1.   Short title

   2.   Interpretation

The National Development Bank and its Functions

   3.   Establishment of the National Development Bank

   4.   Business of the bank

   5.   General duties of the bank

   6.   Power of the bank to act as agent

   7.   Additional powers and duties of the bank

   8.   Powers of Minister and annual report

Financial Provisions

   9.   Funds of the bank

   10.   Payment of interest on unrecallable capital

   11.   Provisions as to moneys provided from loan funds

   12.   Borrowing powers of the bank

   13.   Issue of national development bonds

   14.   Special funds

   15.   Balancing of revenue account, and surplus revenue

   16.   Restriction on underwriting

   17.   Reserve fund

   18.   Investments

   19.   Accounts and audit

General Provisions as to Loans made by the Bank

   20.   Applications and securities

   21.   Provisions relating to loans

   22.   Loans secured on life assurance policies

   23.   Examination as to application of moneys lent

   24.   Order of bank upon such examination

   25.   Appointment and powers of valuers and inspectors

   26.   Cancellation or modification of approval of loan

   27.   Power of bank to direct that any part outstanding of an approved loan be not paid

   28.   Misapplication of loan secured by mortgage or otherwise


   29.   Offences in respect of financial assistance

   30.   False statements

   31.   Information obtained as a member of the board, etc., to be secret and confidential

   32.   Fiat of Director of Public Prosecutions

   33.   Minutes receivable in evidence

   34.   Liability of bank to taxes, etc.


   35.   Transfer of assets and liabilities of Agricultural Loan Fund to the bank

   36.   Minister to secure transfer

      First Schedule

      Second Schedule - Issue, Control, Management and Repayment of National Development Bonds

      Third Schedule

Law 13, 1963,
HMC Order 1, 1963,
L.N. 28, 1965,
Law 41, 1966,
L.N. 84, 1966,
Act 9, 1967,
Act 30, 1973,
S.I. 51, 1977,
S.I. 89, 1978,
Act 6, 1982,
Act 14, 1984,
S.I. 110, 1989,
Act 14, 2005,
S.I. 58, 2007.

An Act to provide for the establishment and administration of a National Development Bank, the powers, duties and functions of the bank, and for matters incidental thereto.

[Date of Commencement: 1st May, 1964]

(ss 1-2)

1.   Short title

   This Act may be cited as the National Development Bank Act.

2.   Interpretation

   (1) In this Act, unless the context otherwise requires-

   "agriculture" includes fisheries, forestry, horticulture and the use of land for any purpose of husbandry, and "agricultural" shall be construed accordingly;

   "bank" means the National Development Bank established under section 3;

   "board" means the board established under the First Schedule;

   "chairman" means the chairman of the board;

   "deputy chairman" means the deputy chairman of the board;

   "financial year" means a period of 12 months ending on 31st day of March;

   "general manager" means the general manager of the bank appointed under paragraph 5 of the First Schedule and includes an acting general manager so appointed;

   "hire-purchase agreement" and "instalment sale agreement" have the same meaning respectively as they have in the Hire-Purchase Act;

   "husbandry" includes the keeping or breeding of livestock, poultry or bees and the growing of fruit, vegetables and the like;

   "officer", in relation to the bank, includes the general manager and secretary;

   "secretary" means the secretary of the bank appointed in terms of the First Schedule;

   "staff", in relation to the bank, means the officers and servants thereof;

   "year" means financial year.

   (2) Any reference in this Act to the bank shall, where the context so requires, include a reference to the board.

The National Development Bank and its Functions
(ss 3-8)

3.   Establishment of the National Development Bank

   (1) There is hereby established a bank, to be known as the National Development Bank, for the purpose of promoting the economic development of Botswana in accordance with the provisions of this Act.

   (2) The bank shall be a body corporate capable, under the said name, of suing and of being sued, and with power, subject to the provisions of this Act, of doing anything and entering into any transaction (whether or not involving expenditure or the acquisition or alienation of property) which bodies corporate may by law do and enter into, which is incidental or conducive to the carrying on of its business under this Act.

   (3) The provisions of the First Schedule shall have effect with respect to the bank.

4.   Business of the bank

   (1) The business of the bank shall, subject to the provisions of this Act, be to provide financial assistance, for the purpose for which it is established, to new or existing undertakings to which this section applies by means of-

   (a)   the granting of loans;

   (b)   the selling of goods, and the taking over of sellers' rights, under hire purchase or instalment sale agreements; and

   (c)   with the approval of the Minister, the taking up of share and loan capital and the underwriting of issues of shares and debentures.

