2
CAP. 66]
Exchange Fund
[1987 Ed.
(App. III, p. AA 1.)
Certificates of indebtedness.
Schedule.
shall be exercised in consultation with an Exchange Fund Advisory Committee of which the Financial Secretary shall be ex officio chairman and of which the other members shall be appointed by the Governor. (Amended, 12 of 1946, s. 2 and 26 of 1983, s. 2)
(2) The Fund, or any part of it, may be held in Hong Kong currency or in foreign exchange or in gold or silver or may be invested by the Financial Secretary in securities approved by the Secretary of State; and the Financial Secretary may for the account of the Fund buy or sell such currency or such exchange or gold or silver or securities accordingly. (Replaced, 25 of 1971, s. 2. Amended, 8 of 1975, s. 2 and 26 of 1983, s. 2)
(3) Subject to subsection (4), 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. (Added, 25 of 1971, s. 2. Amended, 26 of 1983, s. 2)
(3A) There shall be credited to the Fund the value of any coinage issued under or by virtue of The Hong Kong (Coinage) Orders 1936 to 1978 and the value of any proceeds of sale of such coinage after it has ceased to be legal tender. (Added, 26 of 1983, s. 2)
(4) The aggregate amount of borrowing under subsection (3), other than on certificates of indebtedness issued under section 4, outstanding at any one time shall, subject to subsection (5), not exceed fifty thousand million dollars, or, if held in foreign exchange, the equivalent at the current rate of exchange. (Added, 25 of 1971, s. 2. Amended, L.N. 150/71, L.N. 125/72, L.N. 56/80, L.N. 173/80, L.N. 363/80, L.N. 388/81 and L.N. 64/87)
(5) The Legislative Council may from time to time, by resolution proposed with the approval of the Secretary of State, determine some other amount to be the amount which the aggregate amount of such borrowings outstanding at any one time shall not exceed. (Added, 25 of 1971, s. 2. Amended, 16 of 1984, s. 2)
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, or the equivalent in such foreign exchange and at such rate of exchange as may be determined by the Financial Secretary, to be held by the Fund principally for the redemption of such notes. (Replaced, 4 of 1951, Schedule. Amended, 26 of 1983, s. 3 and 16 of 1984, s. 3)
(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 section 3(2) or for the redemption of certificates of indebtedness at their face value or the equivalent in such foreign exchange and at such rate of exchange as may be determined by the Financial Secretary. (Replaced, 4 of 1951, Schedule. Amended, 16 of 1984, s. 3)