Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697796205532.pdf (Guyana)
GUYANA.

ACT NO.

10 OF 1970.

GUYANA NATIONAL CO-OPERATIVE BANK ACT, 1970.

I assent• Acting Governor-General• 2o~ February, 1970.

Arrangements of Sections.

PART I - PRELIMINARY Short title and commencement.

Interpretation .

Section 1.

2.

No.

10 THE LAWS OF GUY.AN.A AD 1970 2 PART II - ESTABLISHMENT, INCORPORATION AND MANAGEMENT OF THE BANK Establishment and incorporation of the Bank.

Objects of the Bank.

Board of Directors.

Power of Minister to give directions to th~ Bank.


Meetings of the Board.

Director to declare interest.

Employment of officers and employees of the Bank.

Appointment of public officers to the service of the Bank.

Special disqualifications for off~cers of the Bank.

Preservation of secrecy.

Meetings of shareholders of the Bank.

PART III - FINANCIAL PROVISIONS Authorised share capital.

Issue of shares.

Share register and transfer of shares.

Borrowing powers of the Bank.


Poyer to make rules under this Part.

Financial year.

Annual Reports.

Audit.

Provision for training of officers and employees 3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

PART IV - BUSINESS OF THE BANK 23.

Authorised business of the Bank.

AD 1970 GUYANA NATIONAL CO-OPERATIVE BANK No.

10 3 24.

25.

26.

27.

!B.

29.

30.

31.

32.

33.

4-.

35.

36.

37.

38.

Categories of loans.

General provisions relating to laons.


Application of loan.

Suspension of payment of principal and interest.

Restriction on certain financial activi ties of the Bank.

Power of the Bank to dispose of cropa.

Mortgages and charges to be prepared by the Bank.

Examination as to application of moneys.

Order of the Bank upon examination.

Cancellation or modification of approval of loan.

Power of the Bank to direct that any part outstanding of an approved loan be not paid.

Offences in fespect of loans.


Fees to be taken in respect of mortgages.

Reserve fund.

Application of provisions of certain Ord inances to the Bank.

PART V - TRANSITIONAL ABD GENERAL PROVISIONS 40.

41.

Offences.

Regulations.

Transitional provisions.

First Schedule.

Second Schedule.

No.

10 THE LAWS OF GUY.ANA AD 1970 4 AN AC'l' to provide for the establishment of the Guyana National Co-operative Bank and for matters connected therewith.

~.D.

1970.
~.D.

1970.

Enacted by the Parliament of Guyana: PART I - PRELDllNARY Short title and commencement.

l. This Act may be cited as the Guyana National Co operative Bank Act.

1970. and shall come int9 operation · on 23rd February.

1970.

Interpretation.

2.

In this Act.


unless the context otherwise re quires - "the Bank" means the Guyana National Co-op erative Bank established by section 3; "the Board" means the Board of Directors of the Bank; "Manager" means the Manager of the Bank; "the Minister" means the Minister responsible for finance; I "public service" has the meaning assigned to it by article 125 (1) of the Constitution of Guyana.

PART II - ESTABLISHMENT.


INCORPORATION AND MANAGEMENT OF THE BANK Establishment and incorpora ti on of the !lank.

3.

(1) There is established a Bank to be known as the Guyana National Co-operative Bank which shall be a body corporate having perpetual succession and a common seal.

(2) The Bank may sue and be sued in its corporate name and shall.

subject to sec~ion 28, bave power to acquire.

hold.
hold.

dispose of .and otherwise deal with property of whatever kind and to do all such other things as are requisite, advan tageous or convenient for or in connection with the performance of its functions under this Act.

AD 1970 GUYANA NATIONAL CO-OPERATIVE BANK No.

10 5 (3) The Bank shall have its principal place of business in the City of Georgetown or at such other place i n Guyana as the Board may decide.
(4) The Bank may establish branches in any place in Guyana or elsewhere as it considers necessary.

(5) The Bank may appoint agents or correspondents within and outside Guyana.

4.

The objects of the Bank shall be Obj ecta of the Bank.
(a) to encourage and foster the development of agriculture, commerce and industries for the benefit of registered co-operative societies; (b) to mobolise f unds for the purpose of such development; (c) (d) to promote the economic activities of regis tered trade unions and registered friend~y societies; and to exercise such other functions consistent with the functions of a bank carrying on banking business as may be approved by the Minister.

5 .
5 .

(1) The Bank shall be managed by a Board of ten Directors constituted as hereinafter provided in this section.

Board of Directors .

(2) The Board shall consist of the follo~ing persons (a) five persons elected triennially by the shareholders of the Bank at the Annual Gen eral Meeting of the Bank; (b) four persons appointed by the Minister; and (c) the Manager.

.l Ko.
.l Ko.

10 TRE LAWS OF GUYANA AD 1970 6 (3) The Directors shall elect one of their number (other than the Manager) to be the Chairman of the Board.

(4) The Board shall appoint an officer of the Bank to perform the functions of the Secretary to the Board.

(5) Subject to the provisions of this section, the term of office of every Director appointed by the Minister pursuant to paragraph (b) of sub section (2) shall be specified in the instru ment appointing him and shall not exceed three years.
(6) Any Director referred to in paragraph (a) or (b) of subsection (2) shall, on the expiration of his term of office, be eligible for re-election or re-appointment, as the case may be.

