Currency Act, 1927

Provision of money to redeem legal tender notes.

50.—(1) All moneys required for the redemption of legal tender notes by the Commission (whether at the London Agency or in Dublin) in pursuance of this Act shall be provided by the Commission out of the legal tender note fund, and, if that fund proves insufficient, out of the note reserve fund and, if such last-mentioned fund proves insufficient, out of moneys advanced under this section to the Commission out of the Central Fund.

(2) Whenever the legal tender note fund and the note reserve fund have proved or are expected by the Commission to prove in the then near future insufficient to provide the moneys necessary for the redemption of legal tender notes by the Commission in pursuance of this Act, the Commission shall certify to the Minister the existence or expectation (as the case may be) of such insufficiency and the sum which is required by the Commission for the redemption in accordance with this Act of all such legal tender notes as in the opinion of the Commission will probably be presented for such the redemption in the then near future, and upon receipt of such certificate the Minister shall forthwith advance to the Commission out of the Central Fund or the growing produce thereof the sum so certified by the Commission.

(3) All sums advanced to the Commission out of the Central Fund under this section shall be repaid without interest to the Exchequer by the Commission out of the first moneys to the credit of the note reserve fund.

(4) For the purposes of this section any payment under this Act (otherwise than in legal tender notes) on presentation of legal tender notes which have been called in shall be deemed to be a redemption of such legal tender notes.