GENERAL LOAN AND INSCRIBED STOCK ORDINANCE, 1913

GENERAL LOAN AND INSCRIBED STOCK ORDINANCE, 1913

THE
ORDINANCES OF HONGKONG.

-1913.-

No. 1 of 1913, incorporated in No. 1 of 1845.

No. 2 of 1913, repealed by No. 4 of 1914.

No. 3 of 1913, incorporated in No. 3 of 1890.

No. 4 of 1913, incorporated in No. 65 of 1911.

No. 5 of 1913, incorporated in No. 9 of 1897.

No. 6 of 1913, repealed by No. 2 of 1917.

_____________

No. 7 of 1913.
An Ordinance to declare the terins and conditions applica-
ble to loans authorlsed to be ralsed by the Government
of Hongkong and to provide for the creation of
Hongkong inscribed stock.

[18th April, 1913.]

WHEREAS it is expedient to define in one Ordinanco the terms and
conditions applicable to loans hereafter authorised to be raised by
the legislature of the Colony of Hongkong:

AND WHEREAS it is expedient to provide for the creation of inscribed
stock, and to enable the -Colony to take advantage of the provisions
of an Act of the Imperial Parliament entitled The Colonial Stock
Act, 1877 and the subsequent Acts on the same subject

1. This Ordinance may be cited as the General Loan and
Inscribed Stock. Ordinance, 1913.





2. In this Ordinance, Crown Agents means the person.
or persons for the. time being acting as Crown Agents for
the Colonies in England.

3. Whenever by any Ordinance authority shall have been
given, or shall hereafter be given to raise any sum of money
for the purposes mentioned in such Ordinance, the Governor,
or the Crown Agents acting on his behalf, may, from time to
tinie, as he or they may deem expedient, raise such sum
either by debentures or by Hongkong inscribed stock, or
partly by debentures and partly by inscribed stock.

4. The principal moneys and interest represented by the
debentures or inscribed stock issued under the provisions of
this Ordinance are hereby charged upon and shall be payable
out of the general revenues and assets of the Colony of
Hongkong.

5. When the Governor, or the Crown Agents acting on
his behalf, shall deem it expedient to raise money by
debentures, such debentures shall be issued in Luidon on
behalf of the Government of Hongkong by the Grown Agents,
upon the best and most favourable terms that can be obtained,
and shall be signed by any one of them on that behalf.

6. Every debenture issued under the provisions of this
Ordinance shall be for the sum of not less than one hundred
pounds sterling.

7. The debentures shall be redeemable at par at the option
of the Government by purchase in the market, or by annual
draivings, or on a date to be named in that behalf by the
Governor or by the Crown Agents acting on his behalf, as
determined when issuing the debentures, such date not being
later than sixty years from the date of issue, from and after
which date all interest on the principal money represented
there-by shall cease and determine, whether payment of the
principal shall have been demanded or not.

8. There shall be attached to every debenture coupons for
the payment of the interest to become due in each half-year
upon the principal represented by the debenture. The

As amended by Law Rev. Ord., 1924.
As amendod by No. 16 of 1921.





coupons shall be sufficient in number to provide for the pay-
ment of the interest, either during the whole period for which
the debenture has to run, or for such limited period as the
Crown Agents, acting on behalf of the Government of
Hongkong, may determine.

9. The debentures, and the coupons thereto shall be in
such form as the Governor, or the Crown Agents acting on
his behalf, inay direct or approve.

10. Every debenture and coupon, and the right to receive
the principal and interest represented thereby, shall be
transferable by delivery.

11. Every debenture shall, before being issued, be reg-
istered in a register book to be kept for that purpose at
the office in London of the Crown Agents.

12. The interest upon the principal represented by each
debenture shall run from the day named mi that belialf in
the debenture, and shall be paid half-yearly on the days
named in that behalf in the debenture at the office in
London of the Crown Agents.

13. So long as any of the debentures remain outstand-
ing, the Governor shall, in each half-year ending with the
day on which the interest on the debentures falls due,
appropriate out of the general revenues and assets of the
Colony of Hongkong a sum equal to one half-year's interest
on the whole of the debentures issued, including any which
may have been redeemed, but exclusive of any which may
have been at any time exchanged for inscribed stock, and
shall remit that sum to the Crown Agents at such time as
will enable thern to pay thereout the then current half-year's
inte ' rest on the day on which it falls due. Debentures shall
not be deemed to be outstanding for the purpose of this
Ordinance by reason only that one or more of the debentures
have not been presented for payment on the day appointed
for payment and have, in consequence, not been paid.

As arnended by No. 16 of 1921.





