Jersey Society for the Prevention of Cruelty to Animals: Provision of a Secured Loan

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A decision made on 11 January 2019

Decision Reference: MD-TR-2018-0144
Decision Summary Title:	JSPCA – provision of a loan		Date of Decision Summary:	24th December 2018
Decision Summary Author:	Director of Treasury & Investment Management		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Jersey Society for the Prevention of Cruelty to Animals – Provision of a Secured Loan		Date of Written Report:	24th December 2018
Written Report Author:	Director of Treasury & Investment Management		Written Report : Public or Exempt?	Exempt under Article 33(b) of the Freedom of Information (Jersey) Law 2011
Subject: To request that the Minister for Treasury and Resources approves an interest-bearing secured loan for £500,000 to the Jersey Society for the Prevention of Cruelty to Animals (“JSPCA”) repayable no later than 30th June 2020.
Decision(s): The Minister decided to approve the provision of a secured loan to the JSPCA. The Minister further decided to authorise the Treasurer of the States to sign a loan agreement in accordance with this Ministerial Decision and ensure that the States are notified of the issuance of the new loan agreement in accordance with Regulation 13(4) of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005.
Reason(s) for Decision: Article 13 of the Public Finances (Transitional Provisions) (No.2) (Jersey) Regulations 2005 details the maximum amounts delegated to the Minister for Treasury and Resources in relation to lending money in the name of and on behalf of the States: The Minister may, in any financial year, in the name of and on behalf of the States, lend up to £500,000 in respect of any one transaction where – (a) the total amount lent in that financial year by virtue of this paragraph does not exceed £3 million; (b) the amount lent by virtue of this paragraph and still outstanding at any one time does not exceed £10 million; and (c) any amount lent by virtue of this paragraph is repayable within 20 years. The provision of this loan falls within the parameters set by the Regulations. A thorough and robust assessment of the JSPCA’s ability to repay the loan under the terms proposed has been carried out.
Resource Implications: To date, the resources of the States Treasury and Exchequer have been utilised in assessing this proposal. The provision of the loan requires no significant additional manpower to implement and the provision and monitoring of loans forms part of the day-to-day activity of the Treasury & Investment Management team. The loan agreement will be based on existing documentation but may require minor amendments from the Law Officer’s Department to reflect the specific loan terms and the legal charge. The loan will initially provide a fixed rate of return to the Consolidated Fund which is significantly in excess of the current investment return on the cash held and there is sufficient surplus cash available to make the loan over the timeframe proposed.
Action required: The Head of Decision Support to advise the Director of Treasury & Investment Management when the decision has been signed. The Director of Treasury & Investment Management to request the Law Officers’ Department prepare the relevant loan documentation for completion by both parties.
Signature:		Position: Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision: