CHAPTER 44
NATIONAL MICROFINANCE BANK LTD INCORPORATION ACT

[PRINCIPAL LEGISLATION]

ARRANGEMENT OF SECTIONS

   Section

Title

PART I
PRELIMINARY PROVISIONS

   1.   Short title.

   2.   Application.

   3.   Interpretation.

PART II
THE NATIONAL MICROFINANCE BANK

   4.   Requirement to establish Company and have it licensed as a bank.

   5.   Objects and functions of the Bank.

   6.   Authorised capital.

   7.   Issued capital.

PART III
ADMINISTRATION OF THE COMPANY

   8.   Annual General Meetings.

   9.   Board of Directors.

   10.   Employees.

   11.   Dividends.

   12.   Bank to operate on certain principles.

PART IV
MISCELLANEOUS PROVISIONS

   13.   Capitalisation of profits.

   14.   Duty to promote microfinance portfolio.

   15.   Privatisation outlook.

   16.   Accounts and audit.

   17.   Winding-up

SCHEDULE

CHAPTER 44
THE NATIONAL MICROFINANCE BANK LTD INCORPORATION ACT

An Act to facilitate the incorporation of the National Microfinance Bank Limited, and its establishment as a commercial bank promoting microfinancing, to provide for issuance of its shares to the public and for other relevant matters.

[1st October, 1997]
[s. 1(2)]

Acts Nos.
22 of 1997
2 of 1998 Sch.

PART I
PRELIMINARY PROVISIONS (ss 1-3)

1.   Short title

   This Act may be cited as the National Microfinance Bank Limited Incorporation Act.

2.   Application

   (1) This Act shall apply to Tanzania Zanzibar as well as to Mainland Tanzania.

   (2) Upon attainment of the privatisation of the Bank and upon the Government becoming a minority shareholder, or no longer a shareholder, the provisions of this Act, other than the provisions of sections 1, 2, 3, 4 and 5, shall cease to apply to the Bank.

3.   Interpretation

   In this Act, unless the context requires otherwise–

   "assets" means property, real and personal of every kind including–

   (a)   rights under contract and agreement;

   (b)   money, books, books of accounts, records and goodwill;

   (c)   all other rights, interest and claims in or to, property, real or personal whether liquidated or unliquidated, certain or contingent, accrued or accruing;

   "Bank" means the National Microfinance Bank which is required by section 4 to be established;

   "the banking law" means the Banking and Financial Institutions Act *;

   "Board" means the Board of Directors of the Bank established pursuant to section 9;

   "Commission" means the Parastatal Sector Reform Committee established by the Public Corporations Act *;

   "Committee" means the Transition Management Committee established by the National Bank of Commerce (Reorganisation and Vesting of Assets and Liabilities) Act *;

   "Company" means the National Bank of Commerce (1997) Limited which is required by section 3 of the NBC (1997) Ltd. Incorporation Act to be established;

   "Corporation" means the NBC Holding Corporation established by the National Bank of Commerce (Reorganisation and Vesting of Assets and Liabilities) Act *;

   "effective date" means the 1st day of October, 1997;

   "former bank" means the bank established by the National Bank of Commerce (Establishment and Vesting of Assets and Liabilities) Act, 1967;

   "instrument" includes a contract, a guarantee, an agreement including a mortgage, charge, bill of exchange, promissory note, bank draft, bank cheque, letter of credit or any other security;

   "liabilities" means debts, charges, duties and all obligations of every description under contract or agreement including savings and deposits of all kinds, whether present or future, actual or contingent, and whether payable, to be observed or performed in the United Republic or elsewhere; but does not include any liability in respect of taxation under any law in force in the United Republic;

   "Minister" means the Minister for the time being responsible for finance;

   "rights" means all rights, powers, privileges and immunities, whether actual, contingent or prospective;

   "securities" includes–

   (a)   debentures, stock, shares, bonds or notes issued or proposed to be issued by the Bank and any right, warrant or option in respect of it;

   (b)   treasury bonds or other loan instrument of the Government;

   (c)   rights or interests, whether described as units or otherwise under any unit trust;

   (d)   such other instruments as the Minister may, by notice published in the Gazette, prescribe;

   "specified branches" means the branches of the former bank specified in the Schedule to this Act which are to constitute the Bank;

   "transition period" means the transition period prescribed by the National Bank of Commerce (Reorganisation and Vesting of Assets and Liabilities) Act *;

   "vesting date" means the date on which assets, and liabilities in respect of banking business, to which the former bank was entitled or subject to, are transferred to and vested in the successor Bank.

PART II
THE NATIONAL MICROFINANCE BANK (ss 4-7)

4.   Requirement to establish Company and have it licensed as a bank Act No. 2 of 1998 Sch.">

   (1) This section shall come into operation on the date on which the President assents to this Act.

   (2) The Minister shall not later than the 25th day of September, 1997, cause to be incorporated, subject to this Act, a company to be known as the National Microfinance Bank Limited or by the acronym "NMB"

   (3) The Minister shall, not later than the 30th day of September, 1997, procure the Bank to be licensed as a bank under the banking law.

   (4) The assets and rights in respect of the banking business of the specified branches to which the former bank was entitled , immediately before the vesting date shall be vested into the Bank in accordance with the provisions of the National Bank of Commerce (Reorganisation and Vesting of Assets and Liabilities) Act, 1997.

   (5) The Bank shall, with effect from the effective date, subject to this Act, take over the assets, and the banking business of the former bank in the specified branches.

   (6) The Minister may, upon advice by the Committee and at any time not later than the end of the transitional period, by order published in the Gazette, add to, amend, vary or alter the disposition of the contents of the Schedule to this Act, including whether or not a specified branch shall be part of the Bank.

5.   Objects and functions of the Bank

   (1) Notwithstanding the provisions of any other law, as from the effective date the objects and functions of the Bank shall include the duty to–

   (a)   mobilise local savings and to promote the savings habit in the population and especially among low income earners, small scale farmers, small scale business enterprises and households of modest means;

   (b)   set up machinery, products and procedures for the provision of loans subsequent upon savings which are designed–

      (i)   to help lower income people to build their creditworthiness and also to self-finance business expansion, education, housing and other key requirements of livelihood;

      (ii)   to promote equity by helping the working poor to lift themselves out of poverty and continuing to finance their economic activities as they continue to grow;

   (c)   provide in accordance with the conditions appropriate in the normal and proper conduct of banking business, adequate and proper commercial banking services and facilities throughout the United Republic;

   (d)   conduct its business without discrimination except on such grounds as are appropriate in the normal and proper conduct of banking business;

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