(7) 'Where a Director referred to in paragraph (a) of subsection (2) is for any reason unable tem porarily to perform the functions of his off ice the other remaining elected Directors may select a person to act in his place.
(8) The Minister may appoint any person to act tem porarily in the place of any Director referred to in paragraph (b) of subsection (1) in the case of the absence or inability to act of such Director.
( 9) 'Where a vacan·cy occurs in the office of a Direc tor referred to in paragraph (a) of subsection (2) the other remaining elected Directors may select e person to act in his place untiL the election of a Director by the shareholders of the Bank at a general meeting of the Bank sum moned for the purpose; and the Director so \elected shall hold office for the unexpired portion of his predecessor 's term of office.
(10) Any Director appointed by t he Minister may, by writing under his hand addressed to the Minis- AD 1970 GUYANA NATIONAL CO-OPERATIVE BANK No.

10 7 ter, resign his office; and any Director elec ted pursuant to paragraph (a) of subsection (2) may, by writing under his hand addressed to the Secretary to the Board resign his off ice.

(11) The Chairman of the ~oard may, by writing under his hand addressed to the Secretary to the Board, resign his office as Chairman of the Board.
(12) The Minister may revoke the appointment of any Director who:- (a) has been adjudged or otherwise declared insolvent under any law in force in Guyana and has not been discharged; or (b) is convicted of an offence involving dis honesty, fraud or turpitude; (c) becomes totally or permanently incapable of performing his duties; or (d) · is guilty of gross misconduct in relation to the performance of his duties; or .

(e) fails to make a disclosure as required by subsection (1) of section 8.
• (13) The Minister may revoke the appointment of a Director appointed by him if the Director ab sents himself from three consecutive meetings of the Board without leave of the Board.

(14) The appointment, resignation, absence, removal from office, or death, o~ a Director shall be notified in the Gazette.

(15) The remunera ti on and allowances payable to the Directors (other than the Manager) shall be determined, from time to time, by the share- No.
10 rnE LAWS OF GUYANA AJJ 1970 .- 8 holders of the Bank at a general meeting of such shareholders.

Power of Minioter to give di rectiona to tbe Bank.

6.

The Minister may give to the Bank directions of a general character as to the policy to be fol lowed by the Bank in the exercise of its func tions under this Act and the Bank shall give effect to any such directions.

Meeting• of the Board.

7.

(1) The Board shall meet at least once in every month.
(2) The Chairman ma~ at any time convene a meeting of the Board whenever he considers that the business of the Bank so requires.

(3) The Chairman shall preside at all meetings of the Board; in the absence of .the Chairman from any meeting of the Board the Directors present may elect one of their number to act as Chairman at such meeting.

1 , 1 (4) Five Directors shall form a quorum.

at any meeti19 of the Board.


(5) Decisions of the Board shall be adopted by a majority of the votes, provided that in any case in which the voting is equal, the Chair- man shall have a second or casting vote.

• (6) The Chairman shall convene a special meeting of the Board within· seven days of a request in writing addressed to him by at least five Directors.
(7) Subject to subsection (4), the Board may act not withstanding any vacancy in its membership and the presence or participation of any person not entitled to be present at or to partici pate in the proceedings of the Board shall not invalidate those proceedings.

(8) Subject to the provisions of this section, the Board may regulate its own procedure.

AD 1970 GUYANA NATIONAL CO-OPERATIVE BANK No.

10 9 8 .
10 9 8 .

(1) Any Director whose interest is likely to be aff ected whether directly or indirectly by a decision of the Board on any matter whatsoeve~ shall disclose the nature of the interest at the first meeting of the Board at which he is present after the relevant f acts have come to his knowledge.

Director to dec l a re int ereat.


• (2) A disclosure under subsection (1 ) shall be recor ded in the minutes of the Board, and after the disclosure, the Director making the disclosure shall, unless the Board otherwise 1direct1, not be present, Dr take part in the deliberation or vote at any meeting during the time when such matter is being decided by the Board.
(3) For the purposes of this section, where the in terest of parents, spouse or children of any Director is likely to be aff ected directly or indirectly by a decision of the Board on any matter, such interest shall be deemed to be the interest of that Director • 9.
(1) There ahall be a Manager, Assistant Manager and an Accountant of the Bank who shall, subject to subsection (3), be employed by the Bank on such terms and conditions as the Bank may think fit: Provided that the first Manager shall be appointed by the Minister on such terms and conditions as t he Minister thinks fit and f-or such period not exceeding five years as may be designated in the instrument appoint ing him ; but he shall be eligible for r e employment.
(2 ) Subj ect to subsectio~ (3) of this section, the Bank t1ay employ such other officers .and em ployees as the Bank considers ne cessary for t he proper conduct of the business of the Bank on such terms and conditions a s t he Bank t hinks f it.

(3) No appointment shall be.

made to any office to which a salary in excess of seven thousand two hundred dollars per a nnum is assigned without the approval of the Minister.

F.mploy11>t!ftt of orf i cera and empl o y ees o f the Bank, No.
10 THE LAWS OF GUYANA AD 19~ 10 (4) The Manager shall be the chief executive officer of the Bank and, subject to the general policy decisions of the Board, shall be responsible for the administra tion of the business of the Bank.

(5) The Board may authorise the Na~ger - 10.

(1) Appointment of public ofhcers to the service of tbe Bcmlc.

No.

38 o{ 1957.
No.

38 o{ 1957.

(a) (b) to represPnt the Bank in its relations with other institutions and with the Government; to sign individually or jointly wi~h other perscns contracts concluded by the Bank, securities issued by the Bank, reports, balance sheets and other financial statements.
Where an officer in the public service is seconded or temporarily cransferred for duty to an office in the Bank from a pensionable office within the meaning of the Pensions (Consolidation) Ordinance 1957, section 6 cf that Ordinance shall apply to him as if his service in the Bank were se.!

