Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697628078645.pdf (Antigua and Barbuda)
ANTIGUA AND BARBUDA THE LOAN (BORROWING FROM THE ANTIGUA COMMERCIAL BANK) (AMENDMENT) ACT, 2021 No.

10 of 2021 [Published in the Official Gazette Vol.

XLI No.

43 dated 1st July, 2021. ]

________ Printed at the Government Printing Office, Antigua and Barbuda, By Noel F. Abraham, Government Printer — By Authority, 2021.

235—7.21 [Price 4.00] The Loan (Borrowing from the Antigua Commercial Bank) 2 No.

10 of 2021 (Amendment) Act 2021.

No.


10 of 2021 3 The Loan (Borrowing from the Antigua Commercial Bank) (Amendment) Act 2021.

ANTIGUA AND BARBUDA THE LOAN (BORROWING FROM THE ANTIGUA COMMERCIAL BANK) (AMENDMENT) ACT, 2021 ARRANGEMENT OF SECTIONS SECTION 1.Short Title ...................................................................................................................................... 4 2.
Interpretation ................................................................................................................................ 4 3.

Amendment of the Schedule to the principal Act ......................................................................... 4 SCHEDULE ..................................................................................................................................... 5 The Loan (Borrowing from the Antigua Commercial Bank) 4 No.

10 of 2021 (Amendment) Act 2021.


[ L.S.]

I Assent, Rodney Williams, Governor-General.

28th June, 2021.

ANTIGUA AND BARBUDA THE LOAN (BORROWING FROM THE ANTIGUA COMMERCIAL BANK) (AMENDMENT) ACT, 2021 No.

10 of 2021 AN ACT to amend the Loan (Borrowing from the Antigua Commercial Bank) Act 2020, No.

35 of 2020 and for other connected purposes.


ENACTED by the Parliament of Antigua and Barbuda as follows — Short Title This Act may be cited as the Loan (Borrowing from the Antigua Commercial Bank) (Amendment) Act 2021.

Interpretation In this Act – “principal Act” means the Loan (Borrowing from the Antigua Commercial Bank) Act 2020, No.

35 of 2021.

Amendment of the Schedule to the principal Act The Schedule to the principal Act is repealed and replaced as follows – No.
10 of 2021 5 The Loan (Borrowing from the Antigua Commercial Bank) (Amendment) Act 2021.

SCHEDULE The Terms and conditions agreed to between the Government of Antigua and Barbuda and the Antigua Commercial Bank for the loan to the Government of Antigua and Barbuda of the sum of One Hundred and Twenty-seven Million Dollars Eastern Caribbean Currency.
Credit A: Operating Line Borrower: Credit limit: Description and Rate: Credit B: Term Loan Loan Amount: Purpose: Government of Antigua and Barbuda East Caribbean $5,000,000.00 A revolving demand credit for Government expenditure, to be extended as Loans and Overdrafts at an interest rate of 9 % per annum.
East Caribbean $97,800,000.00 Consolidation of loan# 100003538 with a current balance of $46,521,405 and loan # 100003653 with a current balance of $9,068,827 in the name of the Government of Antigua and Barbuda plus daily accrued interest; liquidation of temporary overdraft facility of $10,000,000.00 for Government of Antigua and Barbuda; amount of $10,700,000.00 for LIAT (1974) Ltd.; $6,000,000.00 regarding the purchase of Deluxe Cinema; valuation costs estimated at $15,000.00 for securing properties on Factory Road (Block# 64-1792B; Parcel #24) and High Street (Block# 65-1792C; Parcel #107; and Block#65-1792C; Parcels 124 and 125) and debt service reserve of approximately $10,233,033.00.
Interest Rate: 6.25% per annum Scheduled payments: Credit C: Term Loan Loan Amount: Purpose: Unless the Bank makes a demand, the Government of Antigua and Barbuda agrees to pay to the Bank as follows: 240 regular blended monthly payments of $714,847.78.

