Second Session Tenth Parliament Republic of

Trinidad and Tobago

REPUBLIC OF TRINIDAD AND TOBAGO

Act No. 18 of 2011

[L.S.]

AN ACT to amend the Central Bank Act, Chap. 79:02

[Assented to 20th September, 2011]

WHEREAS it is enacted by section 13(1) of the Preamble
Constitution that an Act of Parliament to which that
section applies may expressly declare that it shall have
effect even though inconsistent with sections 4 and 5 of
the Constitution and, if any Act does so declare, it shall
have effect accordingly:
2 No. 18 Central Bank (Amendment) 2011

And whereas it is provided in section 13(2) of the

Constitution that an Act of Parliament to which that
section applies is one the Bill for which has been passed
by both Houses of Parliament and at the final vote
thereon in each House has been supported by votes of
not less than three-fifths of all the members of that
House:
And whereas it is necessary and expedient that the
provisions of this Act shall have effect even though
inconsistent with sections 4 and 5 of the Constitution:

Enactment ENACTED by the Parliament of Trinidad and Tobago as

follows:

Short title 1. This Act may be cited as the Central Bank

(Amendment) Act, 2011.

Intepretation 2. In this Act, “the Act” means the Central Bank Act.
Chap. 79:02

Act inconsistent with 3. This Act shall have effect even though inconsistent
Constitution
with sections 4 and 5 of the Constitution.

Section 44C 4. Section 44C of the Act is amended by inserting in

amended
the appropriate alphabetical sequence, the following
definitions:
“ “claim” means any claim whatsoever without
limitation, including, without prejudice to
the generality of the foregoing, claims
which are secured or unsecured, present or
future, actual, prospective or contingent, or
arising out of contract, tort, bailment,
restitution, breach of trust or any other
cause of action, and whether or not made
by a creditor, shareholder, depositor,
policyholder or any other person;
“creditor” means a person having a claim
against or in respect of an institution or its
property or assets;
No. 18 Central Bank (Amendment) 2011 3

“secured creditor” means a creditor who—

(a) has a mortgage in respect of any
property of an institution;
(b) has a fixed or floating charge, a
lien or any other security interest
whatsoever without limitation in
or over or in respect of any
property or assets of an institution;
or
(c) is a party to an agreement or
arrangement designed to create
the economic equivalent of a
security interest;
“security agreement” means any agreement
creating a security interest or making a
creditor a secured creditor;
“security interest” means any interest in or
charge upon any property of an institution
by way of mortgage, assignment, bond,
lien, pledge or other means, that is created
or is taken to secure the payment of a debt
or the performance of any other obligation
of the institution;”.

5. Section 44E of the Act is amended— Section 44E amended

(a) in the marginal note, by inserting after the

word “control”, the words “and stay of
proceedings”;
(b) by inserting after subsection (4), the following
subsections:
“ (5) On and after the publication of a
notification under subsection (1)—
(a) no creditor, shareholder,
depositor, policyholder or any
4 No. 18 Central Bank (Amendment) 2011

other person shall have any

remedy against the institution
in respect of any claim, and
without prejudice to the
generality of the foregoing, no
creditor, shareholder, depositor,
policyholder or any other person
shall commence or continue any
action, execution or other
proceedings or seek to enforce in
any way whatsoever without
limitation in Trinidad and
Tobago, any judgment or order
obtained in Trinidad and Tobago
or any other jurisdiction, against
the institution or its successor or
the transferee of the whole or
any part of any property, assets
or undertaking of the institution
for the recovery of any claim or
in respect of any other liability,
until the publication of a
notification under section 44G(1)
in relation to the institution;

(b) where the Bank has not yet

published a notification under
section 44G(1) in relation to an
institution, the Bank may where
it deems appropriate publish a
notification to lift the stay under
paragraphs (a), (d) or (e), except
that no person shall take any
steps to institute winding up,
No. 18 Central Bank (Amendment) 2011 5

receivership, administration or
any other related proceedings
in relation to that institution;
(c) no creditor, shareholder,
depositor, policyholder or any
other person shall commence or
continue any claim, action,
execution or other proceedings
or seek to enforce in any way
whatsoever without limitation
in Trinidad and Tobago, any
judgment or order obtained in
Trinidad and Tobago or any
other jurisdiction, against the
Bank, its directors, officers,
employees or any person acting
on behalf of the Bank or
appointed by the Bank under
section 44D in respect of any act,
omission, claim, fact or matter
connected with or arising out of
the acts or omissions of the
Bank in respect of the institu-
tion, until the publication of a
notification under section 44G(1)
in relation to the institution;
(d) no provision of a security
agreement, lease or licence
between the institution and a
secured or other creditor that
provides, in substance, that on—
(i) the winding up of
6 No. 18 Central Bank (Amendment) 2011

the institution or any

related entity or any
insolvency restructuring or
reorganization proceedings
being commenced, continued
or ordered in respect of the
institution or any related
entity; or
(ii) the default by the
institution of an obligation
under the security
agreement, lease or
licence,
the institution ceases to have
such rights to use or deal with
assets secured or dealt with
under the agreement, lease or
licence as the institution would
otherwise have, or is given
lesser rights or priorities in
respect of any assets or property
as the institution would
otherwise have, has any force or
effect until the publication of a
notification under paragraph (b) or
section 44G(1) in relation to the
institution; and
(e) no provision in any contract or
agreement or any other
document whatsoever without
limitation which gives any party
a right to acquire any property
or assets of the institution on the
grounds of any change of control
No. 18 Central Bank (Amendment) 2011 7

or on any analogous ground or

on the grounds of insolvency
shall have any effect until the
publication of a notification
under paragraph (b) or
section 44G(1) in relation to the
institution.
(6) For the purposes of
subsection (5)—
(a) the rights, property and assets
referred to in this section are
taken to be the rights, property
and assets located in Trinidad
and Tobago or in any other
jurisdiction; and
(b) the agreement, lease or licence
referred to in this section are
taken to be, not only an
agreement or lease or licence
governed under the laws of
Trinidad and Tobago, but also
an agreement, lease or licence
governed by any other law.
(7) The Bank shall report quarterly
to the High Court on—
(a) the proposals to restructure an
institution in relation to which
a notification has been
published under subsection (1);
and
(b) the progress of the proposals
referred to in paragraph (a),
8 No. 18 Central Bank (Amendment) 2011

until a notification under subsection (5)(a)

or section 44G(1) has been published in
relation to that institution.
(8) Where, prior to the coming into
force of the Central Bank (Amendment)
Act, 2011—
(a) a notification under subsection
(1) was published in relation to
an institution; and
(b) a notification under section 44G(1)
has not been published in
relation to that institution since
the publication of the
notification referred to in
paragraph (a),
the provisions of subsection (5) shall
apply in relation to that institution with
effect from the coming into force of the
Central Bank (Amendment) Act, 2011.”.

Passed in the House of Representatives this

15th day of September, 2011.

Clerk of the House

IT IS HEREBY CERTIFIED that this Act is one the Bill for

which has been passed by the House of Representatives
and at the final vote thereon in the House has been
supported by the votes of not less than three-fifths of
all the members of the House, that is to say by the votes
of 29 members of the House.

Clerk of the House

No. 18 Central Bank (Amendment) 2011 9

Passed in the Senate this 17th day of September,

2011.

Clerk of the Senate

IT IS HEREBY CERTIFIED that this Act is one the Bill for

which has been passed by the Senate and at the final
vote thereon in the Senate has been supported by the
votes of not less than three-fifths of all the members of
the Senate, that is to say by the votes of 23 Senators.

Clerk of the Senate