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 The Marine Insurance Bill
 The Exchange Control Bill














Group Title: West Indies gazette
Title: The West Indies gazette
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00076857/00083
 Material Information
Title: The West Indies gazette
Physical Description: : ; 34 cm.
Language: English
Creator: West Indies (Federation)
Publisher: Govt. Print. Off.
Place of Publication: Port of Spain Trinidad
Publication Date: May 1, 1959
 Subjects
Subject: Politics and government -- Periodicals -- West Indies (Federation)   ( lcsh )
Spatial Coverage: Trinidad and Tobago -- Trinidad
 Notes
Dates or Sequential Designation: v.1- Jan. 3, 1958-
General Note: Includes supplements consisting of bills, ordinances, statutory rules & orders, etc.
 Record Information
Bibliographic ID: UF00076857
Volume ID: VID00083
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ltuf - ABV7930
oclc - 01646171
alephbibnum - 000328383

Table of Contents
    Main
        Page 1
        Page 2
    The Marine Insurance Bill
        A-1
        A-2
        A-3
        A-4
        A-5
        A-6
        A-7
        A-8
        A-9
        A-10
        A-11
        A-12
        A-13
        A-14
        A-15
        A-16
        A-17
        A-18
        A-19
        A-20
        A-21
        A-22
        A-23
        A-24
        A-25
        A-26
        A-27
        A-28
        A-29
        A-30
        A-31
        A-32
        A-33
        A-34
        A-35
        A-36
        A-37
        A-38
        A-39
        A-40
    The Exchange Control Bill
        B-1
        B-2
        B-3
        B-4
        B-5
        B-6
        B-7
        B-8
        B-9
        B-10
        B-11
        B-12
        B-13
        B-14
        B-15
        B-16
        B-17
        B-18
        B-19
        B-20
        B-21
        B-22
        B-23
        B-24
        B-25
        B-26
        B-27
        B-28
        B-29
        B-30
        B-31
        B-32
        B-33
        B-34
        B-35
        B-36
        B-37
        B-38
        B-39
        B-40
        B-41
        B-42
        B-43
        B-44
        B-45
        B-46
        B-47
        B-48
        B-49
        B-50
        B-51
        B-52
        B-53
        B-54
Full Text












The West Indies Gazette


'OL. 2 FRIDAY, IST MAY, 1959 No. 22


TABLE OF CONTENTS
GAZETTE NOTICES

To. SUBJECT MATTER PAGE No. SUBJECT MATTER PAGE
47 Licence Under Federal Coat of Arms (Regula- 48 Publication of Bills ... ... ... ... 43
tion) Act, 1958 ... ... ... ... 43


LICENCE UNDER FEDERAL COAT OF ARMS (REGULATION) ACT, 1958
IT is hereby notified for general information that His Excellency the Governor-General has been pleased to grant
a licence under the Federal Coat of Arms (Regulation) Act, 1958 to The West India Committee authorising
the use and display of the Coat of Arms of the Federation in the manner and subject to the terms and condition
specified in the licence.


PUBLICATION OF BILLS


NOTICE is hereby given that the following Bills are published in this Gazette for public information :
The Marine Insurance Bill
The Exchange Control Bill


GOVERNMENT PRINTING OFFICE, TRINIDAD, W.I.-1959







The Marine Insurance Bill


THE WEST INDIES


THE MARINE INSURANCE BILL

OBJECTS AND REASONS

The object of this Bill is to codify the common law
principles relating to Marine Insurance. The Bill also seeks
to make certain amendments to common law (e.g. in the
definition of constructive total loss), and to settle certain
points which the common law has left in dispute.

2. Though the Bill is not exhaustive of all the law on
the subject, it is a comprehensive code and makes readily
available to the mercantile community all that is necessary
for their purposes.

3. The Bill is identical in all material respects with
the Marine Insurance Acts, 1906 and 1909, of the United
Kingdom and therefore an important effect of this legislation
will be to bring our law into uniformity with that not only
of the United Kingdom but that of other Commonwealth
countries which have followed the United Kingdom legisla-
tion.







2 The Marine Insurance Bill



THE WEST INDIES


ACT No. of 1959.

THE MARINE INSURANCE BILL


ARRANGEMENT OF CLAUSES

Clause
INTRODUCTORY
1. Short title and commencement.
2. Interpretation.
3. Application.
4. Saving of rules of common law.

MARINE INSURANCE
5. Marine insurance defined.
6. Mixed sea and land risks.
7. Marine adventure and maritime perils defined.

INSURABLE INTEREST
8. Avoidance of wagering or gaming contracts.
9. Insurable interest defined.
10. When interest must attach.
11. Defeasible or contingent interest.
12. Partial interest.
13. Re-insurance.
14. Bottomry.
15. Master's and seamen's wages.
16. Advance freight.
17. Charges of insurance.
18. Quantum of interest.
19. Assignment of interest.
20. Prohibition of gambling on loss by maritime perils.

INSURABLE VALUE
21. Measure of insurable value.

DISCLOSURE AND REPRESENTATIONS
22. Insurance is uberrimae fidei.
23. Disclosure by assured.
24. Disclosure by agent effecting insurance.
25. Representations pending negotiation of contract.
26. When contract is deemed to be concluded.








The Marine Insurance Bill 3


THE POLICY
27. Contract must be embodied in policy.
28. What policy must specify.
29. Signature of insurer.
30. Voyage and time.
31. Designation of subject matter.
32. Valued policy.
33. Unvalued policy.
34. Floating policy by ship or ships.
35. Construction of terms in policy.
36. Premium to be arranged.

DOUBLE INSURANCE
37. Double insurance.

WARRANTIES, &c.
38. Nature of warranty.
39. [When breach df warranty excused.
40. Express warranties.
41. Warranty of neutrality.
42. No implied warranty of nationality.
43. Warranty of good safety.
44. Warranty of seaworthiness of ship.
45. No implied warranty that goods are seaworthy.
46. Warranty of legality.

THE VOYAGE
47. Implied condition as to commencement of risk.
48. Alteration of port of departure.
49. Sailing for different destination.
50. Change of voyage.
51. Deviation.
52. Several ports of discharge.
53. Delay in voyage.
54. Excuses for deviation or delay.

ASSIGNMENT OF POLICY
55. When and how policy is assignable.
56. Assured who has no interest cannot assign.

THE PREMIUM
57. When premium payable.
58. Policy effected through broker.
59. Effect of receipt on policy.

LOSS AND ABANDONMENT
60. Included and excluded losses.
61. Partial and total loss.
62. Actual total loss.
63. MIissing ship,








The Marine Insurance Bill


64. Effect of transhipment, &c.
65. Constructive total loss defined.
66. Effect of constructive total loss.
67. Notice of abandonment.
68. Effect of abandonment.

PARTIAL LOSSES (INCLUDING SALVAGE AND GENERAL
AVERAGE AND PARTICULAR CHARGES)
69. Particular average loss.
70. Salvage charges.
71. General average loss.

MEASURE OF INDEMNITY
72. Extent of liability of insurer for loss.
73. Total loss.
74. Partial loss of ship.
75. Partial loss of freight.
76. Partial loss of goods, merchandise, &c.
77. Apportionment of valuation.
78. General average contributions and salvage charges.
79. Liabilities to third parties.
80. General provisions as to measure of indemnity.
81. Particular average warranties.
82. Successive losses.
83. Suing and labouring clause.

RIGHTS OF INSURER ON PAYMENT
84. Right of subrogation.
85. Right of contribution.
86. Effect under insurance.

RETURN OF PREMIUM
87. Enforcement of return.
88. Return by agreement.
89. Return for failure of consideration.

MUTUAL INSURANCE
90. Modification of Act in case of mutual insurance.

SUPPLEMENTAL
91. Ratification by assured.
92. Implied obligations varied by agreement or usage.
93. Reasonable time, &c. a question of fact.
94. Slip as evidence.
Schedule.








The Marine Insurance Bill 5

A Bill intituled

An Act relating to marine insurance.

Be it enacted by the Queen's Most Excellent
Majesty, by and with the advice and consent of the Senate
and the House of Representatives of The West Indies, and
by the authority of the same, as follows:-
INTRODUCTORY
1. This Act may be cited as the Marine Insurance rt title
Act, 1959, and shall come into operation upon such day asmence-
the Governor-General shall by proclamation appoint. ment.

2. In this Act, unless the context otherwise requires,-tatire
"action" includes counter-claim and set off;
"freight" includes the profit derivable by a ship-
owner from the employment of his ship to carry
his own goods or moveables, as well as freight
payable by a third party, but does not include
passage money;
"moveables" means any moveable tangible pro-
perty, other than the ship, and includes money,
valuable securities, and other documents;
'"policy" means a marine policy.

3. (1) This Act shall apply to the Cayman Islands andApplica-
the Turks and Caicos Islands.ion.
(2) This Act shall apply to contracts of marine
insurance:
Provided that it shall not apply to marine
insurance undertaken by the Government of any Territory
other than insurance undertaken by the Government of any
Territory that extends beyond the limits of that Territory.

(3) This Act shall not apply to contracts of marine
insurance made before the commencement of this Act.

4. The rules of the common law, including the laWSaving of
rules of
merchant, save in so far as they are inconsistent with theomon
express provisions of this Act, shall apply to contracts oflaw.
marine insurance.












Marine
insurance
defined.



Mixed
sea and
land risks.












Marine ad-
venture
and mari-
time
perils
defined.


6 The Marine Insurance Bill

MARINE INSURANCE
5. A contract of marine insurance is a contract
whereby the insurer undertakes to indemnify the assured,
in manner and to the extent thereby agreed, against marine
losses, that is to say, the losses incident to marine adventure.

6. (1) A contract of marine insurance may, by its express
terms, or by usage of trade, be extended so as to protect the
assured against losses on inland waters or on any land risk
which may be incidental to any sea voyage.
(2) Where a ship in course of building, or the launch
of a ship, or any adventure analogous to a marine adventure,
is covered by a policy in the form of a marine policy, the
provisions of this Act, in so far as applicable, shall apply
thereto; but except as by this section provided, nothing in
this Act shall alter or affect any rule of law applicable to any
contract of insurance other than a contract of marine
insurance as by this Act defined.

7. (1) Subject to the provisions of this Act, every lawful
marine adventure may be the subject of a contract of marine
insurance.

(2) In particular there is a marine adventure where-
(a) any ship, goods or other moveables are
exposed to maritime perils. Such property
is in this Act referred to as "insurable
property";
(b) The earning or acquisition of any freight,
passage money, commission, profit, or other
pecuniary benefit, or the security for any
advances, loan, or disbursements, is en-
dangered by the exposure of insurable
property to maritime perils.
(c) Any liability to a third party may be incurred
by the owner of, or other person interested
in or responsible for, insurable property, by
reason of maritime perils.
"Maritime perils" means the perils consequent on, or
incidental to, the navigation of the sea, that is to say, perils
of the seas, fire, war perils, pirates, rovers, thieves, captures,








The Marine Insurance Bill


seisures, restraints and detainments of princes and peoples,
jettisons, barratry, and any other perils, either of the like
kind or which may be designated by the policy.
INSURABLE INTEREST
Avoidance
8. (1) Every contract of marine insurance by way of of wager-
gaming or wagering is void. ing or
gaming
(2) A contract of marine insurance is deemed to be an-t.
gaming or wagering contract-
(a) where the assured has not an insurable
interest as defined by this Act, and the
contract is entered into with no expectation
of acquiring such an interest; or
(b) where the policy is made "interest or no
interest", or "without further proof of
interest than the policy itself", or "without
benefit of salvage to the insurer", or subject
to any other like term:
Provided that, where there is no possibility of
salvage, a policy may be effected without benefit of salvage to
the insurer.

9. (1) Subject to the provisions of this Act, every personInsurable
interest
has an insurable interest who is interested in a marine denied.
adventure.
(2) In particular a person is interested in a marine
adventure where he stands in any legal or equitable relation
to the adventure or to any insurable property at risk therein,
in consequence of which he may benefit by the safety or due
arrival of insurable property, or may be prejudiced by its
loss, or by damage thereto, or by the detention thereof, or
may incur liability in respect thereof.

10. (1) The assured must be interested in the subject-When in-
terest must
matter insured at the time of the loss though he need not besattahmu
interested when the insurance is effected:
Provided that where the subject-matter is insured
"lost or not lost", the assured may recover although he may
not have acquired his interest until after the loss, unless at
the time of effecting the contract of insurance the assured
was aware of the loss, and the insurer was not.








The Marine Insurance Bill


(2) Where the assured has no interest at the time of
the loss, he cannot acquire interest by any act or election after
he is aware of the loss.

Defeasible 11. (1) A defeasible interest is insurable, as also is a
or con- .
tingent contingent interest.
interest.. (2) In particular, where the buyer of goods has insured
them, he has an insurable interest, notwithstanding that he
might, at his election, have rejected the goods, or have treated
them as at the seller's risk, by reason of the latter's delay in
making delivery or otherwise.
Partial
interest. 12. A partial interest of any nature is insurable.
Re-in- 13. (1) The insurer under a contract of marine insurance
surance.
has an insurable interest in his risk, and may re-insure in
respect of it.
(2) Unless the policy otherwise provides, the original
assured has no right or interest in respect of such re-
insurance.

Bottomry. 14. The lender of money on bottomry or respondentia
has an insurable interest in respect of the loan.
Master'S 15. The master or any member of the crew of a ship
men's has an insurable interest in respect of his wages.
wages.
Advance 16. In the case of advance freight, the person
freight. advancing the freight has an insurable interest, in so far as
such freight is not repayable in case of loss.
Charges 17. The assured has an insurable interest in the
of insur-
ance. charges of any insurance which he may effect.

Quatum 18. (1) Where the subject-matter insured is mortgaged,
eat. the mortgagor has an insurable interest in the full value
thereof, and the mortgagee has an insurable interest in
respect of any sum due or to become due under the mortgage.
(2) A mortgagee, consignee, or other person having an
interest in the subject-matter insured may insure on behalf
and for the benefit of other persons interested as well as for
his own benefit.







The Marine Insurance Bill


(3) The owner of insurable property has an insurable
interest in respect of the full value thereof, notwithstanding
that some third person may have agreed, or be liable, to
indemnify him in case of loss.

19. Where the assured assigns or otherwise parts withAsign
his interest in the subject-matter insured, he does not therebyinterest.
transfer to the assignee his rights under the contract of
insurance, unless there be an express or implied agreement
with the assignee to that effect.
But the provisions of this section do not affect a
transmission of interest by operation of law.

20. (1) If- Prohibi-
tion of
(a) any person effects a contract of marine in-on lss b
surance without having a bona fide interest,maritime
direct or indirect, either in the safe arrival ofperil"
the ship in relation to which the contract is
made or in the safety or preservation of the
subject-matter insured, or a bona fide
expectation of acquiring such an interest; or
(b) any person in the employment of the owner of
a ship, not being a part owner of the ship
effects a contract of marine insurance in
relation to the ship, and the contract is made
"interest or no interest", or "without further
proof of interest than the policy itself", or
"without benefit of salvage of the insurer", or
subject to any other like term,
the contract shall be deemed to be a contract by way of
gambling on loss by maritime perils, and the person effecting
it shall be guilty of an offence, and shall be liable, on summary
conviction, to imprisonment, with or without hard labour,
for a term not exceeding six months or to a fine not exceeding
one thousand dollars, and in either case to forfeit to the
Crown any money he may receive under the contract.
(2) Any broker or other person through whom, and
any insurer with whom, any such contract is effected shall
be guilty of an offence and liable on summary conviction to






* ,, .


7 6 '! / ~ii- -#








The Marine Insurance Bill


Dis- 23. (1) Subject to the provisions of this section, the
closure
bye assured must disclose to the insurer, before the contract is
assured, concluded, every material circumstance which is known to
the assured, and the assured is deemed to know every cir-
cumstance which, in the ordinary course of business, ought
to be known by him. If the assured fails to make such dis-
closure, the insurer may avoid the contract.
(2) Every circumstance is material which would
influence the judgment of a prudent insurer in fixing the
premium, or determining whether he will take the risk.
(3) In the absence of inquiry the following circum-
stances need not be disclosed, namely:-
(a) any circumstance which diminishes the risk;
(b) any circumstance which is known or presumed
to be known to the insurer. The insurer is
presumed to know matters of common
notoriety or knowledge, and matters which an
insurer in the ordinary course of his business,
as such, ought to know;
(c) any circumstance as to which information is
waived by the insurer;
(d) any circumstance which it is superfluous to
disclose by reason of any express or implied
warranty.

