33201-1913-Supplementary-Bills-read-a-first-time--General-Loan-and-Inscribed-Stock — Page 4

C

6

153

of inscribed

28. After the date specified in the Ordinance authoris- Mode of ing an issue of inscribed stock as that on which the con- providing tribution to the sinking fund shall commence, the Governor for payment shall further appropriate out of the said revenues and

of principal assets in each half-year ending as aforesaid an additional stock. sum for the formation of a sinking fund of not less than ten shillings per centum on the total nominal amount of such inscribed stock, and shall remit that sum to the Crown Agents with the remittance hereinbefore mentioned,

29. The Crown Agents shall, for the purpose of forming Creation of such sinking fund, from time to time invest so much of the sinking fund. money so remitted to them as aforesaid as shall not be required for the payment of interest for the current half- year in the purchase of such securities as may from time to time be approved by His Majesty's Principal Secretary of State for the Colonies, and shall also invest the dividends, interest or produce of such investments in the purchase of like securities, and may from time to time, with the approval of the Secretary of State, change any such invest- ments, and shall hold such fund in trust for repayment of the principal moneys for the time being represented by the inscribed stock.

30. In case the sinking funds provided for by this Charge upon Ordinance shall be insufficient for the payment of all the general principal moneys borrowed under the authority of this revenue. Ordinance at the time the same shall have become due, the Governor shall make good the deficiency out of the general revenues and assets of the Colouy of Hongkong,

31. All expenses of or incidental to the management Expenses to of the sinking fund, or to the payment of the principal be paid out moneys borrowed, shall be paid out of the sinking fund. of sinking

fund.

32. The Governor shall also have, and may from time Powers of to time exercise, the following powers and authorities or Governor. any of them :-

(a.) He may authorise the Crown Agents when Debentures issuing any loan in the form of debentures to convertible declare that such debentures will be convert- into inscri-

bed stock on ible into inscribed stock at such dates and on conditions such terms and conditions as may be prescribed prescribed by the Crown Agents at the time of the issue by Crown of the debentures

Agents at time of issue.

(b.) He may declare all or any of the Hongkong Conversion

loans, whether existing in the form of stock or of loans debentures, to be convertible into inscribed generally. stock, to be issued under the provisions of this Ordinance.

(c.) He may authorise the creation and issue of Creation and such an amount of inscribed stock in exchange issue of stock for the securities held for such loans as may be in exchange

for other necessary.

securities. Creation and sale of inscri- bed stock or debentures to raise loans

(d.) He may authorise the creation and sale of any such inscribed stock or debentures for the purpose of raising money for redeeming any outstanding loans, for paying any expense in the creation of inscribed stock, and otherwise and for other for carrying out the provisions of this Ordì- purposes.

nance.

(e.) Any conversion so authorised may be effected Arrange-

either by an arrangement with the holders of ments for existing securities or by purchase thereof out conversion. of moneys raised by the sale of inscribed stock, or partly in one way and partly in the other.

33. Nothing in this Ordinance contained shall authorise an increase of the capital or of the annual charge on any loan, except :-

(a.) When securities exchanged for inscribed stock bear a rate of interest not less than the inscribed stock, an additional amount of inscribed stock may be created and issued to make up the differ- ence in saleable value between the securities and the inscribed stock.

(b.) In the case of the conversion of securities into inscribed stock, the Crowu Agents shall issue such an amount of inscribed stock as may be required to defray the stamp duties and all other expenses incidental to the conversion.

Exchange of securities for

inscribed stock.

{