Currency Act 1983

Bank of England note issue

2 Limit on amount of Bank of England fiduciary note issue

(1) The Bank shall not cause the limit on the amount of the fiduciary note issue to be exceeded.

(2) For the purposes of this section, the limit is £13,500 million or such other amount as may from time to time be specified in a direction given by the Treasury.

(3) The amount specified in a direction under subsection (2) above shall not be greater than the former limit by more than 25 per cent.

(4) In subsection (3) above " the former limit" means the limit which was in force under this section at the beginning of the period of two years ending with the day on which the direction is given.

(5) A direction under subsection (2) above shall be given by a minute of the Treasury a copy of which shall be laid before each House of Parliament.

(6) The Treasury may by order made by statutory instrument direct that subsection (3) above shall not apply in relation any direction under subsection (2) above which is given during a specified period not exceeding two years beginning with the day on which the order is made.

(7) A draft of any statutory instrument containing an order under subsection (6) above shall be laid before Parliament.

(8) In the application of subsection (3) above in relation to a direction given during a period of two years beginning with the day on which this Act is passed, " the former limit" means £13,500 million.

(9) Section 2 of the [1954 c. 12.] Currency and Bank Notes Act 1954 (which is superseded by this section) shall cease to have effect.

3 Writing off unpresented bank notes which have ceased to be legal tender

(1) This section applies to bank notes which, by virtue of section 1(5) of the Currency and Bank Notes Act 1954, have ceased to be legal tender and have not been legal tender for ten years.

(2) Where any bank notes to which this section applies have not been presented for payment, the Bank may write off the amount of the notes from the total amount of notes issued from the issue department of the Bank.

(3) Where any amount is written off under this section—

(a) the amount so written off shall be deducted from the amount included in the next weekly account rendered by the Bank under section 6 of the [1844 c. 32.] Bank Charter Act 1844 as the amount of bank notes issued by the issue department of the Bank; and

(b) a return of the amount so written off shall be forthwith sent to the Treasury who shall lay a copy of the return before each House of Parliament.

(4) No writing off of an amount under this section shall affect the liability of the Bank to pay any bank note which was included in that amount.

(5) Section 6 of the [1892 c. 48.] Bank Act 1892 (which is superseded by this section) shall cease to have effect.

(6) In section 6 of the [1928 c. 13.] Currency and Bank Notes Act 1928 (which directs the payment to the Treasury of the annual profits of the issue department of the Bank including the amount of notes written off less the amount of those presented for payment) after the words " section six of the Bank Act 1892, as amended by this Act" there shall be inserted the words " or under section 3 of the Currency Act 1983 " .