'Vice in a civil capacity under the G~vernment of Guyana.
• (2) Where, with the apnroval of the Public Service Commission, an officer in the public service has been transferred to any office in the Bank the provisions of regulation 21 of the Pensions Regulations (as concained in the schedu.

to the Pensions (Consolidation) Ordinance 1957) shall apply to him as .if ser-rice with the Ba....rik were other public service wi.
thin the meaning of that Ordinance end the provisions of the said Ordinance shall apply to h ~m as if his service with the Bank were other public servic~ within the J:1enaing of that Ordinance not being service under aisy of the Scheduled Governments as defined in regulation 2 of cne said regulations, li.D.d regulation 21 of those regulations AD 1970 GUYANA NATIONAL CO-OPERATIVE BANK No.

10 11 : 11.

12.

Sp e cial dis qualification s f o r o f ficer s t he Bank.
o f P r e s e r vat i on of Sec re c y. shall a pply accordingly t o t he pers on so transfer red.

(l)The off icers of the Bank shal.l owe their duty entirely to the Bank: and sha11 not engage in any other paid employment, or professional or business activity, except as permitted under subsection (2).
(2)Any officer of the Bank may, with the approv al of the Minister - (a) se~e on any committee or commission appointed by the Government ·to i nquire into any matter affecting banking , or into any economic or financial matters relating to Guyana; serve on any international institu tion of which Guyana is a member; (b) (c) serve on the Board of any company, corporation or other body in which the Government or t he Bank holds stock or shares or otherwise partici pa t es.

serve on any other institution.


( d) (3)If any officer of the Bank contravenes the provisions of subsection (1) his appoint ment sha11 be liable to be terminated by the person who appointed him.

(l)Except for the purpose of the perf ormanc e of his duties or the exercise of his func t ions or .ti.
en la'l'd'ully r 8quired tc do so by any court or under the provisio!l.S of any l aw, a Di rector or an officer or employee of the Bank , shall not di sclose to any per son any informat ion which he has a cquired in the perf ormance of his duti e s or the exerc ise of hi s f unctions.
(2 ) Any pers on who contravens t he provisions of s ub secti on (1) s hall be guilty of an of _f ence and shall be liable on summary c onvic tion to a fine not exce eding f i ve hundred dollar s or to imp~isorunent for a terc not exceeding s ix months to both such f i ne and impris oru::ent.

No.

10 THE LAWS OF GUY.AN.A.

AD 197C 12 Meetings of shareholders of th<' Bank, 13.

(1) There shall be an Annual General ~eeting of shareholders of the Bank convened by the Board not later than 30th April.
(2) The Chairman of the Board shall preside at the general meetings of the sllareholders of the Bank, and in his absence the Directors men tioned in section 5 (2) (a) may elect one o~ their number to preside at the meeting.

(3) Subject to subsection (2) of section 14, every shareholder of the Bank shall be entitled to , vote at general meetings of the shareholders , of the Bank and no shareholder shall have more than one vote thereat.
(4) Subject to subsection (2) of section 14, the Board shall determine the man.~er in which a shareholder may vote at any general meeting.

(5) The Board may, with the approval of the Minis ter.

make rules relating to the holding of the general meetings of shareholders of th Bank, the notices required for the holding of such meetings and the proceedings at such meetings.

PART III FINANCIAL PROVISIONS Au tho ri secl sh are capital .

14.
14.

(1) The authorised share capital of the Bank shall be ten million dollars divided into one hw:> dred thousand shares valued at one hundred dollars each.

(2) A shareholder may purchase shares in the Bank by instalments but shall only be entitled to vote at general meetings of shareholders of the Bank if the shareholder is the registered holder of at least one fully paid-up share.
(3) The issue of shares purchased by instalments shall be subject to such te~ms and condi tions as cay be determined by the Board.

.lD 1970 GUYANA NATIONAL CO-OPERATIVE BAn No.

10 13 (4) The authorised share capital of the Bank may be increased by the Board, with the approval of the Minister .

15.
15.

The Board shall, as soon as practicable after the commencement of this Act ·,, and thereafter~ from time to time, offer shares in the Bank for sale to the Government, registered co-operatives societies, registered trade unions, registered friendly socie ties, public corporations established under the Public Corporations.

Ordinance, 1962 and s~ch other ~orporate body as may be prescribed by the Ministe~.

Iaaue of abarea.

No.

23 of 1962, 16.


(1) The shares of the Bank shall be registered and transferable in the books of the Bank.

Share regi ate r and tranafer of 1harea.

(2) The Board shall be entitled without assigning any reason to decline to accept the Govern ment or any registered co-operative society , registered trade union, or r-egistered friendly society, or public corporation or prescribed corporate body as the transferee of any share.

17.
17.

(1) The Bank may, on the recommen~tion of the Minister, borrow from the Gcvernment such sums as may be necessary fo~ the conduct of · its business.

Borrowing powera of the Bank.

(2) Loans made by the Government under this section shall be on such terms and conditions and for such periods as the Minister may determine but shall not in any event be made for a period longer than thirty years ·and repayment shall commence not later than ten years from the dat e when the loan was made.
(3) The Bank may, with the approval of the ~ ister, borrow otherwise than as provided by subsection ( 1), sums required by the.

Bank for the purpose of fu1filling any of its obligations or discharging an;y of its func tions.

No.

10 THE LAWS OF GUYANA J.D 197 14 Power to make r ule• under this Part .

lB.

