GENERAL LOAN AND INSCRIBED STOCK ORDINANCE

GENERAL LOAN AND INSCRIBED STOCK ORDINANCE

CHAPTER 72.

THE GENERAL LOAN AND INSCRIBED
STOCK ORDINANCE.

ARRANGEMENT OF SECTIONS.
Section Page
1. Short title ............................. ... ... ... ... 478
2. Interpretation ............................. .. ... ... ... 478
3. Loans to be raised by debenture or inscribed stock ... 478
4. Loans to be a charge upon general revenue ... ... ... 478

DEBENTURES.
5. Borrowing upon debentures ... . ......... ... ... ... ... 478
6. Amount of each debenture ................. ... ... ... ... 479
7. Redemption by annual drawings or by purchase ... ... 479
8. Interest coupons .. . .................. ... ... ... ... 479
9. Form of debenture and coupons ............ ... ... ... ... 479
10. Debentures and coupons transferable by delivery ... ... 479
11. Registration of debentures .............. ... ... ... ... ... 479
12. Payment of interest ..................... 480
13. Mode of provision for payment of interest ... ... ... ... 480
14. Further provision of sums for redemption - ... ... ... 480
15. Application of sinking fund ............. ... ... ... ... ... 480
16. Sinking fund for fixed date debentures ... ... ... ... 481
17. Disposal of sinking fund when debentures redeemed by
purchase or drawings .................. ... ... ... ... 481
18. Appointment of day for drawing .......... ... ... ... 481
19. Notice of time and place of drawing .. ... ... ... ... 481
20. Mode of drawing ......................... ... ... ... ... 482
21. Notice of debentures drawn for redemption ... ... ... 482
22. Payment of drawn debentures ............. ... ... ... ... 482
23. Cesser of interest from day appointed for repayment ... 482
24. Redeemed debentures to be cancelled ..... ... ... 482

INSCRIBED STOCK.
25. Borrowing upon inscribed stock .......... ... ... ... ... 482
26. When principal to be repaid ............. ... ... ... ... 483
27. Mode of provision for payment of interest ... 483
28. Mode of provision for payment of principal ... ... ... 483
29. Sinking fund ............................ ... ... ... ... ... 483
30. Repayment charge on revenue when sinking fund insufficient 484
31. Expenses of management .................. ... ... ... 484
32. Powers of Governor regarding conversion etc. ... ... 484
33. Exchange of securities for inscribed stock ... ... ... 485
34. Converted securities to be cancelled .... ... ... ... ... 485
35. Apportionment of sinking fund upon conversion ... ... ... 485
36. Disposal of sinking fund upon release ... ... ... 485
37. Method of creation, issue and transfer, etc . .... ... ... 486

GENERAL.
38. Raising of loans in Hong Kong ........... ... ... 486
39. Cesser of sinking fund contributions ... ... ... ... ... ... 486





CHAPTER 72.

GENERAL LOAN AND INSCRIBED STOCK.

To declare the terms and conditions applicable to loans
authorized to be raised by the Government of Hong
Kong and to provide for the creation of Hong Kong
inscribed stock.

[18th April, 1913.]

WHEREAS it is expedient to define in one Ordinance the terms
and conditions applicable to loans hereafter authorized to be
raised in England by the legislature of the Colony of Hong
Kong:

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 intituled '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.

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 has been given
or is hereafter given to raise any sum of nioney for the purposes
mentioned in such Ordinance, the Governor, or the Crown
Agents acting on bis behalf, may froill time to time, as he or they
may deem expedient, raise such sum either by debentures or by
Hong Kong inscribed stock, or partly by debentures and partly
by, inscribed stoelk.

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 Hong Kong.

5. When the Governor or the Crown Agents acting on his
behalf deem it expedient to raise money by deben





tures, such debentures shall be issued in London on behalf of the
Government of Hong Kong by the Crown 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, drawings 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 n 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 moneys
represented thereby shall cease and, determine, whether payment of
the principal has been demanded or not.

8. There shall be attached to every debenture coupons for the
payment of the interest to beconie due in each halfyear upon the
principal represented by the debenture. The coupons shall be
sufficient in number to provide for the payment 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
Governnient of Hong Kong, 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, may direct or
approve.

