(a)
open accounts for and accept deposits from-
(iii)
funds, corporations and institutions controlled by the Government; and
(iv)
financial institutions;
(b)
buy, sell, discount and re-discount inland bills of exchange, promissory notes, treasury bills or other instruments;
(c)
subject to subsection (4), purchase and sell securities of the Government which have been publicly offered on issue which is being made to the public at the time of acquisition and such securities are to mature within a period of twenty years;
(d)
grant advances to its customers specified under paragraph (a) for fixed periods not exceeding three months against publicly issued treasury bills of the Government maturing within ninety-three days;
(e)
grant to financial institutions advances for fixed periods not exceeding three months, at a rate of interest not being less than one percent above the Bank's standard re-discount rate against promissory notes secured by the pledge with the Bank-
(i)
securities of the Government which have been publicly offered for sale and are to mature within a period of twenty-five years, so, however, that any advance so secured shall not at any time exceed seventy-five percent of the market value of the security pledged and that the total amount of the securities held by the Bank, whether under this subparagraph or otherwise, is within the limitations imposed under subsection (4) and that where in the opinion of the Bank there is no established market value for those securities the value shall be determined by the Bank; the securities referred to exclude such bonds issued for purposes of capitalisation of the Bank;
(ii)
bills of exchange and promissory notes as are eligible for purchase, discount or re- discount by the Bank, so, however, that any advances so secured shall not at any time exceed seventy-five percent of the normal value of the instrument pledged;
(iii)
warehouse warrants issued by lawfully formed general and bonded warehouses or their equivalent securing possession of goods; and
(iv)
required reserves held at the Bank;
(f)
subject to subsection (4), grant to financial institutions medium and long-term loans for periods not exceeding fifteen years upon such securities as the Board of Directors of the Bank may prescribe; and
(g)
guarantee loans granted by financial institutions not exceeding twenty percent of the core capital or as may be determined by the Board.
(a)
issue demand drafts and effect other kinds of remittances payable at its own offices or at the offices of its agents or correspondents;
(b)
purchase and sell gold coin or gold bullion;
(c)
invest in securities of the Government for any amount, and to mature at any time, on behalf of staff funds and superannuation funds and other internal funds of the Bank;
(d)
with the approval of the Minister and subject to subsection (4), subscribe to, hold and sell shares of any corporation or company established for the purpose of facilitating the financing of economic development;
(e)
maintain accounts with central and other banks and act as correspondent, banker or agent for any central or other bank or other monetary authority outside Uganda and for any international monetary authority established under Government auspices;
(f)
accept from its customers for custody securities and other articles of value; and
(g)
undertake on behalf of customers specified under subsection (1) (a) and correspondents the purchase, sale, collection and payment of securities, currencies and credit instruments within and without Uganda and the purchase and sale of gold.
(3)
Subject to this Act, the Bank shall not-
(a)
engage in trade or otherwise have a direct interest in any commercial, agricultural, industrial or any other undertaking except such interest as the Bank may in any way acquire in the course of the satisfaction of debts due to it, which interest acquired shall be disposed of as soon as may be reasonably practicable;
(b)
purchase the shares of any body corporate or incorporate, including the shares of any financial institution;
(c)
grant loans upon the security of any shares; or
(d)
grant unsecured advances or advances secured otherwise than as provided for under subsection (1)(d) and (e), but if any debts due to the Bank become, in the opinion of the Bank, endangered, may secure such debts on any real or other property of the debtor and may acquire such property which shall be resold as soon as may be reasonably practical.
(4)
At any particular date the total amount of-
(a)
long-term securities or loans referred to under subsection (1)(c) and (f);
(b)
subscriptions under subsection (2)(d); or
(c)
any other long-term loan other than securities held under subsection (2)(c), shall not exceed twenty percent of the core capital of the Bank or such other percentage as the Board may determine.
(5)
Without prejudice to any provision contained in this section, the Bank may do all matters and things that are incidental or subsidiary to its functions under this Act.
(6)
Notwithstanding anything contained in this section, the Bank may, with the approval of the Minister, establish a credit guarantee scheme, a development finance fund, and any other scheme for developmental purposes not exceeding ten percent of the core capital of the Bank.
(7)
A scheme or fund referred to under subsection (6) shall be established by a statutory instrument, in which instrument the structure and operations of the scheme and other matters connected to it shall be spelt out.
