TITLE 3 - CENTRAL GOVERNMENT 3MIRC Ch. 11

CHAPTER 11.

GOVERNMENT INDEBTEDNESS

Arrangement of Sections

 Section 
§1101. Short title. 
§1102. Interpretation. 
§1103. Effect of this Chapter . 
§1104. Restructuring of indebtedness. 
§1105. Form of the Loan.
§1106. Limit on the Loan. 
§1107. Use of Loan Monies.
§1108. Application of the Government Borrowing Act. 

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An Act to allow the restructuring of Government of the Marshall Islands loans and to make provision for previous budgetary deficiencies.[Section numbering style modified]

Commencement: August 26, 1983
Source: P.L. 1983‑28

1.	 Short title.

This Chapter may be cited as the "Government Indebtedness (Restructuring) Act 1983".
[P.L. 1983‑28, §1.]

§1102. Interpretation. 

In this Chapter:

(a) "existing loan" means a loan: 

(i) authorized, before the passage of this Chapter, by a law: and

 (ii) in which the indebtedness was incurred before the passage of this Chapter;

(b) "the restructuring loan" means the loan authorized by Section 1104 of this Chapter .
[P.L. 1983‑28, §2.]

§1103. Effect of this Chapter .

Subject to Section 1108 of this Chapter, this Chapter takes effect notwithstanding anything in any other law. [P.L. 1983‑28, §3.]

§1104. Restructuring of indebtedness.

(1) With the approval of the Nitijela, expressed by resolution, the Cabinet may raise, on behalf of the Republic, a loan for the purpose of restructuring and consolidating the indebtedness of the Republic under existing loan agreements.

(2) The loan may also include an amount not exceeding $1,489,605.00 with respect to budgetary deficiencies over the years 1982‑1983. [P.L. 1983‑28, §4.]

§1105. Form of the loan.

The loan documents shall set out:

 (a) details of each existing loan which it is intended to replace; 

(b) the amount of the restructuring loan attributable to each such existing loan; and

(c) the purpose of each such existing loan. [P.L. 1983‑28, §5.]

§1106. Limit on loan.

(1) The total amount of the restructuring loan shall not exceed the total indebtedness (as of the date of the restructuring loan) of the Republic under the existing loans which it is intended to replace, plus an amount provided by Section 1104(2) of this Chapter .

(2) The amount of the restructuring loan attributable to any one of the existing loans which it is intended to replace shall not exceed the total amount of the indebtedness of the Republic under that existing loan. [P.L. 1983‑28, §6.]

§1107. Use of loan monies.

(1) The amount of the restructuring loan that is attributable to any of the existing loans shall be used only for the purpose for which that existing loan was entered into, and in accordance with any limitations and conditions to which that existing loan was subject.

(2) Any appropriation for the purposes of an existing loan which is replaced by the restructuring loan shall be deemed to have been made for the purposes of the restructuring loan.
[P.L. 1983‑28, §7.]

§1108. Application of the Government Borrowing Act. 

The Government Borrowing Act 1985 shall apply to restructuring loans. [P.L. 1983‑28, §8.]