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GOVERNMENT
OF SIKKIM
LAW
DEPARTMENT
GANGTOK
No.21/LD/2000
Dated:16.12.2000.
NOTIFICATION
The following Act of the Sikkim Legislative Assembly having received
the assent of the Governor on 13th day of December, 2000 is hereby
published for general information:-
THE SIKKIM CEILING ON
GOVERNMENT GUARANTEES ACT, 2000
(ACT NO. 21 OF 2000)
AN
ACT
to provide ceiling on Government
Guarantees and other matters connected therewith.
Be it enacted by the Legislature of
Sikkim in the Fifty-first year of the Republic of India as follows:-
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Short title and commencement
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1 (1) This Act may be called Sikkim Ceiling on
Government Guarantee Act 2000.
(2) It shall come into force at once.
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Definitions
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2 In this Act, unless the context otherwise
requires:-
“Default risk “ means the probability
of default by the borrower on
(a) whose behalf the Government Guarantee is
given, depending on the Amount borrowed, the type of industry and
the economic situations.
“Government” means the State
Government of Sikkim.
“Government Guarantee” includes the
guarantee given by the State
(b) Government on behalf of Departmental
Undertakings, Public Sector Undertakings, Local Authorities,
Statutory Boards and Corporations and Co-operative
institution
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Ceiling on Government Guarantees
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3. The total outstanding Government
Guarantees as on the first day of April of any year shall not
exceed thrice the State’s tax revenue receipts of the second
preceding year as in the books of the
Accountant General of Sikkim.
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Prohibition
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4 Notwithstanding any thing contained in any other
law, no Government Guarantee shall be given in respect of a loan
of any private individual, institutions or company.
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Guarantee
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5 (1) The Government shall charge a minimum of one
percent as guarantee Commission which shall not be waived
under any circumstances
(2) The Government may, by notification in the
Official Gazette specify Commission at an enhanced rate depending
on the default risk of the Project.
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By Order of the Governor.
T.D.
Rinzing
Secretary to the Government of Sikkim
Law
Department
F.No.
16(82)LDF/2000
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