THE HONG KONG GOVERNMENT GAZETTE, DECEMBER 6, 1935.
4. Each note-issuing bank shall surrender to the Surrender Treasurer on demand all silver coin and silver bullion which by note-
Issuing it was required by the aforesaid Ordinances or Charters or banks otherwise immediately before such demand to deposit against previously its note issue.
of silver
required to be deposited against its note issue.
of indebted-
5.-(1) The Treasurer is authorised to issue to note- Certificates issuing banks for the purposes laid down in this section certificates of indebtedness in the form in the Schedule.
(2) The Treasurer shall issue in exchange for silver coin and silver bullion surrendered in accordance with section 4 certificates to the face value of the notes covered by such silver.
and
(3) For the purpose of raising funds to pay for- (i) Silver surrendered under section 7 of this Ordinance;
(ii) foreign exchange or gold purchased in accordance with section 6,
it shall be lawful for the Treasurer to issue further certificates to any note-issuing bank, and to require such bank to pay to him for the account of the Exchange Fund referred to in section 6 the face value of such further certificates.
(4) The Treasurer may apply the proceeds of sale of foreign exchange or gold for Hong Kong currency in accordance with sub-section (3) of section 6 to the redemption of certificates issued under sub-section (3) of this section.
(5) Nothing in this Ordinance shall empower any note- issuing bank to issue notes in excess of any maximum limit laid down in the Ordinances or Charters governing the issue of such Notes, and in issuing certificates under this section the Treasurer shall take into account such maximum limits.
ness.
Schedule.
C
6.—(1) There shall be established a fund to be called Exchange "the Exchange Fund" which shall be under the control of Fund. the Treasurer and shall be used for the purpose of regulating the exchange value of the currency of Hong Kong. The control of the Treasurer shall be exercised in consultation with an Exchange Fund Advisory Committee of which the Treasurer shall be ex officio Chairman and of which the other members shall be appointed by the Governor.
(2) There shall be paid or transferred into this Fund all silver coins or silver bullion surrendered to the Treasurer under section 4 or under section 7 of this Ordinance. There shall be paid from the Fund the sums payable in respect of silver surrendered under section 7 of this Ordinance.
(3) The Fund, or any part of it, may be held in Hong Kong currency or in any other currency or in gold or silver or may be invested by the Treasurer in securities approved by the Secretary of State; and the Treasurer may for the account of the Fund buy or sell such currency or gold or silver or securities accordingly. Any such purchases or sales of currency shall be for immediate delivery. The Treasurer may borrow for the account of the Fund either in Hong Kong or elsewhere on the security of any asset held by the Fund or of the general revenue of the Colony: Provided
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