Revised Laws of Saint Lucia (2023)

PART X
MISCELLANEOUS

42.   Insurance and guarantee schemes

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   (1)   The Bank may, with the approval of the Council, administer or participate in corporations or schemes established for the purpose of—

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      (a)     insuring bank deposits;

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      (b)     providing export credit insurance and guarantee;

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      (c)     providing guarantees for credit extended by financial institutions;

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      (d)     promoting the development of money, capital or securities market in the territories of Participating Governments;

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      (e)     financing the economic development of the territories of Participating Governments; or

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      (f)     exercising its emergency powers under this Agreement.

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   (2)   Subject to paragraph (3), the Bank may, with the approval of the Council, subscribe to, hold and sell shares of a corporation organised with the approval or under the authority of the Participating Government for any of the purposes specified in paragraph (1).

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   (3)   The total value of the Bank's shareholdings in corporations to which paragraph (2) refers shall not exceed 50% of the General Reserve of the Bank.

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   (4)   Subject to paragraph (5) the Bank may, with the approval of the Council, establish special funds in order to facilitate the administration of the schemes Corporation specified in paragraph (1) and may make annual contributions thereto out of its profits.

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   (5)   The Bank may, with the approval of the Council advance to any such special fund such sums as may be required during a financial year: Provided that such advances do not exceed its annual contribution to the fund for that year.

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   (6)   If the Bank ceases to administer any of the schemes Corporation specified in subsection (2), the special fund relating to the particular scheme Corporation which the Bank has ceased to administer, may be liquidated in such manner as the Corporation Bank, with the approval of the Council, determines.

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   (Amended by S.I. 45/1993)

43.   Prohibited operations

The Bank shall not—

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   (1)     engage in trade or participate directly or indirectly in the ownership of any financial, agricultural, commercial, industrial or other enterprises, except to the extent provided in Article 42 paragraph (2) and paragraph (4) sub-paragraph (a) hereof;

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   (2)     purchase or retain ownership of real estate except insofar as is necessary for the conduct of its business and for the housing of its officers and employees;

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   (3)     make unsecured advances, whether by loans or overdrafts, except as provided in Article 39;

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   (4)     make advances, whether by loans or overdrafts, secured otherwise than as laid down in this Agreement. Provided that—

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      (a)     should any debts due to the Bank be in jeopardy, the Bank may secure such debts on real or other property, and, if the security is enforced, acquire and hold such property but with a view to the sale thereof as soon is practicable ;

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      (b)     subject to terms and conditions to be prescribed by the Board, the Bank may grant advances to any of its officers or employees—

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         (i)     for the purchase, construction or repair of one residential house for his personal use against the security of the said house, and

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         (ii)     for other purposes in an amount not to exceed during the time that they are outstanding the annual remuneration received by the borrower from the Bank;

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   (5)     Accept shares as collateral security, except as provided in paragraph (4) subparagraph (a) hereof;

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   (Amended by S.I. 48/1991)

44.   Non-discrimination clause

In carrying out its functions the Bank shall be guided solely by technical criteria and considerations and shall not discriminate in any aspect of its operations on political or other non-economic grounds.

45.   Regulations

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   (1)   The Bank may make such regulations as may be required from time to time for giving effect to the provisions of this Agreement.

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   (2)   Regulations made by the Bank shall have full force and effect when all steps have been taken as are necessary to give legal effect to them in each of the territories. All regulations made by the Bank shall promptly be published in the Official Gazette of each of the Participating Governments and notified to the public in such other manner as the Bank shall decide.

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   (3)   In the event that any one of the Participating Governments shall, within 21 days of the date that a regulation becomes effective, lodge with the Council a request for review, the Council shall promptly review the regulation in consultation with the Bank and render its decision.