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NATIONAL DEBT (CONVERSION) ACT 1888
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CHAPTER II.
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An Act for reducing the Rate of Interest on the National Debt.[1]
[27th March 1888.]
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[Preamble recites 33 & 34 Vict. c. 71, referring to the new three pounds per cent. annuities (hereinafter referred to as new three per cent. stock); also refers to the conversion and redemption of the new three per cent. stock and to the conversion of the consolidated three pounds per cent. annuities and the reduced three pounds per cent. annuities (hereinafter referred to respectively as consolidated three per cent. stock and reduced three per cent. stock).]
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Part I.
Conversion or Redemption of New Three per Cent. Stock.
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[S. 1 rep. 8 Edw. 7. c. 49 (S.L.R.).]
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Denomination and incidents of new stock.
33 & 34 Vict. c. 71.
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2.—(1) The new stock shall consist of a capital stock of perpetual annuities, which shall . . . . yield dividends at the rate of two pounds ten shillings per cent. per annum.
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(2) The new stock shall not be redeemable until the fifth day of April one thousand nine hundred and twenty-three, but on and after that day shall be redeemable by Parliament on such notice, at such time or times, and either in one sum or in such sums or proportions, and in such order and manner as Parliament may direct, at the rate of one hundred pounds sterling for every one hundred pounds of the capital sums in respect of which the annuities constituting the stock are payable, together with the payment of all arrears of those annuities, including the proportionate part accrued since the last date for the payment of dividends.
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(3) The new stock shall form part of the National Debt, and the annuities constituting the same shall be payable by equal quarterly dividends on the fifth day of January, the fifth day of April, the fifth day of July, and the fifth day of October in every year . . . .
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(4) The new stock shall be called . . . . two and a half per cent. consolidated stock.
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(5) The dividends on the new stock shall be charged on the Consolidated Fund of the United Kingdom, and paid out of the permanent annual charge of the National Debt, and the provisions of the National Debt Act, 1870, shall apply in the same manner, so far as is consistent with this Act, as if the new stock were one of the stocks of perpetual annuities described in the First Schedule to the National Debt Act, 1870, and the Treasury may, by warrant, declare that the new stock shall be subject to Part Five of that Act.
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[Ss. 3–7 as to signifying dissents rep. 8 Edw. 7. c. 49 (S.L.R.).]
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[Ss. 8–10, being Part II. (“Power to exchange Consolidated and Reduced Three per Cents. for New Stock”), rep. 8 Edw. 7. c. 49 (S.L.R.).]
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Part III.
Ways and Means.
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Creation of new stock.
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11. The Treasury may at any time, and from time to time, by warrant addressed to the Bank, direct the creation of such amounts of new stock as may be required to replace stock converted or exchanged under this Act, or to raise money for paying off such holders of new three per cent. stock as dissent from the conversion thereof.
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Power to raise money for redemption of dissentient stock holders.
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12.—(1) The Treasury may from time to time raise any sums required for paying off such holders of new three per cent. stock as dissent from the conversion thereof either by the creation of new stock as aforesaid, or by the issue of Exchequer bonds, or Exchequer bills or Treasury bills, or by otherwise borrowing the same (for a period not exceeding twelve months) from such persons as may be willing to lend the same on the credit of the charge created by this Act on the Consolidated Fund, or by all such means, and the sums so raised shall be paid into the Exchequer, and form part of the Consolidated Fund.
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(2) The principal money borrowed in pursuance of this section, otherwise than by the creation of new stock, and all interest from time to time due thereon (not exceeding the rate of five per cent. per annum), shall be charged on and be payable out of the Consolidated Fund, or the growing produce thereof, at such times in each year as may be fixed by the Treasury.
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(3) In the event of its being considered by the Treasury expedient to substitute new stock for any Exchequer bonds, Exchequer bills, or Treasury bills issued, or for money otherwise borrowed under this Act, the Treasury may from time to time by warrant addressed to the Bank direct the creation of new stock for that purpose.
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Power to raise money for incidental expenses.
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13.—(1) All sums paid for defraying expenses incurred in pursuance of this Act, or for providing any dividend which by reason of any conversion or exchange effected under this Act becomes payable in the then current financial year instead of the next financial year, shall be charged on and be payable out of the Consolidated Fund or the growing produce thereof, but shall not be payable as part of the permanent annual charge for the National Debt.
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(2) The Treasury may from time to time, as they think fit, repay to the Consolidated Fund any portion of the money issued thereout for the purposes of this section, and may, with a view to provide money for such repayment, raise any sums in any of the modes by which they are by this Act authorised to raise sums of money.
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Part IV.
Supplemental.
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[Ss. 14, 15 rep. 8 Edw. 7. c. 49 (S.L.R.).]
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Provisions as to savings banks.
43 & 44 Vict. c. 36.
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16.—(1) Regulations made in pursuance of the Savings Banks Act, 1880, with respect to investments in and sales of stock through the medium of trustee and post office savings banks may provide for investments in new stock; and for the purpose of regulations so made, the expression “Government stock” in the Savings Banks Act, 1880, shall be deemed to include new stock.