The Board.
with the approval of the Minister, may aake rules - (a) regul.ating the rights of holders of shares and the variation of such rights; (b) relating to arq lien on shares not fully paid; (c) prescribing the circUlllStances under which a cal.1 on shares may be made by the Board; (d) regul.ating the mode of transfer of shares; (e) specifying the circumatances in which shares may be forfeited and the procedure to be adopted for such forfeiture; (r) describing the method of conversion of shares into stocks; (g} regul.ating the alteration of its share cap ital.
; (h) prescribing the borrowing powera of the BankJ (i) describing the manner of declaring dividend and of creating reserves; (j) specifying the methods of keeping the accounts of the Bank and the mode of prepa.r.

tion of profit and loss accounts, balance sheet and reports; and (k) regulating the capitalisation of profits.

Financi a l year .

19.


The financial year of the Bank shall be the same as the financial year of the Government and the accounts of the Bank shall be close4 at the end of such financial year.

Annual reports .

20.

Within three months after the end of each finan cial year the Bank shall submit to the Minister AD 1970 GUYANA NATIONAL CO-OPERATIVE BANK No.

10.
10.

15 a report on ita operations thrOughout that year, together with the balance sheet and the profit and loss account as certified by the auditor who has audited the accounts of the Bank pursuant to section 21.

21.

(1.)

The provisions of sections 18 and 19 of the Banking Ordinance, 1965 shall, in so far as they are not inapplicable thereto, apply to the Bank as they apply to a company licensed under the said Ordinance to carry on banking business in Guyana.

Audit.
Audit.

(2) For,tthe purposes of the application of section lB[ fhe Banking Ordinance 1965 by aubsec~ion (l.}, the Director of Audit shall be deemed to be an approved auditor within the ·meeni.ng of subsection (4) of that section.

22.

The Bank may provide out of its :funds and make such arrangements for the ~raining of any of its officers or employees or other persons as it may deem .neceaaary for the efficient conduct of its business.

Provision for traini ng of of f icers and employees.
PART IV BUSlllESS OF THE BANK '23.

for the purpose of giving effect to its objects the Bank may, subject to this Act - ~ Autho rised ·, .• · bus iness of the Banlc .
(a) open accounts for and accept demand, aavinga, ~d time deposits from the public; (b) make or undervrite loans; {c) raise money for the financing of its opera tions by issuing securities; (d) act as agent for the Government; assist generally in the development of the co-operative movement; I f I (:r) do such other things aa are incident attainment of its object s as ape tion_4.

Bo.

10 THE LAWS OF GUYAN!


- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ----=------< AD 1970 16 Ca t egoriH o f 24. loan a.

(1.)

Loana which the Bank may make shall be on such terms and conditions and for such periods as the Board may deem appropriate.

General pro- viai on a rela t - ing t o loana .


25• (2) Subject to this .Act and the regulations made thereunder - (a) a short te:m loan shall be a loan for a period not exceeding eighteen months; (b) a medium te:nn loan shall be a loan for a period exceeding eighteen months but not exceedin_g ten yeara; (c) a long term loan ahall be a loan for a period uceeding ten years but not ex ceeding thirty yeara.
(1) Every loan shall be Yi.thin such limits as may be dete:mined by the Board and shall be made subject to such security as to the Board may aeea sufficient.

(2) Every loan shall bear interest at such rate as ma,y be determined by the Board.

c,) Every loan, together with interest thereon, shall be repayable within such period aa may be faed by the Board.
(4) It ah.all be a condition of fi'ery loan made by the Bank to a registered co-operative society, registered trade union or registered friendly a~ciety that the bo:r:rower holds paid-up shares in the Ban1t to an amount equal in ~alue to at least five per cent of the loan.

Applications for loans from the Bank shall be ade in such form as may be required by the Bank and shall be addressed to the Jllanager.
ject to this .Act and the rules and regula ns made thereunder and to the power of the Yi.th the approval of the Minister to the aaounta specified in thia su.baeo-- i • AD 1970-, GUYANA NATION.A~ C9,-QP~'gV.E BANK No.

10 (a) lQ~~ to the amo~t of $1,500 e.ach ,m~ ,be granted by thr manage 9f -a.IQ' "'brqp.ch of the Bank; • ( b) l,oan,s to .the amo~t 9f ,U0,000 ._each may • be granted by the .Manager ~t }he ,il~incipa1 place of business of the Bank.
(7) All 1oan.s applications shall be- reported to the Board.

(8) The Bank may at any time accept payment of" the whole or s:ny part of the amount representing the principal of a loan and interest thereon, before the time when such payment is due, upon such terms and conditions as it may think fit.

26.

(1) Subject to subsection (4) of section 25, no loan made by the Bank under this Act shall be applied otherwise than for such purposes as may be authorised by the Bank.

Application of loan.
(2) If any loan made by the Bank under this Act or any part of such loan has been misapplied the Bank msy - (a) where such loan has been secured by mortgage, by notice in writing addressed to the mortgagor, recall the said loan or any part thereof and may require the loan or that pe.rt together with any interest due on such loan or part there of on the date of the notice to be re paid on a date to be specified in the notice and in defau],,t of paym.ent on such specified date any security given for the loan may thereupon be realised; .. .
(b) where such loan has been secured other- . "

vise than by_ w-ay of,.

mortgage, by notice addressed to the borrower, reques·t the loan pr any p¢ thereof together with any intexest due on such loa!l or part thereof on the date of the notice to b~ repaid on a date to be specified in the notice and in default of payment on such No.

l THE LAWS OF GUYANA AD 1970 18 Suspension of payment of principal and interest.

specified date any security given for the purpose of the loan may thereupon be realised.
(}) The provisions of subsection (2) shall be in.

addition to any other proceedings under any enactment.

27.

The Bank may (a) postpone the payment of any sum due for principal and interest to it in respect .
of a loan made by the Bank upon such terms and conditions for the carrying out of the purposes for which such loan was made and for the u1timate repayment of such principal or payment of such interest as it may deem necessary; (b) froa time to time extend the period for the repayment of any loan, or compound or release any loan or any part thereof subject to such terms end conditions as it may deem fit.

