The Belize City Council (Municipal Paper) Act provides for the issuance of Municipal Paper by the Belize City Council, the establishment of a Belize City Municpal Paper Fund, and a Belize City Interest Reserve Fund.

The Act grants the Council the authority to issue Municipal Paper, which as defined in section 2 of the law as having “a maturity period of no more than twelve months.” The law, however, limits the total amount of debt that the Municipality can incur via this means. Section 3(3) of the Act states:

“The principal sums represented by any debt outstanding at any one time shall not exceed in the agregate the sum of fifty million dollars or such further sums as the Minister shall authorize from time to time.”

The law also establishes other regulations governing the use issuance of Municipal Paper, including rules regarding the management and use of the Interest Reserve Fund, as well as the cost-offsetting measures as it relates to trade license fees or property taxes to holders in the event the Council defaults.

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