Interpretation

In this Act, unless the context otherwise requires, “Annual Report” means the report referred to in section 20; “Belize Mortgage Company 2002-1” or “BMC” means the company established in March 2002 under the Companies Law of the Cayman Islands for the purpose of issuing Mortgage Loan Collateralized Bonds, Series 2002-1, in the North American market, which is wholly owned by DFC; “Board” means the Board of Directors established under section 8; “capital” means the sum of share capital, reserves, and retained earnings of the Corporation; “Code of Conduct” or “Code” means the statement of principles of the Corporation as well as guidelines which will guide the directors, managers, and employees of the in the execution of their functional responsibilities and duties in service to the Corporation; “Corporation” means the Development Finance Corporation established by section 3 of this Act; 6 “director” means a member of the Board of Directors; “financial year”, in relation to the Corporation, means the period of twelve months terminating on 31st of December in any year; “General Manager” means the chief executive officer appointed to manage the day-to-day affairs of the Corporation as provided in section 22 of this Act; “long-term capital” means either a debt with a term to maturity in excess of five years, or equity; “management” means the collective including the General Manager, the Heads of Divisions, the Heads of Departments, the Corporate Secretary of the Corporation and any other positions as approved by the Board; “manager” means a person holding a management position with the Corporation; “microfinance” means the provision of financial services to a person who, or an entity which, cannot normally obtain access to the services of formal financial institutions and normally involves smaller transaction amounts; “Minister” means the Minister for the time being responsible for Finance; “North American Securitization” or “NAS” means the securitization of certain mortgages by BMC in the North American market, which had been previously sold to BMC by DFC; “North American Securitization Documents” or “NAS documents” means the following documents, (i) Purchase and Sale Agreement dated February 1, 2002 between BMC as 7 Issuer of the Bonds and DFC as Seller of the mortgages; (ii) Indenture dated February l, 2002 between BMC as Issuer, DFC as Servicer and the Bank of New York as Trustee; (iii) Servicing Agreement dated February l, 2002 between BMC as Issuer, DFC as Servicer and the Bank of New York as Trustee; (iv) Guarantee dated February 1, 2002 issued by the Government of Belize in favour of BMC; and (v) any and all other documents relating to the North American Securitization to which DFC a party or in which DFC has some functions to perform; “policies” means statements approved by the Board that provide guidance on significant topics that indicate priorities, rules of conduct and guidelines to be adhered to by director, managers, and staff of the Corporation in the conduct of the business of the Corporation; “project plan” means the technical documentation submitted and approved as the basis for a loan that outlines the sequence of project implementation activities and expenditures; “related group or party” means the persons and entities that are related, by business association or family kinship, with the borrower, the borrower’s business or someone involved in the affairs of the Corporation; “shareholder” means a shareholder in the Corporation; 8 “strategic business plan” means a document that contains a plan for the conduct of the business of the Corporation for a specified period of time based on a consideration of the internal strengths and weaknesses of the Corporation and of the external opportunities and threats it faces in its business environment, which document provides goals, performance targets, planned performance results, initiatives and other expected outcomes, which once approved by the Board, will be a guide to management of the Corporation in the conduct of its affairs during the planned period.