Revised Laws of Saint Lucia (2023)

48.   Default by borrower on Government guarantee

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    (1)   Where a loan guarantee issued by the Government under this Act becomes payable, the Government shall —

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      (a)     fulfil the obligations of the Government under the loan guarantee to the creditor; and

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      (b)     immediately give written notice to the borrower.

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    (2)   A notice under subsection (1)(b) must —

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      (a)     specify the default of payment of the loan by the borrower;

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      (b)     specify that the Government is indemnified of any liability;

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      (c)     demand payment in terms of the indemnity provided by the borrower to the Government under section 40.

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    (3)   A sum of money required for fulfilling the obligations of the Government under a loan guarantee is a charge on and paid out of the Consolidated Fund without further appropriation.