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Constitution of Local Loans stock.
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8. [1]
—(1) For the purposes of this Act, and subject to the limitations thereof, the Treasury may from time to time create a new class of capital stock consisting of perpetual annuities yielding dividends at the rate of three per cent, per annum on the nominal amount of the capital (which stock is in this Act referred to as Local Loans stock).
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(2) Such annuities shall be payable by equal quarterly, dividends at such times in each year as may be fixed by the warrant creating the first portion, of Local Loans stock, and shall be paid out of the Local Loans Fund, and if such fund is insufficient shall to the extent of such insufficiency be charged on and issued out of the Consolidated Fund or the growing produce thereof, and any sum so issued out of the Consolidated Fund shall be repaid to the Consolidated Fund in manner provided by this Act.
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(3) The Local Loans stock shall not be redeemable until after the expiration of twenty-five years from the commencement of this Act, but after that date may be redeemed at any time, after not less than one month’s notice, at the rate of one hundred pounds sterling for every hundred pounds of the capital sums in respect of which the annuities are payable, together with the payment of all arrears of such annuities, including the portions which have accrued since the last date for the payment of dividends.
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(4) Such notice shall be a resolution of the House of Commons, signified by the Speaker in writing, and printed in the “London Gazette,” and the portion of stock redeemed at one time shall not be less than five million pounds capital stock, but, subject as aforesaid, the mode of redemption shall be determined by an Act to be hereafter passed.
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(5) The Local Loans stock created from time to time shall be consolidated with the like stock previously created, and all Local Loans stock shall be transferable in the books of the Banks of England and Ireland in like manner as other stocks of three per cent, perpetual annuities, and shall be subject to the enactments relating to those stocks so far as is consistent with the tenor of those enactments and this Act, so, however, that the said enactments shall not create any further charge on the Consolidated Fund than is created by this Act.
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(6) All persons and bodies of persons, including the National Debt Commissioners, having power, whether subject or not to any restrictions or conditions, to invest in any other stock of three per cent. perpetual annuities, shall have power, subject to the same restrictions and conditions (if any), to invest in Local Loans stock.
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[1 Amended by 60 & 61 Vict. c. 51; see that Act.] |
