GENERAL LOAN AND INSCRIBED STOCK ORDINANCE, 1893

GENERAL LOAN AND INSCRIBED STOCK ORDINANCE, 1893

ORDINANCE No. 1 OF 1893.

General Loan and Inscribed Stock

AN ORDINANCE to declare the Terms and Conditions
applicable to Loans authorized to be raised by the
Government of Hongkong and to provide for the
Creation of Inscribed Stock.
[16th January,1893.]
WHEREAS it is expedient to define in one Ordinance the terms and
conditions applicable to loans hereafter authoprized ot be raised by
the Legislature of the Colony of Hongkong;and whereas it is expedient
to provide for the creation of Inscribed Stock,and to enable this Colony
to take advantage of the provisions of the Acts of the Imperial Parlia-
ment,shortly entitled the Colonial Stock Acts,1877 and 1892:
BE it therefore enacted by the Governor of Hongkong,with the advice
and consent of the Legislative Council thereof, as follows:-
1.This Ordinance may be cited as the General Loan and Inscribed
Stock Ordinance,1893.
2.In this Oridnance,unless the context otherwise requires,-
The expression 'the Governor'means the person for the time
being administering the Government of hongkong:
The expression 'the Crown Agents' means the person or persons
for the time being acting as Crown Agents for the Colonied in
England.
3.As often as by any Ordinance authority shall have given or
shall hereafter be given to raise any sum of money,whether by
debentures or otherwise,for the purpose mentioned in such Ordinance,
the Governor may from time to time raise such sum by the issue of
Inscribed Stock to be called 'Hongkong Inscribed Stock.'
4.The principal moneys and interest secured by teh 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
Government of Hongkong.
5.Such Stock shall be issued in England by the Crown Agents
under the provisions of the Acts of the Imperial Parliament,shortly
entitled the Colonial Stock Acts,1877 and 1892,upon the best and
most favourable terms that can be obtained:Provided that the interest on such Inscribed Stock shall not exceed four and one-half per centum
per annum.
6.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 all interest on the principal moneys secured thereby shall
cease and determin,whether the payment of principal shall have
been demanded or not.
7.So long as any of the Inscribed Stcok shall remain unconverted or
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 Government of Hongkong 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.After the date specified in the Ordinance
authorizing an issue of Inscribed Stock as that on which the contribution
to the Sinking Fund shall commence,the Governor shall further
appropriate out of the said revenues and assets in each half-year ending
as aforesaid an additional sum for the formation of a Sinking Fund,
equal to tenm shillings per centum on the total nominal amount of such
Inscribed Stock,and shall remit that sum to the Crown Agents with
the remittance hereinbefore mentioned.
8.The contribution to the Sinking Fund shall be applied as
follows:-
(1.)if the price of the Inscribed Stock is below par at the time when
the contributions are received,the Crown Agents may,if practicable,
purchase therewith the Inscribed Stock in the market and shall
cancel in the Register the Stock so purchased;and
(2.)the Crown Agents shall invest so much of the contributions as
shall not be applied in the purchase of Inscribed Stock,and the
dividends,interest,or produce of such investments,in the purchase
of such debenture,stock,or other security as may from time to time
be approved by Her Majesty's Principal Secretary of State for the
Colonies,and shall hold such fund in trust for repayment of the
principal momeys for the time being secured by the Inscribed Stock.
9.In case the Sinking Fund shall be insufficient to provide the
necessary funds for the redemption of the Inscribed Stock when it shall
become due,the deficiency shall be made good out of the general
revenues and assets of the Government of Hongkong. 10.All expenses of or incidental to the management of the Sinking
Fund or to the repayment of the principal moneys borrowed shall be
paid out of the Sinking Fund.
11.The Governor shall also have and may from time to time exercise
the following powers and authorities or any of them:-
(1.)he may declare all or any of the loans issued by or on behalf of
Hongkong,whether existing in the form of Stock or Debentures
and inclusive of the loan issued under the Loan Ordinance,1866,
to be convertible into Inscribed Stock to be issed under the pro-
visions of this Ordinance;
(2.)he may authorize the creation and issue of such amount of
Inscribed Stock in exchange for the securities held for such loans
as may be necessary;
