The National Savings (No. 2) Regulations 2015

Terminating investment in bonds

11.—(1) The Director of Savings may terminate a holder’s investment in a bond, including where—

(a) the holder purchases or holds the bond in contravention of regulation 4 (persons entitled to hold bonds) or 5 (maximum holding of bonds); or

(b) the Director of Savings reasonably suspects that the holder—

(i) has provided false information; or

(ii) holds the bond in connection with an illegal purpose.

(2) Where the Director of Savings terminates a holder’s investment in a bond under paragraph (1)—

(a) the purchase price of the bond must be repaid to the holder; and

(b) any other amount payable in relation to the bond may be paid to the holder as the Director of Savings considers appropriate.

(3) An amount referred to in paragraph (2) may be paid by any means, including crediting it to an account in the name of the holder in the National Savings Bank.

(4) For the purposes of—

(a) regulation 23 (investment deposits) of the National Savings Regulations 2015(1) (to the extent it applies); or

(b) an Order under section 4 of the 1971 Act(2) (limiting the amount of deposits in the National Savings Bank),

an amount credited to an account under this regulation is not to be counted if directed by the Director of Savings.

(5) The Director of Savings may require the delivery of any document relating to a bond in order to give effect to this regulation.

(1)

S.I. 2015/623.

(2)

Section 4 was amended by the Finance Act 1982 (c. 39) section 151, Schedule 20, paragraph 3 and section 152(1).