TNAG-0126-FCO40-162-Sterling-balances-1970 — Page 104

(iii) the following securities issued by companies having their registered office and Head Office in the United Kingdom and quoted on a Stock Exchange in the United Kingdom, and units in United Kingdom Unit Trusts:

(a) common or ordinary stock and shares and preferred stock and shares on which capital moneys and dividends are payable solely in sterling;

(b) units in Unit Trusts on which, under the terms of issue, capital moneys are payable solely in sterling on liquidation or realisation;

(c) redeemable interest-bearing securities on which capital

moneys are payable solely in sterling;

(d) irredeemable interest-bearing securities on which interest

is payable solely in sterling,

which are denominated in sterling and which are held in the name or to the order of the Brunei Currency Board, the Government of Brunei, its agencies and other official institutions with banks or other depositaries in the United Kingdom and which are included in total official external reserves;

(iv) the estimated share of the Government of Brunei of the

undistributed assets of the Board

assets of the Board of Commissioners of Currency, Malaya and British Borneo.

(2) The Guarantee

The Government of the United Kingdom undertake to maintain the sterling value in terms of the United States dollar of the balances eligible for guarantee, provided that the Minimum Sterling Proportion referred to below has been maintained by Brunei up to and including the date of implementation of the Guarantee. The circumstances in which the Guarantee would be implemented and the terms of implementation shall be defined in consultation between the two Governments.

(3) Balances Eligible for Guarantee

The balances eligible for guarantee shall be that portion of official sterling reserves by which those official sterling reserves exceed 10 per cent of total official external reserves as defined in paragraph 1(1)(a) above, except that no part of official sterling reserves falling under or bearing a right to conversion into a security covered by (a) and (b) of paragraph 1 (1) (b) (iii) above shall be eligible for guarantee.

(4) The Minimum Sterling Proportion

Brunei shall throughout the period covered by the Agreement maintain official sterling reserves in such proportion to total official external reserves as may be fixed by consultation between the two Governments. proportion shall be known as the Minimum Sterling Proportion.

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