The Charities (John Lyon Road Trust) Order 1991

Investment of Free Fund.

9.—(1) Property included in the FreeFund shall (subject to sub-clause (6) below) be invested only ininvestments described in one or more of the paragraphs of sub-clause (2)below.

(2) The investments referred to in sub-clause (1) above are asfollows:—

(a) any investments which are for the time being narrower-range orwider-range investments within the meaning of the Trustee InvestmentsAct 1961 or which are for the time being otherwise authorised by law forthe investment of trust property;

(b) freehold land in England and Wales, or leasehold land there havingat the time of making the investment at least sixty years of the termunexpired;

(c) any securities of the government of any of the specifiedcountries;

(d) the debentures or debenture stock or preference or preferred orordinary or deferred stock or shares or unsecured loans or othermarketable securities of any company incorporated in any of thespecified countries and listed or regularly dealt in on a recognisedStock Exchange in any of the specified countries subject nevertheless tothe following provisions of this clause.

(3) In sub-clause (2) above,“specified countries” means—

(a) the United Kingdom, the United States of America, Australia,Canada, Hong Kong, Japan, Malaysia, New Zealand, Norway, Singpore,Sweden, Switzerland and any country which is for the time being a memberof the European Economic Community; and

(b) any state or province (however named) of a country mentioned inparagraph (a) above.

(4) Sub-clause (2)(d) above does not include any stock, shares or othersecurities of a company (other than a company incorporated in the UnitedKingdom carrying on banking or insurance business in the United Kingdom)which, by reason of not being fully paid up or otherwise, carries orcarry a liability to contribute by way of calls either in the event ofthe company being wound up or otherwise, not being a liability to payone or more of the instalments of capital where the terms of issue ofnewly-issued securities provide for payment of capital by instalmentsall of which are to be paid not later than three years from the date ofissue.

(5) Sub-clause (2)(d) above does not include any stock, shares or othersecurities of a company unless at the time of making the investment thepaid up capital of the company is at least £750,000 (or itsequivalent at the then current rate of exchange); and for the purposesof this sub-clause, the paid up capital of the company shall be deemedto include the capital sum (other than capital surplus) appearing in thecompany’s published accounts in respect of any stock or shares having nopar value.

(6) Property included in the Free Fund may, subject to obtaining theapproval of the Charity Commissioners and to any conditions of thatapproval, be applied in effecting improvements to any land or buildingsof the Charity.