(4) Whether any particular circumstance, which is not
disclosed, be material or not is, in each case, a question of
fact.
(5) The term "circumstance" includes any communi-
cation made to, or information received by, the assured.

Disclosure 24. Subject to the provisions of the preceding section
by agent as to circumstances which need not be disclosed, where an
insurance. insurance is effected for the assured by an agent, the agent
must disclose to the insurer-
(a) every material circumstance which is known
to himself, and an agent to insure is deemed
to know every circumstance which in the
ordinary course of business ought to be known
by, or to have been communicated to, him; and







The Marine Insurance Bill


(b) every material circumstance which the
assured is bound to disclose, unless it come to
his knowledge too late to communicate it to
the agent.

25. (1) Every material representation made by theRepresen-
tations
assured or his agent to the insurer during the negotiations forpending
the contract, and before the contract is concluded, must benegotia-
tion of
true. If it be untrue the insurer may avoid the contract, contract.
(2) A representation is material which would influence
the judgment of a prudent insurer in fixing the premium,
or determining whether he will take the risk.
(3) A representation may be either a representation as
to a matter of fact, or as to a matter of expectation or belief.
(4) A representation as to a matter of fact is true, if
it be substantially correct, that is to say, if the difference
between what is represented and what is actually correct
would not be considered material by a prudent insurer.
(5) A representation as to a matter of expectation or
belief is true if it be made in good faith.
(6) A representation may be withdrawn or corrected
before the contract is concluded.
(7) Whether a particular representation be material or
not is, in each case, a question of fact.

26. A contract of marine insurance is deemed to bewhen con-
concluded when the proposal of the assured is accepted by the deme to
insurer, whether the policy be then issued or not; and, for thebe con-
purpose of showing when the proposal was accepted, referenceeluded.
may be made to the slip or covering note or other customary
memorandum of the contract, although it be unstamped.

THE POLICY
27. Subject to the provisions of any Act, a contract of Contract
marine insurance is inadmissible in evidence unless it must be
embodied
embodied in a marine policy in accordance with this Act. Thein policy.
policy may be executed and issued either at the time when the
contract is concluded, or afterwards.







16 The Marine Insurance Bill

other property must be honestly stated, but an omission or
erroneous declaration may be rectified even after loss or
arrival, provided the omission or declaration was made in
good faith.
(4) Unless the policy otherwise provides, where a
declaration of value is not made until after notice of loss or
arrival, the policy must be treated as an unvalued policy as
regards the subject-matter of that declaration.

Con- 35. (1) A policy may be in the form in the Schedule to
structio his Act.
of terms tis Act.
in policy.
(2) Subject to the provisions of this Act, and unless
the context of the policy otherwise requires, the terms and
expressions mentioned in the Schedule to this Act shall be
construed as having the scope and meaning in that schedule
assigned to them.
premium 36. (1) Where an insurance is effected at a premium to be
arranged. arranged, and no arrangement is made, a reasonable premium
is payable.
(2) Where an insurance is effected on the terms that
an additional premium is to be arranged in a given event,
and that event happens but no arrangement is made, then a
reasonable additional premium is payable.

DOUBLE INSURANCE
Double 37. (1) Where two or more policies are effected by or on
insa behalf of the assured on the same adventure and interest or
any part thereof, and the sums insured exceed the indemnity
allowed by this Act, the assured is said to be over-insured
by double insurance.
(2) Where the assured is over-insured by double
insurance-
(a) the assured unless the policy otherwise
provides, may claim payment from the
insurers in such order as he may think fit,
provided that he is not entitled to receive any
sum in excess of the indemnity allowed by
this Act;


-t '







The Marine Insurance Bill 17

(b) where the policy under which the assured
claims is a valued policy, the assured must
give credit as against the valuation for any
sum received by him under any other policy
without regard to the actual value of the
subject-matter insured;
(c) where the policy under which the assured
claims is an unvalued policy he must give
credit, as against the full insurable value, for
any sum received by him under any other
policy;
(d) where the assured receives any sum in excess
of the indemnity allowed by this Act, he is
deemed to hold such sum in trust for the
insurers, according to their right of contri-
bution among themselves.

WARRANTIES, &c.
38. (1) A warranty, in the following sections relating to'ature of
warranties, means a promissory warranty, that is to say, a
warranty by which the assured undertakes that some parti-
cular thing shall or shall not be done, or that some condition
shall be fulfilled, or whereby he affirms or negatives the
existence of a particular state of facts.
(2) A warranty may be express or implied.
(3) A warranty, as above defined, is a condition which
must be exactly complied with, whether it be material to the
risk or not. If it be not so complied with, then, subject to
any express provision in the policy, the insurer is discharged
from liability as from the date of the breach of warranty, but
without prejudice to any liability incurred by him before that
date.

39. (1) Non-compliance with a warranty is excused when, when
breach of
by reason of a change of circumstances, the warranty ceaseswarranty
to be applicable to the circumstances of the contract, or whenexcused.
compliance with the warranty is rendered unlawful by any
subsequent law.
(2) Where a warranty is broken, the assured cannot
avail himself of the defence that the breach has been
remedied, and the warranty complied with, before loss,







18 The Marine Insurance Bill

(3) A breach of warranty may be waived by the
insurer.

Express 40. (1) An express warranty may be in any form of words
warranties.
from which the intention to warrant is to be inferred.
(2) An express warranty must be included in, or
written upon, the policy, or must be contained in some
document incorporated by reference into the policy.
(3) An express warranty does not exclude an implied
warranty, unless it be inconsistent therewith.

warranty 41. (1) Where insurable property, whether ship or goods,
f neutra- is expressly warranted neutral, there is an implied condition
that the property shall have a neutral character at the
commencement of the risk, and that, so far as the assured can
control the matter, its neutral character shall be preserved
during the risk.
(2) Where a ship is expressly warranted "neutral"
there is also an implied condition that, so far as the assured
can control the matter, she shall be properly documented,
that is to say, that she shall carry the necessary papers to
establish her neutrality, and that she shall not falsify or
suppress her papers, or use simulated papers. If any loss
occurs through breach of this condition, the insurer may avoid
the contract.
No im-
plied 42. There is no implied warranty as to the nationality
warranty of a ship, or that her nationality shall not be changed during
ality. the risk.
Warranty 43. Where the subject-matter insured is warranted
of good "
safety. "well" or "in good safety" on a particular day, it is sufficient
if it be safe at any time during that day.
Warranty 44. (1) In a voyage policy there is an implied warranty
of sea-
worthiness that at the commencement of the voyage the ship shall be
of ship. seaworthy for the purpose of the particular adventure
insured.
(2) Where the policy attaches while the ship is in port,
there is also an implied warranty that she shall, at the
commencement of the risk, be reasonably fit to encounter the
ordinary perils of the port.







The Marine Insurance Bill


(3) Where the policy relates to a voyage which is per-
formed in different stages, during which the ship requires
different kinds of or further preparation or equipment, there
is an implied warranty that at the commencement of each
stage the ship is seaworthy in respect of such preparation
or equipment for the purposes of that stage.
(4) A ship is deemed to be seaworthy when she is
reasonably fit in all respects to encounter the ordinary perils
of the seas of the adventure insured.
(5) In a time policy there is no implied warranty that
the ship shall be seaworthy at any stage of the adventure, but
where, with the privity of the assured, the ship is sent to sea
in an unseaworthy state, the insurer is not liable for any loss
attributable to unseaworthiness.
No im-
45. (1) In a policy on goods or other moveables there is noplie
implied warranty that the goods or moveables are seaworthy.warranto
are sea
worthy.
(2) In a voyage policy on goods or other moveables
there is an implied warranty that at the commencement of
the voyage the ship is not only seaworthy as a ship, but also
that she is reasonably fit to carry the goods or other move-
ables to the destination contemplated by the policy.

4'6. There is an implied warranty that the adventureWarranty
insured is a lawful one, and that, so far as the assured canof legality.
control the matter, the adventure shall be carried out in a
lawful manner.

THE VOYAGE
47. (1) Where the subject-matter is insured by a voyagelmplied
policy "at and from" or "from" a particular place, it is notas ntio
necessary that the ship should be at that place when thecom-
contract is concluded, but there is an implied condition that emeeent
the adventure shall be commenced within a reasonable time,
and that if the adventure be not so commenced the insurer
may avoid the contract.
(2) The implied condition may be negatived by
showing that the delay was caused by circumstances known
to the insurer before the contract was concluded, or by
showing that he waived the condition.







20 The Marine Insurance Bill

Sratiot 48. Where the place of departure is specified by the
of policy, and the ship instead of sailing from that place sails
departure. from any other place, the risk does not attach.

sailing 49. Where the destination is specified in the policy,
for
different and the ship, instead of sailing for that destination, sails for
destina- any other destination, the risk does not attach.
tion.
Change of 50. (1) Where, after the commencement of the risk, the
voyage. destination of the ship is voluntarily changed from the
destination contemplated by the policy, there is said to be
a change of voyage.
(2) Unless the policy otherwise provides, where there
is a change of voyage, the insurer is discharged from liability
as from the time of change, that is to say, as from the time
when the determination to change it is manifested; and it is
immaterial that the ship may not in fact have left the course
of voyage contemplated by the policy when the loss occurs.
Deviation. 51. (1) Where a ship, without lawful excuse, deviates
from the voyage contemplated by the policy, the insurer is
discharged from liability as from the time of deviation, and
it is immaterial that the ship may have regained her route
before any loss occurs.
(2) There is a deviation from the voyage contemplated
by the policy-
(a) where the course of the voyage is specially
designated by the policy, and that course is
departed from; or
(b) Where the course of the voyage is not speci-
fically designated by the policy, but the usual
and customary course is departed from.
(3) The intention to deviate is immaterial; there must
be a deviation in fact to discharge the insurer from his
liability under the contract.
Several 52. (1) Where several ports of discharge are specified by
ports of
discharge, the policy, the ship may proceed to all or any of them, but, in
the absence of any usage or sufficient cause to the contrary,
she must proceed to them, or such of them as she goes to, in
the order designated by the policy. If she does not there is
a deviation.








The Marine Insurance Bill 1

(2) Where the policy is to "ports of discharge", within
a given area, which are not named, the ship must, in the
absence of any usage or sufficient cause to the contrary,
proceed to them, or such of them as she goes to, in their
geographical order. If she does not there is a deviation.
Delay in
53. In the case of a voyage policy, the adventurevoyage.
insured must be prosecuted throughout its course with
reasonable dispatch, and, if without lawful excuse it is not
so prosecuted, the insurer is discharged from liability as from
the time when the delay became unreasonable.
Excuses
54. (1) Deviation or delay in prosecuting the voyage con-for devia-
templated by the policy is excused- tion or
(a) where authorised by any special term in the
policy; or
(b) where caused by circumstances beyond the
control of the master and his employer; or
(c) where reasonably necessary in order to comply
with an express or implied warranty; or
(d) where reasonably necessary for the safety of
the ship or subject-matter insured; or
(e) for the purpose of saving human life, or aiding
a ship in distress where human life may be in
danger; or
(f) where reasonably necessary for the purpose
of obtaining medical or surgical aid for :ny
person on board the ship; or
(g) where caused by the barratrous conduct of the
master of crew, if barratry be one of the
perils insured against.
(2) When the cause excusing the deviation or delay
ceases to operate, the ship must resume her course, and pro-
secute her voyage, with reasonable dispatch.

ASSIGNMENT OF POLICY
When and
55. (1) A marine policy is assignable unless it contaishow
terms expressly prohibiting assignment. It may be assignedpolicy is
either before or afterlossssign
either before or after loss. able.







22 The Marine Insurance Bill

(2) Where a marine policy has been assigned so as to
pass the beneficial interest in such policy, the assignee of the
policy is entitled to sue thereon in his own name; and the
defendant is entitled to make any defence arising out of the
contract which he would have been entitled to make if the
action had been brought in the name of the person by or on
behalf of whom the policy was effected.
(3) A marine policy may be assigned by endorsement
thereon or in other customary manner.

who us 56. Where the assured has parted with or lost his
no inter- interest in the subject-matter insured, and has not, before or
est cannot
assign. at the time of so doing, expressly or impliedly agreed to assign
the policy, any subsequent assignment of the policy
is inoperative:
Provided that nothing in this section affects the
assignment of a policy after loss.

THE PREMIUM
When pre-
mium 57. Unless otherwise agreed, the duty of the assured
payable. or his agent to pay the premium, and the duty of the insurer
to issue the policy to the assured or his agent, are concurrent
conditions, and the insurer is not bound to issue the policy
until payment or tender of the premium.
Policy
effected 58. (1) Unless otherwise agreed, where a marine policy
through is effected on behalf of the assured by a broker, the broker is
broker
S directly responsible to the insurer for the premium, and the
insurer is directly responsible to the assured for the amount
which may be payable in respect of losses, or in respect of
returnable premium.
(2) Unless otherwise agreed, the broker has, as
against the assured, a lien upon the policy for the amount
of the premium and his charges in respect of effecting the
policy; and, where he has dealt with the person who employs
him as a principal, he has also a lien on the policy in respect
of any balance on any insurance account which may be due to
him from such person, unless when the debt was incurred he
had reason to believe that such person was only an agent.







The Marine Insurance Bill 23

59. Where a marine policy effected on behalf of theEffet of
receipt
assured by a broker acknowledges the receipt of the premium, on
such acknowledgement is, in the absence of fraud, conclusivepolicy.
as between the insurer and the assured, but not as between
the insurer and broker.

LOSS AND ABANDONMENT
Included
60. (1) Subject to the provisions of this Act, and unlessan ex-
the policy otherwise provides, the insurer is liable for anyoludeda
loss proximately caused by a peril insured against, but,
subject as aforesaid, he is not liable for any loss which is not
proximately caused by a peril insured against.
(2) In particular-
(a) the insurer is not liable for any loss attribut-
able to the wilful misconduct of the assured,
but, unless the policy otherwise provides, he is
liable for any loss proximately caused by a
peril insured against, even though the loss
would not have happened but for the mis-
conduct or negligence of the master or crew;
(b) unless the policy otherwise provides, the
insurer on ship or goods is not liable for any
loss proximately caused by delay, although
the delay be caused by a peril insured against;
(c) unless the policy otherwise provides, the
insurer is not liable for ordinary wear and
tear, ordinary leakage and breakage, inherent
vice or nature of the subject-matter insured,
or for any loss proximately caused by rats or
vermin, or for any injury to machinery not
proximately caused by maritime perils.

61. (1) A loss may be either total or partial. Any lossPartial
other than a total loss, as hereinafter defined, is a partial loss.n. to
(2) A total loss may be either an actual total loss, or a
constructive total loss.
(3) Unless a different intention appears from the
terms of the policy, an insurance against total loss includes
a constructive, as well as an actual total loss.







24 The Marine Insurance Bill

(4) Where the assured brings an action for a total loss
and the evidence proves only a partial loss, he may, unless the
policy otherwise provides, recover for a partial loss.
(5) Where goods reach their destination in specie, but
by reason of obliteration of marks, or otherwise, they are
incapable of identification, the loss, if any, is partial, and not
total.
Actual 62. (1) Where the subject-matter insured is destroyed, or
so damaged as to cease to be a thing of the kind insured, or
where the assured is irretrievably deprived thereof, there is
an actual total loss.
(2) In the case of an actual total loss no notice of
abandonment need be given.

missing 63. Where the ship concerned in the adventure is
missing, and after the lapse of a reasonable time no news of
her has been received, an actual total loss may be presumed.
Effect of
tranship- 64. Where, by a peril insured against, the voyage is
ment, &c. interrupted at an intermediate port or place, under such
circumstances as, apart from any special stipulation in the
contract of affreightment, to justify the master in landing and
re-shipping the goods or other moveables, or in transhipping
them, and sending them on to their destination, the liability
of the insurer continues, notwithstanding the landing or
transhipment.

Construe- 65. (1) Subject to any express provision in the policy,
tive total
loss there is a constructive total loss where the subject-matter
defined. insured is reasonably abandoned on account of its actual total
loss appearing to be unavoidable, or because it could not be
preserved from actual total loss without an expenditure which
would exceed its value when the expenditure has been
incurred.
(2) In particular, there is a constructive total loss-
(i) where the assured is deprived of the posses-
sion of his ship or goods by a peril insured
against, and
(a) it is unlikely that he can recover the ship
or goods, as the case may be, or







The Marine Insurance Bill 25

(b) the cost of recovering the ship or goods,
as the case may be, would exceed their
value when recovered; or
(ii) in the case of damage to a ship, where she
is so damaged by a peril insured against that
the cost of repairing the damage would
exceed the value of the ship when repaired,
In estimating the cost of repairs, no
deduction is to be made in respect of general
average contributions to those repairs pay-
able by other interests, but account is to be
taken of the expense of future salvage
operations and of any future general average
contributions to which the ship would be
liable if repaired; or
(iii) in the case of damage to goods, where the
cost of repairing the damage and forwarding
the goods to their destination would exceed
their value on arrival.

