The Kerala Ceiling on Government Guarantees Act, 2003 (Act 30 of 2003)

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(3) crowed dlaboniascd anerdlacg MsMMlal whe aMloagjsonjaT (akhoo AMIAOTAGIGSocreGaTT, 7. ed TOON ro emo 40—(1) qodeeasdins, gn AHHMOA ALUMNA NSgiled aie} EMIMMled sanjanlaeseol, wag ANeemooime ail, agama pereoenonjoMaveni. (2) @? apagh) aivlensesscky agaco, algae Geanjpnzoadian aunts SPQ)IDD caine Tigamwe mcaagmamMlaldenamnd ao) mrocangmenilees Msdaymow and cvadagnensiaao onusoajon eee amine! dadvcanad UAAAETEM)o, CHO} GojakAIHoUGsaKN TWEAAAMEA amMogs G@MjcuekmM moams Me29 HAUT TlaaMalnami, choame om agains agam@eleno aolceso CIO}TM} AWS GEOL GW 150 pereacancraaneKs CMO OME Oo2Kyy Malesia, GAGIMNj|Guato Gy IFT, ama ToNGNenNOEs!, MAO *nIses SqSZOH SMGIMMIcho AMMA MeIMIGAS) ano Google woomoo; (AKEMAL ODM OGICS} AGW Ha PINTo CyhjM)}: aHimMlepcejs Goeananwmag AHOOBIANO QalseAaqs;amacn o_oseaa ag algomlwalvled adol sada moAmoagajs Muawjedied eons cuaomM ailcommlennidleaensmjaod)a], 4 GOVERNMENT OF KERALA Law (Legislation-A} Department NOTIFICATION No. 16552/Leg. A2/2003/Law. Dated, Thiruvananthapuram, 17th September, 2003 26th Bhadra, 1925. In pursuance of clause (3) of Article 348 of the Constitution of India, the Governor is pleased to authorise the publication in the Gazette of the following translation in the English language of the Kerala Ceiling on Government Guarantees Act, 2003 (30 of 2003). By order of the Governor, A. T. Ionattus, Special Secretary (Law). [Translation in English of “z00a-ac1 chog wactead omEral Bes AIBADUGN alti @yasG”" published under the authority of Governor.] ACT 30 OF 2003 THE KERALA CEILING ON GOVERNMENT GUARANTEES ACT, 2003 ‘An Act to provide jor ceiling on Government guarantees and other matters connected therewith or incidental thereto. Preamble.— WHEREAS it is expedient to provide for ceiling on Government ‘guarantees issued on behalf of the Government departments, public sector undertakings, local authorities, statutory boards, corporations and co-operative institutions and for promoting fiscal discipline of the State; BE it enacted in the Fifty-fourth Year of the Republic of India as follows:— 1. Short title and commencement—{l) This Act may be called the Kerala Ceiling on Government Guarantees Act, 2002. (2} It shall come into force on such date as the Government may, by . notification in the Gazette, appoint. 2. Definitions.—In this Act, unless the context ‘otherwise requires, ‘ (a} “Government” means the Government of Kerala; (b) “Government guarantee” includes the guarantee piven by the State Government on behalf of the Government departments, public sector undertakings, local authorities, staiutory beards, corporations and co-operative institutions; , {c) “prescribed” means prescribed by rules inade under the Act; (d) “State” means the State of Kerala. 3. Ceiling on Government Guarantees.—The total outstanding Government guarantees as on the first day of April of "any year shali not exceed rupees fourteen thousand crores. : 4. Prohibition.—Notwithstanding anything contained in any other law for the time being in force, no Government guarantee shall be given in respect of a loan of any private individual, Institution or Company. 3/4.327/2003/DTP. - 6 5. Guarantee commission—{1) The Government shall charge a minimmn of 0.75 per cent per annum as guarantee commission, which shall not be waived under any circumstances. ‘ (2) Depending on the default risk of any project, the Government may, by notification in the Gazette, specify commission at an enhanced rate. ; Explanation.—For the purpose of this section ‘default risk’ means the probability of defaalt by the borrower on whose behalf the Government guarantee is given, depending on the amount borrowed, the type of industry and the economic situations. (3) The guarantee given shall not be extended on the expiry of the — guarantee pericd unless the borrower had paid in full the guarantee commission due, to the government. 6. Guarantee Redemption Fund.—(1) The Government shall, by | notification in the Gazette, constitute a fund called the Guarantee Redemption Fund. (2) The Guarantee commission charged under section 5 shall form the corpus of the Guarantee Redemption Fund and it shall be remitted in the Public Accounts of the State. . (3) The administration of Guarantee Redemption Fund shall be-in such manner as may be prescribed. 7. Power of Government to make rules—{1) The Government may, by notification in the gazette, make rules for the purpose of carrying into effect the provisions of this Act. (2) Every rule made under this Act shall be laid, as soon as may be after it is made, before the Legislative Assembly while it is in session for a total _ period of fourteen days, which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly makes any modification in the rule, or decides that the rule should not be made, the mule shall thereafter have effect only in such modified form or be of no effect, as the case may be; sa however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. PRINTED AND PUBLISHED BY THE SUPERINTENDENT OF GOVERNMENT PRESSES AT THE GOVERNMENT CENTRAL PRESS, THIRUVANANTHAPURAM, 2003