Finance (No. 2) Act 1931

11 Right of stockholders to continue holdings in five per cent. War Loan; requirement of application for cash repayments, and c

(1) If notice is given in accordance with the prospectus dated the eleventh day of January, nineteen hundred and seventeen, of the intention of His Majesty's Government to redeem the five per cent. War Loan 1929-1947 (in this Part of this Act referred to as " the Loan ") and the notice includes a declaration that this Part of this Act is to come into operation, the following provisions shall have effect :—

(a) The holders of any stock or bonds of the Loan (in this Part of this Act referred to as " stockholders ") shall, on making an application in that behalf (in this Part of this Act referred to as " a continuance application ") in accordance with the provisions of this Part of this Act, be entitled—

(i) to have their holdings in the Loan continued therein after the date fixed by the notice for the redemption thereof (in this Part of this Act referred to as " the redemption date "), but subject to such immediate or gradual reduction in the rate of interest, and such modifications in the name and terms of repayment, and in the other conditions and incidents, of the Loan as may be specified in the notice; and

(ii) to have issued to them such bonus stock or bonus bonds, if any, to form part of the Loan as continued under this section, as may be specified in the notice;

(b) Stockholders desiring to receive on the redemption date repayment in cash in respect of their holdings must make an application in that behalf (in this Part of this Act referred to as " a repayment application") in accordance with the provisions of this Part of this Act;

(c) If, in the case of any holding (not being the holding of the National Debt Commissioners corresponding to the holdings held on the Post Office Register) neither a continuance application nor a repayment application is in force at the expiration of the period of three months next following the day on which the notice was published, the provisions of this Part of this Act shall have effect as if a continuance application had been made in respect of the holding on the last day of the said period.

(2) A repayment application in respect of a holding shall, unless the Treasury in any particular case otherwise direct, be treated as revoked—

(a) by the making of a continuance application in respect of the holding at any time before the redemption date;

(b) by changing the form of the holding or part thereof from stock to bonds or bonds to stock, or by any transfer of the holding or part thereof from any books or register to any other books or register, not being merely a transfer to or from the books of the Bank from or to the transfer by deed register;

(c) except in the case of a bearer bond, by the completion of any transfer of the holding, so however, that where part only of the holding is transferred, the revocation shall only operate as respects that part.

(3) Save as provided by the last preceding subsection, continuance applications and repayment applications shall be irrevocable and shall bind the stockholders and their successors in title.

(4) The Treasury may, if they think it desirable, undertake to pay cash bonuses to stockholders by whom continuance applications are duly made within such period as may be specified in the undertaking or within such extended period as the Treasury may in any special case allow.