1952-HKRS29-8-19_Part02 — Page 3

Expenses to be paid

out of sinking fund.

Powers of Governor.

Debentures convertible into stock On

conditions prescribed by the Crown Agenta at time of issue.

Conver- sion of loads generally.

Creation and issue of stock in exchange for other securities.

Creation and wale of stock or debentures to raise loans and for othur purposes.

Arrange- ments for

conversion.

Exchange of

Becurities for stock,

31. All expenses of or incidental to the management of the sinking fund, or to the payment of the principal moneys borrow- ed, shall be paid out of the sinking fund.

32. The Governor shall also have, and may from time to time exercise, the following powers and authorities or any of them--

(u) he may authorize the Crown Agents when issuing any loan in the form of debentures to declare that such debentures will be convertible into stock at such dates and on such terms and conditions as may be prescribed by the Crown Agents at the time of the issue of the debentures;

(b) he may declare all or any of the Hong Kong loans, whether existing in the form of stock or debentures, and whether issued before or after the commencement of this Ordinance, to be convertible into stock, to be issued under the provisions of this Ordinance;

(c) he may authorize the creation and issue of such an amount of stock in exchange for the securities held for such loans as may be necessary

(d) he may authorize the creation and sale of any such stock or debentures for the purpose of raising money for re- deeming any outstanding loans whether issued before or subsequent to the passing of this Ordinance, for paying any expense in the creation of stock, and other- wise for carrying out the provisions of this Ordinance;

(e) any conversion so authorized may be effected either by an arrangement with the holders of existing securities or by purchase thereof out of moneys raised by the sale of stock, or partly in one way and partly in the other.

33. Nothing in this Ordinance contained shall authorize an increase of the capital or of the annual charge on any loan, except-

(a) when securities exchanged for stock bear a rate of interest not less than the stock, an additional amount of stock may be created and issued to make up the difference in saleable value between the securities and the stock;

(b) in the case of the conversion of securities into stock the Crown Agents shall issue such an amount of stock as may be required to defray the stamp duties and all other expenses incidental to the conversion;

(c) in accordance with such terms and conditions as may be

prescribed under paragraph (a) of section 33.

securities to be

34. The securities exchanged or otherwise converted into Converted stock under the provisions of this Ordinance shall be forthwith cancelled by the Crown Agents, and the debentures surrendered cancelled. shall be cancelled and transmitted to the Governor,

conversion.

35. The Trustees of the sinking fund appointed under this Trustees to Ordinance, and acting under any Ordinance authorizing the issue amount of

apportion of any securities which may be exchanged into stock or cancelled sinking

fund or purchased under the provisions of this Ordinance, shall deler released by mine what amount of the sinking fund held by them and created for repayment of such securities shall be released and in the deter- mination of such question the trustees shall take into consideration the value of the whole investments held by them on account of such sinking funds, the amount of the debt remaining a charge on such sinking funds, and such matters as the trustees may think At to take into account.

funds

38. So much of the sinking funds as may be released shall Sinking either be transferred unto the trustees of the stock sinking fund, released: or be disposed of in such a manner as the Governor with the advice how to be

disposed and consent of the Legislative Council may direct.

of.

37. The Crown Agents may from time to time, at the request Creation, of the Governor, make arrangements for all or any of the follow- inscription, ing things-

(a) for inscribing and registering stock in their books;

registra- tion, isque, conversion, and transfer

(b) for managing the creation, inscription, registration and of stock,

issue of stock, including the issue of certificates of title

in respect of such stock;

(c) for effecting the conversion of loans into stock; (d) for paying interest on stock and managing the transfers

thereof;