CAP. 64]
Loans (Government Bonds)
Sinking fund.
Cesser of contributions to sinking fund.
Redemption and purchase.
[1975 Ed.
(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.