Section 20

Of the moneys which the Financial Secretary is authorised by and pursuant to this Ordinance to borrow, he may borrow such amount as he thinks fit by the issue of estate duty stock.

The administrator of the estate of any deceased person, or other person by whom estate duties may be payable in respect of that estate, may pay the whole or any part of the estate duties payable by him in respect of that estate by means of estate duty stock issued to the deceased, and the Commissioner of Estate Duties shall accept any such stock accordingly in satisfaction in whole or in part, as the case may be, of the

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amount of estate duties payable as aforesaid and shall notify the Accountant-General of such acceptance.

If provision in that behalf has been made in the prospectus or terms of issue of the stock, the Financial Secretary may issue estate duty stock that is available for the payment of tax, as well as estate duties. In any such case the administrator of the estate of any deceased person may pay the whole or part of the tax payable in respect of income derived by the deceased before his death by means of any such estate duty stock issued to the deceased and the Commissioner of Inland Revenue shall accept any such stock accordingly in satisfaction in whole or in part, as the case may be, of the amount of tax payable as aforesaid and shall notify the Accountant-General of such acceptance.

All estate duty stock transferred to the Commissioner of Estate Duties or the

Commissioner of Inland Revenue under this section shall be deemed to mature for payment, and to be accepted by such Commissioner in satisfaction of estate duties or tax, as aforesaid, on the date of execution of the memorandum of transfer by the transferor; and all such stock shall, for the purposes of this section, be deemed to be of the nominal value thereof and shall carry interest till that date.

No transfer of any estate duty stock shall be registered, and no stock certificate shall be issued in respect of any estate duty stock, during the lifetime of the registered holder, but estate duty stock may, if it has been so provided in the prospectus or terms of issue, be surrendered in exchange for North Borneo stock, other than estate duty stock, in accordance with the terms therein provided for such exchange.

If on the death of the registered holder of any estate duty stock the whole or any part of that stock is not used for the payment of estate duties of the estate of the deceased or in the payment of tax payable by the deceased, the stock so remaining unused shall cease to be estate duty stock, whereupon the provisions of this section shall cease to apply thereto.

In this section the words “estate duty” shall have the same meaning as in the

Estate Duty Ordinance [Cap. 42.] and “tax” shall have the same meaning as in the Income

Tax Ordinance, 1956 [Ord. No. 29 of 1956.].

Appropriation out of general revenue of sums to meet interest when due.