Local Government (Scotland) Act 1947

269 Creation of redeemable stock by county council or town council.

(1) A county council or a town council may from time to time in accordance with any regulations made under the next but one succeeding section by resolution create redeemable -stock for the purpose of raising money which the council are authorised to borrow under any statutory borrowing power," and such stock may be issued from time to time for such amount within the limit of the borrowing power at such price and to bear such half-yearly or other dividends as the council by resolution direct:

Provided that—

(a) the town council of a small burgh shall not so create stock except with consent of the Secretary of State, and such consent may be given subject to such conditions as may be specified in an order made by the Secretary of State; and

(b) except with the consent of the Secretary of State, stock shall not be issued at a price lower than ninety-five per centum.

(2) The resolution of a county council or town council for the first creation of a class of redeemable stock shall provide—

(a) that such stock shall be redeemable at the option of the council at par, that is to say, at the rate of one hundred pounds sterling for every nominal amount of one hundred pounds stock issued, after such period as may be specified in the resolution;

(b) that the stock shall be redeemed by the council at par at the expiration of a period to be fixed by the resolution, not exceeding sixty years from the first creation of that class of redeemable stock;

or shall indicate the procedure by which either of the matters aforesaid shall be determined.

(3) A county council or a town council may under this section create and issue stock of a different class from any stock previously issued by the council under this Part of this Act or any other enactment or any enactment repealed by this Act and on different terms and conditions, including the rate of dividend payable and the period after which the same shall become redeemable.