14. After the date specified in the Ordinance authorising
the loan as that on which the contributions to the sinking
fund shall commence, the Governor shall, in each half-year
ending as aforesaid, appropriate out of the said revenues
and assets of the Colony of Hongkong for the formation of
a sinking fund an additional sum equal to ono hall of the
annual contribution specified in the prospectus, or, in the
case of a loan not issued publicly, in the terms of issue
relating to the loan, and the said contribution shall be in
respect of the total nominal amount of all the debentures
issued, including any which niay have been redeemed, but
exclusive of any which may have been at any time exchanged
for inscribed stock, and shall remit that sum to the Crown
Agents with the remittance hereinbefore mentioned.

15. The sinking fund shall be applied in the first place
in payment, of all expenses of, or incidental to, the redemp-
tion of the debentures and the cost and expenses of all notices
required by this Ordinance to be given and in the next
place, and subject to the aforesaid payments, in repayment,
of the principal moneys for the time being represented by
the debentures.

16. In the case of debentures redeemable on a date to
be named when issuing the debentures, the Crown Agents
shall invest so much of the money so remitted to them as
aforesaid as shall not be required for the payment of
interest for the current half-year in the purchase of such
securities as may be approved by His Majesty's Principal
Secretary of State for the Colonies as a sinking fund for
the final extinction of the debt, and the Crown Agents
shall also invest the dividends, interest or produce of such
investments in the purchase of like securities, and may, from
time to time, with the approval of the Secretary of State,
change any such investments and shall hold such fund ill
trust for the repayment of the principal moneys for the
time being represented by the debentures.

17. In the case of debentures redeemable by annual
drawings, the Crown Agents shall place and keep the
moneys so remitted to them or so much thereof as may not
be required for immediate payments, at interest, and shall

As amended by No. 16 of 1921.





hold all such inoneys and the accumulations thereon in trust,
to apply thein in the first place to the purchase of the
debentures when they can be obtained at a price not exceed-
ing par, and secondly, to the redemption of the debentures
by means of annual drawings.

18. After the date specified in the Ordinance authorising
a loan as that on which the contributions to the sinking
fund shall commence in respect of that loan, and so long
thereafter as any of the debentures remain outstanding and
unsatisfied, the Crown Agents shall, in every year, unless
the whole of the money applicable in that year to the
redemption of debentures, has been applied in the purchase
thereof, appoint a day in that year for the drawing by lot
of the denentures to be redeemed.

19. If a day is appointed for drawing, the Crown Agents
shall give, by advertisement in the London Times news-
paper not less than fifteen davs previous notice, specifying
the day on which, and the honr and place at which, the
drawing will take place.

20. On the day and at the hour and place so specified,
the Crown Agents shall hold a meeting, at which the holder
of any debenture may, if he thinks fit, be present, and shall
then in the presence of such debentnre holders, if any, as
may attend, and of a notary public, draw by lot, out of the
whole number of debentures for the time being outstanding,
debentures of the specified nominal amount.

21. The Crown Agents shall thereupon declare the dis-
tinguishing numbers of the debentures drawn for redemption,
and shall as soon as may be, by advertisement in the London
Times newspaper, specify those numbers and appoint a day,
not, being later as to each debenture than the day on which
the then current half-year's interest thereon is payable, on
which the principal moneys represented by debentures
so distinguished will be repaid.

22. On the day so appointed, the Crown Agents shall, at
their office in London, on demand, pay to the holders of the
debentures drawn for repayment the principal moneys
represented by those debentures, with all interest payable
thereon up to that day.





28. From and after the day appointed for the repayment
of any debenture all interest on the principal moneys
represented thereby shall cease and determine, whether pay-
ment of the principal shall have been demanded or not.

24. Upon the payment of the principal moneys represented.
by any debenture, the debenture with all the coupons there-
unto belonging shall be delivered tip to the Crown Agents
to be by them cancelled and forwarded to the Government of
Hongkong. Any debenture redeemed by purchase shall
likewise be so cancelled and forwarded.

25. When the Governor, or the Crown Agents acting oil
his behalf, shall deem it expedient to raise inoncy by the issue
of Hongkong inscribed stock, thert such stock shall be issued
in England by the Crown Agents under the provisions of the
Act of the Imperial Parliament. entitled The Colonial Stock
Act, 1877 upon the best and most favourable terms that
can be obtained.

26. All the inscribed stock which may be created under
the provisions of this Ordinance shall be redeemable at par
on a date to be named in that behalf by the Crown Agents
when issuing the stock, such date not being later than sixty
years from the date of issue, from and after which date all
the interest on the principal moneys represented thereby
shall cease and determine, whether payment of the principal
shall have been demanded or not.

