1951-HKRS28-8-18_Part01 — Page 22

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FIRST COLUMN.

5. Mercantile Bank

Note Issue Ordinance, 1911. (No. 65 of 1911) -cont.

6. Currency

Ordinance, 1935- (No. 54 of 1935)

Section 5.

SECOND COLUMN,

issue, reissue and circulate notes until and including the 12th day of July, 1951, Or such later date as may be fixed under the provisions of section 3 of the Note-issuing Banks Extension of Powers Ordinance, | 1939, after which date the company shall cease to issue or reissue notes but shall redeem any mates which it has previously issued or reissued: Provided however that if the company fails to comply with the demand of the Financial Secretary referred to in subsection (2) of section 5, or fails to comply with any of the other provisions|| of this Ordinance, the power of the company to make, issue, reissue and circulate notes shall immediately cease.'

Sections is amended-

(a) by the repeal of subsections (1), (2) and (3) and by the substitution therefor of the following-

"5. (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.

(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 (4) of section 6 bereof.";

FIRST COLUMN.

6. Currency

Ordinance, 1935- (No. 54 of 1935)

-pont.

SECOND COLUMN.

(b) by the repeal of subsection (5) (as enacted by Ordinance 9 of 1937) and the sub- stitution therefor of the following-

"(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."

Passed the Legislative Council of Hong Kong, this 31st day of January, 1951.

Deputy Clerk of Councils,