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[Sub-s. (2) and s. 17 rep. 8 Edw. 7. c. 49 (S.L.R.).]
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Power to hold new stock on different accounts.
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18. In the registers of new stock, the Bank shall allow any holder or joint holders to have more than one account, provided that each account is distinguished either by a number or by such other designation as may be directed by the Bank, and that the Bank shall not be required to permit more than four accounts to be opened in the same name or names.
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Powers of investment.
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19. A power or direction, whether subject or not to any restrictions or conditions, to invest in any of the stocks which may be converted or exchanged under this Act, or generally in three per cent. stock, shall extend to authorise an investment subject to the same conditions and restrictions (if any) in new stock.
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[Ss. 20–24 rep. 8 Edw. 7. c. 49 (S.L.R.).]
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Application to new stock of trusts, powers, &c. affecting old stock.
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25.—(1) Where any stock is converted into or exchanged for new stock, the new stock, and the dividends thereon, shall be subject to the same trusts, charges, rights, distringas, and restraints as affect the stock so converted or exchanged, and the dividends thereon respectively, and all powers of attorney, requests as to dividends, and other documents relating to the stock so converted or exchanged, and the dividends thereon, or either of them, shall apply to the new stock, and the dividends thereon respectively.
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(2) In any Act passed or instrument executed before the passing of this Act references to any stock liable to be converted or exchanged in pursuance of this Act may, if the stock is so converted or exchanged, be construed as references to new stock, and in the case of any testamentary instrument executed before the passing of this Act, any disposition, which, but for the passing of this Act, would have operated as a specific bequest of any such stock, shall if the same is so converted or exchanged be construed as a specific bequest of such new stock, and if the same is not so converted, but is paid off or redeemed shall be construed as a pecuniary legacy of a sum of money equal to the nominal amount of the stock so paid off or redeemed.
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[S. 26 rep. 8 Edw. 7. c. 49 (S.L.R.).]
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Reinvestment by trustee.
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27. When any stock, converted or exchanged by virtue of this Act into new stock, is held by a trustee, such trustee shall be at liberty to sell the same, and to invest the proceeds arising from such sale in any of the securities for the time being authorised for the investment of cash under the control of the High Court, notwithstanding anything to the contrary contained in the instrument creating the trust.[1]
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Application to court in respect of questions arising out of conversion or exchange.
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28.—(1) If by reason of the conversion or exchange of any stock in pursuance of this Act any question arises as to the powers or duties of any trustee, executor or administrator, or other person acting in a fiduciary character, or as to the application of the dividends or capital of any stock, and in particular as to the cases in which, and extent to which capital may be applied towards meeting any deficiency in income, the High Court in England or Ireland, or the Court of Session in Scotland on the application of the trustee, executor, or administrator, on other person as aforesaid, or of any person interested in the stock, may by order determine the question.
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(2) In the case of a charity in England or Wales, subject to the provisions of the Charitable Trusts Acts, 1853 to 1887, the like orders may be made by the Charity Commissioners for England and Wales, either on their own motion or on application, and nothing in this section shall authorise an application to the High Court in the matter of such a charity without a certificate from those commissioners.
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[S. 29 rep. 8 Edw. 7. c. 49 (S.L.R.).]
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Provisions as to Bank.
45 & 46 Vict. c. 61.
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30.—(1) A warrant from the Treasury shall be a sufficien authority to the Bank for anything done by the Bank in pur suance of that warrant for the purposes of this Act.
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(2) The Bank shall not be concerned to inquire as to whether any such consent as is required by this Act is given to any exchange of stock, nor be responsible in the event of any such consent not having been given, and may act on any evidence authorised by rules made under this Act, and are hereby indemnified for so acting.
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(3) Nothing in this Act, or in any rules under this Act shall affect the Bank with notice of any trust.
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(4) The Bank shall have power to advance to the Treasury any money which may be required for the purposes of this Act
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(5) Any payment which the Bank are authorised by of under this Act to make to a holder of stock, or to any person holding a power of attorney to receive dividends on stock, may be made by warrant, and any such warrant shall be deemed to be a cheque within the meaning of the Bills of Exchange Act 1882, and the posting of the letter containing the warrant addressed in the prescribed manner, shall, as respects the liability of the Bank, be equivalent to the delivery of the warrant to the stock holder.
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[S. 31 rep. 55 & 56 Vict. c. 48, s. 8.]
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Definitions.
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32. In this Act, unless the context otherwise requires—
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“The Bank” means the Bank of England, or the Bank of Ireland, as the case may require.
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“Person” includes a body of persons corporate or unin corporate.
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“Financial year” means the twelve months ending the thirty-first day of March.
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Short title.
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33. This Act may be cited as the National Debt (Conversion Act, 1888.
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[1 Short title, “The National Debt (Conversion) Act, 1888.” See s. 33.]
[1 As to S. see 51 & 52 Vict. c. 15, s. 8.] |