The first monthly payment is due one month after initial disbursement of the facility.
The last payment, plus any outstanding principal and interest together with any other amount due under this agreement is due 240 months after the date of initial disbursement.

East Caribbean $29,200,000.00 To liquidate the loan with the Antigua and Barbuda Maritime Board Inc. with a current balance of $27,016,819.00 plus daily The Loan (Borrowing from the Antigua Commercial Bank) 6 No.
10 of 2021 (Amendment) Act 2021. accrued interest as well as liquidate overdrawn balance of $165,311.00 plus monthly charges.

Interest rate: 6.25% per annum Scheduled payments: Unless the Bank makes a demand, the Government of Antigua and Barbuda agrees to pay the Bank as follows: 240 regular blended monthly payments of $213,431.04.

The first monthly payment is due one month after initial disbursement of the facility.
The last payment, plus any outstanding principal and interest together with any other amount due under this agreement is due 240 months after the date of initial disbursement.

Security The following security is required: Registered Charge over commercial property at Factory road to be transferred t6ot he Government of Antigua and Barbuda.

Registration Section: Sutherlands; Block # 64-1792B, Parcel #24 stamped to $25,700,000.
(Secures Credit C) Fire and other perils insurance over the property for its full insurable value with loss, if any, payable to Antigua Commercial Bank.

Fire & perils insurance over the above property for its full insurable value with loss, if any, payable to Antigua Commercial Bank.

Registered Charge over commercial property on High Street (Deluxe Cinema).

Registration Section: St. John’s Central.

Block# 65-1792C; Parcel Numbers 124 & 125 stamped to $7,000,000.00 (Secures Credit B).
Fire and other perils insurance over the property for its full insurable value with loss, if any, payable to Antigua Commercial Bank.

Registered Charge over commercial property on High Street.

Registration Section: St. John’s Central.

Block #65-1792C, Parcel 107 (stamped value to be determined upon receipt of updated valuation report) Fire and other perils insurance over the above property for its full insurable value with loss, if any, payable to Antigua Commercial Bank.
Lien over Certificate of Deposit #100040618 for $3,000,000 in the name of Government Treasury Fund (Secures Credit B).

No.

10 of 2021 7 The Loan (Borrowing from the Antigua Commercial Bank) (Amendment) Act 2021.

Reporting Requirements A copy of the annual Budget Estimates is to be provided within 15 days after presentation to Parliament each year.

Conditions Precedent to Disbursement The following shall be provided, in form and substance satisfactory to ACB, prior to disbursement.

1.
1.

Execution and delivery of all relevant loan and security documentation.

2.

Updated Valuation report (prepared by one of the Bank’s designated valuators) for the ADOMS building (Block #64-1792B, Parcel#24).

3.

Documentary evidence of equity injection of $700,000.00 for the purchase of Deluxe Cinema.

Continuing Conditions 1.

The Bank may set off any amounts due and payable under these Facilities against any right that the Government of Antigua and Barbuda has to receive money from the Bank.
Right to receive money means – (a) Any deposit account the Government has with the Bank, and (b) Any money owed to the Government on any item presented to the Bank or in the Bank’s possession for collection, exchange or sale.

2.

The Overdraft limit is to be strictly observed at all times.

3.
3.

The bank, having now exceeded its current concentration limit in lending to the Government of Antigua and Barbuda, will not be in a position to facilitate any further credits to you until your aggregate credit is reduced to within the stated limit.

4.
Subject to terms hereof after the Moratorium the Borrower shall repay the principal sum and interest and interest by equal consecutive monthly payments commencing on the first payment date following the moratorium in accordance with the Amortization Schedule provided always and it is hereby expressly declared and agreed that the principal sum, interest at the agreed interest rate, maturity date, repayment date and or repayment frequency date shall not be varied, modified, changed or altered nor shall any variation, modification or change be implemented without the mutual consent of the parties hereto or as otherwise permitted by this agreement.
5.