27. So long as any of the. inscribed stock shall remain
unredeemed, the Governor shall, in each half-year ending
with the day on which the interest on such inscribed stock
falls due, appropriate out of the general revenues and assets
of the Colony a sum equal to one half-year's interest on the
whole of such inscribed stock, and shall remit that sum to
the Crown Aggents at such time as will enable them to pay
thereout the then current half-year's interest on the day when
it falls due.

28. After the date specified in the Ordinance authorising
an issue of inscribed stock as that on which the contribution
to the sinking fund shall commence, the Governor shall

As amended by No. 16 of 1921.





further appropriate, out of the said revenues and assets in
each half-year ending as aforesaid for the formation of a
sinking fund all additional sum equal to one-half of the
annual contribution specified in the prospectus, or, in the
case of a loan not issued publicly, in the terms of issue relat-
ing to the loan, in respect of the total nominal amount of
such inscribed stock, and shall remit that sum to the Crown
Agents with the remittance hereinbefore mentioned.

29. The Crown Agents shall, for the purpose of forming
such sinking fund, from time to time invest so much of the
money so remitted to them as aforesaid as shall not be
required for the payment of interest for the current half-year
in the purchase of such securities as may from time to time
be approved by His Majesty's Principal Secretary of State
for the Colonies, and shall also invest the dividends, interest
or produce of such investments in the purchase of like
securities, and may from time to time, with the approval of
the Secretary of State, change any such investments, and
shall hold such fund in trust for repayment of the principal
moneys for the tinle being represented by the inscribed stock.

30. In case the sinking funds provided for by this
Ordinance shall be insufficient for the payment of all the
principal moneys borrowed under the authority of this
Ordinance at the time the same shall have become due, the
Governor shall make good the deficiency out of the general
revenues and assets of the Colony.

31. All expenses of or incidental to the management of
the sinking fund, or to the payment of the principal moneys
borrowed, shall be paid out of the sinking fund.

32. The Governor shall also have the following powers
and authorities

(a) he may authorise the Crown Agents when issuing any
loan in the form of debentures to declare that such debentures
will be convertible into inscribed stock at such dates and on
such terms and conditions as may be prescribed by the Crown
Agents at the time of the issue of the debentures;

As amended by Law Rev. Ord., 1924.





(b) he may declare all or any of the Hongkong loans,
whether existing in the form of stock or debentures, to be
convertible into inscribed stock, to be issued under the
provisions of this Ordinance;

(c) he may authorise the creation and issue of such an
amount of inscribed stock in exchange for the securities held
for such loans as may be necessary;

(d) he may authorise the creation and sale of any such
inscribed stock or debentures for the purpose of raising
money for redeeming any outstanding loans, for paying any
expense in the creation of inscribed stock, and otherwise for
carrying out the provisions of this Ordinance;

(e) any conversion so authorised may be effected either by
an arrangement with the holders of existing securities or by
purchase thereof out of moneys raised by the sale of inscribed
stock, or partly in one way and partly in the other.

33. Nothing in this Ordinalice contained shall authorise
an inerease of the capital or of the annual charge on any
loan, except-

(a) when securities exchanged for inscribed stock bear a
rate of interest not less. than the inscribed stock, an addi-
tional amount of inscribed stock may be created and issued
to make up the difference in saleable value between the
securities and the inscribed stock;

(b) in the case of the conversion of securities into inscribed
stock, the Crown Agents shall issue such an amount of
inscribed stock as may be required to defray the stamp
duties and all other expenses incidental to the conversion;

(c) in accordance with such terms and conditions as may
be prescribed under section 32 (a).

34. The securities exchanged or otherwise converted into
inscribed stock under the provisions of this Ordinance shall
be forthwith cancelled by the Crown Agents, and the deben-
tures surrendered shall be cancelled and transmitted to the
Governor.

As amended by Law Rev. Ord., 1924.





35. The trustees of the sinking fund appointed under
this Ordinance, and acting under any Ordinance, authorising
the issue of any securities which may be exchanged into
inscribed stock or cancelled or purchased under the provi-
sions of this Ordinance, shall determine what amount of the
sinking fund held by them and created for repayment of such
securities shall be released, and in the determination of
such question the trustees shall take into consideration the
value of the whole investments held by them on account of
such sinking funds, the - amount of the debt remaining a
charge on such sinking funds, and such matters as the
trustees may think fit to take into account.

36. So much of the sinking funds as may be released
shall either be transferred unto the trustees of the inscribed
stock sinking fund or be disposed of in such a manner as
the Governor, with the advice and consent of the Legislative
Council, may direct.

