General Loan And Stock Ordinance Cap 51 Vol Ii

To declare the terms and conditions applicable to loans authorised to be raised by the

Government of the Colony of North Borneo and to provide for the creation of North

Borneo Stock.

[25TH APRIL, 1949.]

Short title.

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

Interpretation.

“stock” includes both Inscribed and Registered Stock;

“Registered Stock” means stock transferable by instrument in writing.

Loans to be raised by debentures or stock.

Whenever by any Ordinance authority shall have been given, or shall hereafter be given, to raise any sum of money for the purposes mentioned in such Ordinance, the

Governor, or the Crown Agents acting on his behalf, may, as he or they may deem expedient, raise such sum either by debentures or by North Borneo stock, or partly by debentures and partly by stock.

Loans to be a charge upon general revenue.

The principal monies 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 general revenue and assets of the Colony.

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Borrowing upon debentures.

When the Governor, 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 the Colony 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.

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.

Debentures may be redeemed by annual drawing or by purchase in the market or on a date fixed.

The debentures shall be redeemable either –

There shall be attached to every debenture coupon for 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 the Colony, may determine.

Form of debenture and coupons.

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

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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.

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.

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.

Mode of providing for payment of interest on debentures.

So long as any of the debentures remain outstanding, the Governor shall, in each half-year ending with the day on which the interest on the debentures falls due, appropriate out of the general revenue and assets of the Colony a sum equal to one half-year’s interest on the whole of the debentures issued, including any which may have been redeemed, but exclusive of any which may have been at any time exchanged for stock, and shall remit that sum to the Crown Agents at such time as will enable them to pay thereout the then current half-year’s interest on the day on which it falls due.

Debentures shall not be deemed to be outstanding for the purpose of this Ordinance by reason only that one or more of the debentures have not been presented for payment on the day appointed for payment and have, in consequence, not been paid.

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

The sinking fund shall be applied in the first place in payment of all expenses of, or incidental to, the redemption of the debentures and the cost and expenses of all notices required by this Ordinance to be given, and in the next place, and subject to the aforesaid payments, in repayment of the principal monies for the time being represented by the debentures.

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

In the case of debentures redeemable on a fixed date, the Crown Agents shall place at interest or invest in the purchase of such securities as may be approved by the

Secretary of State so much of the money so remitted to them as aforesaid as shall be required for the payment of interest for the current half-year, as a sinking fund for the final extinction of the debt, and the Crown Agents shall also place at interest or invest in the purchase of like securities the accumulations of interest or the dividends, interest or produce of such investments and may, from time to time, with the approval of the

Secretary of State, change any such investments and shall hold such fund in trust for the repayment of the principal monies for the time being represented by the debentures.

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

If a day is appointed for drawing, the Crown Agents shall give, by advertisement in the London “Times” newspaper, not less than fifteen days’ previous notice, specifying the day on which, and the hour and place at which, the drawing will take place.

Mode of drawing.

On the day and at the hour and place so specified the Crown Agents shall hold a meeting, at which the holder of any debenture may, if he think fit, be present, and shall then and in the presence of such debenture holders, if any, as may attend, and of a notary public, draw by lot, out of the whole number of debentures for the time being outstanding, debentures of specified nominal amount.

Notice of debentures drawn for redemption.

The Crown Agents shall thereupon declare the distinguishing numbers of the debentures drawn for redemption, and shall, as soon as may be, by advertisement in the

London “Times” newspaper, specify those numbers and appoint a day, not being later as to each debenture than the day on which the then current half-year’s interest thereon is payable, on which the principal monies represented by the debentures so distinguished will be repaid.

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Payment of drawn debentures.

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n the day so appointed the Crown Agents shall, at their office in London, on demand, pay to the holders of the debentures drawn for repayment the principal monies represented by those debentures, with all interest payable thereon up to that day.

Cesser of interest from day appointed for payment or principal.

From and after the day appointed for the repayment of any debenture all interest on the principal monies represented thereby shall cease and determine, whether payment of the principal shall have been demanded or not.

Redeemed debentures to be cancelled.

Upon the repayment of the principal monies represented by any debenture, the debenture, with all the coupons thereunto belonging, shall be delivered up to the Crown

Agents, to be by them cancelled and disposed of in such manner as the Governor, or the

Crown Agents acting on his behalf, may decide. Any debenture redeemed by purchase shall likewise be so cancelled and disposed of.

