CHAPTER 248
LOANS AND ADVANCES REALISATION TRUST ACT

[PRINCIPAL LEGISLATION]

ARRANGEMENT OF SECTIONS

   Section

Title

PART I
PRELIMINARY PROVISIONS

   1.   Short title.

   2.   Application.

   3.   Interpretation.

PART II
THE TRUST

   4.   Establishment of the Trust and its lifespan.

   5.   Objects and functions of the Trust.

   6.   Board of Trustees.

   7.   Functions of the Board.

   8.   Meetings of the Board.

   9.   Committees of the Board.

   10.   The Administrator and other staff of the Trust.

   11.   Remuneration of members and staff.

PART III
POWERS AND OPERATIONS OF THE TRUST

   12.   Establishment of Non-Performing Assets Recovery Fund.

   13.   Power to transfer non-performing assets.

   14.   Action by Trust after transferring and in respect of transferred assets.

   15.   Vesting of transferred assets.

   16.   Provisions relating to rehabilitation.

   17.   Protection of Trustees and employees of the Trust.

PART IV
THE LART LOANS RECOVERY TRIBUNAL

   18.   Establishment and composition of Tribunal.

   19.   Jurisdiction of the Tribunal.

   20.   Judgment of Tribunal and execution of judgment.

   21.   Procedure of Tribunal.

   22.   Proceedings pending in court of law to be transferred to the Tribunal.

   23.   Registrar and other staff of the Tribunal.

   24.   Remuneration and allowances, etc.

   25.   Obstruction of Tribunal.

PART V
FINANCIAL AND MISCELLANEOUS PROVISIONS

   26.   Financial year of Trust.

   27.   Accounts and audit.

   28.   Tax relief.

   29.   Regulations.

   30.   Duration of this Act.

CHAPTER 248
THE LOANS AND ADVANCES REALISATION TRUST ACT

An Act to establish the Loans and Advances Realisation Trust and an expeditious machinery for the recovery of overdue debts of banks and financial institutions.

[1st March, 1992]
[G.N. No. 21 of 1992]

Acts Nos.
6 of 1991
1 of 1993
6 of 1994
5 of 1995
10 of 1996

PART I
PRELIMINARY PROVISIONS (ss 1-3)

1.   Short title

   This Act may be cited as the Loans and Advances Realisation Trust Act.

2.   Application

   This Act shall extend to Tanzania Zanzibar as well as Mainland Tanzania.

3.   Interpretation Act No. 10 of 1996 Sch.">

   In this Act, unless the context otherwise requires–

   "assets" shall include–

   (a)   receivables and other obligations due to the Owner, lease indemnity and other agreements together with all collateral security and other rights (including but not limited to rights in relation to shares or stock in a body corporate such as voting rights as well as rights to appoint directors of a body corporate or otherwise engage in the management thereof) granted to the Owner by contract or operation of law to secure or enforce the right of payment of such obligations;

   (b)   real and personal property of any kind owned or held by the Owner including shares or stock of a body corporate obtained by the Owner whether directly or indirectly, through foreclosure or other means in settlement of such obligations;

   (c)   shares or stock and other investments held by the Owner; and

   (d)   the business of the Owner and where the Owner is a body corporate the Owner itself whether as parent or subsidiary body corporate;

   "bank" means a financial institution authorised to receive money on current account subject to withdrawal by cheque;

   "the Bank" means the Bank of Tanzania established under the Bank of Tanzania Act *;

   "Board" means the Board of trustees of the trust established under section 6;

   "financial institution" means any person authorised by or under the law for the time being relating to banking to engage in banking business not involving the receipt of money on current account subject to withdrawal by cheque;

   "Minister" means the Minister responsible for finance;

   "non-performing asset" means–

   (a)   loans and advances including–

      (i)   any advances in respect of which the principal or interest or its schedule instalment has remained overdue for any period specified by the Bank for the purposes of the Act;

      (ii)    any advance to a borrower who has subsequent to the granting of the advance gone into insolvency or whose industrial or commercial operation has remained unoperational for any period specified by the Bank for the purposes of this Act;

      (iii)   any overdraft in respect of which interest is due and unpaid or the overdraft is outstanding after the expiry of the authorisation or is consistently at or exceeding the credit limit for such period as the Bank may specify or in respect of which the credit limit is regularly increased by the bank or financial institution;

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