CANDERS OF Government.
Carpopulaa
ut on commendat praciples.
Reserve funda.
lavescar
Accounts.
andir sod annual report.
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(c) repaying sums due to the Government under section 12(3)
(d) discharging the indebtedness arising under section 17 and any
interest thereon,
12. () The Legislative Council may from time to time by resolution authorize the Financial Secretary on behalf of the Government to grant guarantees in respect of-
(a) the repayment of loans made to, or the discharge of other in- debtedness of, the Corporation and the payment of interest, pre- miura or other charge thereon: and
(b) the redemption or repayment of, and the payment of interal premium or other charge on any bonds, notes or other securitien issued by the Corporation.
up to an amount not exceeding in total that specified in the resolution and subject to any terms or conditions therein speciflet
(2) Any sum required for fulfilling a guarantee given under this section by the Government shall be charged on and paid out of the general revenue of Hong Kong and any sum received by the Government by way of repayment of a sum so paid out, or for interest thereon, shall be paid into such general revenue,
0) If, pursuant to a guarantee given under this section, the Govern- ment makes a payment to a creditor of the Corporation in respect of a debt secured by a mortgage or a specific or floating charge, such sum shall be repayable to the Government by the Corporation, together with interest thereon at such rate as the Financial Secretary may determine, and the Government shall as from the time of payment have the bencől of all the remedies vested in the creditor by virtue of such mortgage or charge with liberty to exercise the rights and powers arising thereunder in its own name and without any assignment by the creditor.
13. (1) The Corporation shall conduct its business according to prudent commercial principles and shall ensure as far as possible that. laking one year with another, its revenue is at least sufficient to meet its expenditure.
(2) Any excess of revenue over expenditure in any financial year may be applied by the Corporation in any way consistent with thi Ordinance.
(9) In this section "expenditure" includes such provision for renewal of capital assets and repayment of loans as the Board considers prudepl
14. The Corporation may establish any poncral or special reserve food and carry to the credit thereof such sums as it thinks fit and expend the same in any way consistent with this Ordinance.
15. Any moneys of the Corporation available for investment may be invested by it in such forms of investment as the Financial Secretary may in writing approve.
16 (1) The Corporation shall keep proper accounts and proper records in relation thereto and shall within 4 months after the expiry of a financial year prepare accounts showing fully its financial position and financial transactions for Ibat year,
(2) The accounts of the Corporation shall be audited and the auditor shall make a written report thereon to the Corporation.
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(3) The auditor shall be appointed by the Governor after consulta. fon with the Corporation.
(4) The Corporation shall within 3 months of the receipt by it of the auditor's report in respect of its accounts for a financial year furnish-
(0) a report on the affairs of the Corporation for that year,
(5) a copy of its accounts therefor, and
(c) the auditor's report on the accounts.
to the Financial Secretary who shall table the same in the Legislative Council.
17. (1) The Corporation shall be indebted to the Government in a Trätial debt co sum equal to all expenditure directly or indirectly incurred by the Govern- Gowenace. ment in relation to the investigation, pisoning, construction and operation of the Mass Transit Railway.
(2) The Financial Secretary shall determine the amount of such indebtedness by pertificate or certificates under his hand and he may for mufficient cause reduce or increase any amount so certified.
(3) The indebtedness of the Corporation under subsections (1) and (2) and any interest thereon shall be discharged in such manner as the Financial Secretary directs.
(4) In subsection (1) "expenditure" means~-~
(a) in relation to the operation of the railway, compensation and costs paid in respect of such operation to satisfy claims within the meaning of section 18 of the Mass Transit Railway (Land (66 of 1974, Resumption" and Related Provisions) Ordinance 1974; and
(b) any loss, debt, cost, expense or liability, whether actual or con-
tingent liquidated or unliquidated—
(i) whenever incurred, in relation to the negotiation of a con- tract to build the railway:
(i) incurred before this Ordinance comes into effect, in relation
to the matters referred to in subsection (1) other than the opera- tion of the railway.
PART IV
GENERAL
16 The Corporation is not the servant or agent of the Crown and Corporation does not enjoy anty status, immunity or privilege of the Crown.
19. The Corporation shall upon request by the Governor afford to bim sufficient facilities for obtaining information with respect to the Property and affairs of the Corporation and shall in such manner and at such times as the Governor may require furnish him with returns, Becounts and other information with respect thereto and afford to him faciliues for the verification of information furnished.
OVT SETVELDK Dr kjeru of Cong.
Governor may
bui
informaation.
20. Notwithstanding sections 4(2) and 13(1), the Governor in Council Guventoria may, if he considers the public interest so requires, give directions in Cound may writing of a general character to the Corporation and the Corporation sive directions. sball comply with those directions so long as--
(a) it is fully compensated by the Government in respect of any direction requiring the Corporation to act contrary to prudent commercial principles; and
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