(3.)he may authorize the creation and sale of any such Inscribed
Stock for the purpose of raising money for redeeming any out-
standing loans,for paying any expenses in the creation of Inscribed
Stock,and otherwise for carrying out the provisions of this Or-
dinance;and
(4.)any conversion so authorized may be effected either by arrange-
ment with the holders of existing securities or by purchase thereof
out of moneys raised by the sale of Inscibed Stock,or partly in
one way and partly in the other.
12.Nothing in this Ordinance shall authorize an increase of the
capital or of the annual charge on any loan except-
(1.)when securities exchanged for Inscribed Stock bear a higher
rate of interest than the Inscribed Stock,an additional amount of
Inscibed Stock may be created and issued to make up the difference
in saleable value between the securities and the Inscribed Stock;and,
(2.)in the case of teh conversion of securities into Inscibed Stock,the
Crown Agents shall isue such an amount of Inscribed Stock as may
be required to defray the stamp duties and all other expenses
incidental to the conversion.
13.The securities exchanged or otherwise converted into Inscribed
Stock under the provisions of this Ordinance shall be forthwith cancelled
by the Crown Agents,and the Debentures surrendered shall be can-
celled and transmitted to the Government of Hongkong.
14.The Trustee of the Sinking Funds appointed under the Ordinance
authorizing the issue of any securities which may be exchanged into In-
scribed Stock or cancelled or purchased under the provisions of this Ordi-
nance shall determine what amount of the Sinking Funds held by them
and created for the repayment of such securities shall be released,and
in the determination of such question the Trustees shall take into con-
sideration the value of the whole investments held by them on account
of such Sinking Funds,the amount of the debt remaining a charge on
such SInking Funds,and such other matters as the Trustees may think
fit to take into account.
15.So much of the Sinking Funds as may be released shall be con-
verted into money and paid by the Trustees to the Crown Agents for
the credit of the Government of Hongkong,to be disposed of in such
manner as the Governor,with the advice and consent of the Legislative
Council,may direct.
16.The Crown Agents may from time to time,at the request of
the Governor,make arrangements for all or any of the following
things:-
(1.)for inscribing Stock in their books;
(2.)for managing the creation,inscription,and issue of Insribed Stock;
(3.)for effecting the conversion of loans into Inscribed Stock;
(4.)for paying interest on Inscribed Stock and managing transfers
thereof;and
(5.)for issuing Inscribed Stock certificates to bearer,and,as often as
occasion may require,re-issuing or re-inscribing Stock and re-issuing
Inscribed Stock certificates.
17.Nothing in this Ordinance shall prevent the raising of loans in
Hongkong under such terms and conditions as may be specified in any
Ordinance authorizing the raising of such loans.
A.D. 1893. Ordinance No. 1 of 1893. Short title. Interpretation of terms. Loans to be raised by Inscribed Stock. Loans to be charge upon general revenues. Borrowing upon Inscribed Stock. When principal to be repaid. Mode of providing for payment of interest and principal. Application and investment of Sinking Fund. Deficiency in Sinking Fund to be made good out of general revenues. Expenses to be paid out of Sinking Fund. Conversion of loans. No. 6 of 1886. Exchange of securities for Inscribed Stock. Cancellation of converted securities. Apportionment of amount of Sinking Fund released by conversion. Disposal of Sinking Funds released. Creation, inscription, issue, conversion, and transfer of Inscribed Stock. Raising of loans in Hongkong.

A.D. 1893. Ordinance No. 1 of 1893. Short title. Interpretation of terms. Loans to be raised by Inscribed Stock. Loans to be charge upon general revenues. Borrowing upon Inscribed Stock. When principal to be repaid. Mode of providing for payment of interest and principal. Application and investment of Sinking Fund. Deficiency in Sinking Fund to be made good out of general revenues. Expenses to be paid out of Sinking Fund. Conversion of loans. No. 6 of 1886. Exchange of securities for Inscribed Stock. Cancellation of converted securities. Apportionment of amount of Sinking Fund released by conversion. Disposal of Sinking Funds released. Creation, inscription, issue, conversion, and transfer of Inscribed Stock. Raising of loans in Hongkong.

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1901

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No. 1 of 1893

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