CO129-380 - Governor Sir Lugard - 1911 [9-10] — Page 277

2

4 as amended accordance with

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para 2(e) of 34446/10

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4. The Company shall deposit and at all times keep Deposit of deposited with the Crown Agents securities to be approved securities or by the Secretary of State to an amenut equal in value to of coin or of the face value of the notes in circulation with the addition both at of five per centum of such value; or at its option the Com- Company as

option of pany shall deposit and at all times keep deposited with the funds exclu- Colonial Treasurer coin which is for the time being legal sively availa- render in the Colony to an amount equal to the face value ble for re of the notes in circulation; or at its like option the Com- note issue

demption of pany shall deposit and at all times keep deposited securities, and in the so approved na aforesaid, with the Crown Agents and coin, event of in- which is for the time being legal tender in the Colony, with solvency.

the Colonial Treasurer in which case the amount of such securities shall be equal in value to the difference between the amount of the coin deposited and the face value of the notes in circulation with the addition of five per centum. Such securities and such coin shall be under the control of the Colonial Treasurer and shall be held by the Crown Agents and the Colonial Treasurer respectively as special funds exclusively available for the redemption of such issue of notes, and in the event of the Company becoming insol- vent shall be sold and applied toward such redemption as far as may be necessary but without prejudice to the rights of the holders of such notes to rank with other creditors of the Company against the assets of the Company.

If the province of the sale of such securities should not equal the face value of the notes outstanding, the difference shall rank pari passu with other simple contract debts on the assets of the Company. If, on the contrary, sach securities realise more than the face value of such ontstand. ing notes, the difference shall be paid over to the Company-

5.-(1.) There shall be published in the Gazette every Monthly mouth, a statement (to be rendered by the Company on publication the first working day of each mouth) of the face value of in Gazette of the notes outstanding, and of the securities and coin held notes and against these notes. The statement shall show the nominal securities. value of such securities, the price at which they were valued on deposit and also the latest market price of such securi- ties.

(2.) If for two consecutive months the said market price plus the value of the coin (if any) deposited with the Colo- nial Treasurer should indicate a selling value less than the amount required by section 4, the Colonial Treasurer shail demand that all notes returned to the Company shall be retained and not reissued until the amount so required is lenched, or at his option the Colonial Treasurer shall demand the deposit of additional legal tender coin or securi- ties sufficient to raise the selling value of the securities plus the value of the coin (if any) already deposited to the amount so required, and the Company shall comply with such demand. If, however, for three consecutive months the said market price indicates a continued and constant increase on their selling value, the Governor-in-Council may allow the securities to be reduced provided the selling vaine of such securities plus the value of the coin (if any) deposited is never allowed to fall below the amount required by section 4.

outstanding

6. When in the opinion of the Governor-in-Council & Power of temporary emergonoy exists, he may permit the Company Governor.

In-Council to to issue notes in excess of the paid up capital of the authorise Company, provided there has been specially deposited and excess note is kept in the custody of the Colonial Secretary and the issue in Colonial Treasurer for the time being an amount of legal temporary sender dollars equal to the whole face value of such excess issue for the time being actually in circulation, to be held by the said Colonial Secretary and Colonial Treasurer exclusively for the redemption of such notes.

emergency,

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