Section 6

Any arrangements made for the exchange of securities under this section may include provision for the making of payments to the holders of securities exchanged; and any such payments and all other expenses of any such exchange may be met out of the surplus (if any) created by the exchange in any sinking fund relating to the securities exchanged and, if not so met, shall be charged on the Federal Consolidated Fund as part of the debt charges for those securities.

On any exchange of securities under this section the surplus

(if any) thereby created in any sinking fund relating to the securities exchanged, or so much of it as is not applied under subsection (2), may if the Minister so directs be transferred to any other sinking fund relating to securities of Malaysia, and subject thereto shall be applied at such times and in such manner as the Minister may determine in the redemption of securities of Malaysia.

10

This section shall apply to any conversion of securities authorized by section 31 of the General Loan and Stock Ordinance 1949, as if those securities had been issued for raising an external loan; and accordingly in paragraph (1)(b) of that section for the words “stock to be issued under the provisions of this Ordinance”

there shall be substituted the words “securities to be issued as provided by section 6 of the External Loans Act 1963”.

Cancellation of securities exchanged or redeemed