CO129-543-12 Loans for public work 29-3-1933 - 20-12-1933 — Page 94

Copy to M. Ez.

rel b.A. (13)

EXTRACT FROM HANSARD DATED 15TH JUNE, 1933

92

5

HONG KONG LEGISLATIVE COUNCIL.

PUBLIC WORKS LOAN Redemption ORDINANCE, 1933.

61

THE ATTORNEY GENERAL moved the first reading of a Bill intituled "An Ordinance to make provision for the redemption of the bonds issued under the authority of the Public Works Loan Ordinance, 1927." He said: The bonds issued under the Public Works Loan Ordinance, 1927, were made redeemable at any time after the 31st October, 1932. This Bill makes provision for the redemption of all outstanding bonds on the 1st August, 1933. Bondholders exercising the option the Bill gives them may exchange their bonds for 4% bearer Conversion bonds. Those who do not exercise that option are to be paid off. The new Conversion bonds will be made a Trustee investment.

THE COLONIAL SECRETARY seconded and the Bill was read a first time.

Objects and Reasons.

The "Objects and Reasons" for the Bill were stated as follows:-

1. The Public Works Loan Ordinance, No. 14 of 1927, authorised the issue of bonds for the purpose of raising a loan of $5,000,000 at 6 per cent. for waterworks, aerodrome, and harbour development and other public works.

2. The loan was redeemable at par on the 1st November, 1938, but provision was made for the redemption by purchase or for drawings at any time or times after the 31st October, 1932, as the Governor may from time to time determine.

3. It is now considered desirable to make provision for the redemption of the bonds at par on the 1st August, 1933, in the case of all bond holders who do not before the 11th July, 1933, or such later date as the Colonial Treasurer may approve, express their desire to exchange their bonds for a new issue of Conversion bonds bearing interest at in this Ordinance avoids the necessity for a formal drawing by lot, prescribed by section 5 (3) of Ordinance No. 14 of 1927, as it is intended to redeem all bonds not exchanged for the new Conver- sion bonds.

4 per cent. The method proposed

4. These Conversion bonds will be redeemable at par on the 1st August, 1953, and will not be redeemable before that date otherwise than by purchase in the open market which is authorised by section 9 (2).

5. The principal moneys and interest represented by the Conversion bonds, which like the Public Works Loan bonds will be bearer bonds transferable by delivery, will be charged on and secured by a sinking fund and the revenue and assets of the Colony.

6. The Conversion bonds will be authorised investments in which any trustee, not expressly forbidden by the terms of the instrument creating the trust, may invest funds in his hands.

7. The moneys appropriated for the payment of interest on the Conversion bonds and for the formation of the sinking fund and all dividends, interest or produce of any investments which represent any portion of the sinking fund, will be exempted from the defence contribution payable under Ordinance No. 1 of 1901.