DEBT ISSUANCE UNDER THE LAWS OF THE NETHERLANDS ANTILLES
Credit linked notes (CLNs)
The relevant rule in respect of the issuance of CLN’s is article 45 of the Netherlands Antilles Banking Decree, which read as follows:
“It is prohibited to any person to attract moneys from the public or extend credit to the public by others than licensed credit institution.”
If the NV or BV issuing the CLNs does not have a license to act as credit institution, dispensation should be requested from this prohibition. The Netherlands Antilles Central Bank has issued guidelines for dispensation of debt issuing entities from the prohibition of article 45. The Central Bank will grant dispensation to issuing entities that meet the following conditions:
- The issuing entity must be financially solid;
- It must have guaranteed or contra-guaranteed their payment obligations as to the debt that has been issued; and
- The board members must be fit and proper, to be determined by the Central Bank.
Karel Frielink
Curacao-based Attorney (lawyer) / Partner
09
Jan
2007
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