N
Log in

Login to your account

Username *
Password *
Remember Me

 



NONPERFORMING ASSETS RECOVERY TRUST ACT.

ARRANGEMENT OF SECTIONS.

   Section

PART I
INTERPRETATION.

   1.   Interpretation.

PART II
THE TRUST.

   2.   Establishment of the trust.

   3.   Objects of the trust.

   4.   Board of trustees.

   5.   Functions of the board.

   6.   Administrator and other staff of the trust.

   7.   Allowances of members of the board.

PART III
POWERS AND OPERATIONS OF THE TRUST.

   8.   Sinking fund.

   9.   Transfer to the trust of nonperforming assets, etc.

   10.   Ancillary functions of the trust.

   11.   Investigation of debtor institutions, etc.

   12.   Protection of trustees and employees of the trust.

PART IV
THE NONPERFORMING ASSETS RECOVERY TRIBUNAL.

   13.   The tribunal.

   14.   Jurisdiction of the tribunal.

   15.   Judgments of the tribunal, appeals, etc.

   16.   Procedure of the tribunal.

   17.   Registrar and other staff of the tribunal.

   18.   Expenses of the tribunal, etc.

   19.   Obstruction of the tribunal.

PART V
FINANCIAL AND MISCELLANEOUS PROVISIONS.

   20.   Financial year.

   21.   Accounts and audit.

   22.   Annual report.

   23.   Exemption from taxes.

   24.   Regulations.

   25.   Schedule.

   26.   Seal.

   27.   Committees of the board.

   28.   Minutes of the meetings of the board.

   29.   Duration of the Act, winding up the trust, etc.

 

      Schedule   Regulations for the recovery of the nonperforming assets.

 

CHAPTER 95
NONPERFORMING ASSETS RECOVERY TRUST ACT.

Commencement: 10 October, 1994.

   A Statute to establish a Non-Performing Assets Recovery Trust and an expeditious machinery for the eventual recovery of certain loans and investments made by the Uganda Commercial Bank and the Uganda Development Bank whose recovery are overdue; and to provide for other related matters.

 

PART I
INTERPRETATION.

 

1.   Interpretation.

   In this Act, unless the context otherwise requires—

   (a)   "administrator" means the administrator of the trust appointed under section 6;

   (b)   "bank" means the Uganda Commercial Bank and the Uganda Development Bank;

   (c)   "board" means the board of trustees of the trust established under section 4;

   (d)   "bond" means a debt instrument to be used by the Treasury for the recapitalisation of the bank;

   (e)   "Minister" means the Minister responsible for finance and economic planning;

   (f)   "nonperforming asset" means—

      (i)   a loan or an advance, including—

         (A)   any advance in respect of which the principal or interest or its scheduled installment has remained overdue for any period specified by the Bank of Uganda for the purposes of this Act;

         (B)   any advance to a borrower who has subsequent to the granting of the advance gone into insolvency or whose industrial or commercial operations have remained nonoperational for any period specified by the Bank of Uganda for the purposes of this Act;

         (C)   any overdraft in respect of which interest is due and unpaid or which has remained outstanding after the expiry of its authorisation or which is consistently at or exceeding the credit limit for such period as the Bank of Uganda may specify or in respect of which the credit limit is regularly increased by the bank;

         (D)   any advance, overdraft or guarantee for which the borrower is unable or unwilling to discharge his or her obligation to service the interest or principal repayment; or

      (ii)   any investment made in, or debenture issued by, a body corporate established in Uganda where—

         (A)   the body corporate has suffered losses which in the aggregate exceed its paid-up capital, declared reserves and surpluses;

         (B)   insolvency proceedings have been or could be initiated against the body corporate; or

         (C)   the commercial or industrial operations of the body corporate have remained nonoperational for a period longer than a period specified by the Bank of Uganda for the purposes of this Act and its marketability or realisable value has been so substantially impaired as to expose the bank to serious risk of loss;

   (g)   "parastatal organisation" means a statutory corporation or other body in which the State owns the greater part of the proprietary interest or otherwise has a controlling interest;

   (h)   "sinking fund" means the sinking fund established under section 8;

   (i)   "tribunal" means the Nonperforming Assets Recovery Tribunal established by section 13;

   (j)   "trust" means the Nonperforming Assets Recovery Trust established by section 2;

   (k)   "trustee" means a member of the board.

 

PART II
THE TRUST.

 

2.   Establishment of the trust.

   (1) There is established a body to be known as the Nonperforming Assets Recovery Trust.

   (2) The trust shall be a body corporate with a common seal and may sue or be sued in its corporate name.

   (3) The trust shall, for the purposes of discharging its objects and functions under this Act, have power to acquire, hold and dispose of any movable or immovable property or to enter into any contract or transaction.

 

3.   Objects of the trust.

   The objects of the trust are—

   (a)   to hold for and on behalf of the Republic of Uganda any non performing asset of the Uganda Commercial Bank and the Uganda De

This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.