National Debt (Conversion) Act 1888

PART IV Supplemental

14 Arrangements for conversion, exchange, or redemption

(1) For the purpose of giving effect to any conversion or exchange in pursuance of this Act, the Bank shall cancel in their books, as from the date at which the conversion or exchange takes effect, the amount standing in the name of any person of stock to be converted or exchanged, and shall inscribe in their books in the name of that person the amount of new stock to be substituted for the stock so cancelled.

(2) Where any amount of stock is paid off in pursuance of this Act the Bank shall, as from the date of the payment off, cancel that amount of stock in their books.

15 Application of Act to stock certificates

The provisions of this Act as to conversion, redemption, and exchange of stock shall, subject to such modifications (if any) as may be made by rules under this Act, apply to stock in respect of which stock certificates have been issued in pursuance of the [33 & 34 Vict. c. 71.] National Debt Act, 1870.

16 Provisions as to savings banks

(1) Regulations made in pursuance of the Savings Banks Act, 1880, with respect to investments in and sales of stock through the medium of trustee and post office savings banks may provide for investments in new stock; and for the purpose of regulations so made, the expression " Government stock " in the [43 & 44 Vict. c. 36.] Savings Banks Act, 1880, shall be deemed to include new stock.

(2) With respect, to stock invested on behalf of depositors in trustee, and post office savings banks, the dissents and assents authorised by this Act may, on the request of any such depositor, be signified by the Commissioners for the Reduction of the National Debt, and those Commissioners and the Postmaster General respectively shall make such provision as seems to them expedient for enabling such request to be made.

17 Provisions as to stock belonging to Duchy of Lancaster, &c

(1) The several provisions of this Act shall extend to stock held on behalf of the Crown, or of the Duchy of Lancaster, or of the Duchy of Cornwall, and to the dividends on such stock.

(2) With respect to any stock standing in the name or to the account of the Duchy of Lancaster, any dissent or assent authorised by this Act may be signified by the Clerk for the time being of the Council of the Duchy.

(3) With respect to any stock standing in the name or to the account of the Duchy of Cornwall, any dissent or assent authorised by this Act may be signified by the Receiver General of the Duchy.

(4) With respect to any stock to which the foregoing provisions of this section as to dissent and assent do not apply, and which stands in the name of any public officer or body holding in trust for the public service, any dissent or assent authorised by this Act may be signified by the public officer or body entitled to receive the dividends on the stack.

(5) Any stock held by any officer on behalf of the Court of Chancery of the county palatine of Lancaster, or of any other Court in England, may be dealt with under this Act in such manner as may be directed by regulations made by the Lord Chancellor.

18 Power to hold new stock on different accounts

In the registers of new stock, the Bank shall allow any holder or joint holders to have more than one account, provided that each account is distinguished either by a number or by such other designation as may be directed by the Bank, and that the Bank shall not be required to permit more than four accounts to be opened in the same name or names.

19 Powers of investment

A power or direction, whether subject or not to any restrictions or conditions, to invest in any of the stocks which may be converted or exchanged under this Act, or generally in three per cent. stock, shall extend to authorise an investment subject to the same conditions and restrictions (if any) in new stock.

20 Provisions as to annuitants

(1) Where under any trust or arrangement other than a charitable trust any stock has been appropriated to provide an annuity, and is under this Act liable to be converted into or exchanged for new stock, the person in whose name the stock is standing may, at the request of the annuitant, or, in the case of several annuitants, the majority of them, and at the expense of the annuitant or annuitants, sell the stock, and invest the proceeds either in any manner authorised by the trust or arrangement, or in any manner in which cash under the control of the High Court, or the Court of Session, may for the time being be invested, and shall not be liable for any loss arising from any such sale or investment.

(2) In the case of stock standing in the name of Her Majesty's Paymaster General on behalf of the Supreme Court of Judicature in England, or of the Accountant to the Court of Session in Scotland, or of the Accountant General of the Supreme Court of Judicature in Ireland, any such sale or investment may be authorised by the High Court, or the Court of Session, as the case may be.

(3) Where, in execution of any trust, or in performance of any duty, and whether in pursuance of the order of any court, or otherwise, any stock has been appropriated to provide an annuity, and is under this Act converted into or exchanged for new stock, the trust or duty shall, so far as relates to the payment of the annuity, be deemed to be executed or performed by the payment of the dividends on the new stock; but nothing in this section shall affect any power of any court or other authority to make any order as to the application of capital in such cases.

21 Provisions as to stock mortgages

(1) An agreement to transfer any amount of new three per cent. stock, consolidated three per cent. stock, or reduced three per cent. stock, or generally any amount of three per cent. stock, may be satisfied by making a transfer of an equal amount of new stock.

(2) Where under any mortgage or agreement for a loan any person is bound to pay half-yearly sums equal to the dividends on any specified amount of stock, and that amount of stock is under this Act converted into or exchanged for new stock, the obligation shall be satisfied by the payment of quarterly sums equal to the dividends on the same amount of new stock.

22 Power for majority of joint holders to dissent or assent

Where any new three per cent. stock, consolidated three per cent. stock, or reduced three per cent. stock is standing in the names of more than two persons as joint holders thereof, the dissent or assent of the majority of those joint holders shall be sufficient for the purposes of this Act.

23 Exemption of certain powers of attorney from stamp duty

A power of attorney given exclusively for the purpose of empowering the attorney to signify any dissent or assent authorised by this Act shall be exempt from stamp duty.

24 Provision as to lunacy funds

The power by this Act given to the Lord Chancellor and Lord Chancellor of Ireland respectively to make regulations, shall extend to any funds in court to the credit of lunatics so found by 'inquisition in England and Ireland respectively, including committees' security accounts.

