An Act to authorise the raising of a further loan for the expansion of the telecommunications and telephone systems of New Providence.

1. This Act may be cited as the Telephone Loan (1954) Act.

2. (1) It shall be lawful for the Governor in Council to raise locally, by the issue of debentures under this Act, any sum or sums not exceeding in the whole one hundred and twenty thousand pounds to be applied for defraying expenses in connection with the development and expansion of the telecommunications and telephone systems of New Providence, as set out in the Schedule to this Act.

3. The principal moneys and interest secured by the debentures issued under this Act are hereby charged upon and made payable out of the general revenue and assets of The Bahamas.

4. (1) The debentures issued in The Bahamas under this Act shall be for such sums or denominations as the Governor in Council shall deem advisable and shall bear interest at a rate not exceeding four and one-half per centum per annum and shall be redeemable not exceeding twenty years after the respective dates thereof.

5. (1) The debentures issued in The Bahamas under this Act shall be in such form as the Governor in Council shall determine and shall be signed by the Treasurer or such other person as may be designated by the Governor in Council. They shall be countersigned by the Colonial Secretary or such other person as may be designated for the purpose by the Governor in Council.

6. (1) Every debenture issued in The Bahamas under this Act shall, before being issued, be registered in a Register Book to be kept for that purpose at the Treasury.

7. The interest accruing due on debentures issued in The Bahamas under this Act shall be payable half-yearly out of the Treasury, and shall have the same preference over all other payments to be made out of the Treasury as has hitherto been granted to interest payable on debentures issued in The Bahamas.

8. There shall be attached to every debenture issued in London by the Crown Agents coupons for the payment of the interest to become due in each half year upon the principal secured by the debenture. The coupons shall be sufficient in number to provide for the payment of the interest either during the whole period for which the debenture has to run or for such limited periods as the Crown Agents may determine.

9. Every debenture issued in The Bahamas and every debenture and coupon issued in London by the Crown Agents and the right to receive the principal and interest secured or represented thereby shall be tranferable by an instrument in writing in such form as shall be prescribed by the Governor in Council.

10. (1) The Minister for Finance shall appropriate out of the general revenue and assets of The Bahamas in each year during which interest on the debentures issued under this Act shall be payable such sums as shall be necessary to provide for the interest on the debentures as it becomes due and shall in each year in which any such debentures are payable appropriate from the same sources such sums as may be necessary to provide for the redemption of the principal sums represented and secured by the debentures, and such sums shall from time to time be placed to the credit of the Treasurer in an account to be opened in the Treasury to be utilised by him for such purposes.

11. Where a person who is the holder of a debenture issued under this Act for the payment of a sum not exceeding one hundred pounds desires to convert the same into securities of a lower denomination it shall be lawful for the Treasurer with the sanction of the Minister for Finance, upon delivery to him of the debenture so desired to be converted, to issue to such person other debentures in such sums, not less than five pounds, as may be approved by the Minister for Finance to the extent of the amount for which the debentures so delivered up was originally issued.

12. (1) Upon the payment of the principal moneys secured by any debenture issued in The Bahamas under this Act the debenture shall be delivered up to the Treasurer to be by him cancelled and destroyed in such manner as the Minister for Finance may direct.

13. The debentures issued under this Act, either in The Bahamas or by the Crown Agents in London, shall be transferable free of any stamp tax, and the debentures and the interest thereon shall not be liable to any duties, levies or any future income or any other similar tax, and any capital profits made on the debentures shall be free of any capital gains or similar tax.

14. All expenses of and incidental to the issue of debentures under this Act and of and to the repayment of the principal moneys borrowed under this Act and all moneys required and all expenses incurred in carrying out the provisions and objects of this Act shall be paid out of the Treasury by warrant in the usual manner on the authority of the Minister of Finance.