66. Where there is a constructive total loss the assured E~et of
construe-
may either treat the loss as a partial loss, or abandon thetive total
subject-matter insured to the insurer and treat the loss asloss"
if it were an actual total loss.

67. (1) Subject to the provisions of this section, where abandon-
the assured elects to abandon the subject-matter insured toment.
the insurer, he must give notice of abandonment. If he fails
to do so the loss can only be treated as a partial loss.
(2) Notice of abandonment may be given in writing,
or by word of mouth, and may be given in any terms which
indicate the intention of the assured to abandon his insured
interest in the subject-matter insured unconditionally to the
insurer.
(3) Notice of abandonment must be given with reason-
able diligence after the receipt of reliable information of the
loss, but where the information is of a doubtful character the
assured is entitled to a reasonable time to make inquiry.
(4) Where notice of abandonment is properly given,
the rights of the assured are not prejudiced by the fact that
the insurer refuses to accept the abandonment.






28 The Marine Insurance Bill

(7) Where ship, freight, and cargo, or any two of
those interests, are owned by the same assured, the liability
of the insurer in respect of general average losses or contri-
butions is to be determined as if those subjects were owned
by different persons.

MEASURE OF INDEMNITY
Extent of
liability 72. (1) The sum which the assured can recover in respect
of insurer of a loss on a policy by which he is insured, in the case of an
for ls. unvalued policy to the full extent of the insurable value, or,
in the case of a valued policy to the full extent of the value
fixed by the policy, is called the measure of indemnity.
(2) Where there is a loss recoverable under the policy,
the insurer, or each insurer if there be more than one, is
liable for such proportion of the measure of indemnity as the
amount of his subscription bears to the value fixed by the
policy in the case of a valued policy, or to the insurable value
in the case of an unvalued policy.
Total
loss. 73. Subject to the provisions of this Act and to any
express provision in the policy, where there is a total loss of
the subject-matter insured,-
(1) if the policy be a valued policy, the measure
of indemnity is the sum fixed by the policy;
(2) if the policy be an unvalued policy, the
measure of indemnity is the insurable value of
the subject-matter insured.

Partial 74. Where a ship is damaged, but is not totally lost,
ship. the measure of indemnity, subject to any express provision
in the policy, is as follows:-
(1) where the ship has been repaired, the assured
is entitled to the reasonable cost of the repairs,
less the customary deductions, but not exceed-
ing the sum insured in respect of any casualty;
(2) where the ship has been only partially
repaired, the assured is entitled to the
reasonable cost of such repairs, computed as
above, and also to be indemnified for the
reasonable depreciation, if any, arising from
the unrepaired damage, provided that the








The Marine Insurance Bill


aggregate amount shall not exceed the cost of
repairing the whole damage, computed as
above;
(3) where the ship has not been repaired, and has
not been sold in her damaged state during the
risk, the assured is entitled to be indemnified
for the reasonable depreciation arising from
the unrepaired damage, but not exceeding the
reasonable cost of repairing such damage,
computed as above.
75. Subject to any express provision in the policy,Partial
where there is a partial loss of freight, the measure of indem- freight.
nity is such proportion of the sum fixed by the policy in the
case of a valued policy, or of the insurable value in the case
of an unvalued policy, as the proportion of freight lost by the
assured bears to the whole freight at the risk of the assured
under the policy.
76. Where there is a partial loss of goods, merchandise, Partial
or other moveables, the measure of indemnity, subject to any goods
express provision in the policy, is as follows:- merchan-
(1) where part of the goods, merchandise or otherdise, .'
moveables insured by a valued policy is totally
lost, the measure of indemnity is such pro-
portion of the sum fixed by the policy as the
insurable value of the part lost bears to the
insurable value of the whole, ascertained as in
the case of an unvalued policy;
(2) where part of the goods, merchandise, or other
moveables insured by an unvalued policy is
totally lost, the measure of indemnity is the
insurable value of the part lost, ascertained
as in the case of total loss:
(3) where the whole or any part of the goods or
merchandise insured has been delivered
damaged at its destination, the measure of
indemnity is such proportion of the sum fixed
by the policy in the case of a valued policy, or
of the insurable value in the case of an un-
valued policy, as the difference between the
gross sound and damaged values at the place
of arrival bears to the gross sound value;







The Marine Insurance Bill


Successive 82. (1) Unless the policy otherwise provides, and subject
to the provisions of this Act, the insurer is liable for successive
losses, even though the total amount of such losses may exceed
the sum insured.
(2) Where, under the same policy, a partial loss, which
has not been repaired or otherwise made good, is followed
by a total loss, the assured can only recover in respect of the
total loss:
Provided that nothing in this section shall affect
the liability of the insurer under the suing and labouring
clause.

Suing and 83. (1) Where the policy contains a suing and labouring
labouring
clause, clause, the engagement thereby entered into is deemed to be
supplementary to the contract of insurance, and the assured
may recover from the insurer any expenses properly incurred
pursuant to the clause, notwithstanding that the insurer may
have paid for a total loss, or that the subject-matter may have
been warranted free from particular average, either wholly
or under a certain percentage.
(2) General average losses and contributions and
salvage charges, as defined by this Act, are not recoverable
under the suing and labouring clause.
(3) Expenses incurred for the purpose of averting or
diminishing any loss not covered by the policy are not
recoverable under the suing and labouring clause.
(4) It is the duty of the assured and his agents, in all
cases, to take such measures as may be reasonable for the
purpose of averting or minimising a loss.

RIGHTS OF INSURER ON PAYMENT
suboga- 84. (1) Where the insurer pays for a total loss, either of
tion. the whole, or in the case of goods of any apportionable part,
of the subject-matter insured, he thereupon becomes entitled
to take over the interest of the assured in whatever may
remain of the subject-matter so paid for, and he is thereby
subrogated to all the rights and remedies of the assured in and
in respect of that subject-matter as from the time of the
casualty causing the loss,








The Marine Insurance Bill 33

(2) Subject to the foregoing provisions, where the
insurer pays for a partial loss, he acquires no title to the
subject-matter insured, or such part of it as may remain, but
he is thereupon subrogated to all rights and remedies of the
assured in and in respect of the subject-matter insured as
from the time of the casualty causing the loss, in so far as the
assured has been indemnified, according to this Act, by such
payment for the loss.

85. (1) Where the assured is over-insured by doubleRightof
contri-
insurance, each insurer is bound, as between himself and thebution.
other insurers, to contribute rateably to the loss in proportion
to the amount for which he is liable under his contract.
(2) If any insurer pays more than his proportion of
the loss, he is entitled to maintain an action for contribution
against the other insurers, and is entitled to the like remedies
as a surety who has paid more than his proportion of the debt.

86. Where the assured is insured for an amount lessEffeet
than the insurable value or, in the case of a valued policy, surane.
for an amount less than the policy valuation, he is deemed to
be his own insurer in respect of the uninsured balance.

RETURN OF PREMIUM
87. Where the premium or a proportionate partEnf0orce
thereof is, by this Act, declared to be returnable- return.
(a) if already paid, it may be recovered by the
assured from the insurer; and
(b) if unpaid, it may be retained by the assured or
his agent.

88. Where the policy contains a stipulation for theReturn by
return of the premium, or a proportionate part thereof, onagreement.
the happening of a certain event, and that event happens, the
premium, or, as the case may be, the proportionate part
thereof, is thereupon returnable to the assured.

89. (1) Where the consideration for the payment of theReturn for
premium totally fails, and there has been no fraud or illegality lon-
on the part of the assured or his agents, the premium is there-sideration.
upon returnable to the assured.








The Marine Insurance Bill


(2) Where the consideration for the payment of the
premium is apportionable and there is a total failure of any
apportionable part of the consideration, a proportionate part
of the premium is, under the like conditions, thereupon
returnable to the assured.
(3) In particular-
(a) where the policy is void, or is avoided by the
insurer as from the commencement of the risk,
the premium is returnable, provided that there
has been no fraud or illegality on the part of
the assured; but if the risk is not apportion-
able, and has once attached, the premium is
not returnable;
(b) where the subject-matter insured, or part
thereof, has never been imperilled, the
premium, or, as the case may be, a propor-
tionate part thereof, is returnable:
Provided that where the subject-matter
has been insured "lost or not lost" and has
arrived in safety at the time when the contract
is concluded, the premium is not returnable
unless, at such time, the insurer knew of the
safe arrival.
(c) where the assured has no insurable interest
throughout the currency of the risk, the
premium is returnable, provided that this rule
does not apply to a policy effected by way of
gaming or wagering;
(d) where the assured has a defeasible interest
which is terminated during the currency of the
risk, the premium is not returnable;
(e) where the assured has over-insured under an
unvalued policy, a proportionate part of the
premium is returnable;
(f) subject to the foregoing provisions, where the
assured has over-insured by double insurance,
a proportionate part of the several premiums
is returnable:








The Marine Insurance Bill 35

Provided that, if the policies are effected
at different times, and any earlier policy has at
any time borne the entire risk, or if a claim
has been paid on the policy in respect of the
full sum insured thereby, no premium is
returnable in respect of that policy, and when
the double insurance is effected knowingly by
the assured no premium is returnable.

MUTUAL INSURANCE
90. (1) Where two or more persons mutually agree toModifica-
tion of
insure each other against marine losses there is said to be aAct i
mutual insurance. case of
mutual in-
(2) The provisions of this Act relating to the pre-surance.
mium do not apply to mutual insurance, but a guarantee, or
such other arrangement as may be agreed upon, may be sub-
stituted for the premium.
(3) The provisions of this Act, in so far as they may
be modified by the agreement of the parties, may in the case
of mutual insurance be modified by the terms of the policies
issued by the association, or by the rules and regulations of
the association.
(4) Subject to the exceptions mentioned in this sec-
tion, the provisions of this Act apply to a mutual insurance.

SUPPLEMENTAL
91. Where a contract of marine insurance is in goodRatifi-
faith effected by one person on behalf of another, the person assured
on whose behalf it is effected may ratify the contract even
after he is aware of a loss.

92. (1) Where any right, duty, or liability would ariselmplied
under a contract of marine insurance by implication of law, oia-
it may be negatived or varied by express agreement, or byvaried by
usage, if the usage be such as to bind both parties to them or
contract. usage.

(2) The provisions of this section extend to any right,
duty, or liability declared by this Act which may be lawfully
modified by agreement.








36 The Marine Insurance Bill

Reason-
able time, 93. Where by this Act any reference is made to reason-
e. a able time, reasonable premium, or reasonable diligence, the
question of
fact. question what is reasonable is a question of fact.

Slip as 94. Where there is a policy which, under the law in
force in a Territory, is duly stamped or not chargeable with
stamp duty, reference may be made in any legal proceeding
in that Territory to the slip or covering note (although such
slip or note is not stamped) for the same purposes and to the
same extent as may be made in similar proceedings in the
United Kingdom on the commencement of this Act.






SCHEDULE Section 35


FORM OF POLICY
Lloyd's Be it known that as well in
S.G.
policy. own name as for and in the name and names of all and every other
person or persons to whom the same doth, may, or shall appertain, in
part or in all doth make assurance and cause
and them, and every of them, to be insured lost or not lost, at and from

Upon any kind of goods and merchandise, and also upon the body,
tackle, apparel, ordnance, munition, artillery, boat, and other furniture,
of and in the good ship or vessel called the
whereof is master under God, for this present voyage,
or whosoever else shall go for master in the said ship, or by whatsoever
other name or names the said ship ,or the master thereof, is or shall be
named or called; beginning the adventure upon the said goods and
merchandise from the loading thereof aboard the said ship.
upon the said ship, &c.

and so shall continue and endure, during her abode there, upon the said
ship, &c. And further, until the said ship, with all her ordnance, tackle,
apparel, &c., and goods and merchandise whatsoever shall be arrived at

upon the said ship, &c., until she hath moored at anchor twenty-four
hours in good safety; and upon the goods and merchandise, until the
same be there discharged and safely landed. And it shall be lawful for
the said ship, &c., in this voyage, to proceed and sail to and touch and
stay at any ports or places whatsoever








The Marine Insurance Bill 37


without prejudice to this insurance. The said ship, &c., goods and
merchandise, &c., for so much as concerns the assured by agreement
between the assured and assurers in this policy, are and shall be valued
at

Touching the adventures and perils which we the assurers
are contented to bear and do take upon us in this voyage: they are of the
seas, men of war, fire, enemies, pirates, rovers, thieves, jettisons, letters
of mart and countermart, surprisals, takings at sea, arrests, restraints,
and detainments of all kings, princes, and people, of what nation,
condition, or quality soever, barratry of the master and mariners, and of
all other perils, losses, and misfortunes, that have or shall come to the
hurt, detriment, or damage of the said goods and merchandise, and ship, (Sue and
&c., or any part thereof. And in case of any loss or misfortune it shall Labour
be lawful to the assured, their factors, servants and assigns, to sue, clause)
labour, and travel for, in and about the defence, safeguards, and
recovery of the said goods and merchandise, and ship, &c., or any part
thereof, without prejudice to this insurance; to the charges whereof
we, the assurers, will contribute each one according to the rate and
quantity of his sum herein assured. And it is especially declared and (Waiver
agreed that no acts of the insurer or insured in recovering, saving, or clause)
preserving the property insured shall be considered as a waiver, or
acceptance of abandonment. And it is agreed by us, the insurers, that
this writing or policy of assurance shall be of as much force and effect as
the surest writing or policy of assurance heretofore made in Lombard
Street, or in the Royal Exchange, or elsewhere in London. And so we,
the assurers, are contented, and do hereby promise and bind ourselves,
each one for his own part, our heirs, executors, and goods to the assured,
their executors, administrators, and assigns, for the true performance of
the premises, confessing ourselves paid the consideration due unto us for
this assurance by the assured, at and after the rate of

IN WITNESS whereof we, the assurers, have subscribed our
names and sums assured in London.

N.B.-Corn, fish, salt, fruit, flour, and seed are warranted free from (Memoran-
average, unless general, or the ship be stranded-sugar, tobacco, hemp, dum)
flax, hides and skins are warranted free from average, under five dollars
per cent, and all other goods, also the ship and freight, are warranted
free from average, under three dollars per cent. unless general, or the
ship be stranded.

RULES FOR CONSTRUCTION OF POLICY
The following are the rules referred to by this Act for the
construction of a policy in the above or other like form, where the context
does not otherwise require:-
Lost or
1. Where the subject-matter is insured "lost or not lost", and the not lost.
loss has occurred before the contract is concluded, the risk attaches unless,
at such time the assured was aware of the loss, and the insurer was not.
2. Where the subject-matter is insured "from" a particular place, From.
the risk does not attach until the ship starts on the voyage insured.








38 The Marine Insurance Bill

At and 3. (a) Where a ship is insured "at and from" a particular place, and
from she is at that place in good safety when the contract is concluded, the
(ship) risk attaches immediately.

(b) if she be not at that place when the contract is concluded, the
risk attaches as soon as she arrives there in good safety, and, unless the
policy otherwise provides, it is immaterial that she is covered by another
policy for a specified time after arrival.
Freight. (c) Where chartered freight is insured "at and from" a particular
place, and the ship is at that place in good safety when the contract is
concluded the risk attaches immediately. If she be not there when the
contract is concluded, the risk attaches as soon as she arrives there in good
safety.
(d) Where freight, other than chartered freight, is payable without
special conditions and is insured "at and from" a particular place, the
risk attaches pro rata as the goods or merchandise are shipped; provided
that if there be cargo in readiness which belongs to the shipowner, or
which some other person has contracted with him to ship, the risk
attaches as soon as the ship is ready to receive such cargo.
Prom the 4. Where goods or other moveables are insured "from the loading
treloang thereof", the risk does not attach until such goods or moveables are
actually on board, and the insurer is not liable for them while in transit
from the shore to the ship.

Safely 5. Where the risk on goods or other moveables continues until
landed, they are "safely landed", they must be landed in the customary manner
and within a reasonable time after arrival at the port of discharge, and
if they are, not so landed the risk ceases.

Touch 6. In the absence of any further licence or usage, the liberty to
and stay. touch and stay "at any port or place whatsoever" does not authorise the
ship to depart from the course of her voyage from the port of departure
to the port of destination.

Perils of 7. The term "perils of the seas" refers only to fortuitous
the seas. accidents or casualties of the seas. It does not include the ordinary
action of the winds and waves.

