HONG KONG DOLLAR LOAN ORDINANCE

HONG KONG DOLLAR LOAN ORDINANCE

CHAPTER 73.

HONG KONG DOLLAR LOAN.

To make provision for a loan of million dollars
for Ihe carrying out of certain public works, for
redemption of certain inscribed stock and for other
purposes.

[15th June, 1934.]

1. This Ordinance may be cited as the Hong Kong Dollar Loan
Ordinance.

2. The Governor is hereby authorized from time to
line to issue bonds to an amount sufficient to produce in
the aggregate gate a sum not exceeding twenty-five million
dollars and such further sum as may be necessary to defray
the expenses of the issue and management of the loan.

3.The principal moneys and interest represented by

the bonds issued under the provisions of this Ordinance are
liereby charged upon and shall be payable out of the revenue-
and [4

assets of the Colony.

(i) The Sum to be produced, not exceeding twentyfive million
dollars in addition to the amount necessary to defray the of
issuing and managing the loan, may be raised by one or more issues of
bonds in accordance with the provisions of this Ordinance.

(2) The bonds of each such issue shall be redeemable at par on the
day of July in each of the twenty-five cars following the year in
which they were issued, at the annual rate of one twenty-fifth of such
issue.

(3) At any time after the ist day of January, 1935, in each
successive year the Governor shall appoint a day, not being later than
the 30th day of June, on which bonds to the value of one twenty-fifth
of each such issue shall be drawn for redemption.

(4) When a day is appointed by the Governor for drawing, the
Accountant General shall give, by advertisernent in the Gazette, not
less than fifteen days' previous





notice, specifying the date, flour and place at which the drawing will
take place.

(5) On the day and at the hour and place so specified the
Accountant General 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 total
number of bonds of every issue which are then outstanding, bonds to
the nominal value of one twenty-fifth of each such issue.

(6) The Accountant General shall thereupon declare the
distinguishing numbers of the bonds drawn for redemption, and shall,
as soon as may be, advertise such numbers in the Gazette.

(7) On the i5th day of july following the date of any such draw the
principal moneys represented by the bonds so drawn for redemption,
with all interest due thereon up to that day, shall become payable either
at the head office of The Hongkong and Shanglial Banking
Corporation or at the office of The Chartered Bank of Indla, Australia
and China in Hong Kong.

(8) From and after the day, on which the principal moneys
represented by any such bond become so payable in interest thereon
shall cease and determine, whether payment of the principal shall have
been demanded or not.

(9) In addition to such yearly redemption by drawing
of bonds, the Governor may, at any time or times, authorize
the redemption, by purchase at current market rates, of
bonds of such issues and of such denominations and to
such respective total values as he may from time to time
determine. [5

5.Every bond and coupon and the right to receive

the principal and interest represented thereby shall be
transferable by delivery. [6

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 sum equal to one half-year's
interest on the whole of the bonds outstanding in order that the
interest for the said

half-year may be paid therefrom. [7





7. (1) The Governor shall in each year, as from the 1st day of
January, 1935, appropriate out of the revenue and assets of the
Colony a sum sufficient to redeem one twenty-fifth of the total
nominal value of the bonds issued, until the total issue or
issues shall have been redeemed.

(2) The Governor may also from time to time appro-
priate out of the revenue aiid assets of the Colony such sums
as he may deern desirable for the repurchase of bonds in
accordance with the provisions of subsection (9) of section
4. [8

8. The interest on each bond shall be at the rate of three and
one half per cent per annum and shall run from the day named in
that behalf in the bond, and shall be paid half yearly either at the
head office of The Flongkong and Shanghai Banking Corporation
or at the office of The Chartered Bank of India, Australia and
China in Hone Kong on the days named in that behalf in the
coupons. [9

9. The Governor shall have power-

(a) to deterniine the time for any issue of bonds;

(b)to determine the amounts for which the bonds of any
issue shall be issued;

(e) to determine the form of the bonds;

(d)to determine the terms which the bonds shall be
issued, whether with regard to the price of or the
conditions of application and deposit or otherswise ;

(e)to provide for the issue in the first instance of scrip
certificates to be exchanged later for bonds;

10 for the ISSUC Of Coupons for the payment
of interest;

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

(h)to determine the method by which the yearly drawings
shall be carried out; and

(1)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. [10





10. On the repayment of the principal moneys represented by any
bond the bond shall, and on the repurchase of any bond in accordance
with the provisions of subsection (9) of section 4 the bond may,
together in either case with all outstanding coupons attached to such
bond, be: delivered up for cancellation either to the head office of The
Hongkong and Shanghai Banking Corporation or to the office of The he
Chartered Bank of India, Australia and China in Hong

Kong. [11
11 of 1934. 8 of 1939. 22 of 1947. 24 of 1950. Short title. Authority to borrow by issue of bonds. Loan to be a charge on general revenue. Redemption. 22 of 1947, s. 2. 24 of 1950, Schedule. [s. 4 cont.] Transfer by delivery. Provision for payment of interest. Appropriations from revenue, etc., to cover redemption. Payment of interest. Powers of Governor. Delivery up of bonds on repayment or repurchase.

11 of 1934. 8 of 1939. 22 of 1947. 24 of 1950. Short title. Authority to borrow by issue of bonds. Loan to be a charge on general revenue. Redemption. 22 of 1947, s. 2. 24 of 1950, Schedule. [s. 4 cont.] Transfer by delivery. Provision for payment of interest. Appropriations from revenue, etc., to cover redemption. Payment of interest. Powers of Governor. Delivery up of bonds on repayment or repurchase.

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