LOANS (GOVERNMENT BONDS) ORDINANCE

LOANS (GOVERNMENT BONDS) ORDINANCE

LAWS OF HONG KONG

LOANS (GOVERNMENT BONDS) ORDINANCE

CHAPTER 6





CHAPTER 64

LOANS (GOVERNMENT BONDS)

To make provisions for the raising of loans in Hong Kong by the issue
of bonds and for matters connected therewith.

[Ist August, 1975.]

1. This Ordinance may be cited as the Loans (Government Bonds)
Ordinance.

2. In this Ordinance, unless the context otherwise requires

'Government bond' means a bond issued by the Government under this
Ordinance;

'loan' means a loan raised by the issue of Government bonds.

3. The Government may, by the issue of bearer bonds, raise in
Hong Kong such loans for such purposes as may be approved by
resolution of the Legislative Council.

4. (1) Except in the case of a loan raised for the purposes of the
general revenue, a loan shall be applied and is appropriated to the
purposes for which it is raised:

Provided that any part of a loan which cannot be applied to those
purposes may be applied to such other purposes as may be approved by
the Financial Secretary.

(2) Where expenditure must be incurred in respect of any purpose
for which a loan is being raised prior to the raising of the loan, such
expenditure shall be charged as an advance pending reimbursement from
such loan and the maximum amount which may be so advanced in any
financial year in connexion with that purpose shall be approved by
resolution of the Legislative Council.

(3) Loans and all interest and other charges thereon are charged on
and shall be payable out of the general revenue and assets of Hong
Kong.

(4) Any expenses of or incidental to the raising of a loan may be
defrayed from that loan.

5. (1) Subject to subsection (2), Government bonds shall

(a) bear interest at such rate;

(b) be issued at such price and in such denominations; and

(c) be issued for such periods and subject to such terms,

as the Governor may determine.





(2) The period for which any Government bonds are issued may be
extended for such further period as the Financial Secretary and the
holders thereof may agree and during that further period shall bear
interest at such rate as may be so agreed.

(3) Government bonds and interest coupons relating thereto shall
be transferable by delivery.

6. (1) The Government may create a sinking fund for-

(a)the payment of expenses of, or incidental to, the redemption of
an issue of Government bonds; and

(b) the redemption of an issue of Government bonds.

(2) Subject to sections 7 and 8, where a sinking fund is created
under subsection (1) the Government shall pay into that fund such sums
at such times as may be specified in the prospectus relating to that issue
of Government bonds.

(3) All payments into the sinking fund under subsection (2) shall be
appropriated out of the general revenue and assets of Hong Kong.

(4) Pending the application of the sinking fund for the purposes
specified in subsection (1), the moneys in that fund shall be placed at
interest or invested in such securities as the Financial Secretary may
determine.

(5) Any securities purchased under subsection (4) may be sold by
the Accountant General with the prior approval of the Financial
Secretary.

7. (1) Where the Financial Secretary is satisfied that the value of a
sinking fund is sufficient with further accumulations of interest, but
without further payments under section 6(2), to redeem the issue of
Government bonds in respect of which it was created not later than the
final redemption date thereof, he may suspend further payments under
section 6(2) to that fund.

(2) The Financial Secretary may recommence such payments at any
time if he thinks fit.

8. (1) Subject to the approval of the Financial Secretary, the
Accountant General may at any time apply the whole or part of a sinking
fund, or any appropriation made under section 6(3), for the purpose of
redeeming or purchasing Government bonds in respect of which such
fund or appropriation was created or made, as the case may be, at a price
not exceeding the nominal value of such bonds.

(2) Any Government bond redeemed or purchased shall be
surrendered to the Accountant General for cancellation.





9. No stamp duty shall be payable in respect of Government bonds.

10. The Financial Secretary may, with the consent of the holder of
any bond issued under the Hong Kong (Rehabilitation) Loan Ordinance,
exchange such bond for Government bonds on such terms and
conditions as may be agreed.

11. Subject to section 5, the Financial Secretary may-

(a) determine the form of Government bonds;

(b)arrange for the issue in the first instance of provisional
certificates, which may be exchanged for Government bonds;

(e) determine the days for payment of interest;

(d)arrange for the issue of coupons for the payment of interest;

(e)arrange for the replacement of defaced, lost or destroyed
Government bonds or interest coupons;

(f)determine the manner of payment of interest and redemption
moneys.
Originally 50 of 1975. Short title. Interpretation. Power to raise loans. Appropriation and charge of loans. Terms of issue of Government bonds. Sinking fund. Cesser of contributions to sinking fund. Redemption and purchase. Exemption from stamp duty. Exchange for Government bonds. (Cap. 76.) Powers of Financial Secretary.

Originally 50 of 1975. Short title. Interpretation. Power to raise loans. Appropriation and charge of loans. Terms of issue of Government bonds. Sinking fund. Cesser of contributions to sinking fund. Redemption and purchase. Exemption from stamp duty. Exchange for Government bonds. (Cap. 76.) Powers of Financial Secretary.

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