REHABILITATION LOAN ORDINANCE

REHABILITATION LOAN ORDINANCE

CHAPTER 76.

REHABILITATION LOAN.

To make provislon for raisling it loan of one hundred and fifty
million dollars for the general rehabilitation of the public
services of the Colony following a period of enemy occupation.

[18th December, 1947.]

1. This Ordinance may be cited as the Hong Kong
(Rehabilitation) Loan Ordinance.

2. The Governor or the Crown Agents acting on his behalf may
raise by loan in Hong Kong or in London or pardy in Hong Kong and
partly in London by one or more issues an amount sufficient to
produce in the aggregate sum not exceeding one hundred and fifty
million dollars and such further sums as may be necessary to defray
the expenses of issue.

3. The principal moneys and interest represented by the loan
issued tinder the provisions of this Ordinance are hereby charged
upon and shall be payable out of the general revenue and assets of the
Colony.

4. (1) An sums raised to defray the expenses of issue shall be
applied only to that purpose.

(2) Save as aforesaid the nioney borrowed under this Ordinance
shall be appropriated and applied to the purposes specified in the
Schedule but it shall be lawful for the

specified

Governor to direct that any sums which may not be required for a
purpose specified in the Seliedule may be appropriated and applied to
any other purpose therein specified: Provided that no such transfer of
money from one item of the Schedule to any other item thereof shall be
made unless stich transfer shall have been approved by a resolution of
the Legislative Council aiid by the Secretary of State.

5. In so far as the loan hereby authorized or any part of it is raised
in London it shall be raised under the provisions of the General Loan
and Inscribed Stock Ordinance.





6. If the loan hereby authorized or any part of it shall be
issued under the provisions of the General Loan and Inscribed
Stock Ordinance, then the first half-yearly contribution to the
sinking fund, as contemplated by the provisions of sections 14
and 28 of the said Ordinance, shall be remitted in respect of any
debentures or stock issued under this Ordinance not later than
three years after the date on which the first half-yearly paynient
of interest on such debentures or stock falls due.

7. (1) If the loan hereby authorized or any part of it shall be
raised in the Colony then the following provisions in respect of
the loan or any part of it raised in the Colony shall apply.

(2) The sum to be produced may be raised by one or more
issues of bonds in accordance with the provisions of this
Ordinance.

(3) The Governor shall in each half-year ending with
the clay on which the interest on the bonds falls due appro-
priate out of the general revenue and assets of the Colony
a 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

(4) The interest on each bond shall be at the rate
specified on such bond and shall run from the day named
in that behalf on the bond, and shall be paid half-yearly
Citiler at the head Office of The Hong Kong and Shanghai
Banking
Corporation or at the office, of The Chartered Bank of
India, Australia and China in Hong Kong on the days named in
that behalf on coupons attached to every bond for the payment
of such interest.

(5) After the date specified in the prospectus of any loan
issued under the terms of this Ordinance as that on which the
contribution to a sinking fund shall commence, the Governor shall
in each half-year ending as aforesaid further appropriate out of
the said general revenue and assets for the formation of a
sinking fund a sum equal to one-half of the annual contribution
specified in the prospectus and the money so appropriated shall
be remitted to the Crown Agents for the formation of a sinking
fund and the Crown Agents as trustees shall invest the money so





remitted to them in the purchase of such securities as may be
approved by the Secretary of State as a sinking fund for the
final extinction of the debt 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 the repayment of the principal moneys for
the time being represented by the bonds: Provided that if at any
time the trustees of the sinking fund are satisfied that the value
of the fund will be sufficient with further accumulations of
interest, but without further payments of contributions, to enable
the loan to be redeemed out of the proceeds of the sinking fund
when the same shall fall due to be redeemed the Governor may
with the approval of the Secretary of State suspend further
payment of contributions to the said sinking fund: Provided
further that contributions to the sinking fund shall be
recommenced if the trustees sliall at any time inform the
Governor that It is necessary.

(6) In addition, the Governor may, at any time or

times autliorize the utilization of the sinking fund or of the
a ppropriation for contribution to the sinking fund prescribed
under subsection (5) hereof for the purchase of the bonds
when they can be obtained at a price not exceeding par :

Provided that in the utilization of such appropriation for the
purchase of the bonds within the Colony the contribution
remitted to the Crown Agents shall be the balance, if any, of
such appropriation not utilized for the purpose aforesaid.

(7) Every bond and coupon and the right to receive the
principal and interest represented thereby shall be transferable
by delivery.

8. The Governor shall have power-

(a)to determine the time for any issue and redemption of
bonds;

(b)to determine the amounts for which the bonds of any
issue shall be issued and the rate of interest payable
thereon ;

(c) to determine the form of the bonds;

(d)to determine the terms upon which the bonds shall be
issued; including power to determine the price of issue
or the conditions of application and deposit





or any other term whether or not of the same kind as the
terms herein enumerated;

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

to provide for the issue of coupons for the payment of
interest;

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

(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.

9. 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 (6) of section 7 the bond
may, together in either case with all outstanding coupons attached to
such bond, be delivered tip for canceiiation either to the head office of
The Hong Kong and Shanghai Banking Corporation or to the Office of The
Chartered Bank of India, Australla and China in Hong Kong.
48 of 1947. Short title. Power of Governor or Crown Agents to raise loan. Loan to be charged on general revenue and assets of Colony. Application of sums raised. Schedule. Provisions of Cahpter 72 applied. Sinking fund in repect of loan raised in London. (Cap. 72.) Provision where loan is raised in Colony. [s. 7 cont.] Powers of Governor. Delivery up of bonds on repayment or repurchase.

48 of 1947. Short title. Power of Governor or Crown Agents to raise loan. Loan to be charged on general revenue and assets of Colony. Application of sums raised. Schedule. Provisions of Cahpter 72 applied. Sinking fund in repect of loan raised in London. (Cap. 72.) Provision where loan is raised in Colony. [s. 7 cont.] Powers of Governor. Delivery up of bonds on repayment or repurchase.

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