WAR LOAN ORDINANCE, 1916

WAR LOAN ORDINANCE, 1916

No. 12 of 1916.

An Ordinance to authorise the ralsing of a war Loan.

[20th October, 1916.]

1. This Ordinance inay be cited as the war Loan Ordi-
nance, 1-916.

2. The Governor may raise a sum not exceeding three
million dollars by the issue in the Colony of bonds and any
sum so raised shall be placed at the disposal of His Majesty's
Governrment for the prosecution of the present war.

3.-(1) The principal moneys and interest represented by
the bonds issued under the provisions of this Ordinance are
hereby charged upon and shall be payable out of the revenue
and assets of the Colony.

(2) The Governor shall appropriate out of the revenue and
assets of the Colony such suins as may be necessary to
provide for the expenses of the flotation and management of
the loan.

4.-(1) Subject. to the provisions of sub-sections (2) to
(8), both inclusive, the bonds shall be redeemable at par on
the 1st day of November, 1928, from and after which date
all interest on the principal moneys represented thereby
shall cease and determine, whether payment of the principal
shall have been demanded or not.

(2) At any tinie or times after the 31st day of October,
1921, the Governor may approve of the redemption by
purchase of bonds of such denominations and to such
respective total nominal values as he may from time to time
determine.

(3) At any time or times after the 31st day of October,
1921, the Governor may appoint a day for the drawing by
lot of bonds of such denominations and to such respective
total nominal values as he may from time to time determine.

(4) If a day is appointed by the Governor for drawing,
the Colonial Treasurer shall give, by advertisement in the

As amended by No. 17 of 1917 and Law Rev. Ord., 1924.





Gazette, not less than fifteen days previous notice, specifying
the day on which, and the hour and place at which, the
drawing will take place, and the denominations and respect-
ive total nominal values of the bonds to be drawn.

(5) On the day and at the hour and place so specified, the
Colonial Treasurer shall hold a meeting, at which the holder
of any bond may, if he thinks fit, be present, and shall then
in the presence of such bond holders, if any, as may attend,
draw by lot, out of the whole number of bonds for the time
being outstanding of the respective denominations specified,
bonds to such respective total nominal values as shall have
been specified.

(6) The Colonial Treasurer shall thereupon declare the
distinguishing numbers of the bonds drawn for redemption,
and shall, as soon as may be, by advertisement in the Gazette,
specify those numbers and appoint a day, not being earlier
than fifteen days from the day of the drawing and not being
later than the day on which the then current half-year's
interest is payable, on which the principal moneys repre-
sented by the bonds so distinguished will be repaid.

(7) On the day so appointed there shall be paid to the
holders of the bonds drawn for redemption, at the head office
of the Hongkong and Shanghai Banking Corporation, the
principal moneys represented by those bonds, with all
interest payable thereon up to that day.

(8) From and after the day appointed for the repayment
of any bond, all interest on the principal moneys represented
thereby shall 'cease and determine, whether payment of the
principal shall have been demanded or -not.

5. Every bond and coupon and the right to receive the
principal and interest represented thereby shall be transfer-
able by delivery.

6. The Governor shall in each half-year ending with the
day on which the interest on the bonds falls due appropriate
out of the revenue and assets of the Colony a sum equal to
one half-year's interest on the whole of the bonds outstand-
ing in order that the interest for the said half-year may be
paid therefrom.





7. The Governor shall in each year ending on the 31st day
of October appropriate out of the revenue and assets of the
Colony for the formation of a sinking fund an additional sum
of not less than six dollars and sixty-six cents per hundred
dollars on the total nominal value of all the bonds issued,
including any which may have been redeemed.

8.-(1) The sinking fund shall be applied in the first
instance in payment of all expenses of or incidental to the
redemption of the bonds, and in the next place in repayment
of the principal moneys represented by the bonds.

(2) Incase the. sinking fund shall be insufficient for the

payment of the principal moneys at the time when such pay-
ment shall become due, the Governor shall make good the
deficiency out of the revenue and assets of the Colony.

9. The moneys appropriated for the formation of a
ing fund shall, so far as they are not required for the pur-
poses of section 8, be invested in such manner as may be,
approved by the Governor in Council and the dividends, in-
terest or produce of such investment shall be invested in like
manner.

10. The interest on each bond shall be at the rate of six
per cent per annum and shall run from the day named in
that behalf in the bond and shall be paid half-yearty at the
head office of the Hongkong and Shanghai Banking Corpora-
tion on the days named in that behalf in the coupons.

11. The Governor shall have power---
(a) to determine the amounts for which the bonds shall be
issued;
(b) to determine the form of the bonds;
(c) to determine the terms upon which the bonds shall be
issued, whether with regard to the price of issue or the con-
ditions of application and deposit or otherwise;
(d) to provide for the issue in the first instance of scrip
certificates to be exchanged later for bonds;
(e) to provide for the issue of coupons for the payment of
interest;

As amended by No. 17 of 1917.
As amended by Law Rev. Ord., 1924.





(f) to determine the days on which the half-yearly interest
is to 'be payable;

(g) to give the necessary directions for the redemption of
the bonds whether by drawing or purchase;

(h) to give any other necessary directions for the purpose
of carrying out this Ordinance and for the management of
the loan, provided that such directions are not inconsistent
with the provisions of this Ordinance.

12. Bonds issued mider this Ordinance and the principal
and interpst represented thereby shall be exempt from all
duties and all taxes now leviable or which may hereafter be
leviable in the Colony.

13. On the. repaynlent of the principal moneys represented
by any bond and on the repurchase of any bond, the bond
shall be delivered up to the Hongkong and Shanghai Bank-
ing Corporation and shall lie cancelled by the said Corpora-
tion.

14. All moneys appropriated out of the revenue and assets
of the Colony for the payment of the interest on the bonds
and for the formation of the sinking fund, and all dividends,
interest or produce of any investments which represent any
portion of the sinking fund, shall be deducted from the
Colonial revenues before the calculation of the stims payable
to His Majesty's Government under the Defence Contribution
Ordinance, 1901.

No. 13 of 1916, incorporated in No. 5 of 1901.
No. 14 of 1916 and No. 15, of 1916, repealed by
Law Revision Ordinance, 1924.

* As amended by No. 1 of 1917.
[Originally No. 12 of 1916. No. 1 of 1917. No. 17 of 1917. Law Rev. Ord., 1924.] Short title. Authority to raise loan. Loan to be a charge on general revenue. Redemption. Transfer by delivery. Provision for payment of interest. Provision for sinking. Application of sinking fund. Investment of sinking fund. Payment of interest. Powers of Governor. Exemption from duties and taxes. Delivery up of bond on repayment or repurchase. Exemption from Defence Contribution. Ordinance No. 1 of 1901.

[Originally No. 12 of 1916. No. 1 of 1917. No. 17 of 1917. Law Rev. Ord., 1924.] Short title. Authority to raise loan. Loan to be a charge on general revenue. Redemption. Transfer by delivery. Provision for payment of interest. Provision for sinking. Application of sinking fund. Investment of sinking fund. Payment of interest. Powers of Governor. Exemption from duties and taxes. Delivery up of bond on repayment or repurchase. Exemption from Defence Contribution. Ordinance No. 1 of 1901.

https://oelawhk.lib.hku.hk/items/show/1305

1923

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No. 12 of 1916

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