan and the rate shall be reviewed and set at 0.125% above the Fiji National Provident Fund operating rate prevailing at the time of review, or will remain at 9.475%, whichever is the greater.

Guarantee to be evidenced by instrument

4. The guarantee authorised under Section 3 above shall be evidenced by an instrument given under the hand of the Minister responsible for finance.

Condition of guarantee

5. 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 3 of this Decree unless the moneys are borrowed on terms and conditions the Minister considers reasonable.

Commencement

6. This Decree shall come into force on the day it is made.

Made this 5th day of September 1991.

PENAIA K. GANILAU
President of the Sovereign Democratic Republic
of Fiji and Commander-in-Chief of the Armed Forces