It is understood that any costs above the approved amount of $127,000,000.00 (Credit B: $97,800,000.00 and Credit C: $29,200,000.00) will be for the account of the borrower.

Material Adverse Condition ACB reserves the right to demand prepayment of the ACB Facilities where there is a Material Adverse Condition, as evidenced by one or more of the following: The Loan (Borrowing from the Antigua Commercial Bank) 8 No.

10 of 2021 (Amendment) Act 2021.


(i) Non-compliance with the terms and conditions of the ACB Facilities; (ii) Material reductions in security margins or values; or (iii) Significant deterioration in, or development of factors that are likely to substantially impair the viability of the Borrower’s principal sources of income.
Events of Default The ACB Facilities and all interest thereon may, in the Bank’s sole discretion become immediately due and payable in full, in the event of default to include, but not be limited to, the following: (i) Non-payment of principal and interest within 90 days of their due date; (ii) Default by the Borrower under any of its credit agreements or debt obligations; (iii) The breach of conditions as set out in this Agreement Letter; or (iv) The occurrence of a Material Adverse Condition.
Fees Loan Negotiation: Amendment: Late Reporting: A non-refundable fee of East Caribbean Dollar $106,863 representing 0.75% of new funds advanced, is payable on acceptance of this Credit Agreement.

If you require a material amendment to this agreement during the life of the Credit Facilities, there will be a fee amounting to $1,000.

A material amendment is anything requiring the approval of ACB’s internal credit approval authorities.
Examples of this include, but are not limited to, requests for a principal moratorium, for a restructuring of the Facilities, for a change in repayment terms, or for a change in collateral security.

A minimum fee of $250 per month will be levied for late receipt of Budgetary Estimates or other information as stated in this Agreement.

Credit Management: A fee of 0.25% of the outstanding balance will be payable on facilities not operating in accordance with this Agreement.

No.
No.

10 of 2021 9 The Loan (Borrowing from the Antigua Commercial Bank) (Amendment) Act 2021.

Late payment: Other Provisions: Change in Payment: Default Interest Rate: Professional Fees: Next Scheduled Review Date: Warranty A minimum of $100.00 or 2% of the monthly payment (whichever is greater) will be levied on payments received in excess if ten days of the due date.

For any instalment Loan, which is paid in blended payments, such payments may be reviewed at least annually.
In the event of changes in the rate being charged, a change in payment amount might be necessary to ensure that the original scheduled end date is maintained.

The current default interest rate is 14% per annum for Credit A and 12% per annum for Credits B and C. The default interest rate is effective from the date of default i.e.

ninety (90) days delinquency.

The default rate charged on all unpaid and overdue amounts of principal, interest and fees shall be five percentage points above the agreed rate.
All legal and professional fees and expenses will be for the account of the Borrower and shall be paid in full without any deduction or withholding.
OCTOBER 31, 2021 The Borrower represents, warrants, and undertakes to ACB that on the date of your acceptance of this letter and on each date that the Facility is made available or outstanding as follows: (a) All factual information supplied to us in contemplation of the Facility was true as at its date and did not omit anything material to be known by any proposed lender to you.

(b) No change has occurred since the date of the information already supplied which renders it untrue or misleading.
(c) All projections and statements of belief and opinion given by you to us were made in good faith after due and careful enquiry.

The Loan (Borrowing from the Antigua Commercial Bank) 10 No.

10 of 2021 (Amendment) Act 2021.

Passed the House of Representatives on the 25th day of May, 2021.

Passed the Senate on the 3rd day of June, 2021.

Gerald Watt, Q. C., Speaker.

Alincia Williams Grant, President.

Rosemarie Smith-Weston, Acting Clerk to the House of Representatives.
Rosemarie Smith-Weston, Acting Clerk to the Senate.