TNAG-0717-FCO40-914-Banking-and-monetary-matters-in-the-Dependent-Territories-is-1978 — Page 127

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transfer, from the "currency fund" to the territory's central

funds, of an amount equivalent to the value of any notes or coins of the series withdrawn that are still outstanding.

6. Although the legislation under review provides no example of

explicit renunciation of all liability for exchange after a

period following withdrawal of legal tender status, this may

be implicit in the provisions relating to the calling-in of

currency.

8.13 (3) As outlined in Section 4.4 the currency practices and consequently the supporting legislation vary significantly in content

and complexity from one territory to another.

There is

8.13(4) BVI currency legislation comprises the Legal Tender (Adoption

of United States Currency) Ordinance 1959 (as amended) and the Coinage

and Legal Tender Ordinance, 1973 (as amended). The latter Act was

enacted to provide for the issue of BVI coins, thus giving legal

tender status to coins minted under the Franklin contract.

no provision for a fund of external assets (it would have to be in

US dollars) to "back" local coinage, and the "Commissioner of Currency"

is not required to redeem currency except in the event of its cancellation (ie when it ceases to be legal tender). Although there

is no additional requirement in the contract with Franklin that BVI

coins are redeemable at any time for US dollars, the Government reports that it feels morally obliged to redeem those coins that are handed

in, despite the absence of a fund against which the cost of redemption

may be charged. Under the existing legislation, redemptions made

following the cancellation of coins by the BVI Government would be

charged on the territory's general revenues.

8.13(5) In the Turks and Caicos Islands similar legislation exists the

Currency Ordinance, 1973 (as amended) and the Coinage Ordinance, 1974.

The former provides not only for the adoption of the US dollar as

legal tender currency but also for the issue, under the Governor's

proclamation, of local coins, entitled "crowns" (at par with the US dollar). This type of coin is issued only for numismatic purposes. The Coinage Ordinance gives legal tender status to the coins minted

under the agreement with Paramount. Whereas there is no commitment

in either Ordinance to back local coinage or to redeem crowns for

US dollars, Article 5 of the 1974 contract with Paramount states that

"All Proof and Specimen Coins

shall, upon request by the holder,

.....

be redeemed by the Government in United States currency

.

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