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

1 1. Every debenture shall, before being issued, be registered 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 in that behalf 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 outstanding
the Governor shall, in cach half-year endinor with the day on
which the interest on the debentures falls due, appropriate out
of the general revenues and assets of the Colony of Hong Kong
a sum equal to one half-year's interest on the whole of the
debentures issued, including and 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 them to pay
thereout the then current half-year's interest 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 deberitures have not been presented for payment on
the day appointed for payment and have in consequence, not
beem paid.

14. After the date specified in the Ordinance mutliorizing
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

revenues and assets of the Colony of Hong Kong for the
formation of a sinking fund an additional sum equal to one-half

of the annual contribution specified in the prospectus of 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 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 with the remittance mentioned
section 13.

15. The sinking fund shall be applied in the first place in
payment, of all expenses of or incidental to the redemption 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 is not required for the
payment of interest for the current half-year in the purebase 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 approkal of the Secretary of State, change
any such investments aiid shall hold such fund in 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 is not required for immediate paynients, at
interest, and shall hold all such moneys and the accumulations
thereon in trust, to apply them in thefirst place to the purchase or the
debentures when they can be obtained at a price not exceeding par,
and secondly to the redemption of the debentures by means of annual
drawings.

18. After the date specified in the Ordinance authoriza loan as that on
which the contributions to the sinkinly 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 redemption of debentures
has been applied in the purchase thereof, appoint a day in that year for
the drawing by lot of the debentures to be redeemed.

19. If a day is appointed for drawing the Crown



Agents shall give, by advertisement in the London Times





newspaper, not less than fifteen days' previous notice, specifying
the day on which and the hour 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 bolder of any
debenture may if he thinks fit be present, mind shall then in the
presence of such debenture holders if any, as may attend, and of
a notary public, draw by lot out of he whole number of
debentures for the time being outstanding, debentures of the specified
nominal arnount.

21. The Grown Agents shall thereupon declare the distinguishing
numbers of the debentures drawn for redemption, and
as soon as be, by

in the London Times newspaper, specify those numbers and
appoint a not being later as to each debenture Artn the day
on which the then current half-year's interest thereon is payable,
on which the principal moneys represented In, the debentures so
disdriguished paid be repaid.

22 On he day so appointed the Crown Agents shall, at their
office in Condon, on dernand pay to the holders of the
debentiwes dntwn for repaynient the principal moneys
represented by those debentures, with all interest payable
thereon up to that day.

23. From and after the appointed for the repayment
of Clubenture all interest on the principal represented
thereby shall cease and deternnine whether payment oF the
principal has been demanded or not.

24. Upon the payment of the principal moneys represented
by any debennixe, the debenture with all the coupons thercunto
being shall be delivered up to the Crown Agents be by
them cancelled and forwarded to the Government of Hong
Kong. Any debenture redeemed by purchase shall otherwise be
so cancelled and forwarded.

25. When the Governor or the Crown Agents acting on his
behalf deem a expedient to raise money the issue of Hong
Kong inscribed stock, then such stock shall be issued England
by the Crown Agents under the pro-





visions of the Colonial Stock Acts, 1877 tO 1934 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 front 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 has been demanded or not.

27. So long as any of the inscribed stock remains 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 Agents 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 iii the Ordinance authorization
in issue of inscribed stock as that on which the con-

tibution to the sinking fund shall commence the Governor


shall further appropriate Out of the said revenues and assets in each
half-year ending is aforesaid for the formation of the sinking fund an
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 relating 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 mentioned in section 27.

29. The Crown Agents shall, for the purpose of forming such sinking
fund, from time to time which


of the money so remitted to thern as aforesaid as is not 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 State, change any such Investments, and shall hold such
fund in trust for repayment of the principal moneys for the time being
represented by the inscribed stock.

30. In case any sinking fund provided for by this Ordinance is
insufficient for the payment of all the moneys borrowed under the
authority of this Ordinance at the time the same becomes due, the
Governor shall make good the deficiency out of the general reventies
assets of the Colony.

31. All expenses of or incidental to the management of any
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 and authorities

(a)he may authorize the agents when issulnoally loan
In the form of debentures to declare that such debentures
will be convertible into inscribed stock at such dates and on
such terms as may be prescribed by the Crown

at the time of the issue of the debentures;

(b)he may declare all or any of the Hong Kong loans,
whethter existing in the from of stock or debentlires, to be
convertible into inscribed stocks, to be issued under the
provisions of this Ordinance;

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

(d)he May authorize the creation and sale of any such inscribed
stock or debentures for the purpose of

money for any outstanding

loans, for paying any expense in the creation oF
inscribed stock and otherwise for carrying out the
provisions of this Ordinance.,

(c)any conversion so authorized 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 all one mid partly in the
other.





