CO129-435 - Governor Sir May & Acting Governor Claud Severn - 1916 [9-11] — Page 653

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Provision

for sinking fund.

Application of sinking fund.

lavestment of sinking fond.

Payment of interest,

Powers of Governor.

Exemption

from duties

and taxes.

+

Delivery up

of bonds on repayment

or repur-

rbase.

7. The Governor shall in each year enlig on the 30th day of November appropriate out of the revenue am Assets of the Colony for the formation of a sinking fund an additional anm of not less than six dollars and sixty- six cents per hundred dollars on the total nomiual value of all the bounds issued, including any which may have been redeemed.

8.-1.) The sinking food shall he applied in the first instance in payment of all expenses of or incidental to the redemption of the bonds and in the next place în re- payment of the principal moneys represented by the bonds.

(2.) In ense the sinking fund shall be insufficient for the payment of the principal moneys at the time when such payment shall become due the Governor shall make good the deficiency out of the revenue and assets of the Colony.

9. The moneys appropriate for the formation of a sinking fund shall, so far as they are not required for the purposes of the preceding section, be invested in such manner as may be approved by the Governor in Council and the dividends interest or produce of such investment shall be invested in like manner.

10. The interest ou each bond shall be at the rate of six per centum per annum and shall run from the day named in that behalf to the bond and shall be puid half- yearly at the head office of the Hongkong and Shanghai Banking Corporation on the days named in that behalf in the coupons.

11. The Governor shall have power :—

(a) to determine the amounts for which the bonds

shall be issued;

(b) to determine the form of the bonds;

(c) to determine the terms upon which the bonds shall be issued, whether with regard to the price of issue or the conditions of application and deposit or otherwise;"

(d) to provide for the issue in the first instance of serip certificates to be exchanged later for

bonds;

(e) to provide for the issue of coupons for the

payment of interest;

(f) to determine the days on which the half-yearly

interest to be payable;

(g) to give the necessary lirections for the redemp- tion of the bonds whether by drawing or purchase:

(4) to give any other necessary directions for the purpose of carrying out this Ordinance and for the management of the loan, provided that such directions are not inconsistent with the pro- visions of this Ordinance.

12. Bonds issued under this Ordinance and the principal and interest represented thereby shall be exempt from all duties and all taxes now leviable or which may hereafter be leviable in the Colony,

13. On the repayment of the principal monoys repre- ented by any bond and on the repurchase of any bond the bond shall be delivered up to the Hongkong and Shraghui Banking Corporation and shall be cancelled by the said Corporation.

Pussed the Legislative Council of Hongkong, this 17th day of October, 1916.

A, G, M. FLETCHER, Clerk of Councils.

Assented to by His Excellency the Governor, the 20th

lay of October, 1916.

CLAUD SEVERN,

Colonial Secretaru.

Report on an Ordinance intituled

an Ordinance to authorise the raising of a

War Loan.

Thé object of this ordinance is to provide for the raising

of a loan the proceeds of which are to be placed at the disposal

of His Majesty's Government for the prosecution of the present

war.

The Ordinance is based in part on the General Loan and Inscribed Stock Ordinance, 1913, ordinance To. 7of 1913 of the Ordinances of Hongkong, and in part on the War Loan Enactment, 1916, Enactment o. 1 of 1916 of the Federal Council of the

Federated Malay states.

.. table of comparison between the

sections of the present ordinance and those of the two other enactments mentioned is appended to this Report, and it seems

to make detailed comment unnecessary.

The percentage figure in section 7 was obtained from the Hongkong and Shangnai Banking Corporation,

It will be seen that by section 11 the Governor is given power to deter.aine various points, some of which are dealt with specifically in the General Loan and Inscribed stock ordinance,

his was done in order to avoid delay.

1916.

Section 12 is based on section 15 of the Federated Kalay

States War Loan Enactment, 1916,

In my opinion this is an ordinance to which His Excellency

the Governor may properly assent in the name of His Majesty and

on His behalf.

Z

Attorney General,

24th October, 1916.

E