Pirates. 8. The term "pirates" includes passengers who mutiny and
rioters who attack the ship from the shore.

Thieves. 9. The term "thieves" does not cover clandestine theft or a theft
committed by any one of the ship's company, whether crew or passengers.
Restraint 10. The term "arrests, &c., of kings, princes, and people" refers
of princes. to political or executive acts, and does not include a loss caused by riot
or by ordinary judicial process.
Barratry. 11. The term "barratry" includes every wrongful act wilfully
committed by the master or crew to the prejudice of the owner, or, as
the case may be, the charterer,







The Marine Insurance Bill 39


12. The term "all other perils" includes only perils similar n All other
kind to the perils specifically mentioned in the policy, perils.

13. The term "average unless general" means a partial loss of Average
the subject-matter insured other than a general average loss, and doesunless
not include "particular charges". general.

14. Where the ship has stranded, the insurer is liable for the Stranded.
excepted losses, although the loss is not attributable to the stranding,
provided that when the stranding takes place the risk has attached and,
if the policy be on goods, that the damaged goods are on board.
15. The term "ship" includes the hull, materials and outfit, stores Ship.
and provisions for the officers and crew, and, in the case of vessels
engaged in a special trade, the ordinary fittings requisite for the trade,
and also, in the case of ;a steamship, the machinery, boilers, and coals
and engine stores, if owned by the assured.
16. The term "freight" includes the profit derivable by a ship-Freight.
owner from the employment of his ship to carry his own goods or
moveables, as well as freight payable by a third party, but does not
include passage money.

17. The term "goods" means goods in the nature of merchandise, Goods.
and does not include personal effects or provisions and stores for use
on board.

In the absence of any usage to the contrary, deck cargo and
living animals must be insured specifically, and not under the general
denomination of goods.


Printed by Yuille's Printerie Limited, Trinidad,
by authority of the Government of The West Indies,







The Exchange Control Bill

THE WEST INDIES

THE EXCHANGE CONTROL BILL

OBJECTS AND REASONS

The object of this Bill is to establish a single
system of Federal exchange control in The West Indies in
place of the separate systems of Territorial control now
exercised on the basis of substantive exchange control laws
or of wartime Defence Regulations continued in operation
by local legislation. The Bill seeks to constitute the
Federation a single exchange control area so that import
and export restrictions imposed under it do not apply to the
movement of currency between Territories. Subject to this,
the Bill seeks to apply throughout the Federation the
system of exchange control already established under
Exchange control laws enacted in certain Territories on the
basis of the United Kingdom Exchange Control Act, 1947.








2 The Exchange Control Bill


THE WEST INDIES


THE EXCHANGE CONTROL BILL

ARRANGEMENT OF CLAUSES

Clause
PART I
PRELIMINARY
1. Short title, commencement repeal and application.
2. Interpretation.
3. Appointment -of Exchange Control Authority.

PART II
GOLD AND FOREIGN CURRENCY
4. Dealings in gold and foreign currency.
5. Surrender of gold and foreign currency.
6. Bailees of gold and foreign currency.
7. Travellers' cheques ,etc.
PART III
PAYMENTS
8. Payments in the Federation.
9. Payments outside the Federation.
10. Compensation deals.
PART IV
SECURITIES
11. Issue of securities.
12. Transfer of securities and coupons.
13. Issue of bearer certificates and coupons.
14. Substitution of securities and certificates outside Federation.
15. Payment of capital moneys outside the Federatioh.
16. Duties of persons keeping registers.
17. Additional provisions as to nominee holdings.
18. Deposit of certificates of title.
19. Additional provisions as to deposited certificates.
20. Special provisions as to dealings in certain securities.
21. Validation of certain transfers.
22. Application of Part IV to secondary securities.
23. Interpretation of Part IV.
PART V
IMPORT AND EXPORT
24. Restrictions on import.
25. General restrictions on export.
26. Payment for exports.









The Exchange Control Bill 3

PART VI
MISCELLANEOUS
27. Duty to collect certain debts.
28. Duty not to delay sale or importation of goods.
29. Property obtained by infringement of Act.
30. Provisions supplemental to preceding provisions of Part VI.
31. Transfer of annuities, policies, etc.
32. Settlements
33. Companies.

PART VII
SUPPLEMENTAL
34. Exemptions.
35. Blocked accounts.
36. Contracts, legal proceedings, etc.
37. Enforcement and administration.
38. Application to Crown.
39. Governor-General's orders and regulations.
40. Other powers.
41. Financial provisions.
42. Branches.
43. Persons leaving the scheduled territories.
44. Determination of residence.

SCHEDULES:
First Schedule -The Scheduled Territories.
Second Schedule -Foreign Companies.
Third Schedule -Blocked Accounts.
Fourth Schedule -Legal Proceedings, etc.
Fifth Schedule -Enforcement.

Part I -General provisions as to evidence and information.
Part II -General provisions as to offences.
Part III -Import and export.
Part IV -Application of Customs and Postal laws.
Sixth Schedule -Application of Defence Regulations.



A Bill intituled

An Act relating to exchange control.

Be it enacted by the Queen's Most Excellent
Majesty, by and with the advice and consent of the Senate
and the House of Representative of The West Indies, and
by the authority of the same, as follows:-








4 The Exchange Control Bill

PART I-Preliminary
Short 1. (1) This Act may be cited as the Exchange Control
title, com-
mence- Act, 1959.
meant,
repeal and
applica- (2) This Act shall come into force on such day as the
tion. Governor-General may by order appoint, and-

(a) different days may be appointed for different
purposes and for different provisions thereof;
and

(b) the power of the Governor-General to make
transitional provisions consequent on the
making of an order under this Act shall
extend to the repeal or revocation, in con-
sequence of any order made under this
subsection, of any of the provisions of a law
of the legislature of a Territory relating
to exchange control or of any subsidiary
legislation made under such a law.

(3) This Act shall apply to the Cayman Islands and
the Turks and Caicos Islands.

Interpre- 2. (1) In this Act, unless the context otherwise
station. requires-

"authorised dealer" means, in relation to gold
or any foreign currency, a person for the time being
authorised by an order of the Authority to act for
the purposes of this Act as an authorised dealer in
relation to gold, or, as the case may be, that foreign
currency;

authorisedd depositary" means a person for the
time being authorised by an order of the Authority
to act as an authorised depositary for the purposes
of Part IV of this Act;

"Authority" means the Exchange Control
Authority appointed under section 3 of this Act;








The Exchange Control Bill 5

"bearer certificate" means a certificate of title
to securities by the delivery of which (with or
without endorsement) the title to the securities is
transferable;

"certificate of title to securities" means any
document of title whereby a person recognizes the
title of another to securities issued or to be issued by
the first mentioned person, and in the case of any
such document with coupons (whether attached or
on separate coupon sheets) includes any coupons
which have not been detached;

"coupon" means a coupon representing
dividends or interest on a security;

"foreign currency" has the meaning ascribed to
it by section 4 of this Act;

"gold" means gold coin or gold bullion;

"policy of assurance" means any policy securing
the payment of a capital sum or annuity on the
occurrence of a specified event which is certain to
happen and includes-

(a) any policy by which the payment of
money is assured on death (except death
by accident only) or the happening of
any contingency dependent on human
life; and
(b) any policy securing the payment of an
immediate annuity;

and the reference in this definition to the occurrence
of a specified event which is certain to happen shall
include the occurrence, which is certain to happen,
of one of specified events none of which by itself is
certain to happen;

"prescribed" means prescribed, for the purposes
of the provision in question, by order of the
Authority;








The Exchange Control Bill


"scheduled territories" has the meaning
ascribed to it by section 4 of this Act;

"secondary securities" has the meaning ascribed
to it by section 22 of this Act;

"securities" means shares, stock, bonds, notes
(other than promissory notes), debentures,
debenture stock, Treasury bills, units under a unit
trust scheme and shares in an oil royalty;

"specified currency" has the meaning ascribed
to it by section 5 of this Act as extended by section 7
thereof;

"unit trust scheme" means any arrangements
made for the purpose, or having the effect, of pro-
viding for persons having funds available for
investment, facilities for the participation by them,
as beneficiaries under a trust, in profits or income
arising from the acquisition, holding management or
disposal of any property whatsoever;

"unit" means, in relation to a unit trust scheme,
a right or interest (whether described as a unit, as a
sub-unit or otherwise) which may be acquired under
the scheme.

(2) Any provision of this Act (however worded) the
effect of which is to prohibit the doing of any act where a
person to or by whom the act is to be done or who stands in a
specified relation to any property possesses any specified
attribute as to residence or otherwise shall, where the act
is done to or by two or more persons or, as the case may be,
where two or more persons stand jointly in that relation
to the property, operate to prohibit the doing of that act if
any of those persons possess that attribute; and any provision
of this Act imposing an obligation on any person to do an act
if he possesses any specified attribute as to residence or
otherwise shall, in relation to any act which can only be done
by two or more persons jointly-








The Exchange Control Bill 7

(a) where all those persons possess that attribute,
operate to impose a joint obligation on all of
them to do the act; and
(b) where some only of them possess that attri-
bute, operate to impose a separate obligation
on each one of them who possesses that
attribute to do all he can to secure the doing
of the act.

(3) Any power conferred by this Act to prescribe the
declarations which are to be furnished on any occasion shall
include a power to require that the declarations shall be made
by specified persons and shall be verified in a specified
manner.

(4) Nothing in this Act shall be construed as requiring
the Authority to pay any sum otherwise than in sterling,
West Indian dollars or Jamaican pounds or otherwise than
in the Federation and any provision of this Act requiring
the Authority to pay any sum to any person shall, where
that sum is in a specified currency, be construed as a
provision that the Authority shall pay to that person the
amount in sterling, West Indian dollars or Jamaican pounds
which he would have received for the specified currency if
he had sold it to an authorised dealer in pursuance of an
offer made under section 5 of this Act at the time when the
said sum is paid.

(5) The obligations and prohibitions imposed by this
Act shall, subject to the express limitations contained therein,
apply to all persons, notwithstanding that they are not
British subjects.

(6) In this Act-

(a) references to "West Indian dollars" are
references to currency of any denomination of
dollars or cents issued under any law in force
in the Federation and references to
"Jamaican pounds" are references to currency
of any denomination of pounds, shillings or
pence issued under any law in force in
Jamaica,








8 The Exchange Control Bill

(b) the expression "importation into the
Federation" does not include an importation
into a Territory from another Territory and
the expression "exportation from the
Federation" does not include an exportation
from a Territory to another Territory.

Aoint f 3. (1) The Governor-General may appoint any person to
Exchange be the Exchange Control Authority for the purposes of this
Control Act.
Authority.
(2) Any appointment under the preceding subsection
shall be notified in the Gazette.

PART II-Gold and Foreign Currency
Dealings in 4. (1) Except with the permission of the, Authority, no
gold arnd
foreign person, other than an authorised dealer, shall, in the
currency. Federation, buy or borrow any gold or foreign currency from,
or sell or lend any gold or foreign currency to, any person
other than an authorised dealer.

(2) Except with the permission of the Authority, no
person resident in the scheduled territories, other than an
authorised dealer, shall, in the Federation, do any act which
involves, is in association with or is preparatory to buying
or borrowing any gold or foreign currency from, or selling
or lending any gold or foreign currency to, any person outside
the Federation.
(3) Where a person buys or borrows any gold or
foreign currency in the Federation or, being a person resident
in the scheduled territories does any act which involves, is in
association with or is preparatory to the buying or borrowing
of gold or foreign currency outside the Federation, he shall
comply with such conditions as to the use to which it may
be put or the period for which it may be retained as may from
time to time be notified to him by the Authority.

(4) In this Act-
(a) the expression "foreign currency" does not
include any currency or notes issued by the
Government of the Federation or under the







The Exchange Control Bill 9

law of any part of the scheduled territories
but, save as aforesaid, includes any currency
other than sterling, West Indian dollars or
Jamaican pounds and any notes of a class
which are or have at any time been legal
tender in any place outside the Federation,
and any reference to foreign currency, except
so far as the context otherwise requires,
includes a reference to any right to receive
foreign currency in respect of any credit or
balance at a bank; and

(b) the expression "the scheduled territories"
means the countries specified in the First
Schedule to this Act so, however, that the
Governor-General may at any time by order
amend the said Schedule, either by the
addition or exclusion of countries or other-
wise, and the said expression shall be
construed accordingly.

5. (1) Every person in the Federation who is entitled to Surrender
sell, or to procure the sale of, any gold, or any foreignnd foreign
currency to which this section applies, and is not an currency.
authorised dealer, shall offer it, or cause it to be offered, for
sale to an authorised dealer, unless the Authority consents to
his retention and use thereof or he disposes thereof to any
other person with the permission of the Authority.

The foreign currency to which this section applies
is such foreign currency (hereafter in this Act referred to as
"specified currency") as may from time to time be specified
by order of the Authority.

(2) If a person who has obtained the consent of the
Authority to his retention and use of any gold or specified
currency, and has stated in an application for the consent
that he requires it for a particular purpose, no longer
requires the gold or currency for that purpose, the preceding
subsection shall thereupon apply to him in relation to that
gold or currency as if the Authority had revoked his consent
to his retention and use thereof.







10 The Exchange Control Bill

(3) A person who acquires any gold or specified
currency from an authorised dealer shall be treated for the
purposes of this section as if the Authority had consented
to the retention and use by him of that gold or currency
(subject, however, to any conditions notified to him in
accordance with subsection (3) of section 4 of this Act), and
as if any statement made by him in an application for that
gold or currency as to the purpose for which he requires
it had been made by him in an application for the: Authority's
consent to his retention and use thereof.

(4) Where a person has become bound under this
section to offer or cause to be offered any gold or specified
currency for sale to an authorised dealer, he shall not be
deemed to comply with that obligation by any offer made
or caused to be made by him, if the offer is an offer to sell
at a price ,exceeding that authorised by the Authority, or
without payment of any usual and proper charges of the
authorised dealer, or otherwise on any unusual terms.

(5) Where a person has become bound under this
section to offer or causel to be offered any gold or specified
currency for sale to an authorised dealer and has not
complied with that obligation, the Authority may direct that
that gold or currency shall vest in th3 Authority, and it shall
vest in the Authority accordingly free from any mortgage,
pledge or charge, and the Authority may deal with it as he
thinks fit, but the Authority shall pay to the person who
would but for the direction be entitled to the gold or currency
such sum as he would have received therefor if he had sold
it to an authorised dealer in pursuance of an offer made
under this section at the time when the vesting occurred.

(6) In any proceedings in respect of a failure to
comply with the provisions of this section, it shall be
presumed, until the contrary is shown, that the gold or
currency in question has not been offered for sale to an
authorised dealer.

Bailees of 6. (1) Every person in the Federation by whom or to
gold nd whose order (whether directly or indirectly) any gold or
currency. any specified currency in the form of notes is held in the








The Exchange Control Bill


Federation but who is not entitled to sell it or procure its
sale shall notify the Authority in writing that he so holds
that gold or currency.

(2) The Authority may direct any person in the
Federation by whom or to whose order (whether directly
or indirectly) any gold or any specified currency in the form
of notes is held in the Federation, whether or not he is
entitled to sell it or procure its sale, to cause that gold or
currency to be kept at all times in the custody of such banker
as may be specified in the direction.

7. (1) This section applies to any document of a kind Travellers'
intended to enable the person to whom the, document is "ques
issued to obtain foreign currency from some other person on
the credit of the person issuing it, and in particular to any
traveller's cheque or other draft or letter of credit so
intended.

(2) For tha purposes of this Act, the person issuing a
document to which this section applies, and the person to
whom it is issued, shall be deemed respectively to sell and
buy foreign currency and where foreign currency is obtained
by means of tha document to sell and buy that foreign
currency.

(3) Any such document not expressed in terms of
sterling, West Indian dollars or Jamaican pounds shall, if it
is of a kind intended to enable the person to whom it is
issued to obtain any specified currency, be treated also for
the purposes of this Act as itself being specified currency.

(4) Every person in the Federation who holds or to
whose order there is held any document to which this section
applies, being a document expressed in terms of sterling,
West Indian dollars or Jamaican pounds, shall encash it or
cause it to be encashed in the scheduled territories with the
person issuing it or with a banker, unless the Authority
consents to his retention and use thereof and, where in his
application for that consent he has stated that he requires
it for a particular purpose, unless also he still requires it for
that purpose.








