Local Government (Scotland) Act 1947

270 Creation of redeemable stock by authority other than local authority having power to raise money by rate or requisition.

(1) Any statutory authority, commissioners or trustees (not being a local authority) having power to levy a rate within the meaning of this section or to issue a requisition for payment of money to be raised out of such a rate may from time to time in accordance with any regulations made under the immediately succeeding section by resolution create redeemable stock for the purpose of raising money which the authority, commissioners or trustees are authorised to borrow under any enactment or statutory order, and such stock may be issued from time to time for such amount within the limits of the borrowing power at such price and to bear such half-yearly or other dividends as the authority, commissioners or trustees by resolution direct:

Provided that—

(a) the consent of the Secretary of State shall be obtained to the creation of such stock, 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 any such authority, commissioners or trustees for the creation of a class of redeemable stock shall provide—

(a) that the stock shall be redeemable at their option at par after such period as may be specified in the resolution;.

(b) that the stock shall be redeemed by the authority, commissioners or trustees 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) Any such authority, commissioners or trustees may under this section create and issue stock of a different class from any other stock previously issued by them under this Part of this Act or any other enactment or any enactment repealed by this Act and on different terms and conditions, including the rate of dividend payable and the period after which the same shall be redeemable.

(4) For the purposes of this section the expression " rate " includes not only a rate as defined in section three hundred and seventy-nine of this Act but also water rates or rents, gas or electricity rates or rents and charges for the supply of water, gas or electricity or the .hire of meters or fittings connected therewith.