Section 13Part 0 —
Implementation of agreements
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Notwithstanding anything to the contrary, agreements concluded with the Bank in respect of borrowing authorised by section 3(1) or 6(1) and bonds, promissory notes or other instruments issued pursuant to any such agreement and guarantees or undertakings given in respect of any such agreements, bonds, promissory notes or instruments by the Governor or a statutory authority are valid and enforceable in the Islands.
Neither the Government nor any agency thereof nor any statutory authority shall, except as shall be otherwise agreed between the Governor and the Bank, create any lien on any of its assets as security for any external debt unless it is expressly provided that the lien will ipso facto equally and rateably secure the payment of the principal of and interest and other charges on any loan made by or any bonds, promissory notes or instruments issued pursuant to any loan made by the Bank to the Islands or to a statutory authority.
In subsection (2) — "external debt" means a debt payable in any medium other than currency which at the time in question is legal tender in the Islands whether such debt is payable absolutely or at the option of the creditor in such other medium; and "lien" includes mortgages, pledges, charges, privileges and priorities of every kind.
Defined Terms
external debtlien