CAP. 66]
[s. 3 cont.]
Certificates
of
indebtedness.
4 of 1951 Schedule.
Schedule.
4 of 1951, Schedule.
Preservation of limits on note issue.
4 of 1951, Schedule.
Charges on Fund.
Exchange Fund.
securities approved by the Secretary of State; and the Financial Secretary 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 Financial Secretary 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 on the general revenue of the Colony: Provided that the aggregate amount of borrowings, other than on certificates of indebtedness issued under section 4, outstanding at any one time shall not exceed thirty million dollars, or, if held in foreign exchange, the equivalent at the current rate of exchange.
[6(4)
4. (1) The Financial Secretary is authorized to issue to any note-issuing bank, to be held as cover for bank notes lawfully issued in the Colony, certificates of indebtedness in the form in the Schedule and to require such bank to pay to him for the account of the Fund the face value of such certificates to be held by the Fund exclusively for the redemption of such notes.
[5(1)
(2) The Financial Secretary may employ the funds paid to him in accordance with subsection (1), for the purchase of foreign exchange or gold or otherwise in accordance with the provisions of subsection (2) of section 3.
[5(2)
(3) The Financial Secretary may apply the proceeds of the sale of foreign exchange or gold for Hong Kong currency in accordance with subsection (2) of section 3 to the redemption of certificates issued under subsection (1) hereof.
[5(4)
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 Financial Secretary shall take into account such maximum limits.
[5(5)
6. There shall be charged to the Fund-
(a) expenses incidental to the remuneration, cost of passages and superannuation in respect of officers
458