Treasury Bills Act 1877

1 Short titles.

This Act may be cited as the Treasury Bills Act, 1877. The Act of the session of the twenty-ninth and thirtieth years of the reign of Her present Majesty, chapter twenty-five, intituled " An Act to consolidate and amend the several laws for regulating " the preparation, issue, and payment of Exchequer bills and " bonds," is in this Act referred to and may be cited as the Exchequer Bills and Bonds Act, 1866, and that Act and this Act may be cited together as the Exchequer and Treasury Bills Acts, 1866 and 1877.

2 Definitions.

In this Act,—

• The expression " Treasury " means the Commissioners of Her Majesty's Treasury.

• The expression " Bank of England " means the Governor and Company of the Bank of England.

• The expression " Comptroller and Auditor General of the receipt and issue of Her Majesty's Exchequer " includes, in case of the illness or absence of the Comptroller, the Assistant Comptroller and Auditor.

• The expression " financial year " means the twelve months beginning on the first day of April and ending on the following thirty-first day of March.

• The expression " prescribed " means prescribed by regulations made under this Act.

3 Raising of money by issue of Treasury bills.

Where the Treasury have authority under any Act of Parliament (passed either before or after the passing of this Act) to raise money by the issue of Exchequer bills or of Treasury bills, the Treasury may, if they think fit, raise such money or any part thereof by the issue of bills under this Act.

4 Form and length of currency of and interest on Treasury bills.

A bill under this Act (referred to in this Act as a Treasury bill) shall be a bill in the prescribed form, for the payment of the principal sum named therein in the manner and at the date therein mentioned, so that the date be not more than twelve months from the date of the bill.

Interest shall be payable in respect of a Treasury bill at such rate and in such manner as the Treasury direct.

5 Payment of proceeds of Treasury bill into Exchequer, and charge of bill on Consolidated Fund.

All money raised by the issue of any Treasury bill shall be paid into the Exchequer.

The principal money of and interest on any Treasury bill shall be charged on and payable out of the Consolidated Fund of the United Kingdom, or the growing produce thereof, at the time and in the manner prescribed.

6 Power to issue Exchequer bills or Treasury-bills in lieu of bills paid off during same financial year.

Where in any financial year any Exchequer bills or Treasury bills are or are about to be paid off, the Treasury may, during that financial year, for the purpose of paying off, or of replacing the amount expended (otherwise than out of the new sinking fund) in paying off the principal money of such bills, or of any of them, raise a sum not exceeding the amount of such principal money by the issue of Treasury bills or of Exchequer bills, or partly of Treasury bills and partly of Exchequer bills, according as they think most beneficial for the public service.

Where in any financial year any Exchequer bills are paid in for duties the Treasury may during that financial year for the purpose of replacing the principal money of such bills, or any of them, raise a sum not exceeding the amount of such principal money by the issue of Treasury bills or of Exchequer bills, or partly of Treasury bills and partly of Exchequer bills, according as they think most beneficial for the public service.

This section shall apply in the case of Exchequer bills issued before as well as of those issued after the passing of this Act.

Section twelve of the Exchequer Bills and Bonds Act, 1866, is hereby repealed, without prejudice to anything previously done under that section.

7 Application of 38 & 39 Vict. c.45 ss.3, 5, to Treasury bills.

Sections three and five of the Sinking Fund Act, 1875, which relate to the application of the old and new Sinking Funds, shall apply to Treasury hills in like manner as if they were Exchequer bills.

8 Mode of issue of Treasury bills.

With respect to the issue of Treasury bills the following provisions shall have effect:

(1) Treasury bills shall be issued by the Bank of England under the authority of a warrant from the Treasury, countersigned by the Comptroller and Auditor General of the receipt and issue of Her Majesty's Exchequer ;

(2) Each Treasury bill shall be for the amount directed by the Treasury;

(3) Each Treasury bill shall be signed by the said Comptroller and Auditor General in his own name.

9 Regulations by Treasury as to preparation, issue, and cancellation of and prevention of fraud as to Treasury bills.

The Treasury may from time to time make, and when made rescind, alter, and add to, regulations for carrying into effect this Act, and in particular—

(1) For regulating (subject to the provisions of this Act) the preparation, form, mode of issue, mode of payment, and cancellation of Treasury bills;

(2) For regulating the issue of a new bill in lieu of one defaced, lost, or destroyed; and

(3) For preventing, by the use of counterfoils or of a special description of paper or otherwise, fraud in relation to Treasury bills; and

(4) For the proper discharge to be given upon the payment of a Treasury bill.

Every regulation under this Act shall be laid before both Houses of Parliament within one month after it is made, if Parliament be then sitting, or if not, within one month after the then next meeting of Parliament.

Every regulation purporting to be made in pursuance of this section shall be deemed to be within the powers of this Act, and shall have effect as if it were enacted in this Act.

10 Application to Treasury bills of 24 & 25 Vict. c.98 ss.8-11, relating to forgery and other frauds.

Sections eight, nine, ten, and eleven of the Act of the twenty-fourth and twenty-fifth years of the reign of Her present Majesty, chapter ninety-eight, intituled "An Act to consolidate " and amend the Statute Law of England and Ireland relating to " indictable offences by forgery," (which sections relate to the forgery of and other frauds relating to Exchequer bills,) shall apply to Treasury bills, and shall have effect as if " Exchequer bill" in those sections included " Treasury bill."

11 Payment to Bank of England for management and expenses.

There shall he paid to the Bank of England out of the Consolidated Fund of the United Kingdom, or out of the growing produce thereof, for the management of the unredeemed public debt in Treasury bills for the year commencing on the first day of December one thousand eight hundred and seventy-seven, an allowance at the rate of one hundred pounds for every million of Treasury bills outstanding on that day, and such payment shall be made on the first day of December one thousand eight hundred and seventy-eight, and the allowance for the management of Treasury bills shall be computed and paid in like manner in every succeeding year until Parliament otherwise direct.

The Treasury shall also on the application of the Bank of England reimburse out of the Consolidated Fund, or the growing produce thereof, any expenses incurred by the Bank of England for paper and printing in respect of the issue of Treasury bills.

12 Application of 38 & 39 Vict. c.45 to interest on and allowance for management of Treasury bills.

Where any Act passed before the passing of this Act authorises the raising of money by Exchequer bills, and the interest on such Exchequer bills is in pursuance of the directions of that Act, or of the Sinking Fund Act, 1875, payable out of the permanent annual charge for the National Debt, the interest on Treasury bills issued to raise the said money shall be paid out of the said permanent annual charge.

The allowance and expenses paid to the Bank of England in pursuance of this Act shall be deemed to be part of the annual sums payable for the management of the National Debt within the meaning of the Sinking Fund Act, 1875, and shall be paid accordingly out of the permanent annual charge for the National Debt.

13 Bank of England may lend on credit of Treasury bills.

The Bank of England may lend to Her Majesty, upon the credit of Treasury bills, any sum or sums not exceeding in the whole the principal sums named in such bills.