12: The Exchange Control Bill

(5) A person who acquires any document to which
the last preceding subsection applies from an authorised
dealer shall be treated for the purposes of that subsection as
if the Authority had consented to the retention and use by
him of that document (subject, however, to any conditions
notified to him in accordance with subsection (3) of section 4
of this Act), and as if any statement made by him in an
application for that document as to the purpose for which he
requires it had been made by him in an application for the
Authority's consent to his retention and use thereof.

PART III-Payments
Payments 8. Except with the permission of the Authority, no
in the
Federa- person shall do any of the following things in the Federation,
tion. that is to say-

(a) make any payment to or for the credit of a
person resident outside the scheduled
territories; or
(b) make any payment to or for the credit of a
person resident in the scheduled territories
by order or on behalf of a person resident
outside the scheduled territories; or
(c) place any sum to the credit of any person
resident outside the scheduled -territories:

Provided that where a person resident outside the
scheduled territories has paid a sum in or towards the
satisfaction of a debt due from him, paragraph (c) of this
section shall not prohibit the acknowledgement or recording
of the payment.

payments 9. (1) Except with the permission of the Authority no
outside the
Federa- person resident in the scheduled territories shall, subject to
tion, the provisions of this section, in the Federation do any act
which involves, is in association with or is preparatory to, the
making of any payment outside the Federation to or for the
credit of a person resident outside the scheduled territories.

(2) Nothing in this section shall prohibit the doing of
anything otherwise lawful by any person with any foreign








The Exchange Control Bill 13

currency obtained by him in accordance with the provisions
of Part II of this Act or retained by him in pursuance of a
consent of the Authority.

10. (1) Except with the permission of the Authority, no Compensa-
person shall in the Federation make any payment to or fortion deals.
the credit of a person resident in the scheduled territories,
and no person resident in the scheduled territories shall in
the Federation do any act which involves, is in association
with or is preparatory to the making of any such payment
outside the Federation, as consideration for or in association
with-

(a) the receipt by any person of a payment made
outside the scheduled territories, or the
acquisition by any person of property which is
outside the scheduled territories; or

(b) the transfer to any person, or the creation in
favour of any person, of a right (whether
present or future, and whether vested or con-
tingent) to receive a payment outside the
scheduled territories or to acquire property
which is outside the scheduled territories.

(2) Nothing in this section shall prohibit the making
of any payment in accordance with the terms of a permission
or consent granted under this Act.

PART IV-Securities

11. (1) Except with the permission of the Authority, no Issue of
person shall in the Federation issue any security or do anysecurities.
act which involves, is in association with or is preparatory
to the issuing outside the Federation of any security which
is registered or to be registered in the Federation, unless the
following requirements are fulfilled, that is to say-

(a) neither the person to whom the security is to
be issued nor the person, if any, for whom he
is to be a nominee is resident outside the
scheduled territories; and








14 The Exchange Control Bill

(b) the prescribed evidence is produced to the
person issuing the security as to the residence
of the person to whom it is to be issued and
that of the person, if any, for whom he is
to be a nominee.

(2) The subscription of the memorandum of asso-
ciation of a company to be formed under the provisions of any
law in force in the Federation, by a person resident outside
the scheduled territories, or by a nominee for another person
so resident, shall, unless he subscribes the memorandum with
the permission of the Authority be invalid in so far as it
would on registration of the memorandum have the effect of
making him a member of or shareholder in the company, so,
however, that this provision shall not render invalid the
incorporation of the company; and if by virtue of this sub-
section the number of the subscribers of the memorandum
who on its registration become members of the company is
less than the minimum number required to subscribe the
memorandum, any provisions of the said law relating to the
carrying on of business of a company the number of whose
members is reduced below the legal minimum shall apply to
the company as if the number of its members had been so
reduced.

Transfer 12. (1) Except with the permission of the Authority, a
of security registered in the Federation shall not be transferred,
securities
and and a security not so registered shall not be transferred in
coupons. the Federation, unless, in either case, the following require-
ments are fulfilled, that is to say-

(a) neither the transferor nor the person, if any,
for whom he is a nominee is resident outside
the scheduled territories; and
(b) the transferor delivers to the transferee at
or before the time of the transfer the pre-
scribed declarations as to his residence and
that of the person, if any, for whom he is a
nominee; and
(c) neither the transferee nor the person, if any,
for whom he is to be a nominee is resident
outside the scheduled territories; and








The Exchange Control Bill 15_


(d) except where the security is registered in the
Federation otherwise than in a subsidiary
register, the Authority is satisfied that the
requirements of paragraph (c) of this sub-
section are fulfilled:

Provided that-
(i) neither the transferee nor his agent
shall be deemed to have committed an
offence by reason only that the require-
ments of paragraph (a) of this subsection
were not fulfilled unless the transferee
or, as the case may be, his agent, knew
or had reason to believe that those
requirements were not fulfilled; and

(ii) neither the transferor nor his agent
shall be deemed to have committed an
offence by reason only that any of the
requirements of paragraphs (c) and (d)
of this subsection have not been fulfilled
unless, in the case of a non-fulfilment
of the requirements of the said para-
graph (c) the transferor or, as the case
may be, his agent, knew or had reason
to believe that those requirements were
not fulfilled.

(2) Except with the permission of the Authority, a
security not registered in the Federation shall not be
transferred outside the Federation if either the transferor or
the transferee, or the person, if any, for whom the transferor
or transferee is or is to be a nominee, is resident in the
Federation.

(3) Except with the permission of the Authority-
(a) no coupon shall be transferred in the
Federation if either the transferee or the
person, if any, for whom he is to be a nominee
is resident outside the scheduled territories;

(b) no person shall in the Federation do any act
which involves, is in association with or is








The Exchange Control Bill


preparatory to the transfer of any coupon
outside the Federation if either the transferor
or transferee, or the person, if any, for whom
the transferor or transferee is or is to be a
nominee, is resident in the Federation.

Issue of 13. Except with the permission of the Authority, no
bearer
certii- person shall, in the Federation, issue any bearer certificate
cates and or coupon or so alter any document that it becomes a bearer
coupons. certificate or coupon, and no person resident in the scheduled
territories, shall in the Federation do any act which involves,
is in association with or is preparatory to such issue or
alteration outside the Federation.

Substitu- 14. Except with the permission of the Authority-
tion of
securities
and certifi- (1) No person in the Federation shall do any
cates out-
side the act with intent to secure-
Federa-
tion.
tio. (a) that a security which is-

(i) registered in the Federation; or

(ii) transferable by means of a bearer
certificate in the Federation

becomes, or is replaced by, a security
registered outside the Federation or a
security transferable by means of a
bearer certificate outside the Federation;
or

(b) that a certificate of title to any other
security, is issued outside the Federa-
tion in substitution for or in addition to
a certificate. of title thereto which is in,
or is or has been lost or destroyed in, the
Federation.

(2) No person resident in the scheduled territories
shall in the Federation do any act which involves, is in
association with or is preparatory to any such transaction
outside the Federation as is referred to in sub-paragraphs
(a) and (b) above.







The Exchange Control Bill


15. Except with the permission of the Authority- Payment
of capital
(1) No person in the Federation shall do any act with moneys
intent to secure that capital moneys payable on a security Federation.
registered in the Federation are paid outside the Federation,
or that, where the certificate of title to a security is in the
Federation, capital moneys payable on the security are paid
outside the Federation without production of the certificate
to the person making the payment.
(2) No person resident in the scheduled territories
shall in the Federation do any act which involves, is in
association with or is preparatory to any such transaction
outside the Federation as is referred to in sub-paragraph
(1) above.

16. Except with 'the 'permission of the Authority, Duties of
persons
no person concerned with the keeping of any register in the keeping
Federation shall- registers.
(a) enter in the register the name; of any person
in relation to any security unless there has
been produced to him the prescribed evidence
that the entry does not form part of a tran-
saction which involves the doing of anything
prohibited by this Act; or
(b) enter in the register, in respect of any
security, an address outside the scheduled
territories, except for the purpose of any
transaction for which the permission of the
Authority has been granted with the
knowledge that it involved the entry of that
address; or
c) do any act in relation to the register which
recognizes or gives effect to any act appearing
to him to have been done with such intent as
is mentioned in the two last preceding
sections, whether done by a person in or
resident in the Eederation or not.

17. (1) Where- Additional
provisions
(a) the holder of a security is a nominee and theas to
lniio nee
person for whom he is a nominee is resident holdings.
outside the scheduled territories; or







18 The Exchange Control Bill

(b) the holder of a security is not a nominee and
is residiant outside the scheduled territories,
then, except with the permission of the Authority, no person
resident in the Federation shall do any act whereby the
holder becomes his nominee in respect of the security.

(2) Except with the permission of the Authority, a
person resident in the Federation for whom the holder of a
security is a nominee shall not do any act whereby-
(a) the holder, being a person resident outside the
scheduled territories, holds the security
otherwise than as his nominee; or
(b) the holder, not being a person resident outside
the schEsduled territories, holds the security as
nominee for a person resident outside the
scheduled territories.

(3) Where the holder of a security is a nominee, then,
except with the permission of the Authority, neither he, if he
is resident in the Federation, nor any person resident in the
Federation through whose agency the exercise of all or any
of the holder's rights in respect of the security is controlled,
shall-
(a) do any act whereby he recognizes or gives
effect to the substitution of another person as
the person from whom he directly receives his
instructions unless both the person previously
instructing him and the person substituted for
that person were, immediately before the
substitution, resident in the scheduled
territories and not elsewhere; or
(b) do any act whereby he ceases to be a person
bound to give effect to the instructions of
another person in relation to the security,
unless the person who theretofore instructed
him is resident in the scheduled territories
and not elsewhere.

(4) Where the holder of a security is not a nominee
and is resident in the Federation then, except with the per-
mission of the Authority, he shall not do any act whereby he








The Exchange Control Bill 19

becomes the nominee of another person in respect of the
security, unless that other person is resident in the scheduled
territories and not elsewhere.
(5) No person resident in the scheduled territories
shall in the Federation do any act which involves, is in asso-
ciation with or is preparatory to any such transaction outside
the Federation as is referred to in this section.

18. (1) This section and section 19 of this Act shall apply Deposit of
r certificates
to any security except- of titles.
(a) a security which is registered in the
Federation otherwise than in a subsidiary
register, and on which none of the dividends
or interest is payable on presentment of a
coupon; and
(b) any such other securities as may be
prescribed,
and in the following provisions of this section and in section
19 of this Act the expressions "security," "certificate of
title" and "coupon" mean respectively a security to which
the said sections apply, a certificate of title to such a security,
and a coupon representing dividends or interest on such a
security.
(2) It shall be the duty of every person by whom or to
whose order (whether directly or indirectly) a certificate of
title is held in the Federation and of every person resident
in the Federation by whom or to whose order (whether
directly or indirectly) a certificate of title is held outside the
Federation to cause the certificate of title to be kept
at all times, except with the permission of the Authority, in
the custody of an authorised depositary, and nothing in this
Part of this Act shall prohibit the doing of anything for the
purpose of complying with the requirements of this sub-
section.
(3) Except with the permission of the Authority, an
authorised depositary shall not part with any certificate of
title or coupon required under this section to be in the custody
of an authorised depositary:
Provided that this subsection shall not prohibit an
authorised depositary-







The Exchange Control Bill


(a) from parting with a certificate of title or
coupon to or to the order of another authorised
depositary, where the person from whom the
other authorised depositary is to receive
instructions in relation thereto is to be the
same as the person from whom he receives
instructions;
(b) from parting with a certificate of title, for the
purpose of obtaining payment of capital
moneys payable on the security, to the person
entrusted with payment thereof;
(c) from parting with a coupon in the ordinary
course for collection.
(4) Except with the permission of the Authority, no
capital moneys, interest or dividends shall be paid in the
Federation on any security except to or to the order of an
authorised depositary having the custody of the certificate of
title to that security, so, however, that this subsection shall
not be taken as restricting the manner in which any sums
lawfully paid on account of the capital moneys, interest or
dividends may be dealt with by the person receiving them.
(5) Except with the permission of the, Authority, an
authorised depositary shall not do any act whereby he
recognizes or gives effect to the substitution of one person
for another as the person from whom he receives instructions
in relation to a certificate of title or coupon, unless there is
produced to him the prescribed evidence that he is not by so
doing giving effect to any transaction which is prohibited
by this Act.
(6) Where a certificate of title which under this
section should for the time being be in the custody of an
authorised depositary is not in the custody of an authorised
depositary, then, except with the permission of the Authority,
no person shall in the Federation, buy, sell, transfer, or do
.anything which affects his rights or powers in relation to, the
security, or do any act which involves, is in association with
or is preparatory to any such transaction outside the
Federation.
(7) Except with the permission of the Authority, no
person in or resident in the Federation shall, in the case of a


20








The Exchange Control Bill


certificate of title with coupons (whether attached or on
separate coupon sheets), detach any of the coupons otherwise
than in the ordinary course for collection.

19. (1) Where a certificate of title to a security is by Additional
section 18 of this Act required to be and is in the custody of provsions
an authorised depositary, the provisions of this section shall,deposited
except so far as the Authority otherwise directs, have effect cfi-
in relation thereto until-
(a) there are delivered to him the prescribed
declarations as to the ownership of the
security and the residence of the owners
thereof; and
(b) in the case of a certificate of title which-
(i) would ordinarily be accompanied by
coupons (whether attached or on separate
coupon sheets); but
(ii) when it comes into the custody of the
authorised depositary wants, in order to
render it complete, any coupons which
would not in the ordinary course have
been detached for collection,
there have also been deposited with him the
coupons so wanting at the time when the
certificate of title comes into his custody:
Provided that where the said declarations have
been delivered to an authorised depositary and he has parted
with the certificate of title, paragraph (a) of this subsection
shall not again apply on the, certificate coming into the
custody of another authorised depositary or again coming
into his own custody.

(2) Except with the permission of the Authority, the
authorised depositary shall not part with or destroy the
certificate of title or any coupons belonging thereto, otherwise
than as mentioned in paragraphs (b) and (c) of the proviso
to subsection (3) of section 18 of this Act or do any
act whereby he recognizes or gives effect-to the substitution
of one person for another as the person from whom he receives
instructions in relation thereto:








22 The Exchange Control Bill

Provided that, where the person from whom an
authorised depositary receives instructions in relation to any
certificate of title becomes bankrupt in the Federation or
dies, this subsection shall not prohibit the authorised
depositary from recognizing the trustee in bankruptcy or
personal representative as the person entitled to give in-
structions in relation to the certificate of title.
(3) The authorised depositary shall place any capital
moneys, dividends or interest on the security received by him
to the credit of the person by virtue of whose authority he
received them, but shall not permit any part of the sums
received to be dealt with except with the permission of the
Authority.
Special 20. (1) The Authority may, if in his opinion there are
provisions as
to dealings circumstances rendering it necessary or expedient so to do,
in certain by order direct that this section shall apply to such securities
securities. as may be prescribed, being securities on which capital
moneys, dividends or interest are payable in a specified
currency or as respects which the holder has an option to
require payment of any capital moneys, dividends or interest
thereon in a specified currency.
(2) Except with the permission of the Authority, no
person shall, in the Federation, transfer, or do anything
which affects his rights or powers in relation to, any security
to which this section applies, and no person resident in the
Scheduled territories shall in the Federation do any act which
involves, is in association with or is preparatory to any such
transaction outside the Federation.

Validation 21. (1) The title of any person to a security for which he
of certain
transfers, has given value on a transfer thereof, and the title of all
persons claiming through or under him, shall, notwithstand-
ing that the transfer, or any previous transfer, or the issue
of the security, was by reason of the residence of any person
concerned other than the first-mentioned person prohibited
by the provisions of this Act relating to the transfer or issue
of securities, be valid unless the first-mentioned person had
notice of the facts by reason of which it was prohibited.
(2) Without prejudice to the provisions of subsection
(1) of this section, the Authority -may issue a certificate
declaring, in relation to a security, that any acts done before








The Exchange Control Bill 23

the issue of the certificate purporting to effect the issue or
transfer of the security, being acts which were prohibited
by this Act, are to be, and are always to have been, as valid
as if they had been done with the permission of the Authority,
and the said acts shall have effect accordingly.
(3) Nothing in this section shall affect the liability of
any person to prosecution for any offence against this Act.

22 (1) This Part of this Act shall apply, with such modi-Applica-
tion of
fications (if any) as may be prescribed, in relation to any Part IV to
such document as is mentioned in the following subsection, secondary
as if the document created, and were the certificate of title securities.
to, a security (hereafter in this ordinance referred to as a
"secondary security").
(2) The documents referred to in the preceding sub-
section are any letter of allotment which may be renounced,
any letter of rights, any warrant conferring an option to
acquire a security, any deposit certificate in respect of
securities (but not including a receipt by an authorised
depositary for any certificate of title deposited in pursuance
of this Part of this Act) and such other documents conferring,
or containing 'evidence of, rights as may be prescribed.