37. The Crown Agents may from time to time,- at the
request of the Governor, make arrangements for all or any
of the following things:-
(1) for inscribing stock in their books;
(2) for managing the creation, inscription, and issue of
inscribed stocks;
(3) for effecting the conversion of loans into inscribed
stock;
(4) for paying interest on inscribed stock and managing
the transfers thereof;
(5) for issuing inscribed stock certificates to bearer, and,
as often as occasion shall require, re-inscribing them.

38. This Ordinance shall be applicable only to the raising
of loans in England, and nothing in this Ordinance contained
shall prevent the raising of loans in the Colony upon such
terms and conditioits as shall be specified in any Ordinance
authorising the raising of such loans.
[s. 39, rep. Law Revision Ordinance, 1924.]

40. Nothing in this Ordinance shall affect the rights of any
person who holds stock or bonds issued under the authority
of the General Loan and Inscribed Stock Ordinance, 1893.

As amended by Law Rev. Ord., 1924.
[Originally No.7 of 1913. No.16 of 1921. Law Rev. Ord., 1924.] 40 & 41 Vict. C.59. Short title. Interpretation. Loans to be raised by debentures or inscribed stock. Loans to be a charge upon general revenue. Borrowing upon debentures. Amount of each debenture. Debentures may be redeemed by annual drawings or by purchase in the market or on a fixed date. Interest coupons. Form of debenture and coupons. Debentures and coupons transferable by delivery. Registry of debentures. Payment of interest. Mode of providing for payment of interest on debentures. Further sums to be remitted for the redemption of the debentures. Application of sinking fund. Creation of sinking fund for redemption of debentures payable on a fixed date. Disposal of sinking fund when debentures are redeemed by purchase or by annual drawings. Appointment of day for drawing of debentures. Notice of time and place appointed for drawing. Mode of drawing. Notice of debentures drawing. Notice of debentures drawn for redemption. Payment of drawn debentures. Cesser of interest from day appointed for payment of principal. Redeemed debentures to be cancelled. Borrowing upon inscribed stock. 40 & 41 Vict. C. 59. When the principal is to be repaid. Mode of providing for the payment of interest on inscribed stock. Mode of providing for payment of principal of inscribed stock. Creation of sinking fund. Charge upon general revenue. Expenses to be paid out of sinking fund. Powers of Governor. Debentures convertible into inscribed stock on conditions prescribed by Crown Agents at time of issue. Conversion of loans generally. Creation and issue of stock in exchange for other securities. Creation and sale of inscribed stock or debentures to raise loans and for other purposes. Arrangements for conversion. Exchange of securities for inscribed stock. Converted securities to be cancelled. Trustees to apportion amount of sinking fund released by conversion. Sinking funds released how to be disposed of. Creation, inscription, issue, conversion and transfer of inscribed stock. Raising of loans in Hongkong. Saving clause. Ordinance No.1 of 1893.

[Originally No.7 of 1913. No.16 of 1921. Law Rev. Ord., 1924.] 40 & 41 Vict. C.59. Short title. Interpretation. Loans to be raised by debentures or inscribed stock. Loans to be a charge upon general revenue. Borrowing upon debentures. Amount of each debenture. Debentures may be redeemed by annual drawings or by purchase in the market or on a fixed date. Interest coupons. Form of debenture and coupons. Debentures and coupons transferable by delivery. Registry of debentures. Payment of interest. Mode of providing for payment of interest on debentures. Further sums to be remitted for the redemption of the debentures. Application of sinking fund. Creation of sinking fund for redemption of debentures payable on a fixed date. Disposal of sinking fund when debentures are redeemed by purchase or by annual drawings. Appointment of day for drawing of debentures. Notice of time and place appointed for drawing. Mode of drawing. Notice of debentures drawing. Notice of debentures drawn for redemption. Payment of drawn debentures. Cesser of interest from day appointed for payment of principal. Redeemed debentures to be cancelled. Borrowing upon inscribed stock. 40 & 41 Vict. C. 59. When the principal is to be repaid. Mode of providing for the payment of interest on inscribed stock. Mode of providing for payment of principal of inscribed stock. Creation of sinking fund. Charge upon general revenue. Expenses to be paid out of sinking fund. Powers of Governor. Debentures convertible into inscribed stock on conditions prescribed by Crown Agents at time of issue. Conversion of loans generally. Creation and issue of stock in exchange for other securities. Creation and sale of inscribed stock or debentures to raise loans and for other purposes. Arrangements for conversion. Exchange of securities for inscribed stock. Converted securities to be cancelled. Trustees to apportion amount of sinking fund released by conversion. Sinking funds released how to be disposed of. Creation, inscription, issue, conversion and transfer of inscribed stock. Raising of loans in Hongkong. Saving clause. Ordinance No.1 of 1893.

https://oelawhk.lib.hku.hk/items/show/1274

1923

v5

No. 7 of 1913

9