1 Restriction on c ertain finan- cial activitie s of the Bank.

28.
28.

Sect.ions 11, 12, 13 and 15 of the Banking Ord inance, 1965 shall apPly to the Bank as they apply to a company licensed under the said Ord inance to carry on banking business in Guyana.

.. Po,.cr of Bonk dispose- of c rops.

t~ 29.


(1) It shall be a condition in every agreement for any loan made by the Bank for the cultivation of crops and the expenses of reaping and making merchantable such crops, that all the crops and produce reaped or gathered from the land and the by-products thereof shall, until.

such advance has been repaid, be dealt with and disposed of as the Bank may direct, and, until so disposed of , shall be held by the person obtaining the loan in trust for the Bank.
Any person to whom a loan has been made, who dis poses of 81JY such crops or produce or by-pro ducts except in the manner directed by the Bank or by this Act, shall be gu.il.ty of an of'fence and shall, on summary convict~on thereof, be AD 1970 GUYANA NATIONAL CO-OPERATIVE BANK.

lio.

10 19 liable to a fine not exceeding five hundrec£ dollars, or to imprisonment for a te:zm not exceeding six months.
(2) It shall be a condition in every such agreement that the Bank may enter agreement with ani pe~ son for the disposal of any crop or produce or any by-products thereof belonging to any person to whom loans·have been made under the provi.

aions of this Act.
aions of this Act.

The last-mentioned agree ment shall provide for the sale without undue dela;y of such crop or produce and the imm~ate payment to the Bank of the .proceeds of such sale or such part thereof as the Bank shall think fit to the credit of the last-mentioned person.

c,; Any person so entrusted with the disposal of any crop· or produce or by-products thereof of.
an any person obtaining a loan under the Provi........ aions of this Act vho shall fail to pay the proceeds of _sale to the Bank as provided in subsection (2) shall l;le guilty of an offence and shall on summary- conviction thereof, be liable to a fine not exceeding five hundred dollars or to imprisonment for a tel'II.

not exceeding &ix months.
• (4) The provisions of this section shall not appq to any padi reserved by asreement sa rent in lieu of payment in cash of the annual rent by a tenant or affected by a specified condition undQr the provisions of th~ Rice Farmers (Security of Tenure) Ordinance 1956, which agreement or condition is in force at the dat• of the loan made by the Bank; and, subject to the foregoing provisions, the exercise by the Bank of any of its powers under this section shall not entitle a landlord to give his ten ant notice to quit his rice land.
No.

31 of 1956, 3().

(1) hery mortgage to secure a loan and avery instrument or charge under the provisions of this Act s~l be prepared by the Bank.

The person to whom the loan is made shall pay the legal charges in connection therewith, and ab.all also pay all necessary disbursements.

Mortgages and charges to be prepared by tbe B.mk.

Ifo.
Ifo.

10 THE LAWS OF GUY.ANA AD 1970 20 (2) Where a loan is granted under this Act and he :repsylllent of the sum of money lent is secured by a charge in favour of the Bank, such charge she.11 be in accordance with the provisicns of this Act on such movable property as the Bank may approve.
(3) For the purpose of effecting the security re ferred to in subsection (2) for the loan and the interest psyable thereon, it shall be law ful fore borrower obtaining a loan to create by instrument in writing in favour of the Bank ~ charge on movable property belonging to the borrower on the date of the charge.

(4) The property affected by the charge under su~ section (3) shall be such movable property specified in the instrument creating the charge as ~he Bank may approve.
(5) The provisions contained in Part I of the first schedule to this Act shall apply to every instrument create under subsection (3).

First schedule.

Examination as to application of moneys .. 31.

(J.)
(J.)

Where the Bank has made a loan of money under the p:rovisions of this Act it may - (a) (b) from time to time, make or cause to be made such examination as may be necessary to ensure that the loan is being applied to the purposes for which it is made; require financial statements in such de tail as it may determine to be submitted by the person, body or authority in receipt of the loan quarterly or at shorter intervals at the discretion of the Bank and such borrower shall comply with such request.
(2) The Bank may authorise in writing any of its officers or any other person to make such e.%amination, and the borrower in receipt of the loan shall prod~ce to such officer or person all the books, documents and other matters and things necessary for the purposes of ~he examination.

t • • • AD 1970 GUYANA NATIONAL CO-OPERATIVE BANK - .

21 (3) AD::J person who contravenes any of the provi sions of paragraph (b) of the subsection (1) or any of the provisions of subsection (2).
shall be guilty of an offence and a.hall, on summary conviction thereof, be laible to a fine not exceeding one thousand dollars or to imprisonment for a term not exceeding six months.

32.

Where upon any examination made under the provi sions of section 31 it appears to this Bank that any sum being the whole or any part of the· loan has not been applied for the purposes for which the loan was- made.
the Bank may order that any such sum be, within the time mentioned in the order, applied to such purposes or that such sum together with any interest due thereon on the date of the order be repaid to the Bank within the time ment?,oned in the order, and any sum with the interest thereon so ordered to be repaid to the Bank shall thereupon become a debt due to the Bank • • Or der of the Bank upon examina i.:.

ion .
ion .

At any time after the approval of a loan and before the actual payment of the money the Bank may at its discretion and without assigning any reason there for cancel or modify such approval and without PBJ' ment of the whole or a portion of the money.

Cancellation or modificati on of approval of loan.

Power of the .

Bank to direct that any part ou ti tanding of an approved loan be not paid.

