Tanzania
Loans and Advances Realisation Trust Act
Chapter 248
- Published in Tanzania Government Gazette
- Commenced on 1 March 1992
- [This is the version of this document at 31 July 2002.]
- [Note: This legislation has been thoroughly revised and consolidated under the supervision of the Attorney General's Office, in compliance with the Laws Revision Act No. 7 of 1994, the Revised Laws and Annual Revision Act (Chapter 356 (R.L.)), and the Interpretation of Laws and General Clauses Act No. 30 of 1972. This version is up-to-date as at 31st July 2002.]
Part I – Preliminary provisions (ss. 1-3)
1. Short title
This Act may be cited as the Loans and Advances Realisation Trust Act.2. Application
This Act shall extend to Tanzania Zanzibar as well as Mainland Tanzania.3. Interpretation
In this Act, unless the context otherwise requires—"assets" shall include—(a)receivables and other obligations due to the Owner, lease indemnity and other agreements together with all collateral security and other rights (including but not limited to rights in relation to shares or stock in a body corporate such as voting rights as well as rights to appoint directors of a body corporate or otherwise engage in the management thereof) granted to the Owner by contract or operation of law to secure or enforce the right of payment of such obligations;(b)real and personal property of any kind owned or held by the Owner including shares or stock of a body corporate obtained by the Owner whether directly or indirectly, through foreclosure or other means in settlement of such obligations;(c)shares or stock and other investments held by the Owner; and(d)the business of the Owner and where the Owner is a body corporate the Owner itself whether as parent or subsidiary body corporate;"bank" means a financial institution authorised to receive money on current account subject to withdrawal by cheque;"the Bank" means the Bank of Tanzania established under the Bank of Tanzania Act 1;"Board" means the Board of trustees of the trust established under section 6;"financial institution" means any person authorised by or under the law for the time being relating to banking to engage in banking business not involving the receipt of money on current account subject to withdrawal by cheque;"Minister" means the Minister responsible for finance;"non-performing asset" means—(a)loans and advances including—(i)any advances in respect of which the principal or interest or its schedule instalment has remained overdue for any period specified by the Bank for the purposes of the Act;(ii)any advance to a borrower who has subsequent to the granting of the advance gone into insolvency or whose industrial or commercial operation has remained unoperational for any period specified by the Bank for the purposes of this Act;(iii)any overdraft in respect of which interest is due and unpaid or the overdraft is outstanding after the expiry of the authorisation or is consistently at or exceeding the credit limit for such period as the Bank may specify or in respect of which the credit limit is regularly increased by the bank or financial institution;(iv)any advance, overdraft or guarantee for which the borrower is unable or unwilling to discharge his obligation to service the interest or principal repayment; or(b)investment in the nature of equity holdings, debentures or other commercial paper issued by a body corporate in the United Republic where—(i)the body has suffered losses which in aggregate, exceeds its paid up capital, declared reserves and surpluses;(ii)insolvency proceedings have been or could be initiated against the body corporate; or(iii)the body corporate's commercial or industrial operations have remained unoperational for a period longer than a period specified by the Bank for the purposes of this Act, and the marketability or realisable value has been substantially impaired exposing the bank or financial institution concerned to risk of loss;"Owner" means the borrower in respect of a non-performing asset;"Tribunal" means the LART Loans Recovery Tribunal established by section 18;"Trust" means the Loans and Advances Realisation Trust established by section 4.Part II – The Trust (ss. 4-11)
4. Establishment of the Trust and its lifespan
5. Objects and functions of the Trust
The objects and functions of the Trust shall, subject to such directions as the Minister may deem it suitable to give to the Trust be as follows—6. Board of Trustees
7. Functions of the Board
The Board shall be responsible for the formulation of policies and the supervision of the management of the Trust and shall, subject to any general or specific directions given to it by the Minister, exercise all the powers conferred on the Trust under this Act.8. Meetings of the Board
9. Committees of the Board
The Board may on such terms and conditions as it may determine appoint such committees as it may consider necessary to perform such functions or advise the Board on such matters as the Board may direct.10. The Administrator and other staff of the Trust
11. Remuneration of members and staff
The members of the Board shall not be paid any salary, but the members of the Board and the staff of the Trust shall all be paid such allowances as the Board may, with the prior consent of the Minister, determine.Part III – Powers and operations of the Trust (ss. 12-17)
12. Establishment of Non-Performing Assets Recovery Fund
There is hereby established a fund to be known as the Non-Performing Assets Recovery Fund into which shall be paid all monies provided by the Government or other sources to the Trust and proceeds from recoveries made on assets vested in the Trust, and out of which shall be paid such sums of money as may be required by the Trust under this Act.13. Power to transfer non-performing assets
14. Action by Trust after transferring and in respect of transferred assets
15. Vesting of transferred assets
16. Provisions relating to rehabilitation
17. Protection of Trustees and employees of the Trust
No act of a member of the Board or an employee of the Trust shall, where such act was done bona fide in the course of his employment, subject such member, employee or any person acting under his direction, personally, to any action, liability or claim.Part IV – The LART Loans Recovery Tribunal (ss. 18-25)
18. Establishment and composition of Tribunal
19. Jurisdiction of the Tribunal
20. Judgment of Tribunal and execution of judgment
21. Procedure of Tribunal
22. Proceedings pending in court of law to be transferred to the Tribunal
23. Registrar and other staff of the Tribunal
The Minister shall after consultation with the Chief Justice appoint an officer to be known as the Registrar of the Tribunal, and shall provide to the Tribunal the services of such other officers as the Tribunal may reasonably require for carrying out its functions under this Act.[s. 22]24. Remuneration and allowances, etc.
The members of the Tribunal, the Registrar and staff of the Tribunal may be paid such remuneration and allowances as the Minister may determine.[s. 23]25. Obstruction of Tribunal
Any person who—Part V – Financial and miscellaneous provisions (ss. 26-30)
26. Financial year of Trust
The financial year of the Trust shall be the same as the financial year of the Government.[s. 25]27. Accounts and audit
28. Tax relief
The Trust shall be exempted from the payment of all taxes, rates and duties.[s. 27]29. Regulations
30. Duration of this Act
History of this document
31 July 2002 this version
Consolidation
01 March 1992
Commenced
Subsidiary legislation
Title | Numbered title |
---|---|
LART Loans Recovery Tribunal Rules | Government Notice 309 of 1997 |
Documents citing this one 8
Judgment 7
Legislation 1
1. | Public Corporations Act | 52 citations |