Local Government (Financial Provisions) Act 1963

Section 7.

SCHEDULE 1 Local Authority Bonds

1 —Local authority bonds issued by a local authority shall, subject to the next following paragraph.—

(a) bear interest at such rate as the local authority may determine at the time of the issue of the bonds ;

(b) be issued in denominations of five pounds and multiples of five pounds ;

(c) be issued for periods of not less than one year.

2 The period for which any local authority bonds are issued by a local authority may be extended for such further period as the local authority and the persons entitled to repayment of the money raised by the issue of those bonds agree and during that further period shall bear interest at such rate as may be so agreed.

3 The provisions of section 115 of the Stamp Act 1891 (which relates to composition for stamp duty) shall, with the necessary modifications, apply in the case of any local authority by whom local authority bonds are issued as if those bonds were stock or funded debt of the authority within the meaning of that section.

4 Local authority bonds may be issued by a local authority at such price as the authority may from time to time determine, but not, without the consent of the Minister, at a discount.

5 (1) Local authority bonds shall, without prejudice to the foregoing provisions of this Schedule, be issued, transferred, dealt with and redeemed upon such terms and in accordance with such provisions as may be prescribed by regulations made toy the Minister with the approval of the Treasury; and any such regulations may, in relation to any local authority bonds, apply (with or without modifications) any provisions of any enactments relating to stock or debentures issued by or mortgages created by a focal authority.

(2) The power to make regulations under the foregoing sub-paragraph shall be exercisable by statutory instrument; and an instrument containing such regulations shall be subject to annulment in pursuance of a resolution of either House of Parliament.