The Savings Certificates Regulations 1991

Explanatory Note

(This note is not part of the Regulations)

These Regulations consolidate the Savings Certificates Regulations1972 (as amended) with modifications of which the following are the moresignificant:

1.  The Regulations now make it clear (regulation 5(3)) that aperson who inherits certificates may retain them despite any holdinglimit, but they will count towards his holding for the purpose ofdeciding whether a future purchase will exceed the limit.

2.  Regulation 7(1) now recognises more explicitly the existingpower of the Director of Savings to reinvest the proceeds of a repaidcertificate without issuing a repayment warrant; and new regulation 8provides that repayment shall be deemed to be effected on the dateentered in the Director’s records as the date of purchase of a newcertificate or Capital Bond.

3.  The Regulations now provide (regulation 9(4)) that repayment ofa certificate held by a mentally disordered person for whom no receiverhas been appointed may be made to any person who satisfies the Directorof Savings that he will apply the payment for the maintenance orotherwise for the benefit of the mentally disordered person.

4.  Regulation 25 (notice of trust not receivable by Director ofSavings) now provides for charges and equitable interests to be treatedin the same way as trusts.

5.  Regulation 31 (obligation of secrecy) now contains an expressreference to the overriding requirements of section 20(3) of the TaxesManagement Act 1970 (requirement to deliver or make available documentsrelating to liability of a taxpayer).

These Regulations incorporate the amendments relating to the datingof repayment warrants made to the 1972 Regulations by the SavingsCertificates (Amendment) Regulations 1991, which came into force on 11thFebruary 1991. In accordance with section 11(2)(b) of the National DebtAct 1972 the relevant provisions (regulation 7(7), (8), (9) and (10))apply (as did the 1991 amending Regulations) to certificates purchasedbefore the coming into force of these Regulations.