}4.
In any case where the Bank has approved the making of a loan by instalments and any part of such loan has not yet been advanced if - (a) any sum of money, whether principal or interest due in respect of any loan made under this Act remains unpaid; or (b) in the opinion of the Bank, any prior loan made under this Act has not been applied for the purpose for which it was made .or · has not been carefully and economically ex pended; or (c) the borrower has become insolvent or has been sentenced to a term of imprisonment without the option of the payment of a fine :'io.
10 'rHE LAWS OF GUYANA AD 1970 22 Offence• in res pect of Joana .

or has assigned his estate for the benefit of creditors; or (d) there has been a breach or non-observance of any condition attached to the loan; or (e) in the opinion of the Bank.

the sums already advanced were not applied to the purposes for which the loan was made within a reasonable time• · the Bank without prejudice to any other remedy, may ref'llse to advance any portion of the loan still outstanding.

35.
(1) A1Jy person who - (a) obtains a loan from the Bank under the provisions of this Act by mearus of any false representation; (b) wilfully applies any loan made to him by the Bank: under t he provisions 0£ this Act to any purpose other than the purpose for which the loan vas made; • (c) having obtained a loan from the Bank under the provisions of this Act, wilfully destroys 8ZJ7 security given in relation to any such laon, shall be guilty of an offence against this Act and shall, on summary conviction thereof, be liable to a fine not exceeding one thousand doll ars, or to imprisonment for a term not exceeding twelve months, or to both such fine and imprison ment.
Fees t o be taken in respect of mo rtg a ges.

Cap.

32 Second Schedu l e. ,ti.

(1) Anything contauied in the Deeds Registry Ord inance, or in any Regulations made thereunder t o the contrary notwithstanding, the fees to be taken by the Regi strar of Deeds f or the services set out in the second Schedule when rendered in respect of mortgages of any amount in favour of the Bank shall be t hose specified in Pa.rt I of the said Schedul e .

2'.5 GUYANA NATIONAL CO~PERATIVE BANK 10.

10 Cap.


298, Reaerve fund, AD 1970 (2) 37.

(l) • (2) (3) .

The fees to °Qe taken by the Registrar of Deeds for filing~ wtrument charging movable property in aoeo~danoe with this Act shall be those set out in fart II of the second Sched ule and notwithata,pd:!,.ng anything in the Tax Ordinance or in MY Q,be:r enactment, the stamp duty payable on evecy s~ch instrwnent shall be that set out .

in the ee,1d Part II.


The Bank shall matiita:l.n@ reserve fund and shall, out of thQ nei eU1'f)1v.

@ for each year and before any dividend.

to ,~~lared, transfer to that fund a sum equal te t1ot less than twen ty-five per cent of such s1U"J)lue when,ver the amount of the reserve fund is less than the paid-up capital of the Bank.

If the reserve fund is in any year insuff?.
cient to cover any net loss of t~e Bank re corded in its Profit and 1011 Accaunt, .~ amount equivalent to the deficiency :!,.s ~e~e~y charged o;i the Consolidated Fund: Provided that if in any succeeding year any net sun>lus accrues to the Bank there shall be paid in to the Consolidated Fund by the Bank, from tµie to time, such sum as 111ay be agreed with the Minister together wjt~ inter~~t thereon at such rate to be determined by ~im ~iii the aforesaid amount is fully repa.id.
For the purposes of tbJ.,a ,ectj.on, nti purplua shall be determined by 4eduet1Jlg fi-9111 gross income all expenses together witb ll,lowancee for depreciation of aa~ete, contrib~tiona to staff benefit funds, provision for bad and doubtf'ul debts, and such other contingencies and accounting provisions as are usually made by banks.

38.
38.

(1) (2) Sections 17, 21, 22 and 25 of the Banking Ordinance , 1965, shall apply to the Bank aa they apply to a company licensed under that Ordinance to carry on banking business, References to banks in sections 27, ,6 to 4} (both sections inclusive) and in section 45 of the Bank of Guyana Ordinance, 1965, shall jnclvce re!er'llncee to the Btml< , AppU .cptJon of provis,i91ll 'I ( certoi ii Ordina11c•• t o the Bank.

No, J3 of 1965 , No.


10 THE LAWS OF GUYANA AD 1970 24 {}) Save as otherwise provided in this Act, the Banking Ordinance 1965 shall not apply t o t he Bank.

PART V TRANSITIONAL AND GENER.AL ffiOVISIONS Offence a.

39.
.Any person who, being a Director or the Manager of the Bank - (a) fails to tilke all reasonable steps to secure compliance by the Bank with the requirements of this Act; or (b) fails to take all reasonable steps to ensure the correctness of any statement submitted to the Bank of Guyana or published as required by this Act, shall be guilty of an offence and shall on convic tion on indictment be liable to imprisonment for a term not exceeding two years or to a fine not ex ceeding one thousand dollars or to both such imprisonment and fine.
• Regulations.

40.

The Minister may make regulations for the following purposes, that is to sq - (a) providing for any matter which is re quired by this Act to be prescribed; {b) generally for the purposes of carrying out the provisions of this Act.

- Tranai tional proviaion a.

41.

(1) Notwithstanding the provisions of subsection (1) of section 13, the first .Annual General Meeting of shareholders of the Bank shall be held in 1971 not later than 30th April in that year.

{2) Until.
{2) Until.

au.ch time as the Directors referred to in seo~ion 5 (2) {a) are elected at the Annual _ AD 1970 GUYANA NATIONAL CO-OPERATIVE BANK No.
10 25 General M'eeting in 1971 the Minister may, after consultation with such bodies which in his opinion represent the interests of re gistered ~rade unions, registered co-operative societies and registered friendly societies, appoint the Directors for the purposes of the aaidop,;i::oyision and they shall be deemed to hav'e""eiected pursuant to the said provision; -.

