No. 48]
Schedule.
Provisions of Ordinance No. 7 of 1913,
applied.
Sinking Fund in respect of loan raised in London
Provision
where loan in Colony
is raised
HONG KONG (REHABILITATION) LOAN. [A.D. 1947
(2) Save as aforesaid the money borrowed under this Ordinance shall be appropriated and applied to the purposes specified in the Schedule to this Ordinance but it shall be lawful for the Governor to direct that any sums which may not be required for a purpose specified in the Schedule may be appropriated and applied to any other purpose therein specified:
Provided that no such transfer of money from one item of the Schedule to any other item thereof shall be made unless such transfer shall liave been approved by a resolution of the Legislative Council and by the Secretary of State.
5. In so far as the loan hereby authorised or any part of it is raised in London it shall be raised under the provisions of the General Loan and Inscribed Stock Ordinance, 1913.
6. If the loan hereby authorised or any part of it shall be issued under the provisions of the General Loan and Inscribed Stock Ordinance, 1913, then the first half yearly contribution to Sinking Fund, as contemplated by the provi- sions of Sections 14 and 28 of the said Ordinance, shall be remitted in respect of any debentures or stock issued under this Ordinance not later than three years after the date on which the first half yearly payment of interest on such debentures or stock falls due.
7. (1) If the loan hereby authorised or any part of it shall be raised in the Colony then the following provisions in respect of the loan or any part of it raised in the Colony shall apply.
(2) The sum to be produced may be raised by one
or more issues of bonds in accordance with the provisions of this Ordinance.
(3) The Governor shall in each half-year ending with the day on which the interest on the bonds falls due appropriate out of the general revenue and assets of the Colony a sum equal to one half-year's interest on the whole of the bonds outstanding in order that the interest for the said half-year may be paid therefrom.
(4) The interest on each bond shall be at the rate specified on such bond and shall run from the day named in that behalf on the bond, and shall be paid half yearly either at the head office of the Hong Kong
41
A.D. 1947] HONG KONG (REHABILITATION) LOAN.
and Shanghai Banking Corporation or at the office of the Chartered Bank of India, Australia and China in Hong Kong on the days named in that behalf on coupons attached to every bond for the payment of such interest.
(5) After the date specified in the prospectus of any loan issued under the terms of this Ordinance as that on which the contribution to a sinking fund shall commence, the Governor shall in each half year ending as aforesaid further appropriate out of the said general revenue and assets for the formation of a sinking fund a sum equal to one half of the annual contribution specified in the prospectus and the money so appropriated shall be remitted to the Crown Agents for the formation of a sinking fund and the Crown Agents as trustees shall invest the money so remitted to them in the purchase of such securities as may be approved by the Secretary of State as a sinking fund for the final extinction of the debt and shall also invest the dividends interest or produce of such investments in the purchase of like securities and may from time to time with the approval of the Secretary of State change any such investments and shall hold such fund in trust for the repayment of the principal moneys for the time being represented by the bonds:
Provided that if at any time the trustees of the sinking fund are satisfied that the value of the fund will be sufficient with further accumulations of interest, but without further payments of contributions, to enable the loan to be redeemed out of the proceeds of the sinking fund when the same shall fall due to be redeemed the Governor may with the approval of the Secretary of State suspend further pay- ment of contributions to the said sinking fund:
Provided further that contributions to the sinking fund shall be recommenced if the trustees shall at any time inform the Governor that it is necessary.
(6) In addition, the Governor may, at any time or times, authorise the utilisation of the sinking fund or of the appropriation for contribution to the sinking fund prescribed under sub-section 5 hereof for the purchase of the bonds when they can be obtained at a price not exceeding par :
Provided that in the utilisation of such appropriation for the purchase of the bonds within the Colony the con- tribution remitted to the Crown Agents shall be the balance, if any, of such appropriation not utilised for the purpose aforesaid.
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