Finance Act, 1990

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Conversion of Government loans, etc.

134.—(1) The Minister for Finance may, whenever and so often as he thinks fit—

(a) make, in such manner and in respect of such cases as he considers appropriate, or

(b) give notice in such manner and in respect of such cases as he considers appropriate of his intention to make, either on a specified day or at a specified time on a day,

an offer of conversion of any existing holding of stock of Government loan, or any part thereof (in this section referred to as the “existing stock”) into a holding of stock (in this section referred to as the “offered stock”) of—

(i) another existing and specified Government loan or loans, or

(ii) a new Government loan or loans, or

(iii) partly another existing and specified Government loan or loans and partly a new Government loan or loans,

subject to such terms and conditions as he thinks fit.

(2) (a) Where an offer of conversion was made under this section in respect of an existing stock, every stockholder to whom the offer was made who duly accepts conversion in accordance with the offer shall have his holding of the stock or, where provided for in the terms and conditions of the offer, part of his holding of the stock (as the case may be) converted into offered stock of such amount and upon such terms and conditions as are applicable in accordance with the offer.

(b) An acceptance under this subsection shall, subject to subsection (3), be made in such manner as is specified in the terms and conditions of the offer of conversion.

(3) (a) An acceptance under subsection (1) in respect of stock which is standing in the books of the Bank in the names of two or more persons may be made—

(i) if all of those persons are alive, by a majority of them,

(ii) if one or more but not all of those persons is or are dead, by the sole survivor or a majority of the survivors, or

(iii) if all of those persons are dead, by the personal representative or a majority of the personal representatives of the last survivor.

(b) An acceptance under subsection (1) in respect of stock which is standing in the books of the Bank in the name of one person only may, if that person is dead, be made by the personal representative or a majority of the personal representatives of that person.

(4) Where a person, in whose name either alone or jointly, any stock of Government loan is standing, is under a disability specified in the first column of the Table to this subsection and an offer of conversion is made under this section in respect of all or any of that stock, then acceptance of the offer may be made on his behalf by the appropriate person specified in the second column of that Table, and such acceptance may be made either alone or jointly (including jointly as constituting a majority), as the case may require.

TABLE

(5) Where an offer of conversion is made under subsection (1)—

(a) trustees and other persons holding in a fiduciary capacity any existing stock and persons having the control or management of any such stock may, at their discretion, accept conversion in accordance with the terms and conditions of the offer or refrain from so accepting, and no such person shall be liable for any loss resulting from so accepting or refraining (as the case may be), and

(b) neither accepting nor refraining from accepting an offer by virtue of this subsection shall be a variation of the investment of the trust funds within the meaning of any provision in the instrument creating or regulating the trust whereby the consent of any person to any such variation is required or such variation is otherwise restricted or controlled.

(6) (a) A power or direction (whether created or given before or after the passing of this Act) to invest money in stock of a Government loan in relation to which an offer of conversion has been made under this section shall be construed and have effect as including a power or direction (as the case may be) to invest in the offered stock and no such power or direction shall be terminated by reason only of that conversion.

(b) A power of attorney authorising the attorney to transfer specified stock of a Government loan shall, in relation to an offer of conversion which—

(i) has been made under this section in respect of the stock, and

(ii) provides for the conversion of the whole or part of that stock,

be construed and have effect as authorising the attorney to accept at his discretion an offer of conversion under this section and where such conversion into the offered stock takes place, to transfer in accordance with the said power that stock on conversion.

(c) Where an existing stock is converted under this section into another stock of Government loan that other stock and the dividends thereon shall be subject to the same trusts, charges, rights, distringas and restraints as affected the first-mentioned stock and the dividends thereon and any powers, directions, requests as to dividends and other documents which related to the first-mentioned stock or the dividends thereon shall apply to the said other stock and the dividends thereon.

(7) Where any balance in the sinking fund of a Government loan in relation to which an offer of conversion has been made under this section is not required to meet redemptions of the loan, the balance shall be paid into the Exchequer and brought to account as money raised by the creation of debt.

(8) All expenditure incurred by the Minister in carrying this into effect shall be charged on the Central Fund or the growing produce thereof.

(9) The Government Loans (Conversion) Act, 1951 , is hereby repealed.

(10) In this section—

“the Bank” means the Central Bank of Ireland;

“Government loan” means any security charged to the Central Fund and created and issued, whether before or after the passing of this Act.