Borrowing upon stock.

When the Governor, or the Crown Agents acting on his behalf, shall deem it expedient to raise money by the issue of North Borneo stock, then such stock shall be issued in England by the Crown Agents under the provisions of the Act of the Imperial

Parliament entitled the Colonial Stock Act, 1877 [40 & 41 Vic. c.59.], upon the best and most favourable terms that can be obtained.

When the principal is to be repaid.

All the stock which may be created under the provisions of this Ordinance shall be redeemable at par on a date to be named in that behalf by the Crown Agents when issuing the stock, such date not being later than sixty years from the date of issue:

Provided that the Governor, or the Crown Agents acting on his behalf, may reserve the option to redeem the stock in whole or in part, by drawings or otherwise, at any time prior to such date on such conditions as may be declared at the time of issue. From and after the date appointed for the redemption of the stock or any part of it all the interest on

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the principal monies represented thereby shall cease and determine, whether payment of the principal shall have been demanded or not.

Mode of providing for the payment of interest on stock.

So long as any of the stock shall remain unredeemed, the Governor shall, in each half-year ending with the day on which the interest on such stock falls due, appropriate out of the general revenues and assets of the Colony a sum equal to one half-year’s interest on the whole of such stock, and shall remit that sum to the Crown Agents at such time as will enable them to pay thereout the then current half-year’s interest on the day when it falls due.

Mode of providing for payment of principal of stock.

The Crown Agents shall, for the purpose of forming such sinking fund, from time to time place at interest or invest in the purchase of such securities as may from time to time

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be approved by the Secretary of State so much of the money so remitted to them as aforesaid as shall not be required for the payment of interest for the current half-year and shall also place at interest or invest in the purchase of like securities, the accumulations of interest or the dividends, interest, or produce of such investments, and may with the approval of the Secretary of State, change any such investments, and shall hold such fund in trust for the repayment of the principal monies for the time being represented by the stock.

Charge upon general revenue.

In case the sinking funds provided for this Ordinance shall be insufficient for the payment of all the principals monies borrowed under the authority of this Ordinance at the time the same shall have become due, the Governor shall make good the deficiency out of the general revenues and assets of the Colony.

Expenses to be paid out of sinking fund.

All expenses of or incidental to the management of the sinking fund, or to the payment of the principal monies borrowed, shall be paid out of the sinking fund.

Powers of Governor.

The Governor shall also have, and may exercise, the following powers and authorities or any of them –

Debentures convertible into stock on conditions prescribed by the Crown

Agents, at time of issue.

Nothing in this Ordinance contained shall authorise an increase of the capital or of the annual charge on any loan, except –

The securities exchanged or otherwise converted into stock under the provisions of this Ordinance shall be forthwith cancelled by the Crown Agents, and the debentures surrendered shall be cancelled and transmitted to the Governor of the Colony.

Trustees to apportion amount of sinking fund released by conversion.

The trustees of the sinking fund appointed under this Ordinance, and acting under any Ordinance authorising the issued of any securities which may be exchanged into stock or cancelled or purchased under the provisions of this Ordinance, shall determine what amount of the sinking fund held by them and created for repayment of such securities shall be released, and in the determination of such question the trustees shall take into consideration the value of the whole investments held by them on account of such sinking funds, the amount of the debt remaining a charge on such sinking funds, and such matters as the trustees may think fit to take into account.

Sinking funds released how to be disposed of.

So much of the sinking funds as may be released shall either be transferred unto the Trustees of the stock sinking fund, or be disposed of in such manner as the Governor after consulting Executive Council may direct.

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

The Crown Agents may, at the request of the Governor, make arrangements for all or any of the following things –

The Crown Agents are hereby authorised to make regulations for the creation, registration, management, transfer and conversion of North Borneo Registered Stock and for the issue of certificates of title in respect of holdings in such stock.

Raising of loans in the Colony.

This Ordinance shall be applicable only to the raising of loans in England, but nothing in this Ordinance contained shall prevent the raising of loans in the Colony upon such terms and conditions as shall be specified in any Ordinance authorising the raising of such loans.