   (2) This section applies to any undertaking falling within one or more of the following classes, that is to say-

   (a)   agricultural undertakings;

   (b)   industrial undertakings;

   (c)   undertakings for the working or getting of minerals;

   (d)   undertakings for providing, maintaining or improving the supply of water or electricity, and other utilities, whether of a public or private nature;

   (e)   undertakings for providing, maintaining or improving transport facilities or transport services;

   (f)   undertakings for the provision or improvement of houses or other dwellings;

   (g)   undertakings for the promotion of tourism and for the keeping of hotels;

   (h)   undertakings for the utilization of the wild animal life of Botswana;

   (i)   undertakings for purchasing, processing, storing or marketing any products of one or more enterprises falling within any of the foregoing paragraphs;

   (j)   undertakings for the sale of goods, whether retail or wholesale, or for the distribution of goods;

   (k)   undertakings for the carrying out of building, engineering or other operations in, on, over or under land;

   (l)   undertakings comprising the service industries;

   (m)   the provision, assistance or promotion of human development;

   (n)   the lease, purchase or hiring of motor vehicles or plant machinery.

   (3) Notwithstanding anything in subsection (1), the bank shall not provide financial assistance for buildings or works for the public service of Botswana, except where the same may arise from and be incidental to assistance provided for any building or engineering contractor.

   (4) If it appears to the Minister to be expedient to add to the classes of undertaking specified in subsection (2), the Minister may by order published in the Gazette direct that that subsection shall have effect with the addition of such one or more classes of undertaking as may be specified in the order.

5.   General duties of the bank

   The bank shall ensure that its business is conducted in the manner best suited for the efficient and economical utilization of its funds, and best calculated to achieve the purpose for which it is established.

6.   Power of the bank to act as agent

   (1) The bank may act as agent for the administration of funds (not being funds of the bank referred to in Part III) on behalf of such persons, organizations or administrations as may from time to time be approved by the Minister.

   (2) Any funds administered by the bank in accordance with the provisions of subsection (1) shall not be deemed to be part of the funds of the bank referred to in Part III but they shall be administered, paid and applied in accordance with directions from time to time given by the Minister or such persons, organizations or administrations, as the case may be.

7.   Additional powers and duties of the bank

   (1) In addition to any other powers and duties conferred by this Act, the bank may-

   (a)   accept money, documents or valuables from any person for safe custody;

   (b)   in connection with any loan or guarantee given by the bank, manage, operate or control any property, enterprise or undertaking on behalf of any person;

   (c)   operate any savings scheme or any combined life assurance and savings scheme approved by the board; and

   (d)   make or give guarantee approved by the board on behalf of any person.

   (2) The bank may do anything necessary, incidental or subsidiary to the exercise of the powers mentioned in subsection (1) including the charging of fees.

8.   Powers of Minister and annual report

   (1) The Minister may, after consultation with the board, give to the bank directions of a general character as to the policy to be followed in the exercise and performance of its functions in relation to matters appearing to him to concern the public interest, and the bank shall give effect to any such directions.

   (2) The bank shall not later than six months from the end of each financial year submit to the Minister a report containing-

   (a)   an account of its transactions throughout the preceding financial year in such detail as the Minister may direct;

   (b)   a statement of the accounts of the bank audited in accordance with the provisions of section 19;

   (c)   a statement of every direction given by the Minister under this section and under section 17 and paragraph 3 of the Second Schedule during the preceding financial year; and

   (d)   a statement of all bad debts written off in terms of section 19(3) during the preceding year, and the reason in each case why the debt is deemed irrecoverable.

   (3) The Minister shall cause a copy of the report together with a copy of the auditor's report to be laid before the National Assembly and the bank shall publish the same in such manner as the Minister shall specify.

Financial Provisions
(ss 9-19)

9.   Funds of the bank

   (1) The funds of the bank shall consist of unrecallable capital, loan funds, a fund established under section 14, such moneys as may be applied by the bank as capital in terms of section 15(2), and such other moneys as may from time to time be received by or fall due to the bank in respect of its business or any matter incidental to its business.

   (2) The unrecallable capital of the bank shall consist of-

   (a)   such moneys as the Government may from time to time pay to the bank as part of its funds out of moneys provided by law from the public funds (other than loan funds) for such purpose;

   (b)   the fund vested in the bank in terms of section 35;

   (c)   the fund established under section 11 of the State Land Act; and

   (d)   such moneys as the bank may from time to time accept by way of donation or bequest to the bank other than moneys required to be paid into a special fund established under section 14.

   (3) The loan funds of the bank shall consist of-

   (a)   such moneys as the Government may from time to time pay to the bank as part of its funds out of moneys provided by law from the proceeds of any loan raised by the Government;

   (b)   such moneys as may from time to time be borrowed by the bank in terms of section 12; and

   (c)   such moneys as may from time to time be raised by the bank by the issue of national development bonds in terms of section 13.

   (4) The loan

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