Provided that where the office of a .


J.. Director becomes vacant or a Director is unable temporari~y to perform the functions of his office, the Minister may appoint some other person to fill the vacancy or to act tem porarily in · the place of the Director, as the case may be.
(3) Until the remuneration and allowances payable to the Directors (other than the Manager) are determined by the shareholders of the Bank at a general meeting pursuant to section 5 (15), the said remuneration and allowances shall be determined by the Minister.

• No.

10 THE LAWS OF GUYANA AD 1970 26 Section 30(5) FIRST SCHEDULE PART 1 (PROVISIONS WHICH APPLY TO EVERY CHARGE CREATED UNDER SUBSECTION (3) OF SECTION 30 OF THIS ACT) Righu conferred and obligations .1.mposed by a charge on the Bank.

1.
A charge shall, so long as it cmntinues in force, cor!er the following rights and impose the following obligations, on the Bank, that is to say:- (a) I I j ~ • .. (ii) a right to take possession of the property subject to the charge upon the happening of any of the following e~ents, that is to say i:t' the borrower shall fail (i) to pay the Bank any monq which shall for the time being be owing under the charge within four daya after the same or any instalment thereof shall become due; or if the borrower shall fail to discharge any of the obligations imposed upon him by any provision of this schedule; or if' the borrower shall be come insolvent or make any arrangement or composition with his creditors; or if any distress or execution be issued or levied against or 11pon any of the property of the borrower; or the death of the borrower; or if the borrower does any act prohibited by thie Act or any Regulations made thereunder; (v) (vi) (iii) (iv) AD 1970 GUYANA NATIONAL CO-OPERATIVE BANK llo .. ID 27 (b) (c) where possession of any pro:p erty has been so taken, a right, af ter an interval of five clear days or such leas t ime as may be allowed by the ·instrument, to sell the property either at auction or, if the instrument so provides, by private treaty, and either for a lump sum pay ment or any payment by instalments; an obligation, in the event of such power of sale being exercised, to apply the proceeds of sale in or towards the dis charge of the moneys and liabilities secured by the dis charge·, and the cost of seizure and sale, and to pay the sur plus (if any) of the proceeds to the borrower.
.

2.

A charge shall, so long as it continues • in force, imnose on the borrower the following obligations, that is to say:- Obli ga ti ona impos e d by a charge on a borrower.
(a) (b) (c) (~) if required by the Bank to in sure and keep insured, so long as the charge con~inues in force, the property subject to the charge for a sum of money not less than the value of the said property and to assign the policy of insurance to the Bank; to keep in good and substantial repair and condition the buildings, erections, plant, machinery and other property and equipment subject to t he charge ; not t o sell or again encumber or charge any proper ty Sl:lbject to t he charge, so long ae the charge continues; to pay punctually as the s ame shall become due and payable any land rent, rate or t ax payable by him in respect of No.
10 THE LAWS OF GUYANA ..lD 1970 28 (e) (f) the 1~ on which the property stands, a~d upon demand in writing by the Bank top oduce his last receipts for such rent, r ate or tax; not to have execution issued against his goods under any judgment at law; not to remove, dismantle or in any way alter any buildings, erections, plant, machinery, equipment or other property subject to the charge without the prior consent in writing of the Bank.

· • Penalty for aal • of •ecu ri ty.


Charge not to be ""feated by sale, etc.

of p ro perty subject to it.

0-.arge not to bt affected by liills of Sale Ordinance Cap .

337.

P o,>erty c harged ; i t t affec te d by orde r or d i s • poai tion section of the In ao lven cy Ordin an c e. Cap .

43.

3.

Every person who sells any property subject to the charge shall l>e guilty of an offence and shall be liable on s~ conviction to a fine not exceeding fi ve hundred dollar~.
or to imprisonment for a ter m not exceeding six months.

4.

A charge created under this Act shall not be liable to be defeated by any sale of, or by a subsequent charge of any nature created upon, the prope r ty specified in the i nstrument creating it and, upon t he borrower committing an a ct of insolvency, the Bank shall be at liberty to t ake possession of the property subject to the charge and sell the same in acc ordance with sub-paragraph ( b) of paragraph 1 of this Part of this schedule.

5.
5.

A charge created under this Act shall have effect notwithstanding anything contained in the Bills of Sale Ordinance, and an instrument made under this act shall not be deemed to be a bill of sale with in the meantng of that Act.

6.
So long as a charge created under this Act continues in force, property subject to the charge s hall not be property divisible amongst the borrower's creditors in cas e of his insolvency as being at the commencement of t he insolvency in the poss ess ion, order or dispos iti on of t he insolvent in his trade or business by the consent and permission of the Bank, ex cept t hat any surplus after the pro ceeds of sale of such property have been applied in or towards t he discharge, of the moneys and liabilities secured by the char ge shall be payable by the Bank to the borrower' ~ assi gnee i n insolvency.
AD 1970 GlJY~A NATJONAL CO....OPERATIVE ·BANK No.

10 · 29 r, 7.

Every instrument creating a charge under this Act shall be aigned by the borrower and attested by two witness es, if the porrower can read and wri~e the English langu&ge, and in case of a borrower who cannot read ~d w~ite the English lang uage, the instrument shall be !
!ll!,de by affixing the borrower's mark thereto in t~e presence of two wit ness es or a magistrate, a justice of the peace or a p police officer who shall atte§t tne ~ame after read ing over and explaining the contents tpereof to the borrower.

8.
8.