23. (1) In this Part of this Act- Interpre-
tation of
(a) the expression "registered" includes art IV.
inscribed;
(b) the expressions "registered in the
Federation" and "registered outside the
Federation" mean respectively, registered in
a register in, and registered in a register out-
side, the Federation;
(c) the expression "security which is registered
in the Federation otherwise than in a sub-
sidiary register" means a security which
either-
(i) is registered in the Federation and is not
and cannot without the necessity for an
entry in the register in the Federation,
become registered outside; or
(ii) is registered both in the Federation and
outside but on a transfer cannot, without








24 The Exchange Control Bill

the necessity for an entry in the register
in the Federation, become registered out-
side in the name of the transferee; and
(d) the expression "a register" includes any book,
file or index in which securities are registered.
(2) For the purposes of any provision of this Part
of this Act prohibiting the transfer of securities, a person
shall be deemed to transfer a security if ha executes any
instrument of transfer thereof, whether effective or not, and
shall be deemed to transfer it at the place where he executes
the instrument.
(3) References in this Part of this Act to the person
holding a certificate of title or coupon shall be construed as
references to the person having physical custody of the certi-
ficate of title or coupon:
Provided that where the certificate of title or
coupon is deposited with any person in a locked or sealed
receptacle from which he is not entitled to remove it without
the authority of some other person, that other person shall
be deemed for the purposes of this provision to have the
physical custody thereof.
(4) In this Part of this Act, the expression "holder"-
(a) in relation to a security transferable by means
of a bearer certificate or to a coupon, includes
the person holding the certificate or coupon;
and
(b) in relation to a security which is registered
in the name of a deceased person, or of any
person who, by reason of bankruptcy,
unsoundness of mind or any other disability
is incapable of transferring the security,
means the personal representative, trustee in
bankruptcy or other person entitled to
transfer the security.
(5) The holder of a security or coupon shall be deemed
for the purposes of this Part of this Act to be a nominee in
respect thereof if, as respects the exercise of any rights in
respect thereof, he is not entitled to exercise those rights
except in accordance with instructions given by some other
person, and references in this Part of this Act to the person







The Exchange Control Bill


for whom the holder of a security or coupon is a nominee
shall be construed as references to the person who is entitled
to give instructions, either directly or through the agency
of one or more persons, as to the exercise of any rights in
respect of the security or coupon and is not in so doing him-
self under a duty to comply with instructions given by some
other person:
Provided that-
(a) a person shall not by reason only that he has
a controlling interest in a body corporate be
deemed for the purposes of this subsection to
be entitled to give instructions to that body
corporate as to the exercise of rights in
respect of any security or coupon of which it
is the holder; and
(b) a person shall not be deemed to hold a security
or coupon as a nominee by reason only that he
holds it as trustee if he is entitled to transfer
the security or coupon without permission
from any other person.
(6) A certificate of title shall not for the purposes of
this Part of this Act be treated as in the custody of an autho-
rised depositary if either-
(a) the depositary has no notice of the nature of
the certificate; or
(b) the certificate is deposited with him in a
locked or sealed receptacle from which he is
not entitled to remove it without the authority
of some other person.
(7) Where a certificate of title outside the Federation
is by this Part of this Act required to be kept in the custody
of an authorised depositary, it shall be deemed to be in the
custody of an authorised depositary if-
(a) by his direction or with his assent it is in the
custody of some other person who holds it on
behalf of and to the order of the authorised
depositary; and
(b) the certificate is not deposited with that other
person in a locked or sealed receptacle from
which he is not entitled to remove it without
the authority of a person other than himself;







The Exchange Control Bill


and where a certificate of title is by virtue of this subsection
deemed to be in the custody of an authorised depositary,
references in this Part of this Act to the depositary parting
with the certificate or a coupon belonging thereto shall be con-
strued as references to his permitting the person having the
actual custody thereof to part with it otherwise than to the
depositary, and references to his destroying the certificate or
such a coupon shall be construed as references to his permit-
ting it to be destroyed.

PART V-Import and Export
Restric- 24. (1) The importation into the Federation of-
tions
on import. (a) any notes of a class which are or have at any
time been legal tender in the United Kingdom
or any part of the United Kingdom; and
(b) any notes of a class which are or have at any
time been legal tender in the Federation or
any part of the Federation; and
(c) any such other notes as may be specified by
order of the Authority, being notes issued by
a bank or notes of a class which are or have
at any time been legal tender in any place
outside the Federation; and
(d) any certificate of title to any security, includ-
ing any such certificate which has been
cancelled, and any document certifying the
destruction, loss or cancellation of any certifi-
cate of title to a security,
is hereby prohibited except with the permission of the
Authority.

(2) In this section the expression "note" includes part
of a note and the expression "security" includes a secondary
security.

General 25. (1) The exportation from the Federation of-
restric-
export (a) any notes of a class which are or have at any
time been legal tender in the United Kingdom
or any part of the United Kingdom, or in the








The Exchange Control Bill


Federation or any part of the Federation or in
any other country; and
(b) any postal orders; and
(c) any gold; and
(d) any of the following documents (including
any such document which has been cancelled),
that is to say-
(i) any certificate of title to a security and
any coupon; and
(ii) any policy of assurance; and
(iii) any bill of exchange or promissory note
expressed in terms of a currency other
than that of a scheduled territory and
payable otherwise than within the
scheduled territories; and
(iv) any document to which section 7 of this
Act applies not issued by an authorised
dealer or in pursuance of a permission
granted by the Authority;
and any document certifying the destruction,
loss or cancellation of any of the documents
aforesaid; and
(e) any such articles exported on the person of a
traveller or in a traveller's baggage as may
be prescribed,
is hereby prohibited except with the permission of the
Authority.
(2) In this section, the expression "note" includes
part of a note, the expression "security" includes a secondary
security and the expression "coupon" shall be construed in
accordance with the meaning of "security".

26. (1) The exportation of goods of any class or description Payment
from the Federation to a destination in any such country as for
may be prescribed is hereby prohibited except with the per-expor"
mission of the Authority, unless the Comptroller of Customs
or other proper officer of the Territory from which the goods
are exported is satisfied-







28 The Exchange Control Bill

(a) that payment for the goods has been made to
a person resident in the Federation in such
manner as may be prescribed in relation to
goods of that class or description exported to
a destination in that country, or is to be so
made not later than six months after the date
of exportation; and
(b) that the amount of the payment that has been
made or is to be made is such as to represent
a return for the goods which is in all the cir-
cumstances satisfactory in the interest of the
Federation:
Provided that the Authority may direct that, in
cases to which the direction applies, paragraph (a) of this
subsection shall have effect as if for the reference to six
months there were substituted a reference to such longer or
shorter period as may be specified in the direction, or as if
the words "or is to be so made not later than six months after
the date of exportation" were omitted.
(2) For the purpose of satisfying himself in the case
of any goods as to the matters specified in subsection (1) of
this section, the Comptroller of Customs or other proper
officer of the Territory from which the goods are exported
may require the person making entry of the goods for export
to deliver to the Comptroller or other proper officer together
with the entry such declarations signed by such persons as
he may require, and where any such declaration has been
so required the goods shall not be exported until it has been
delivered as aforesaid.
(3) Where the Comptroller of Customs or other
proper officer of the Territory from which the goods are
exported is not satisfied in the case of any goods as to the
matters specified in paragraph (b) of the said subsection (1),
he shall give his reasons to the person making entry of the
goods for export and shall take into consideration any repre-
sentations made by him.
(4) In this section, any reference to the destination
of any goods includes a reference to the ultimate destina-
tion thereof, and any reference to the Comptroller of Customs
or other proper officer of a Territory includes a reference to
the senior officer of customs of a Territory.







The Exchange Control Bill 29

PART VI-Miscellaneous
27. (1) Except with the permission of the Authority, no Duy to
collect
person resident in the Federation who has a right (whether certain
present or future and whether vested or contingent, to receive debts.
any specified currency or to receive from a person resident
outside the scheduled territories a payment in sterling, West
Indian dollars or Jamaican pounds shall do, or refrain from
doing, any act with intent to secure or shall do any act which
involves, is in association with or is preparatory to any trans-
action securing-
(a) that the receipt by him of the whole or part
of that currency or, as the case may be, of that
payment in sterling, West Indian dollars or
Jamaican pounds, is delayed; or
(b) that the currency or payment ceases, in whole
or in part, to be receivable by him:
Provided that nothing in this subsection-
(i) shall, unless the Authority otherwise
directs, impose on any person any obliga-
tion, in relation to any debt arising in the
carrying on of any trade or business, to
procure the payment thereof at an earlier
time than is customary in the course of
that trade or business; or
(ii) shall, unless the Authority otherwise
directs, prohibit any transfer to a person
resident in the Federation and not else-
where of any right to receive any
specified currency or payment in sterling,
West Indian dollars or Jamaican pounds.

(2) Where a person has contravened the pro-
visions of subsection (1) of this section in relation to any
specified currency or payment in sterling, West Indian dollars
or Jamaican pounds the Authority may give to him or to any
other person who appears to the Authority to be in a position
to give effect thereto (being a person in or resident in the
Federation) such directions as appear to the Authority to be
expedient for the purpose of obtaining or expediting the







The Exchange Control Bill


receipt of the currency or payment in question, and, without
prejudice to the generality of the preceding provisions of this
subsection, may direct that there shall be assigned to the
Authority, or to such person as may be specified in the direc-
tions, the right to receive the currency or payment or enforce
any security for the receipt thereof.
Duty not 28. (1) Where-
to delay
sale or
importa- (a) any permission or consent has been granted
tion of under this Act, or under any corresponding
provision of the law in force in any country
comprised in the scheduled territories, sub-
ject to a condition providing that, or on the
faith of an application stating an intention
that, any goods should be sold outside the
scheduled territories; or
(b) any statement or declaration has been made
under any provision of this Act or any such
corresponding provision as aforesaid that any
goods are to be sold outside the scheduled
territories; or
(c) any currency has been obtained in, or by any
person resident in, the scheduled territories
on the faith of an application stating an
intention that any goods should be sold out-
side the scheduled territories,
then, except with the permission of the Authority, no person
resident in the Federation who is entitled to sell or procure
the sale of the said goods shall do, or refrain from doing, any
act with intent to secure or shall do any act which involves,
is in association with or is preparatory to any transaction
securing-
(i) that the said sale is delayed to an extent
which is unreasonable having regard to
the ordinary course of trade; or
(ii) that, on the said sale, any payment made
for the goods is not made in the manner
indicated by the condition, statement, or
declaration, as the case may be,







The Exchange Control Bill


(2) Where--

(a) any permission or consent has been granted
under this Act, or under any corresponding
provisions of the law in force in any country
comprised in the scheduled territories,
subject to a condition providing that, or on
the faith of an application stating an inten-
tion that, any goods should be imported from
outside the scheduled territories into any part
of the scheduled territories; or

(b) any currency has been obtained in, or by any
person resident in, the scheduled territories
on the faith of an application stating an inten-
tion that any goods should be so imported,

then, except with the permission of the Authority, no person
resident in the Federation who is entitled to procure the
importation of the said goods shall do, or refrain from doing,
any act with intent to secure that the importation thereof is
delayed to an extant which is unreasonable having regard to
the ordinary course of trade.
(3) Where in any such case as is specified in paragraph
(a), (b) or (c) of subsection (1), or paragraph (a) or (b) of
subsection (2), of this section-

(a) the goods have not been sold or imported as
indicated by the condition, statement or
declaration within the time thereby indicated
or, if no time is thereby indicated, a reasonable
time, or (in either case) within such further
time as may be allowed by the Authority; or

(b) it appears to the Authority that the goods
cannot be sold or imported as indicated by the
condition, statement or declaration,

the Authority may give to any person resident in the Federa-
tion who appears to the Authority to be in a position to give
effect thereto such directions as appear to him to be expedient
as to the manner in which the goods are to be dealt with.







32 The Exchange Control Bill

(4) Without prejudice to the generality of the pro-
visions of the last preceding subsection, the power conferred
thereby on the Authority to give directions shall extend to
the giving of directions that the goods shall be assigned to
the Authority or to a person specified in the directions.

(5) The powers conferred by the two last preceding
subsections in relation to any goods shall extend to the giving
of directions with respect to any goods produced or manufac-
tured therefrom, and, where goods to be sold outside the
scheduled territories or to be imported were to be produced
or manufactured from other goods, to the giving of directions
with respect to those other goods and any goods produced
or manufactured from those other goods.

Property 29. (1) Where a person-
obtained
mentfri- (a) has made any payment which is prohibited by
Act. this Act; or
(b) being bound under this Act to offer or cause
to be offered any specified currency to an
authorised dealer, has otherwise disposed of
that currency,
the Authority may direct him to sell or procure the sale of
any property which he is entitled to sell or of which he is
entitled to procure the sale, being property which represents,
whether directly or indirectly, that payment or that specified
currency, as the case may be, and may by the same or a sub-
sequent direction specify the manner in which, the persons to
whom and the terms on which the property is to be sold.

(2) Without prejudice to the generality of the pro-
visions of subsection (1) of this section, the power conferred
thereby on the Authority to give directions shall extend to
the giving of directions that the property shall be assigned
to the Authority or to a person specified in the directions.

Provisions 30. (1) Where, under the preceding provisions of this
supple-
mental to Part of this Act, the Authority has power to give directions
preceding that any right to receive any currency or payment in sterling,
provisions
of Part West Indian dollars or Jamaican pounds or to enforce any
VI.








The Exchange Control Bill 33

security for the receipt thereof, any goods, or any other pro-
perty shall be assigned to the, Authority, the Authority shall
also have power to direct that the right, goods or property
shall vest in the Authority, and it or they shall vest in the
Authority accordingly free from any mortgage, pledge or
charge, and the Authority may deal with it or them as he
thinks fit.

(2) Where, in pursuance of directions under the said
provisions any right, goods or property is or are assigned to
the Authority or to a person specified in the directions, or
any right, goods or property vests or vest in the Authority
in pursuance of directions given under subsection (1) of this
section, the Authority shall pay the net sum recovered by him
in respect of the right, goods or property to the person making
the assignment or, in the case of any right, goods or property
vested in the Authority under subsection (1) of this section,
to the person who, but for the directions, would be entitled to
the right, goods or property.

31. (1) Except with the permission of the Authority, no Transfer
person resident in the Federation shall transfer to a person ofan-
resident outside the scheduled territories, or who is to be policies,
nominee for a person resident outside the scheduledetc-
territories, any right to the sums assured by any policy of
assurance, so, however, that where the person liable for the
sums so assured makes any payment thereof to a person
resident in the scheduled territories and not elsewhere, or
makes, with the permission of the Authority, any payment
thereof to any other person,-

(a) he shall not be bound to inquire as to the
residence of any person other than the person
to whom, and (if it is not the same person)
the person to whose order the payment is
made; and

(b) the payment shall, to the extent of the sums
paid, discharge him from his liability under
the policy, notwithstanding that the payment
is made to or to the order of a person who was
not entitled thereto otherwise than by virtue
of a transfer prohibited by this subsection.








34 The Exchange Control Bill

(2) Subsections (2) and (3) of section 21 of this Act
shall apply in relation to any transfer prohibited by this
section as they apply in relation to a transfer prohibited by
this Act of a security.
(3) In this section, the expression "nominee" has, in
relation to any policy, annuity or insurance, the same meaning
as the said expression has in Part IV of this Act in relation
to a security.

Settle- 32. (1) Except with the permission of the Authority, no
ments. person resident in the Federation shall settle any property,
otherwise than by will, so as to confer an interest in the
property on a person who, at the time of the settlement, is
resident outside the scheduled territories, or shall exercise,
otherwise than by will, any power of appointment, whether
created by will or otherwise, in favour of a person who, at the
time of the exercise of the power, is resident outside the
scheduled territories.
(2) A settlement or exercise of a power of appointment
shall not be invalid by reason that it is prohibited by this
section, except so far as it purports to confer any interest
on any person who, at the time of the settlement or the
exercise of the power, is resident outside the scheduled
territories.
(3) Subsections (2) and (3) of section 21 of this Act
shall apply in relation to a settlement or the exercise of a
power of appointment prohibited by this section as they apply
in relation to a transfer prohibited by this Act of a security.
(4) For the purpose of this section-
(a) any reference to settling property includes a
reference to the making of any disposition,
covenant, agreement or arrangement whereby
the property becomes subject to a trust, or (in
the case of a resettlement) to a different
trust; and
(b) a person shall be deemed to have an interest
in property if he has any beneficial interest
therein, whether present or future, and
whether vested or contingent, or falls within








The Exchange Control Bill


a limited class of persons in whose favour a
discretion or power in respect of the property
is exercisable; and
(c) the expression "will" includes any testa-
mentary disposition.
(5) No person resident in !the scheduled territories
shall in the Federation do any act which involves, is in asso-
ciation with or is preparatory to any such transaction outside
the Federation as is referred to in this section.

