2020/01/03
OBJECTS AND REASONS
This Bill will enable the Government of Barbados to facilitate the transfer of bonds from Resolution Life Assurance Company Ltd. to the individual policy holders of the Company.
Arrangement of Sections
Short title
Interpretation
Purpose
Transfer of bonds
Charge on the Consolidated Fund
Validation
SCHEDULE
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BARBADOS
A Bill entitled
An Act to enable the Government of Barbados to facilitate the transfer of bonds from Resolution Life Assurance Company Ltd. to the individual policy holders of the Company.
ENACTED by the Parliament of Barbados as follows:
Short title
This Act may be cited as the Resolution Life Assurance Company Ltd. (Transfer of Bonds) Act, 2020.
Interpretation
In this Act,
“bonds” means Series B Bonds and Series I Bonds;
“Company” means Resolution Life Assurance Company Ltd., a company incorporated under the Companies Act, Cap. 308;
“Natural Disaster Clause” has the meaning assigned to it by the Part I of the Second Schedule to the Debt Holders (Approval of Debt Restructuring) Act, 2018 (Act 2018-24);
“Series B Bonds” means the bonds described in Part I of the Schedule;
“Series G Bonds” means the bonds referred to in Part II of the Second Schedule to the Debt Holders (Approval of Debt Restructuring) Act, 2018 (Act 2018-24) allocated to the Company as a part of the Government’s comprehensive debt restructuring programme pursuant to the Debt Holders (Approval of Debt Restructuring) Act, 2018;
“Series I Bonds” means the bonds described in Part II of the Schedule.
Purpose
The purpose of this Act is to enable the Government of Barbados to exchange Series G Bonds, allocated to the Company as a part of the Government’s comprehensive debt restructuring programme pursuant to the Debt Holders (Approval of Debt Restructuring) Act, 2018 (Act 2018-24), for Series B Bonds and Series I Bonds and facilitate the transfer of those bonds to the individual policyholders following the liquidation of the Company.
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Transfer of bonds
The Government of Barbados may, pursuant to section 3, exchange the Series G Bonds for Series B Bonds and Series I Bonds and facilitate the transfer of those bonds to the individual policyholders of the Company.
The bonds transferred to the individual policyholders of the Company pursuant to subsection (1) shall not exceed in aggregate the sum of $316.32 million.
Charge on the Consolidated Fund
All principal monies and interest payable in respect of the transfer of the bonds pursuant to section 4 are a charge on the Consolidated Fund.
Validation
All bonds transferred to the individual policyholders of the Company from the 30th day of September, 2019 to the date of the commencement of this Act shall be deemed to have been lawfully and validly transferred as if those bonds were properly transferred pursuant to section 4.
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(2)
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L.R.O. 1998
SCHEDULE
(Section 2) PART I
Series B Bonds
Structure: 11 Series B amortising strips issued by the Government of Barbados with maturities of 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 15 years.
Interest Rate: 1.0% per annum for fi rst 3 years 2.5% per annum for year 4 3.75% to maturity
Interest Payments: Quarterly with fi rst payment on 30th September, 2019
Principal Repayment: The principal of each strip will be repaid in four equal quarterly principal instalments commencing one year prior
to the maturity date of that strip. Allocation of 5-Year: 7.49% 11-Year: 9.37% Aggregate Principal 6-Year: 7.78% 12-Year: 9.72% Amount Amongst Strips: 7-Year: 8.07% 13-Year: 10.10% 8-Year: 8.38% 14-Year: 10.48% 9-Year: 8.70% 15-Year: 10.88% 10-Year: 9.03%
Natural Disaster Clause: Yes
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L.R.O. 1998
PART II
Schedule - (Concl'd)
Series I Bonds
Structure: 15 Series I amortising strips issued by the Government of Barbados with maturities of 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 15 years.
Interest Rate: 0.25% per annum
Interest Payments: Quarterly with fi rst payment on 30th September, 2019
Principal Repayment: The principal of each strip will be repaid in four equal quarterly principal instalments commencing one year prior
to the maturity date of that strip. Allocation of 1-Year: 6.67% 9-Year: 6.67% Aggregate Principal 2-Year: 6.67% 10-Year: 6.67% Amount Amongst Strips: 3-Year: 6.67% 11-Year: 6.67% 4-Year: 6.67% 12-Year: 6.67% 5-Year: 6.67% 13-Year: 6.67% 6-Year: 6.67% 14-Year: 6.67% 7-Year: 6.67% 15-Year: 6.62% 8-Year: 6.67%
Natural Disaster Clause: Yes
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Read three times and passed the House of Assembly this day of , 2020.
Speaker
Read three times and passed the Senate this day of , 2020.
President
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