33. Nothing in this Ordinance contained shall authorize an
increase of the capital or of the annual charge on ally loan except

(a)when securities exchanged for inscribed stock bear a rate of
interest not less than the Mscribed stock, an additional
amount of inscribed stock may be created and issued to
make up the difference in salealile 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 this may be required to defray the stamp
duties aiid all other expense; incidental to the conversion;

(c)in accordince with such terms and conditions hs may lie
prescribed under paragraph (a) of

132.

34. The securities exchanged or


into inscribed stock under the provisions of this
shall be cancelled bY the Crown Acrents and the
debentures shall be cancelled and transmitted
to the Governor.

35. The truslees of any sinking fund appointed under this
Ordinance, and acting under any Ordinance authoriz-

ing the issue of any securities which may be, exchanged into inscribed
stock or cancelled or purchased under the provisions of this
Ordinance, shall determine what amount of the sinking fund field 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 field by them on
account Of such sinking fund, the amount of the debt remaining a
charge (in such sinking fund, and such matters as the trustees may
think fit to take into account.

36. So much of any fund 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 is
the Governor, with the advice and consent of the Legisla-
tive Council, may direct.





37. The Crown Agents rilay from time to time at the request of the
Governor, make arrangements for all or any of the following things

(a) for inscribing stock in their books;

(b)for the creation, illscription and issue Of inscribed
slocks;

(e)for effecting the conversion of loans into inscribed stock ;

(d)for paying interest on inscribed stock and managing the
transfers thereof;

(e)for issuing inscribed stock certificates to bearer and as often
as occasion shall require reinscribing them.

38. This Ordinance shall be applicable only to the raising of loans
in England, and nothing in this Ordinice

shall prevent the raising of loans in the Colony upon such
and conditions as shall be specified in any Ordinance authorizing the
raising of such loans.

39. Notwithstanding anything to the contrary contained
in till's Ordinance, if at any time the trustees of the sinking
fund of any loan issued to be issued under the provisions
of this Ordinance (other than a debenture loan redeemable
by annual drawings or by purchase in the market) are
satisfied that the value of the fund will be sufficient with
further accumulations of interest but without further pay-
ments of contributions to enable the loan to be redeenled
out of the proceeds of the sinking fund when the same falls
to be redeemed, Governor may with the approval
of the Secretary of State suspend further payments of con-

tibutions to the said sinking fund: Provided always that


to the sinking fund shall be recommenced if the

contributions trustees at any time inform the Governor that it is necessary.
Originally 7 of 1913. Fraser 7 of 1913. (40 & 41 Vict. C 59; 55 & 56 Vict. C. 35; 63 & 64 Vict, c. 62; 24 & 25 Geo. 5, c. 47.) 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. Registration 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. [s. 19 cont.] Mode of 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; 55 & 56 Vict. c. 35; 63 & 64 Vict. C. 62; 24 & 25 Geo. 5, c. 47.) 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. [s. 29 cont.] Charge upon general revenue. Expenses to be paid out of sinking fund. Powers of Governor. Debentures convertible into inscried stock on conditions. Conversion of loans generally. Creation and issue of stock in exchange for securities. Creation and sale of inscribed stock or debentures 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 fund released. How to be disposed of. Creation, inscription, issue, conversion and transfer of inscribed stock. Raising of loans in Hong Kong. Cesser of sinking fund contributions.

Originally 7 of 1913. Fraser 7 of 1913. (40 & 41 Vict. C 59; 55 & 56 Vict. C. 35; 63 & 64 Vict, c. 62; 24 & 25 Geo. 5, c. 47.) 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. Registration 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. [s. 19 cont.] Mode of 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; 55 & 56 Vict. c. 35; 63 & 64 Vict. C. 62; 24 & 25 Geo. 5, c. 47.) 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. [s. 29 cont.] Charge upon general revenue. Expenses to be paid out of sinking fund. Powers of Governor. Debentures convertible into inscried stock on conditions. Conversion of loans generally. Creation and issue of stock in exchange for securities. Creation and sale of inscribed stock or debentures 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 fund released. How to be disposed of. Creation, inscription, issue, conversion and transfer of inscribed stock. Raising of loans in Hong Kong. Cesser of sinking fund contributions.

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