Debt ceiling for duration of Bond

(1) The Council shall maintain for the duration of the Bond a debt ceiling such that– (a) interest and principal payable in any year in respect of its debts shall not exceed fifty per cent of the Council's recurrent revenue from the previous year; and (b) its total debt shall not exceed forty million dollars. (2) For the purpose of sub-section (1), the “debt” of the Council includes any monies owed or accruing in respect of a loan or any other extension of credit including an overdraft facility, an indirect obligation such as a guarantee, surety, underwriting or security issued and any other similar financial arrangement which creates a liability. (3) Notwithstanding sub-section (1), the Minister may, after consultation with the Bond Trustee, permit the Council to borrow in excess of the debt ceiling in cases of emergency.