BANK NOTES AND CERTIFICATES OF INDEBTEDNESS ORDINANCE

BANK NOTES AND CERTIFICATES OF INDEBTEDNESS ORDINANCE

CHAPTER 247.

BANK NOTES AND
CERTIFICATES OF INDEBTEDNESS.

To remove doubts concerning the legal status of certain bank,
notes issued during the Japanese occupation of the
Colony and to give power to the Financial Secretary to
issue certificates of indebtedness other than in accordance
with section 4 of the Exchange Fund Ordinance,
(Chapter 66 of the Revised Edition).

[16th August, 1946.]

1. This Ordinance inay be cited as the Bank Notes
and Certificates of Indebtedness Ordinance.

2. All notes of a note-issuing bank within the mean-
ing of section 2 of the Exchange Fund Ordinance, put into
circulation between the 25th clay of December, 1941, and
the 16th day of August, 1945, shall, notwithstanding any
irregularity in the manner of the issue, be and be deemed
to have been at all times bank notes lawfully issued within
the meaning of section 3 of the Bank Notes Issue Ordinance,
and subject to the provisions of section 3 hereof, the
provisions of that Ordinance and any amendments thereto
shall apply to the notes aforesaid.

3. Notwithstanding anything contained in sections 4
and 5 of the Exchange Fund Ordinance, the Financial
Secretary is authorized to issue certificates of indebtedness
to The Hongkong and Shanghai Banking Corporation in
respect of the notes of that bank validated under section 2
as follows-
(a)in the sum of one hundred and three million eight
hundred thousand dollars on the passing of this
Ordinance;
(b)as soon as possible after the end of the financial
year commencing on the 1st day of April, 1946,
and of each succeeding financial year thereafter
until the total amount of the certificates of indebted-
ness issued under this paragraph amount lo
the sum of sixteen million dollars, in a sum equal
to the proportion of the net income of the exchange





fund referred to in section 3 of the Exchange
Fund Ordinance, for the preceding year which
corresponds to the proportion which the sum of
sixteen million dollars bears to the sum of one
hundred and nineteen million eight hundred
thousand dollars less the dollar equivalent of the
sum of one million pounds sterling and the
dollar equivalent of the sum to be paid when
ascertained as provided in this section, and in
consideration of the issue Of the said certificate of
indebtedness to require from The Hongkong and
Shanghai Banking Corporation-
(i) the payment of the sum of one million pounds
sterling to the said exchange fund, on the issue of
the certificate of indebtedness for one hundred and
three million eight hundred thousand dollars; and
(ii) when the amount has been ascertained, the
payment by The Hongkong and Shanghai Banking
Corporation to the said fund of a sum equal to the
sterling equivalent at one shilling and three pence
to the Hong Kong dollar of the face value of that
portion of the notes referred to in section 2 which
were used when first issued in discharge of any
legal liability of The Hongkong and Shanghai
Banking Corporation.
13 of 1946. Short title. Validation of doubtful notes. (Cap. 66.) (Cap. 65.) Authority to issue certificates of indebtedness in respect of certain of such notes. (Cap. 66.)

13 of 1946. Short title. Validation of doubtful notes. (Cap. 66.) (Cap. 65.) Authority to issue certificates of indebtedness in respect of certain of such notes. (Cap. 66.)

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