The in~trutnent to e~eate a charge shall be signed also by an officer duly authorised by the Bank and shall be filed by the Ba.yµc with the Registrar of Deeds appointed under the l)eeds· Regis try Ordinance and the cherge shall take effect as from the moment when it is so filed.

9.
9.

The inst:rument s~ll be accepted and filed by the Registrar of Deeds upon a certificate thereon by one of the witnesses to t~e ~ignature of the borrower, or by the person or one of the persons in whose presence the borrower made his mark, to the ffect that he knows the borrower and that the instru~ ment was read over and explained by him to the borrower who appeared perfectly to understand the same and signed it or made his mark thereto.

.

10.
.

10.

Every person who makes a false certif- icate for the purposes of the last precedi~ paragraph shall be guilty of an offence and shall on summary conviction thereof be liable to a fine ~ot exceed- ing one thousand dollars or to ;imprisonment f9r a term not ex~eeding twelve mont~ 01-" to both such fine and imprisonment.

11.

(1) No person.

shall offer to the Bank as security for a loan applied.
for under this Act any prop erty which is not the property of that person o:r which is already the sv.bject of a charge created otherwise than in •ccordance with this Act.

and every person shall on application for a loan dis- close to the Bank the existence of any charge on the property offered as such security.

(2).
(2).

Every person who contravenes this provision shall be liable on summary conviction to a fine not exceeding one thousand dollars or to impris onment for a term not exceeding twelve months or to both such fine and imprisonment .

Mode oT ei:-ecu t• '· .

1ng 1.na trumen t creating charge.

Filing of instrument in De!

'd• Registry.

Cap.

32.

Regi • t rar to file inatru• ment on certificate of witness, etc.

Penalty for false certi fi• cate. '

Penalty for fraudulent offer of aecuri tY • No.


10 THE LAWS OF GUYANA AD 1970 30 Form of inatrumen t of charge.

Notice of pro vi aion• of thi a schedule to form part of instrument of charge.

1.2.

An instrument to create a charge under this Act shall, subject to the provisions of paragraph 13, be in the form and terDIS set out in Part 11 of this schedule and may be made with such other lawful terms and conditions as the parties may think fit.
A copy of the foregoing-provisions of this schedule shall be printed on every instrument of 13. charge created under section 30 of this Act.

PART 11 Paragraph 12.


(INSTRUMENT CREATING CHARGE .UNDER THIS ACT)~ THIS IlfSTRUMENT is made the••••••••••••••\•••••••• ot •••••••••••••••••••• 19 ••••••••~•••••• Between •••••• ••••••••••••••••••••••••••••of•••••••••••••••••••••••• • (hereinafter called the borrower) of the one part and ••••••••••••••••••••••••••••of••••••••••••~••••••••••• (hereinafter called the Bank) of the other partt 1.
In consideration of the sum of•••••••••••••••• dollars now advanced to the borrower by the Bank, fililt borrower hereby charges all the movable property particulars whereof are hereinafter set forth with the payment to the Bank of the said sum of •••• ; ••••••••••••• dollars and the costs of realisation and enforcement of of this security.

2.

The loan secured by this charge and the interest thereon shall be repayable as follows:- _J (Here fill in te:r"DIS of repayment).
AD 1970 GUYANA NATIONAL CO-OPERATIVE BANX No.

10 31 DESCRIPTION OF PROPERTY SUBJECT TO THIS CHARGE (Here enumerate and descrioe ~o as to 1dentify th'"e movable property charged).

IN WITNESS "WHEREOF the parti"es have signed this instrument at • • •••• • •• • • ~ •••• • •••• •• •• ~ iU ~he County of • ••• · •• -.

•• • ••• ;.

;, • ~ -in Guyana in th"e presence of the following witness es: ~ •.

•.

.••.•.•••...•.•.•.•.•... ~-~~ Borrower • .

.

.. .
.

.. .

..........•..........•.......... .. for and on behalf of the Bank.

Witnesses to the signature or mark of borrower: 1, •.••••..••••.

•• • • .....•••• • 2.

··················· ~·· ' · · ·· I No, 10 THE LAWS OF GUYANA AD 1970 32 Section 36 SECOND SCHEDULE PART 1 (FEES TO BE CHARGED IN RESPECT OF MORTGAGES EXECUTED BY THE BANK AND A BORRO't..ER THEREFROM).

1.
1.

For preparing advertisement of mortgage and for publication thereof, for examination of title and certificate under rule 9 of the Deeds Registry Rules, for preparing gross for attending on execution, completion and registration, on a loan - Exceeding Not Exceeding Sl,000 15,000 Sl0,000 n,ooo $5,000 $10,000 Fee $5,00 17.50 $10.50 Sl5,00 2.

For cancellation of mortgage and for certif icate under rule 9 of the Deeds Registry Rules, an ... .

.. ••• $1.00 inclusive fee of 3.


For original certificate as to title of judgment debtor to property proposed to be levied on and as to encumbrances thereon, includinrr searches, in respect of a · y number of parcels of land, an inclusive fee of $1.00 l I ,, AD 1970 GUYANA NATIONAL CO..OPERATIVE BUX No.

10 PART 11 (FEES AND ST.AMP DUTY PAYABLE ON INSTRUMENT).

1.

Filing every instnl:IDent of charge with the Registrar Cap.

32 .

... of Deeds • • • •.. -•• • 11.00 2.


Issuing certified -copy of every instrument of charge for the use of the Bank 3.

Stamp duty on every i~strument securing repayment of ... ... , .

•••• • 25 a loan Passed by the National Assembly on 18th February, 1970 , .

~ - 4;l-Clerk of the National Assembly.

(Bill No.

8/1070.)