PUBLIC RECORD OFFICE
Reference :-
C.O. 882
8
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
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3. I annex copies of two Minutes addressed to the Colonial Secretary, con- veying general instructions as to the procedure to be followed; together with copies of correspondence with the Procureur-General, with especial reference to the security of advances made under Ordinance No. 34.
4. The general procedure in the case of both Ordinances has been as follows:--- (1) The applications have been sent to the Loan Office, where a financial statement has been prepared, showing the position of each estate as regards its estimated value and mortgages and inscribed debts.
5.
(2) The application has then been considered by the Board of Commis- sioners, and a recommendation made for its acceptance or rejection or modification.
(3) The application has next been sent to the Conservator of Mortgages to verify the financial statement as to mortgages and inscribed debts (état hypothécaire). They have been forwarded by him to the Procureur-General, who examines the title deeds, and other legal documents affecting the estate, together with the deeds securing the contract charges.
(4) The applications have then been submitted to me by the Colonial Secretary, with his personal recommendations, independently of his position as chairman of the Board of Commissioners. He submits to me, at the same time, if necessary, a statement of the revenue and expenditure of the estate, supplied by the owners on the expressed understanding that it is to be treated as a confidential document.
(5) In the final instance it has been my duty to approve, disapprove or modify the terms of the applications, or to call for further information.
The following rules have been invariably observed:-
(A) The contract charges must rank after obligations under the Hurricane Loan Ordinance, 1902;
(B) No contract charge has been approved except in priority over all other obligations;
(c) The collective amount of all Government obligations, including the hurricane loan mortgages, has never been allowed to exceed one-half of the estimated value of the estate.
6. I have endeavoured, as you will see, to take every possible precaution to secure the sufficiency of the security upon which advances have been made in aid of the planters of the Colony. It has been a work of much anxiety, and the difficulty has been increased by the fact that prompt decision has been absolutely necessary :f the advances under Ordinance No. 34 were to be made in time for the harvesting of the coming crop by means of mechanical transport, and the advances under Ordinance No. 43 in time for the effective cultivation of estates during the period 1st December to 31st March, 1903.
Enclosure 1 in No. 67.
I have, &c.,
CHAS. BRUCE,
Governor.
MINUTE OF THE GOVERNOR.
January 23, 1903.
With reference to the payment of advances granted to planters under the recent Ordinance, I understand that as soon as each advance has obtained my assent the dossier will be returned to Mr. Pelte, Secretary to the Loan Board, who will inform the applicant. The applicant will have the deed prepared and sent to the Procureur- General for his visa. The Procureur-General will, as soon as possible, return it to the Colonial Secretary through the Secretary to the Loan Board. Secretary will sign the deed in the presence of applicant, who also signs previous to The Colonial the Colonial Secretary signing. The deed will then be sent to the Conservator to register the mortgage with the procedure accorded in the deed. The deed will then be sent to the Receiver-General, who will pay the amount authorised. In the absence
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of the Governor the Colonial Secretary will countersign cheques for the Governor. The Receiver-General will obtain the receipt of the applicant. The Receiver-General will return the papers to the Secretary to the Loan Board.
Enclosure 2 in No. 67. MINUTE OF THE GOVERNOR.
C. B.
February 19, 1903.
As I have been informed that some of the members of the Hurricane Loan Board are under the impression that the Board has not to concern itself with any legal points involved in their recommendations, it will be necessary for every recommenda- tion submitted to me for tramway advances to be accompanied by the opinion of the Procureur-General on the legal validity of the security offered, and an assurance that it is strictly in accordance with the instructions of the Secretary of State with reference to the letter of Crown Agents of 22nd September, 1902, transmitted by the Secretary of State's despatch, No. 235, of 23rd September, 1902.
Enclosure 3 in No. 67. PROCUREUR-GENERAL to COLONIAL SECRETARY.
C. BRUCE.
March 2, 1903.
I propose to put on record the action taken by me in all difficult questions of a general nature which arise in my examination of the papers submitted by applicants under the Loan Ordinance, so that if there is any flaw in my reasoning, it may be pointed out at once; or if it is approved, an independent record may be preserved of the decision for future reference.
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This Minute deals with the following point. Many of the applications are from sugar estate companies, or from civil partnerships, whose existence, either by the statutes or the deed of partnership, comes to an end before the expiry of the ten years' term of the tramway loan. The question then arises whether a legal " person who will cease to exist during the continuance of the loan can create a charge and an obligation which will be in force after his legal death? Stated in this way, the question appears a troublesome one; and one solution of it would be to exact as a condition of the advance an immediate renewal of the partnership or company for a term extending beyond the ten years' life of the loan. I do not think there is any record of a decision taken on this point at the time of the hurricane loan; but it is clear that if this course were now adopted, it would throw doubt on what was done then, and this might lead to serious consequences. It seems better, therefore, for those who come after that I should put down clearly the reasons which have led me to the opinion I have formed.
First. The case of a civil partnership.
At the time of the expiry of the partnership, if it is not renewed, the partnership property becomes the property of the individual partners; but although it belongs to them according to their several shares, they hold it in indivision, and they cannot realize their shares till they have been ascertained and apportioned by "licitation," which is the French "partition." Before the licitation the partners hold the estate subject to a joint and several liability in virtue of Article 20 of No. 34 of 1902; and after the licitation the estate being divided by process of law between several owners, the contract charge is only to be divided among the several owners if the Governor approves, and subject to such conditions as he shall impose.
Secondly. The case of a company.
If the company is wound up before its expiry, the property, together with all liabilities attaching thereto, passes into the hands of the Official Liquidator; and when he sells he sells subject to the charge.
If the Company's existence is not renewed at the date of its expiry, all the statutes (which are always produced to me by the applicants) contain a special clause appointing a liquidating committee, into whose hands the property passes, just as in the same way as it does into the hands of the Official Liquidator, who can only sell subject to the charge.
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