25 Application to new stock of trusts, powers, &c, affecting old stock

(1) Where any stock is converted into or exchanged for new stock, the new stock, and the dividends thereon, shall be subject to the same trusts, charges, rights, distringas, and restraints as affect the stock so converted or exchanged, and the dividends thereon respectively, and all powers of attorney, requests as to dividends, and other" documents relating to the stock so converted or exchanged, and the dividends thereon, or either of them, shall apply to the new stock, and the dividends thereon respectively.

(2) In any Act passed or instrument executed before the passing of this Act references to any stock liable to be converted or exchanged in pursuance of this Act may, if the stock is so converted or exchanged, be construed as references to new stock, and in the case of any testamentary instrument executed before the passing of this Act, any disposition, which, but for the passing of this Act, would have operated as a specific bequest of any such stock, shall if the same is so converted or exchanged be construed as a specific bequest of such new stock, and if the same is not so converted, but is paid off or redeemed shall be construed as a pecuniary legacy of a sum of money equal to the nominal amount of the stock so paid off or redeemed.

26 Indemnity to trustees and others

Persons who are by this Act, or by rules under this Act, authorised to signify their dissent from the conversion of stock, or to exchange or consent to the exchange of stock, shall not be liable for any loss resulting from their not signifying such dissent, or from their making such exchange or giving such consent ; and trustees and other persons acting in a fiduciary character are hereby expressly authorised to make such exchange or give such consent.

27 Reinvestment by trustee

When any stock, converted or exchanged by virtue of this Act into new stock, is held by a trustee, such trustee shall be at liberty to sell the same, and to invest the proceeds arising from such sale in any of the securities for the time being authorised for the investment of cash under the control of the High Court, notwithstanding anything to the contrary contained in the instrument creating the trust.

28 Application to court in respect of questions arising out of conversion or exchange

(1) If by reason of the conversion or exchange of any stock in pursuance of this Act any question arises as to the powers or duties of any trustee, executor, or administrator, or other person acting in a fiduciary character, or as to the application of the dividends or capital of any stock, and in particular as to the cases in which, and extent to which capital may be applied towards meeting any deficiency in income, the High Court in England or Ireland, or the Court of Session in Scotland, on the application of the trustee, executor, or administrator, or other person as aforesaid, or of any person interested in the stock, may by order determine the question.

(2) In the case of a charity in England or Wales, subject to the provisions of the Charitable Trusts Acts, 1853 to 1887, the like orders may be made by the Charity Commissioners for England and Wales, either on their own motion or on application, and nothing in this section shall authorise an application to the High Court in the matter of such a charity without a certificate from those commissioners.

29 Power to make rules

The Treasury may from time to time make rules for carrying into effect the provisions of this Act, and may by any such rules provide—

(a) for the manner in which any dissent or assent authorised by this Act is to be signified; and

(b) as to the evidence which the Bank may require of the right to signify dissent or assent within or after any time limited in that behalf, or of title, unsoundness of mind, infancy, or any other matter; and

(c) in the case of any stock holder who is of unsound mind, or an infant, or otherwise under disability, for any dissent or assent authorised by this Act being signified by the committee, guardian, or other person on behalf of that stock holder ; and

(d) where one or more holders of stock on a joint account is or are of unsound mind, an infant or infants, or under disability, or out of the United Kingdom, for dispensing with the dissent or assent of that holder or those holders ; and

(e) in the case of stock holders absent beyond Europe, for the payment or adjustment of dividends falling due before the expiration of the time limited for signifying their dissent; and

(f) for any matter which may under this Act be prescribed.

30 Provisions as to Bank

(1) A warrant from the Treasury shall be a sufficient authority to the Bank for anything done by the Bank in pursuance of that warrant for the purposes of this Act.

(2) The Bank shall not be concerned to inquire as to whether any such con sent as is required by this Act is given to any exchange of stock, nor be responsible in the event of any such consent not having been given, and may act on any evidence authorised -by rules made under this Act, and are hereby indemnified for so acting.

(3) Nothing in this Act, or in any rules under this Act, shall affect the Bank with notice of any trust.

(4) The Bank shall have power to advance to the Treasury any money which may be required for the purposes of this Act.

(5) Any payment which the Bank are authorised by or under this Act to make to a holder of stock, or to any person holding a power of attorney to receive dividends on stock, may be made by warrant, and. any such warrant shall be deemed to be a cheque within the meaning of the [45 & 46 Vict. c. 61.] Bills of Exchange Act, 1882, and the posting of the letter containing the warrant, addressed in the prescribed manner, shall, as respects the liability of the Bank, be equivalent to the delivery of the warrant to the stock holder.

31 Remuneration of Banks of England and Ireland

There shall be paid to the Banks of England and Ireland respectively out of the Consolidated Fund on account of any additional trouble, expense, and responsibility which may be imposed on them by this Act, in addition to the remuneration otherwise payable in respect of the management of the National Debt, such remuneration as the Treasury and the Banks respectively agree upon.

32 Definitions

In this Act, unless the context otherwise requires,—

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

• " High Court " means Her Majesty's High Court of Justice in England or Ireland, as the case may require.

• " The Lord Chancellor " means the Lord High Chancellor of Great Britain.

• " The Bank " means the Governor and Company of the Bank of England, or the Governor and Company of the Bank of Ireland, as the case may require.

• " Person " includes a body of persons corporate or unincorporate.

• " Financial year " means the twelve months ending the thirty-first day of March.

33 Short title

This Act may be cited as the National Debt (Conversion) Act, 1888.