33. (1) Where there is served on any person resident inCompanies.
the Federation a notice in writing that the Authority wishes
any such requirements as are hereinafter mentioned to be
complied with by any such body corporate as is specified in
the Second Schedule to this Act (hereafter in this subsection
referred to as a "foreign company"), and that person can, by
doing or refraining from doing any act,
(a) cause the foreign company to comply with
any of the requirements; or
(b) remove any obstacle to the foreign company
complying with any of the requirements; or
(c) render it in any respect more probable that
the foreign company will comply with any of
the requirements,
then, except so far as permission to the contrary may be given
by the Authority, that person shall do, or, as the case may
be, refrain from doing, that act.
The requirements with respect to which such a
notice may be given are as follows, that is to say, that the
foreign company shall-
(i) furnish to the Authority such particulars
as to its assets and business as may be
mentioned in the notice;
(ii) sell or procure the sale to an authorised
dealer of any gold or specified currency
mentioned in the notice, being gold or
specified currency which it is entitled
to sell or of which it is entitled to
procure the sale;








36 The Exchange Control Bill

(iii) declare and pay such dividend as may be
mentioned in the notice;
(iv) realise any of its assets mentioned in the
notice in such manner as may be so
mentioned;
(v) refrain from selling, transferring, or
doing anything which affects its rights
or powers in relation to, any such
securities as may be mentioned in the
notice.
(2) Except with the permission of the Authority, no
person resident in the Federation shall do any act whereby
a body corporate which is by any means controlled (whether
directly or indirectly) by persons resident in the Federation
ceases to be controlled by persons resident in the Federation:
Provided that this subsection shall not prohibit
any person from selling any securities authorised to be dealt
in on any recognized stock exchange in the Federation if the
sale takes place in pursuance of an agreement entered into
in the ordinary course of business on that exchange.
No person resident in the scheduled territories
shall in the Federation do any act which involves, is in asso-
ciation with or is preparatory to any such transaction outside
the Federation as is referred to in this subsection.
(3) Except with the permission of the Authority, no
person resident in the Federation shall lend any money or
securities to any body corporate resident in the scheduled
territories which is by any means controlled (whether directly
or indirectly) by persons resident outside the scheduled
territories:
Provided that this subsection shall not apply
where the lender after making such inquiries as are reason-
able in the circumstances of the case does not know and has
no reason to suspect that the body corporate is controlled as
aforesaid.
No person resident in the scheduled territories
shall in the Federation do any act which involves, is in asso-
ciation with or is preparatory to any such transaction outside
the Federation as is referred to in this subsection.








The Exchange Control Bill 37

(4) For the purposes of this section and of the Second
Schedule to this Act persons resident in the Federation or
outside the scheduled territories shall be deemed to control a
body corporate notwithstanding that other persons are asso-
ciated with them in the control thereof if they can together
override those other persons.
(5) In this section the expression "security" includes
a secondary security.

PART VII-Supplemental

34. Any provision of this Act imposing any obligation Exemp-
or prohibition shall have effect subject to such exemptions ons.
as may be granted by order of the Authority and any such
exemption may be either absolute or conditional.

35. Where- Blocked
accounts.
(a) under any provision contained in Part III of
this Act, the permission of the Authority is
required for the making of a payment or the
placing of any sum to the credit of any person
resident outside the scheduled territories; or
(b) any payment falls to be, made by an
authorised dealer on the sale of any gold or
specified currency by any foreign company
within the meaning of subsection (1) of
section 33 of this Act, being a sale made to
comply with any requirement notified under
that subsection,
the Authority may direct that the sum payable or to be
credited shall be paid or credited to a blocked account only,
and, where such a direction is given, the provisions of the
Third Schedule to this Act shall have effect in relation to the
payment or crediting of the sum.

36. (1) It shall be an implied condition in any contract Contracts,
that, where, by virtue of this Act, the permission or consent lee pr
of the Authority is at the time of the contract requiredetc.
for the performance of any term thereof, that term shall not
be performed except in so far as the permission or consent
is given or is not required:







The Exchange Control Bill


Provided that this subsection shall not apply in so
far as it is shown to be inconsistent with the intention of the
parties that it should apply, whether by reason of their
having contemplated the performance of that term in despite
of the provisions of this Act or for any other reason.
(2) Notwithstanding anything in any law in force in
the Federation relating to bills of exchange, neither the pro-
visions of this Act, nor any condition, whether expressed or to
be implied having regard to those provisions, that any
payment shall not be made without the permission of the
Authority under this Act, shall be deemed to prevent any
instrument being a bill of exchange or promissory note.
(3) The provisions of the Fourth Schedule to this Act
shall have effect with respect to legal proceedings, arbitra-
tions, bankruptcy proceedings, the administration of the
estates of deceased persons, the winding up of companies,
and proceedings under deeds of arrangement or trust deeds
for behoof of creditors.
Enforce- 37. (1) The provisions of the Fifth Schedule to this Act
adminis- shall have effect for the purpose of the enforcement of this
tration. Act.

(2) Persons belonging to the following classes, that
is to say-
(a) bankers, authorised dealers, authorised
depositaries;
(b) persons to whom any powers of the Authority
under this Act are delegated;
(c) persons who with the permission of the
Authority are in possession of documents
which would, but for the permission, have to
be in the custody of an authorised depositary;
(d) persons concerned with the keeping of any
register in the Federation; and
(e) persons entrusted with the payment of capital
moneys, dividends or interest in the
Federation,
shall comply with such directions as may be given to them
respectively by the Authority, being-








The Exchange Control Bill 39

(i) in the case of any such persons, directions
as respects the exercise of any functions
exercisable by them by virtue of, or by
virtue of anything done under, any pro-
vision of this Act, or.
(ii) in the case of authorised dealers, such
directions as aforesaid or directions as to
the terms on which they are to accept
gold or foreign currency or directions
requiring them to offer their gold or
specified currency for sale to the Bank
of England on such terms as may be
specified in any such directions.
38. This Act shall bind the Crown and shall apply toApplica-
transactions by a Government department or other person tro
acting on behalf of the Crown and the Authority shall not,
by virtue of any contract made by or on behalf of any such
department or person in relation to any securities, be under
any obligation to grant any permission under Part IV of this
Act or any exemption from the provisions of the said Part
IV.

39. (1) The Governor-General may by order make such Governor-
transitional provisions as appear to him necessary orGeneral's
expedient in consequence of the exercise by him or by the regua-
Authority of any power to make orders under this Act. tions.
(2) The Governor-General may make such regulations
for the purpose of applying to the Federation the provisions
of the Defence Regulations specified in the Sixth Schedule
to this Act or any one or more of them or any Defence
Regulations amending or replacing the same as are, in his
opinion, necessary for purposes ancillary to the principal
objects of this Act.
(3) Any regulations made by the Governor-General
under sub-section (2) of this section may provide for the
application to the Federation of all or any of the provisions of
the Defence Regulations referred to in the said subsection
with such alterations as to names, localities, courts, officers,
persons, moneys, punishments and otherwise as may be
necessary to make the said provisions applicable to the cir-
cumstances of the Federation.







40 The Exchange Control Bill


(4) In this Act, the expression "Defence Regulations"
means Regulations made in relation to the United Kingdom
2 & 3 under the Emergency Powers (Defence) Act, 1939, or under
Geo. 6 c.
62. that Act as extended by any subsequent Imperial Act,
including Regulations made as aforesaid and continued in
force under any other Imperial Act, and in force in the United
Kingdom on the twenty-fourth day of March, one thousand
nine hundred and fifty-eight.
Other 40. (1) Any permission, consent or authority granted
pow. under this Act-
(a) may be either general or special; and
(b) may be revoked by the Authority; and
(c) may be absolute or conditional; and
(d) may be limited so as to expire on a specified
date, unless renewed; and
(e) shall be published in such a way as, in the
opinion of the Authority, to give any person
entitled to the benefit of it an adequate oppor-
tunity of getting to know of it, unless in his
opinion publication is not necessary for that
purpose.
(2) Any directions given under any provision of this
Act-
(a) may be either general or special; and
(b) may be revoked or varied by subsequent
directions; and
(c) shall be given to such persons and in such
manner as the Authority thinks appropriate,
and if so given shall be, valid for all purposes.
(3) Notwithstanding paragraph (c) of the last pre-
ceding subsection, a person shall not by virtue of any direction
given by the Authority under this Act, be convicted of an
offence against this Act, unless the direction was served on
him or he knew, or avoided getting to know, of the giving
thereof:
Provided that where reasonable steps were taken
for the purpose of bringing the purport of the direction to his
notice, it shall be for him to show that he neither knew nor
avoided getting to know of the giving thereof.







The Exchange Control Bill 41

(4) The Authority may, to such extent and subject to
such restrictions and conditions as he may think proper,
delegate or authorise the delegation of any of his powers
(other than any power to make orders) to any person, or class
or description of persons, approved by him and references in
this Act shall be construed accordingly.

(5) Any document stating that any permission,
consent, authority or direction is given under any of the
provisions of this Act by the Authority, and purporting to
be signed on his behalf, shall be evidence of the facts stated
in the document.

41. Any expenses incurred under or by virtue of this Financial
Act by the Authority shall be paid out of moneys providedprovisons.
by the Federal Legislature, and any sums received under or
by virtue of this Act by the Authority shall be paid into the
public funds of the Federation.

42. (1) The Authority may by order or direction provide Branches.
that, for such of the purposes of this Act as may be specified
in the order or direction-

(a) any transaction with or by a branch of any
business, whether carried on by a body
corporate or otherwise, shall be treated in all
respects as if the branch were a body
corporate resident where the branch is
situated; and

(b) the making of any book entry or other state-
ment recording a debit against a branch of
any business in favour of any other branch of
that business, shall be treated as a payment to
that other branch; and

(c) any property held by or on behalf of the
person carrying ,on the business shall be
deemed to be held by such of the branches of
the business as may be determined in
accordance with the order or direction,
and any such order or direction which makes, for any of the
purposes of Part IV of this Act, such provision as is







42 The Exchange Control Bill

mentioned in paragraph (c) of this subsection may contain
provisions declaring the circumstances in which a branch is
to be treated as nominee for any other branch.

(2) Any reference in subsection (1) of this section to
a branch of a business shall be deemed to include a reference
to the head office of that business.

(3) Subsections (1) and (2) of this section shall apply
in relation to any body of persons (whether corporate or
unincorporated) carrying on any activity, whether for the
purpose of profit or not, as they apply in relation to a
business.
Persons 43. Where a person resident in the Federation leaves
leaving the
scheduled the scheduled territories, the Authority may, before, at or
territories, after the time he leaves the scheduled territories, direct that,
for such period as may be specified in the direction, payments
by him or on his behalf and to him or to his credit and tran-
sactions in or in relation to securities or secondary securities
in which he is in any way concerned shall, whether or not he
continues to be resident in the Federation, be subject to such
restrictions as may be specified in the direction.

Deter- 44. (1) For the purposes of this Act, a personal repre-
of resi- sentative of a deceased person shall, unless the Authority
dence. otherwise directs, be treated as resident in the country where
the deceased person was resident for the purposes in question
at the time of his death and as not resident elsewhere, so far
as relates to any matters in which the personal representative
is concerned solely in his capacity as such.
(2) The Authority may give directions declaring that
for all or any of the purposes of this Act a person is to be
treated as resident or not resident in such countries as may be
specified in the directions.









The Exchange Control Bill


SCHEDULES


FIRST SCHEDULE Section 4

The Scheduled Territories
1. The fully self-governing countries of the Commonwealth
except Canada.
2. Any Colony under the dominion of Her Majesty.
3. Any territory administered by the government of any part
of Her Majesty's dominions under the trusteeship system of the United
Nations.
4. Any British protectorate or British protected state.
5. South West Africa.
6. The Irish Republic.
7. Iraq.
8. Iceland.
9. Burma.
10. The Hashemite Kingdom of Jordan.
11. The United Kingdom of Libya.


SECOND SCHEDULE Sections 33 & 35

Foreign Companies
1. The bodies corporate in question are bodies corporate not
incorporated under the provisions of any law in force in the Federation
in the case of which any of the following conditions is fulfilled-

(a) that the body corporate lis by any means controlled
(whether directly or indirectly) by persons resident in
the Federation;

(b) that more than one-half of the sums which, on a
liquidation thereof, would be receivable by holders of
share or loan capital would be receivable directly or
indirectly by or for the benefit of persons resident in the
Federation;

(c) that more than one-half of the assets which, on a
liquidation thereof, would be available for distribution
after the payment of creditors would be receivable
directly or indirectly by or for the benefit of persons
resident in the Federation; or









44 The Exchange Control Bill


(d) that more than one-half-

(i) of the interest payable on its loans and loan capital,
if any; or
(ii) of the dividends payable on its preference share
capital, if any; or
(iii) of the dividends payable on its share capital, if any,
not being preference share capital, is receivable,
directly or indirectly, by or for the benefit of
persons resident in the Federation.

2. Where the identity of the persons by whom or for whose
benefit any sum, assets, interest or dividends are directly or indirectly
receivable depends on the exercise by a person resident in the
Federation of a power of appointment or similar power, the sum, assets,
interest or dividends shall, for the purposes of this Schedule, be deemed
to be receivable directly or indirectly by or for the benefit of persons
resident in the Federation.


THIRD SCHEDULE Section 35

Blocked Accounts
1. In this Schedule, the expression "a blocked account" means
an account opened as a blocked account at an office or branch in the
Federation in favour of any person by a banker authorised by the
Authority to open blocked accounts, and the expression "the banker"
means, in relation to any person, a banker who opens a blocked account
in favour of that person.

2. Where a direction is given that a payment is to be made to
a blocked account only, then, subject to the next following paragraph-

(a) the manner in which the payment may be made shall be
either-

(i) to the banker, with a direction that it is to be
credited to a blocked account of that person (which
direction may, in the case of a payment by means
of .a cheque .or warrant, be made by marking the
cheque or warrant with the words "blocked account
of (naming the person in question) or words to
the same effect); or

(ii) by a crossed cheque or warrant drawn in favour of
that person, marked with the words "payable only
to blocked account of payee" or words to the same
effect; and

(b) the sum collected shall be credited by the banker to a
blocked account of that person.









The Exchange Control Bill 45

3. Where a direction is given that a sum is to be paid or
credited to a blocked account only, then, notwithstanding the direction,
the sum may with the consent of the person to whom it is to be paid.
or credited, and subject to the requirements of Part IV of this Act
be invested instead in the purchase for that person of any such
investments as may be prescribed for the purposes of paragraph (a)
of the proviso to paragraph 4 of this Schedule.

4. Any sum standing to the credit of a blocked account shall
not be dealt with except with the permission of the Authority:

Provided that, subject to compliance with the requirements
of Part IV of this Act-

(a) the whole or any part of any such sum may, at the
request of the person in whose name the account stands,
be invested through the banker in such investments as
may be prescribed; and

(b) nothing in this Schedule shall be construed as
restricting the manner in which the investments acquired
may be dealt with.

5. Where a person in whose name a blocked account is standing
becomes bankrupt in the Federation or dies, the banker may, notwith-
standing anything in paragraph 4 of this Schedule, transfer the account
to the name of the trustee in bankruptcy or personal representative
but, save as aforesaid, no change shall, except with the permission of
the Authority, be made in the name in which the account
stands; and where any such change is made (whether or not
the permission of the Authority is necessary therefore) the account shall
remain a blocked account notwithstanding the change, and the provisions
of this Schedule shall apply accordingly.

6. Where-

(a) a sum is due from any person to any other person but the
Authority directs that it shall be paid or credited to a
blocked account only; and

(b) the person to whom the sum is due nominates such an
account to the person from whom the sum is due

the last mentioned person is under a duty to the person to whom the
sum is due to cause the sum to be paid or credited to that blocked
account, and the crediting of 'any sum to a blocked account in
pursuance of a direction of the Authority shall, to the extent of the
sum credited, be a good discharge to the person from whom the sum
is due:

Provided that in the case of a sum due under a contract
this paragraph shall not apply in so far as it is shown to be inconsistent
with the intention of the parties that it should apply.









The Exchange Control Bill


FOURTH SCHEDULE Section 36

Legal Proceedings, &c.

