I
HONG KONG LEGISLATIVE COUNCIL.
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1. The Public Works Loan Ordinance, No. 14 of 1927, authorised the issue of bonds for the purpose of raising a loan of $5,000,000 at 6 per cent. for waterworks, aerodrome, and harbour development and other public works.
2. The loan was redeemable at par on the 1st November, 1938, but provision was made for the redemption by purchase or for drawings at any time or times after the 31st October, 1932, as the Governor may from time to time determine.
3. It is now considered desirable to make provision for the redemption of the bonds at par on the 1st August, 1933, in the case of all bond holders who do not before the 11th July, 1933, or such later date as the Colonial Treasurer may approve, express their desire to exchange their bonds for a new issue of Conversion bonds bearing interest at 4 per cent. The method proposed in this Ordinance avoids the necessity for a formal drawing by lot, prescribed by section 5 (3) of Ordinanca No. 14 of 1927, aš it is intended to redeem all bonds not exchanged for the new Conver- sion bonds.
4. These Conversion bonds will be redeemable at par on the 1st August, 1953, and will not be redeemable before that date otherwise than by purchase in the open market which is authorised by section 9 (2).
5. The principal moneys and interest represented by the Conversion bonds, which like the Public Works Loan bonds will be bearer bonds transferable by delivery, will be charged on and secured by a sinking fund and the revenue and assets of the Colony.
6. The Conversion bonds will be authorised investments in which any trustee, not expressly forbidden by the terms of the instrument creating the trust, may invest funds in his hands.
7. The moneys appropriated for the payment of interest on the Conversion bonds and for the formation of the sinking fund and all dividends, interest or produce of any investments which represent any portion of the sinking fund, will be exempted from the defence contribution payable under Ordinance No. 1 of 1901.
THE (1932 SUPPLEMENTARY) APPROPRIATION
ORDINANCE, 1933.
THE COLONIAL TREASURER moved the second reading of a Bill intituled "An Ordinance to authorize the Appropriation of a Supplementary Sum of Five hundred and seventeen thousand and fifteen Dollars and thirty Cents to defray the Charges of the year 1932."
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