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Maximum loan amount extendable by NDBP, RPPL 7-44 2008

RPPL No. 7-44___________
(Re: as Senate Bill No. 7-213, SD1, HD7, CD1)

AN ACT

To amend Title 26 of the Palau National Code to increase the maximum loan amount extendable by the National Development Bank, to amend 8 PNC § 203, to amend Title 27 of the PNC, Sections 1203, 1204, and 1209, and to amend 2 PNC, Chapter 1, and for other related purposes.

THE PEOPLE OF PALAU REPRESENTED IN THE OLBIIL ERA KELULAU DO ENACT AS FOLLOWS:

Section 1. Amendments. 26 PNC is hereby amended as follows:

". . . .

§124. Maximum loan or loan guarantee allowable.

In no case may the Bank lend or guarantee a loan to any borrower which singularly or cumulatively exceeds twenty percent (20%) of the Bank's unimpaired paid up capital, earned surpluses, and reserves."

§ 125. Loan guarantees and obligations under recourse loan purchase agreements; full faith and credit.

(a) . . . .

(b) . . . .

(c) . . . .

(1) . . . .

(2) Any single loan guarantee, or single loan, loan guarantee, or individual loan issued by another bank or other lender authorized by law to conduct lending in the Republic under a recourse loan repurchase agreement with the Bank, backed by the full faith and credit of the Republic, shall be limited to 20% of the Bank's unimpaired paid up capital, earned surpluses and reserves if the loan or loan guarantee is for commercial purposes, and shall be limited to $250,000 if the loan or loan guarantee is for residential housing and purchase of attendant land;

(3) . . . .

(4) . . . .

(d) The President, on behalf of the Republic of Palau, shall have the authority to execute such instruments as may be necessary and proper to affirm the full faith and credit backing of the Republic of any loan guarantee or obligation under a recourse loan purchase agreement under this section.

. . . .

§1053. Restrictions on ownership and holdings.

. . . .

(b) No Palau bank shall, alone or in concert with one or more other persons, directly or indirectly: (1) hold an equity interest in a person or undertaking that is engaged in other than financial activities that either represents a significant interest or exceeds as to its net current value the equivalent of twenty percent (20%) of the bank's capital; or (2) permit the aggregate net current value of all such equity interests to exceed the equivalent of fifty percent (50%).

. . . ."

Section 2. Amendments.
(l) 27 PNC §1203 is amended to read as follows:

"§1203. Definition.

. . . .

(j) "Reef Fish" means any species of fish which predominately inhabits reef areas, the territorial sea, or internal waters;

(k) "Take" means . . . .

(l) "Territorial sea . . . ."

(2) 27 PNC §1204 is amended to read as follows:

§1204. Prohibited acts.

. . . .

(o) until such time as the regulations promulgated pursuant to section 1205 are in effect, take aquarium fish;

(p) make any entry . . . false or misleading; and

(q) except as provided in Section 1205, export any live Reef food Fish, provided, however, that Cultured Species of Reef Fish are exempted from this prohibition."

(3) 27 PNC §1209 is amended to read as follows:

§1209. Criminal penalties.

(a) Anyone who violates subsections (a)-(e), (g)-(j), (l)-(o), or (q) of section 1204 herein shall, upon . . . one year in jail. In assessing fines under this subsection, the court shall take into account any and all prior violations of subsections (a)-(e), (g)-(j), (l)-(o), or (q), wether such violation resulted in convictions or not.

. . . ."

Section 3. Effective Date. This Act shall take effect upon its approval by the President of the Republic of Palau or upon its becoming law without such approval, except as otherwise provided by law.

PASSED: May 2, 2008

Approved this 8th day of May , 2008.

/s/___________
Tommy E. Remengesau, Jr.
President of the Republic