Banks and Trust Companies (Non-negotiable Certificates of Indebtedness) Order (Revised 2020)

Summary

This Order sets out the framework for non-negotiable certificates of indebtedness that banks and trust companies may use to satisfy statutory deposit or investment requirements attached to certain licences issued under the BVI Banks and Trust Companies Act. It defines how such certificates are issued, how interest and maturity terms are set, and the limits on their transfer and refinancing.

• Purpose: A certificate may be issued to satisfy the deposit or investment requirement tied to a general banking licence, a restricted Class I or Class II banking licence, or a general trust licence under section 12 of the Act.
• Interest and maturity: The Commission sets the interest rate from time to time, and fixes the maturity term, which must be not less than 6 months and not more than 20 years.
• Negotiability: A certificate is negotiable only with the Commission itself, not freely transferable to third parties.
• Refinancing: A certificate may be refinanced on maturity only with the agreement of both the Commission and the certificate holder.

The Order is largely a procedural mechanism for licence-related deposits rather than a source of ongoing compliance filings; it took effect on 11 July 2002 and remains in force as part of the Banks and Trust Companies Regulations.

Key obligations

• Certificates issued under the Order must bear interest at the rate the Commission determines from time to time
• The term of maturity of a certificate must fall between 6 months and 20 years as fixed by the Commission
• A certificate may only be negotiated with the Commission, not with other parties
• Refinancing of a certificate on maturity requires the agreement of both the Commission and the certificate holder

Applies to

banks holding a general banking licence, banks holding a restricted Class I or Class II banking licence, trust companies holding a general trust licence

Deadlines

• not less than 6 months or more than 20 years: Permissible range for the term of maturity of a certificate, as fixed by the Commission