TNAG-0563-FCO40-658-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 12

MASS TRANSIT RAILWAY CORPORATION BILL

(2) The Governor may, after consulting the Corporation, increase the authorized capital of the Corporation by order published in the Gazette.

(3) Shares in the authorized capital of the Corporation shall be allotted to the Government at par as required in writing by the Financial Secretary and may be paid for by set-off against the indebtedness of the Corporation to the Government in such manner and to such extent as the Financial Secretary may direct pursuant to section 17(3).

(4) All shares allotted to the Government under this section shall be registered in the books of the Corporation in the name of The Colonial Treasurer Incorporated and held by him in trust on behalf of the Govern

ment.

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11. (1) Subject to subsection (3) the Corporation may, in any Power to currency and on such terms and conditions as it thinks fit-

borrow and to issue stock

(a) borrow or otherwise raise money and charge all or any part of etc.

its property as security therefor;

(b) create and issue bonds, notes or other securities which may be charged on the property, undertaking and revenue of the Corpora- tion or any part thereof.

(2) In exercise of the powers conferred by section 6(2)(a) and sub- section (1)(a) the Corporation may purchase property under an agreement providing for the payment of the whole or part of the purchase price by instalments.

(3) The powers conferred by subsection (1) may be exercised to provide the Corporation with such sums or credits as it may require for-

(a) carrying out the purposes referred to in section 6(1);

(b) repaying money previously borrowed by it therefor and interest,

premium or other charge on such money;

(c) repaying sums due to the Government under section 12(3);

(d) discharging the indebtedness arising under section 17 and any

interest thereon,

12. (1) The Governor in Council may authorize the Financial Guarantee by Secretary, on behalf of the Government, to guarantee, on such terms and Government. conditions as the Governor in Council may approve--

(a) repayment of loans made to, or the discharge of other indebted- ness of, the Corporation and the payment of interest, premium or other charge thereon;

(b) the redemption or repayment of, and the payment of interest, premium or other charge on, any bonds, notes or other securities issued by the Corporation.

(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.

(3) 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,