1. The provisions of Part III of this Act shall apply to sum
required to be paid by any judgment or order of any court or by any
award as they apply in relation to other sums, and it shall be implied
in any judgment or order of any court in the Federation and in any
award given under the provisions of any law in force in the Federation,
that any sum required to be paid by the judgment, order or award
(whether as a debt, as damages or otherwise) to which the said pro-
visions apply shall not be paid except with the permission of the
Authority.

2. Nothing in this Act shall be construed as preventing the
payment by any person of any sum into any court in the Federation but
the provisions of Part III of this Act shall apply to the payment of any
sum out of court, whether under an order of the court or otherwise, to
or for the credit of any person resident outside the scheduled territories.

3. Without prejudice to the provisions of any enactments
relating to the making of rules of court, rules of court-

(a) enabling any person who is required by any judgment,
order or award to pay any sum, if he apprehends that
the payment of that sum is unlawful under this Act
except with the permission of the Authority to pay that
sum into court; and
(b) declaring that payment of a sum into court by virtue
of the preceding sub-paragraph, together with the
delivery to the other party concerned of such evidence
of the payment as may be prescribed by the rules, shall,
to the extent of the payment, be a good discharge to the
person making the payment; and
(c) so regulating the process of execution which may issue
in respect of any sum required to be paid by any, judg-
ment, order or award as to secure that, unless it is
shown, in such manner as may be prescribed by the mles,
that the permission of the Authority for the payment
of the sum is not required under this Act or has been
given without conditions, the proceeds of the execution
will be paid into court, and, so far as is necessary for
that purpose, varying the form of any writ of execution
or other similar document or the duties of the sheriff
or other officer to whom any such writ or other similar
document is directed,

may be made as respects any court in the Federation by such authority
as may be designated in that behalf by the Chief Justice:


Provided that-








The Exchange Control Bill


(i) the form of any bankruptcy notice shall be such as
may be prescribed by the Authority, and
(ii) nothing in this paragraph shall affect the provisions
of any legislation which requires rules of court for
inferior courts to have the concurrence of the rule-
making authority for any other court.

4. (1) In any proceedings in a prescribed court and in any
arbitration proceedings, a claim for the recovery of any debt shall not
be defeated by reason only of the debt not being payable without the
permission of the Authority and of that permission not having been
given or having been revoked.
(2) No court shall be prescribed for the purpose of this para-
graph unless the Authority is satisfied that adequate provision has
been made therefore by rules of court for the purposes specified under
the last preceding paragraph.

5. (1) In any bankruptcy, in the winding up of any company or in
the administration of the estate ,of any deceased person (being a
bankruptcy, winding up or administration carried on under the
provisions of any law in force in the Federation), a claim for a sum
not payable without the permission of the Authority shall, notwith-
standing, that the permission has not been given or has been revoked, be
admitted to proof as if it had been given and had not been revoked:
Provided that nothing in this sub-paragraph shall be con-
strued as affecting the application of the provisions of Part III of this
Act to payments by any trustee, liquidator, personal representative or
other person in any such bankruptcy, winding up or administration.
(2) The provisions of this Act restricting the making of settle-
ments shall not apply to any deed of arrangement made for the benefit
of creditors generally, and the provisions of sub-paragraph (1) of this
paragraph shall apply in relation to proceedings under any deed of
arrangement as they apply in relation to proceedings in bankruptcy.

6. A debt for the payment of which permission of the
Authority is required under this Act shall not on account of that
requirement only be disallowed from being a good petitioning creditor's
debt under any law in force in the Federation relating to bankruptcy
if and to the extent that the debt can be satisfied either by a payment
into court or by a payment to a blocked account.

FIFTH SCHEDULE Section 37
Enforcement

PART I
General provisions as to evidence and information
1. (1) Without prejudice to any other provisions of this Act the
Authority may give to any person in or resident in the Federation









The Exchange Control Bill


directions requiring him, within such time and in such manner as may
be specified lin the directions, to furnish to him or to any person
designated in the directions as a person authorized to require it, any
information in his possession or control which the Authority or the
person so authorised, as the case may be, may require for the purpose of
securing compliance with or detecting evasion of this Act.

(2) A person required by any such directions as aforesaid to
furnish information shall also produce such books, accounts or other
documents (hereafter in this Part of this Schedule referred to as
"documents") in his possession or control as may be required for the
said purpose by the Authority or by the person authorised to require
the information, as the case may be.

(3) Nothing in the preceding provisions of this paragraph shall
be taken to require any person who has acted as counsel or solicitor
for any person to disclose any privileged communication made to him
in that capacity.

(4) Where a person is convicted on indictment for failing to give
information or produce documents when required so to do under this
paragraph, the court may make an order requiring the offender, within
such period as may be specified in the order, to comply with the
requirement to give the information or produce the documents.

2. (1) If a court of summary jurisdiction is satisfied by informa-
tion on oath given by a person authorized by the Authority to act for
the purposes of this paragraph either-

(a) that there is reasonable ground for suspecting that an
offence against this Act has been or is being committed
and that evidence of the commission of the offence is
to be found at any premises specified in the information,
or in any vehicle, vessel or aircraft so specified; or

(b) that any documents which ought to have been produced
under the preceding paragraph and have not been pro-
duced are to be found at any such premises or in any
such vehicle, vessel or aircraft,
the court may grant a search warrant authorising any member of the
police force of a Territory, together with any other persons named in
the warrant and any other police officers, to enter the premises
specified !in the information or as the case may be, any premises upon
which the vehicle, vessel or aircraft so specified may be, at any time
within one month from the date of the warrant, and to search the
premises, or, as the case may be, the vehicle, vessel or aircraft.
A ,-
(2) A person authorised by any such warrant as aforesaid to
search any premises or any vehicle, vessel or aircraft, may search
every person who is found in, or whom he has reasonable ground to
believe to have recently left or to be about to enter, those premises or
that vehicle, vessel or aircraft, as the case may be, and may seize any









The Exchange Control Bill 49


article found in the premises or in the vehicle, vessel or aircraft which he
has reasonable ground for believing to be evidence of the commission of
any offence against this Act or any documents which he has reasonable
ground for believing ought to have been produced under the preceding
paragraph:

Provided that no female shall, in pursuance of any warrant
issued under this paragraph, be searched except by a female.

(3) Where, by virtue of this paragraph, a person has any power
to enter any premises, he may use such force as is reasonably necessary
for the purpose of exercising that power.

3. (1) Any article coming into the possession of an executive
authority (whether in consequence of the seizure of the article under
or by virtue of this Act or otherwise) which the authority has reasonable
ground for believing to be evidence of the commission of an offence
against this Act may be retained for a period of three months or, if
within that period there are commenced proceedings in respect of such
an offence in which the article is, or can properly be, adduced in
evidence, until the final determination of those proceedings.

(2) For the purposes of this paragraph, any person to whom any
powers of the Authorlity under this Act are delegated or on whom any
functions are conferred by or by virtue of this Act, including any police
officer, shall be deemed to be an executive authority.

(3) For the purposes of this paragraph, any proceedings shall
be deemed not to have been finally determined so long as there is
pending any appeal in the matter of the proceedings, and an appeal
in that matter shall be deemed to be pending during the ordinary time
within which such an appeal may be lodged, and, if such an appeal is
duly lodged, the appeal shall be deemed to be pending until it is decided
or withdrawn.

(4) The powers conferred by this paragraph in relation to any
article shall be in addition to, and not din derogation of, any powers
otherwise exercisable in relation thereto.

4. No person in or resident in the Federation shall-

(a) with intent to evade the provisions of this Act, destroy,
mutilate, deface, secrete or remove any documents;

(b) in furnishing any information for any of the purposes
of this Act, make any statement which he knows to be
false in a material particular, or recklessly make any
statement which is false in a material particular;

(c) obstruct any person in the exercise of any powers
conferred on him by virtue of this Part of this Schedule.









50 The Exchange Control Bill

PART II

General provisions as to offences
1. (1) Any person in or resident in the Federation who contravenes
any restriction or requirement imposed by or under this Act, and any
such person who conspires or attempts, or aids, abets, counsels or
procures any other person, to contravene any such restriction or
requirement as aforesaid, shall be guilty of an offence punishable under
this Part of this Schedule:

Provided that an offence punishable by virtue of Part III
of this Schedule shall not be punishable under this Part of this Schedule.

(2) Where an offence punishable under this Part of this Schedule
has been committed by a body corporate, any person who at the time
of the commission of the offence was a director, general manager,
secretary or other similar officer of the body corporate, or was purport-
ing to act in any such capacity, shall be deemed to be guilty of that
offence, unless he proves that the contravention was committed without
his consent or connivance and that he exercised all such diligence to
prevent the commission of the offence as he ought to have exercised
having regard to the nature of his functions in that capacity and to
all the circumstances.

(3) Any person who commits an offence punishable under this
Part of this Schedule shall be liable-
(a) on summary conviction, to imprisonment for not more
than three months or to a fine or to both;
(b) on conviction on indictment, to imprisonment for not
more than two years or to a fine or to both;

and where the offence is concerned with any currency, any security,
any gold, any goods or any other property, the court may, if they think
fit so to do, order the currency, security, gold, goods or property to be
forfeited.

(4) Except in the case of a body corporate convicted on indict-
ment, the maximum fine which may be imposed for an offence punishable
under this Part of this Schedule shall be-
(a) on summary conviction two thousand five hundred
dollars; and
(b) on conviction on indictment five thousand dollars;
so, however, that (in either case) where the offence is concerned with
any currency, any security, any payment, any gold, any goods or any
other property, and does not consist only of a failure to give informa-
tion or produce books, accounts or other documents with respect thereto
when required so to do under Part I of this Schedule, a larger fine may
be imposed not exceeding three times the amount or value of the
currency, security, payment, gold, goods or property.









The Exchange Control Bill 51

2. (1) No proceedings for an offence punishable under this, Part
of this Schedule shall be instituted, except by or with the consent of
the Attorney-General:

Provided that this sub-paragraph shall not prevent the issue
or execution of a warrant for the arrest of any person in respect of
such an offence, or the remanding in custody or on bail of any person
charged with such an offence.

(2) Proceedings against any person in respect of an offence
punishable under this Part of this Schedule may be taken before the
appropriate court in the Federation having jurisdiction in the place
where that person is for the time being.

(3) Any proceedings under a law establishing summary
jurisdiction which may be taken against any person in respect of any
offence punishable under this Part of this Schedule may, notwithstanding
anything to the contrary in that law, be taken at any time within
twelve months from the date of the commission of the offence or within
three months from the date on which evidence sufficient in the opinion
of the Authority to justify the proceedings comes to the knowledge of
the Authority, whichever period last expires or where the person in
question was outside the Federation at the date last mentioned, within
twelve months from the date on which he first arrives in the Federation
thereafter.

(4) For the purposes of this paragraph a certificate of the
Authority as to the date on which such evidence as aforesaid came to
the knowledge of the Authority shall be conclusive evidence thereof.

3. The maximum period of imprisonment that may be imposed
by a court of summary jurisdiction-

(a) in respect of the non-payment of a sum adjudged to be
paid by a conviction for an offence punishable under
this Part of this Schedule; or

(b) in respect of the default of a sufficient distress to
satisfy any such sum,

shall, in cases where the sum exceeds one hundred dollars, be increased
in accordance with the following scale, that is to say-

Where the amount of the sum adjudged to be paid The said period
by the conviction, as ascertained by the con- shall not
viction,- exceed,-

Exceeds one hundred dollars but does not exceed
five hundred dollars .. .. .. Four months.


Exceeds five hundred dollars ..


Six months,









52 The Exchange Control Bill

PART III
Import and export
1. The provisions of the enactments specified in Part IV of this
Schedule including any amendments to the said enactments shall, subject
to such modifications, if any, as may be prescribed to adapt them to
this Act, apply in relation to anything prohibited to be imported or
exported by any of the provisions of Part V of this Act except with the
permission of the Authority as they apply in relation to goods pro-
hibited to be imported or exported by or under any of the said enact-
ments or to, postal articles believed to contain goods in respect of which
an offence is being committed or is being attempted to be committed,
and any reference in the said enactments to goods shall be construed as
including a reference to anything prohibited to be imported or exported
by any of the provisions of the said Part IV except with the permission
of the Authority.

2. Any declaration required to be given under Part IV of this
Act shall, for the purposes of any of the provisions of the said enact-
ments under which the making of false declarations in matters relating
to customs is an offence, be deemed to be a declaration in a matter
relating to customs.

3. If anything prohibited to be exported by any provision of the
said Part IV is exported in contravention thereof, or is brought to a
quay or other place, or water-borne, for the purpose of being so exported
the exporter or his agent shall be liable to the same penalty as that to
which a person is liable for an offence to which any of the provisions
of the said enactments relating to the illegal importation of prohibited
goods applies.

4. The Governor-General may by order amend Part IV of this
Schedule.

5. Anything seized or forfeited by virtue of this Part of this
Schedule shall be dealt with in such manner as the Governor-General
may direct and no claim for compensation shall be in respect of any
such thing seized or forfeited owing to a contravention of any provision
of this Act.

6. (1) Without prejudice to any of the preceding provisions of this
Part of this Schedule, any person who, on any occasion, is about to
leave the Federation or arrives in the Federation (which person is
hereafter in this paragraph referred to as "the traveller") shall, if on
that occasion he is required so to do by an officer of customs or an
immigration officer-
(a) declare whether or not he has with him anything
prohibited to be imported or exported by any of the
provisions of the said Part IV except with the permission
of the Authority; and
(b) produce any such thing as aforesaid which he has with
him









The Exchange Control Bill 53

and the officer may examine or search any article which the traveller
has with him for the purpose of ascertaining whether he is conveying
or has in his possession any such thing, and, rif the officer has reasonable
grounds for suspecting that the traveller has about his person any such
thing, search him, and may seize anything produced as aforesaid or
found upon such examination or search as aforesaid as to which the
officer has reasonable ground for suspecting that it is prohibited to be
imported or exported by any of the provisions of the said Part IV except
with permission of the Authority:

Provided that no female shall be searched in pursuance of
this paragraph except by a female.

(2) In this paragraph, the expressions "officer of customs" and
"immigration officer" mean respectively any person duly appointed an
officer of customs or an immigration officer under any law in force in
the Federation.

7. Sub-Paragraph (2) of paragraph 1 of Part II of this Schedule
shall apply also to offences punishable by virtue of this Part of this
Schedule.

PART IV

Application of Customs and Postal Laws


Territory in which
Law is in force
Antigua

(Barbados

Dominica




Grenada

Jamaica

Cayman Islands

Turks & Caico
Islands
Montserrat


!h


Law

Customs Duties Ordinance, 1927 (No. 11 of 1927).
Post Office Act (Cap. 123).
Trade Act, 1910 (1910-4).
Post Office Act, 1911 (1911-8).


.. Customs Import and Export Consolidation
Ordinance, 1930 (No. 11 of 1930).
Trade and Revenue Consolidation Ordinar
(No. 5 of 1949).
Post Office Act (Cap. 123).
.. Customs Ordinance (Cap. 58).
Post Office Ordinance (Cap. 166).
.. Customs Law (Cap. 89).
Post Office Law (Cap. 301).
.. Customs Consolidation Law, 1897.
Post Office Law, 1900.


s

.


Saint Christopher,
Nevis and
Anguilla


ice, 1949


Customs Ordinance (Cap. 60).
Post Office Ordinance (Cap. 103).
Customs Duties Ordinance, 1928 (No. 7 of 1928).
Post Office Act (Cap. 123).
Customs Duties Ordinance, 1927 (No. 6 of 1927).
Post Office Act (Cap. 123).









The Exchange Control Bill


Saint Lucia

Saint Vincent

Trinidad and
Tobago ..


.. Customs Ordinance (No. 109 of 1916 Revision).
Post Office Ordinance (No. 82 of 1916 Revision).
.. Customs Ordinance (Cap. 183).
Post Office Ordinance (Cap. 134).
Customs Ordinance (Ch. 32 No. 2).
.. Post Office Ordinance (Ch. 36 No. 1).


SIXTH SCHEDULE

Application of Defence Regulations


T~le
The Defence (Finance) Regula-
tions, 1939, as amended from
time to time.

The Defence (General) Regula-
tions, 1939, as amended from
time to time.


Section 39(2).


Regulations
2A, 8, 9(1), 9B(1), 10(1) and
10(2).


Part V, so far as applicable to any
of the provisions of the Defence
(F i n a n c e) Regulations, 1939,
specified in this Schedule.


Printed by Yuille's Printerie Limited. Trinidad,
by authority of the Government of The West Indies.




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