103183-1926-Supplementary-Bills-read-a-first-time--The-Hongkong-Treasury-Bills-Local--The-Hong-Kong-Treasury-Bills-London- — Page 1

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LEGISLATIVE COUNCIL.

No. S. 76. The following Bills were read a first time at a meeting of the Council held on the 18th March, 1926 :-

0.8.0.2568/22.

[No. 3-12.3.26.-2.]

A BILL

Short title.

Power to

issue of Treasury bills.

INTITULED

An Ordinance to regulate the issue of Hong-

kong Treasury bills in Hongkong.

WHEREAS it may be expedient from time to time that the Governor should bor.ow money by the issue of Hong- kong Treasury bills in Hongkong:

AND WHEREAS it is expedient to provide in one Ordin- ance the terms and conditions applicable to the borrowing of money by the issue of such bills:

Be it the efore enacted by the Governor of Hongkong, with the advice and consent of the Legislative Council thereof, as follows:-

1. This Ordinance may be cited as The Hongkong Treasury Bills (Local) Ordinance, 1926.

2. The Governor whenever authorised thereto by a borrow by the resolution of the Legislative Council may borrow by the issue in Hongkong of Hongkong Government Treasury bills sums not exceeding the amount specified in such resolution; and may also borrow from time to time by the issue of such Treasury bills such sums as may be required to pay off at maturity bills already lawfully issued and outstanding.

Principal of bills.

Proceeds of bills.

Amounts and period of currency of bills.

Repayment of bills.

Cancellation of repaid bills.

3. The principal moneys represented by the Treasury bills issued under the provisions of this Ordinance are hereby charged upon and shall be payable out of the general revenues and assets of the Colony.

4. The proceeds of the issue of the Treasury bills shall be paid into the general revenues of the Colony.

5. Every Treasury bill issued under this Ordinance shall be for the sum of $10,000 or a multiple of $10,000 and shall be payable at par at such time or times as the Governor shall before the issue of such Treasury bill fix and determine, but not later than one year from the date of issue.

6. The Governor shall appropriate out of the general revenues of the Colony the necessary sum to pay the principal represented by the Treasury bills.

7. Upon repayment of the principal moneys represented by the Treasury bills, the bills shall be delivered up to the Government of Hongkong to be cancelled.

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Objects and Reasons.

1. An experiment which was recently made of issuing Treasury bills in London on behalf of a Colonial Govern- ment proved very successful, and the Crown Agents have represented that it is desirable for several reasons that Colonial Governments generally should have power to issue such bills. Treasury bills often prove a convenient method of obtaining a temporary loan.