GENERAL LOAN AND STOCK ORDINANCE

Arrangement of Sections

1. Short title.

2. Loans to be raised by debentures or stock.

3. Loans to be a charge upon Consolidated Fund.

4. Borrowing upon debentures.

5. Amount of each debenture.

6. Redemption of debentures.

7. Interest coupons.

8. Form of debentures and coupons.

9. Debentures and coupons transferable by delivery.

10. Registry of debentures.

11. Payment of interest.

12. Mode of providing for payment of interest on debentures.

13. Further sums to be remitted for the redemption of debentures.

14. Application of sinking fund.

15. Creation of sinking fund for redemption of debentures payable on a fixed date.

16. Disposal of sinking fund when debentures are redeemed by purchase or by annual drawings.

17. Appointment of day for drawing of debentures.

18. Notice of time and place appointed for drawing.

19. Mode of drawing.

20. Notice of debentures drawn for redemption.

21. Payment of drawn debentures.

22. Cesser of interest from day appointed for payment of principal.

23. Redeemed debentures to be cancelled.

24. Borrowing upon stock.

25. Redemption of stock.

26. Mode of providing for the payment of interest on stock.

27. Mode of providing for repayment of principal of stock.

28. Creation of sinking fund.

29. Charge upon Consolidated Fund.

30. Cesser of sinking fund contribution.

31. Expenses to be paid out of sinking fund.

32. Minister's powers in regard to loans.

33. Exchange of securities for Stock.

34. Converted securities to be cancelled.

35. Trustees to apportion amount of sinking fund released by conversion.

36. Sinking funds released how to be disposed of.

37. Creation, inscription, issue, conversion and transfer of stock.

38. Raising of loans in Ceylon.

39. Exemption of debentures and stock from taxes duties and levies in certain cases.

40. Exemption of 3 per cent. Stock, 1959-1964, from taxes

41. Saving clause.

42. Interpretation.

5 of 1921,

6 of 1928,

29 of 1935,

12 of 1937,

1 of 1950.

AN ORDINANCE to declare the terms and conditions applicable to loans authorised to be raised by the government of Ceylon and to provide for the creation of Ceylon stock.

[Date of Commencement: 16th February, 1921]

1. Short title.

This Ordinance may be cited as the General Loan and Stock Ordinance.

2. Loans to be raised by-debentures or stock.

Whenever by any enactment authority shall have been given, or shall hereafter be given, to raise any sum of money for the purposes mentioned in such enactment, the Minister of Finance or the Crown Agents acting on his behalf, may from time to time, as he or they may deem expedient, raise such sum either by debentures or by Ceylon stock, or partly by debentures and partly by stock.

3. Loans to be a charge upon Consolidated Fund.

The principal money and interest represented by the debentures or stock issued under the provisions of this Ordinance are hereby charged upon and shall be payable out of the Consolidated Fund1 and assets of Ceylon.

4. Borrowing upon debentures.

When the Minister of Finance, or the Crown Agents acting on his behalf, shall deem it expedient to raise money by debentures such debentures shall be issued in London, on behalf of the Government of Ceylon by the Crown Agents, upon the best and most favourable terms that can be obtained, and shall be signed by any one of them on that behalf.

5. Amount of each debenture.

Every debenture issued under the provisions of this Ordinance shall be for the sum of not less than one hundred pounds sterling.

6. Redemption of debentures.

The debentures shall be redeemable either—

(a) at par on a fixed date to be declared at the time of issue of the debentures, such date being not later than sixty years from the date of the issue:

Provided that the Minister of Finance or the Crown Agents acting on his behalf may reserve the option to redeem the debentures at some earlier date on such conditions as may be declared at the time of issue; or

(b) by annual drawings at par, or at the option of the Minister of Finance or the Crown Agents acting on his behalf of purchase at or below par.

7. Interest coupons.

There shall be attached to every debenture coupons for the payment of the interest to become due in each half-year upon the principal represented by the debenture. The coupons shall be sufficient in number to provide for the payment of the interest, either during the whole period for which the debenture has to run, or for such limited period as the Crown Agents, acting on behalf of the Government of Ceylon, may determine.

8. Form of debentures and coupons.

The debentures, and the coupons thereto, shall be in such form as the Minister of Finance, or the Crown Agents acting on his behalf, may direct or approve.

9. Debentures and coupons transferable by delivery.

Every debenture and coupon, and the right to receive the principal and interest represented thereby, shall be transferable by delivery.

10. Registry of debentures.

Every debenture shall, before being issued, be registered in a register book to be kept for that purpose at the office in London of the Crown Agents.

11. Payment of interest.

The interest upon the principal represented by each debenture shall run from the day named in that behalf in the debenture, and shall be paid half-yearly on the days named in that behalf in the debenture at the office in London of the Crown Agents.

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