National Debt (Conversion) Act 1888

PART I Conversion or Redemption of New Three per Cent Stock

1 Conversion of new three per cent stock and redemption of dissentient stock holders

(1) All holders of any amount of new three per cent, stock who do not on or before the twenty-ninth day of March one thousand eight hundred and eighty-eight, or such later date as is allowed in special cases by this Act, signify dissent in. manner herein-after mentioned, shall continue to be entitled to receive the dividend payable on that stock on the fifth day of April one thousand eight hundred and eighty-eight, but shall as from that day receive in lieu of that amount of new three per cent. stock an equal nominal amount of stock to be created in pursuance of this Act and in this Act referred to as new stock, and the reception of that amount of new stock shall not be considered to be a change or variation of investment by the holder.

(2) All holders of new three per cent. stock who signify their dissent as aforesaid, or their executors, administrators, or assigns, shall be paid off in such order, at such time or times, and in such manner as Parliament may direct: Provided that all such holders, or their executors, administrators, or assigns, may at any time or times before the first day of August one thousand eight hundred and eighty-eight, unless Parliament shall in the meantime otherwise direct, be paid off the whole or any part of their stock, either in one sum or in such proportions, and in such order and manner, as the Treasury may direct, at the rate of one hundred pounds sterling for every one hundred pounds of the capital sums in respect of which the annuities constituting the said stock are payable, together with the payment of all arrears of those annuities at the rate of three pounds per cent. per annum, including the proportionate part accrued since the last date for the payment of dividends.

2 Denomination and incidents of new stock

(1) The new stock shall consist of a capital stock of perpetual annuities, which shall for the year ending the fifth day of April one thousand eight hundred and eighty-nine yield dividends at the rate of three pounds per cent. per annum, and shall thereafter yield dividends at the rate of two pounds fifteen, shillings per cent. per annum until the fifth day of April one thousand nine hundred and three, and shall thereafter yield dividends at the rate of two pounds ten shillings per cent. per annum.

(2) The new stock shall not be redeemable until the fifth day of April one thousand nine hundred and twenty-three, but on and after that day shall be redeemable by Parliament on such notice, at such time or times, and either in one sum or in such sums or proportions, and in such order and manner as Parliament may direct, at the rate of one hundred pounds sterling for every one hundred pounds of the capital sums in respect of which the annuities constituting the stock are payable, together with the payment of all arrears of those annuities, including the proportionate part accrued since the last date for the payment of dividends.

(3) The new stock shall form part of the National Debt, and the annuities constituting the same shall be payable by equal quarterly dividends on the fifth day of January, the fifth day of April, the fifth day of July, and the fifth day of October in every year, and the first of the said dividends shall be payable on the first of the said quarterly days after the creation of the stock.

(4) The new stock shall be called two and three quarters per cent. consolidated stock until the fifth day of April one thousand nine hundred and three, and thereafter shall be called two and a half per cent. consolidated stock.

(5) The dividends on the new stock shall be charged on the Consolidated Fund of the United Kingdom, and paid out of the permanent annual charge of the National Debt, and the provisions of the [33 & 34 Vict. c. 71.] National Debt Act, 1870, shall apply in the same manner, so far as is consistent with this Act, as if the new stock were one of the stocks of perpetual annuities described in the First Schedule to the National Debt Act, 1870, and the Treasury may, by warrant, declare that the new stock shall be subject to Part Five of that Act.

3 Mode of signifying dissent

(1) Dissent from the conversion of new three per cent. stock into new stock shall be signified to the Bank in writing, with the amount of the stock to which the dissent relates.

(2) The dissents shall be entered in books kept by the Bank for that purpose, and be numbered in the order in which they are received by the Bank.

(3) The transfer of any stock to which a dissent relates shall be subject to the prescribed conditions, and shall be entered in the books of the Bank under the same number as was fixed for the stock when the dissent was so signified.

4 Time for signifying dissent in case of persons abroad

If any holder of new three per cent. stock is not within the United Kingdom at any time between the twelfth day of March one thousand eight hundred and eighty-eight and the twenty-ninth day of March in the same year, both days inclusive, his dissent may be signified at any time on or before the earliest of the following days, namely, the tenth day after his return to the United Kingdom, or the first day of May one thousand eight hundred, and eighty-eight, or, if between the said twelfth day of March and the said first day of May he was not within any part of Europe, the first day of September one thousand eight hundred and eighty-eight.

5 Dissent by executors, trustees, &c

(1) Where an executor, administrator, guardian, trustee, or committee of the estate of a person of unsound mind has, as such, the control over any new three per cent. stock standing either in his own name or in the name of any testator or intestate, or of any infant or person of unsound mind, his dissent for the purposes of this Act may, if he is within the United Kingdom at any time between the twelfth day of March one thousand eight hundred and eighty-eight and the twelfth day of April one thousand eight hundred and eighty-eight, be signified at any time on or before the said twelfth day of April, but if he is not then within the United Kingdom, then within the time fixed by this Act in the case of stock holders out of the United Kingdom.

(2) If either of any two or more of any such executors, administrators, guardians, trustees, or committees is out of the United Kingdom, the time within which the dissent may be signified shall in each case be regulated with reference to the most distant of them.

(3) Provided that where any new three per cent. stock belonging to any joint stock company, whether registered under the [25 & 26 Vict. c. 89.] Companies Act, 1862, or not, or to any body of persons corporate or unincorporate, not being trustees of a charity, stands in the names of trustees instead of in the names of that joint stock company or body, those trustees shall not be deemed trustees within the meaning of this section.

6 Funds in court

(1) Where any new three per cent. stock is standing in the name or in the books of any of the following officers, namely,—

(a) Her Majesty's Paymaster General on behalf of the Supreme Court of Judicature in England ; or

(b) the Accountant to the Court of Session in Scotland; or

(c) the Accountant General of the Supreme Court of Judicature in Ireland;

dissent from the conversion thereof may, on the request and on behalf of any suitors or other persons interested therein, be signified by those officers respectively, and may be so signified at any time on or before the twelfth day of April one thousand eight hundred and eighty-eight.

(2) The High Courts and the Court of Session respectively may, from time to time, on application by summons in chambers or in such other way as may be directed, as respects the High Court in England by the Lord Chancellor, as respects the Court of Session by the Lord President, and as respects the High Court in Ireland by the Lord Chancellor of Ireland, make general or special orders as to signifying dissents with respect to new three per cent. stock, or as to any other thing relating to that stock or the dividends thereon, or to the stock to be created in lieu thereof, or to the application of any such stock, or of the dividends thereon.

7 Stock held by official trustees of charitable funds

Where any new three per cent. stock is standing in the names of the official trustees of charitable funds, dissent from the conversion thereof shall be signified by those trustees on the request of the trustees or persons acting in the administration of the charity to which that stock belongs, and may be so signified at any time on or before the twelfth day of April one thousand eight hundred and eighty-eight.