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Further
14. (1) The Governor shall, in the half-year ending on the sums to be date specified in the terms of issue of the loan as that on which
remitted
for the redemp- tion of the debentures,
Applica tion of sinking fund.
Creation of sinking fund for redemp- tion of debentures payable on à fixed date.
the first contribution to the sinking fund shall be taken and in each subsequent half-year, appropriate out of the said revenues and assets of the Colony of Hong Kong for the formation of a sinking fund, an additional sum equal to one half of the annual contribution specified in the prospectus or, in the case of a loan not issued publicly, in the terms of issue relating to the loan, in respect of the total nominal amount of all the debentures issued, including any which may have been redeemed, but exclu- sive of any which may have been at any time exchanged for stock, and shall remit that sum to the Crown Agents with the remit- tance hereinbefore mentioned.
(2) Notwithstanding anything to the contrary contained in subsection (1) if at any time the trustees of the sinking fund of any loan issued under the provisions of this Ordinance are satisfied that the value of the fund will be sufficient with further accumulations of interest but without further payment of contri- butions to enable the loan to be redeemed out of the proceeds of the sinking fund not later than the final redemption date, the Governor may with the approval of the Secretary of State suspend further contributions to the said sinking fund: Provided always that contributions to the sinking fund shall be recommenced if the trustees shall at any time inform the Governor that this is necessary.
15. The sinking fund shall be applied in the first place in payment of all expenses of, or incidental to, the redemption of the debentures and the cost and expenses of all notices required by this Ordinance to be given, and in the next place, and subject to the aforesaid payments, in repayment of the principal moneys for the time being represented by the debentures.
16. In the case of debentures redeemable on a fixed date, the Crown Agents shall place at interest or invest in the purchase of such securities as may be approved by the Secretary of State so much of the money so remitted to them as aforesaid as shalt not be required for the payment of interest for the current half- year, as a sinking fund for the final extinction of the debt, and the Crown Agents shall also place at interest or invest in the purchase of like securities the accumulations of interest or the dividends, interest or produce of such investments 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 debenture.
of sinking
debenturea
17. In the case of debentures redeemable by annual draw- Disposal ings, the Crown Agents shall place and keep the moneys so fund remitted to them, or so much thereof as may not be required for when immediate payments, al interest, and shall hold all such moneys are and the accumulation thereon in trust to apply them in the first deemed place to the purchase of the debentures when they can be obtained purchase at a price not exceeding par, and secondly, to the redemption of annual the debentures by means of annual drawings.
by
or by
drawings.
18. After the date specified in the Ordinance authorizing a Appoint- loan as that on which the contributions to the sinking fund shall ment of dlay for commence in respect of that loan, and so long thereafter as any of drawing of the debentures remain outstanding and unsatisfied, the Crown
debentores. Agents shall in every year, unless the whole of the money applicable in that year to the redemption of debentures has been applied in the purchase thereof, appoint a day in that year for the drawing by for of the debentures to be redeemed.
18. If a day is appointed for drawing, the Crown Agents shall Notice of give, by advertisement in the London "Times" newspaper, nol time and
place less than fifteen days' previous notice, specifying the day on which, appointed and the hour and place at which, the drawing will take place. drawing.
for
drawing.
20. On the day and at the hour and place so specified the Mode of Crown Agents shall hold a meeting, at which the holder of any debenture may, if he thinks fit, be present, and shall then in the presence of such debenture holders, if any, as may attend, and of a notary public, draw by lot, out of the whole number of deben- tures for the time being outstanding, debentures of the specified nominal amount.
drawn for
21. The Crown Agents shall thereupon declare the distin- Notice of guishing numbers of the debentures drawn for redemption, and debentures shall, as soon as may be, by advertisement in the London "Times" redemp- newspaper, specify those numbers and appoint a day, not being tion. later as to each debenture than the day on which the then current half-year's interest thereon is payable, on which the principal moneys represented by the debentures so distinguished will be repaid.
22. On the day so appointed the Crown Agents shall, at their Payment office in London, on demand, pay to the holders of the debentures of drawn drawn for repayment the principal moneys represented by those
debentures. debentures, with all interest payable thereon up to that day.
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