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Nauru Local Government Council Guarantee (Amendment) Act 1972

REPUBLIC OF NAURU

NAURU LOCAL GOVERNMENT COUNCIL GUARANTEE (AMENDMENT) ACT 1972

NO. 13 OF 1972

AN ACT

To amend the Nauru Local Government Council Guarantee Act 1971 and for other purposes.

(Certified: 10/5/72)

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(No. 13 of 1972)

AN ACT

To amend the Nauru Local Government Council Guarantee Act 1971 and for other purposes

(Certified: 10/5/1972)

Be it enacted by the Parliament of Nauru as follows:

SHORT TITLE

1. (1) This Act may be cited as the Nauru Local Government Council Guarantee (Amendment) Act 1972.

(2) In this Act the Nauru Local Government Council Guarantee Act 1971 is called the Principal Act.

(3) The Principal Act as amended by this Act may be cited as the Nauru Local Government Council Guarantee Act 1971-1972.

AMENDMENT OF PRINCIPAL ACT

2. The Principal Act is hereby amended as follows:-

(a) In Section 2 –

(i) for the interpretation of "Agreement" there shall be substituted the following interpretation –

" "agreement" means an agreement which may be entered into by the Council with the Bank under which at the request of the Council and the Republic the Bank will

(a) establish an irrevocable commercial letter of credit in favour of the beneficiary for the sum of Japanese Yen 361,050,000 in Australian dollars at the then current rate of exchange being in respect of part of the purchase price to be paid by the Council for the vessel and

(b) issue to the beneficiary a letter of guarantee undertaking payment to the beneficiary of the balance of the purchase price which is payable by the Council for the vessel being the sum of Japanese Yen 1,925,600,000 by 16 equal semi annual instalments each in Australian dollars at the then current rate of exchange and each together with interest on the unpaid outstanding balance of the principal sum at the rate of six point eight per cent (6.8%) per annum plus the amount (if any) of Australian withholding tax payable on any such interest payment.";

(ii) in the interpretation of "Bank" there shall be deleted the word "Limited";

(iii) in the interpretation of "letter of credit" there shall be inserted in lieu of the word "documentary" the words "irrevocable commercial" and

(iv) after the interpretation of "Republic" there shall be inserted the following interpretation –

" "the guarantee" means the guarantee to be issued to the beneficiary under the agreement" :

(b) In Section 3 –

(i) in sub-section (1) after the words "letter of credit" there shall be inserted the words "and under the guarantee"; and

(ii) for sub-section (2) there shall be substituted the following:-

"(2) The terms and conditions of the President's guarantee given pursuant to the preceding sub-section shall be such as may be agreed between the President and the Bank and the Republic shall be so bound";

(c) In Section 4 –

(i) in paragraph (a) after the words "letter of credit" there shall be inserted the words "and the guarantee"; and

(ii) in paragraph (c) after the words "letter of credit" there shall be inserted the words "and the guarantee"

(d) In Section 5 after the words "letter of credit" there shall be inserted the words "and the guarantee".

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