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Supplemental provisions as to exchange and creation of annuities.
42 & 43 Vict. c. 77.
42 & 43 Vict. c. 77.
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17. For the purposes of this Act, the following provisions shall have effect:—
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(1) The exchange of one set of terminable annuities for another set of terminable annuities, and the giving of Local Loans stock to the National Debt Commissioners in exchange for other securities, shall be effected by a warrant of the Treasury to the Bank of England directing them to cancel in their books, as from the date of exchange specified in the warrant, the terminable annuities or securities standing in such names and of such an amount as is mentioned in the warrant, and by the creation (by the same or another warrant) in the same names of such terminable annuities or Local Loans stock as the case requires:
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(2) The creation of terminable annuities and Local Loans stock shall be effected by a warrant from the Treasury to the Bank of England, directing them to inscribe in their books as from the date of creation specified in the warrant, terminable annuities of the amount and for the periods mentioned in the warrant, or, as the case requires, Local Loans stock of the amount mentioned in the warrant:
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(3) For the purpose of an exchange of securities, advances by the National Debt Commissioners in pursuance of section seven of the Public Works Loans Act, 1879, shall be treated as if the amount of each such advance were the like amount of capital stock of perpetual annuities, but the warrant directing the cancellation thereof shall be addressed to the National Debt Commissioners:
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(4) The amount of any annuities or stock to be cancelled or created shall be certified to the Treasury by the National Debt Commissioners under the hands of the Controller General or Assistant Controller and of the Actuary of the National Debt Office:
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(5) The equivalent capital value shall, save as otherwise provided by this Act, be calculated as follows:—
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(a) In the case of terminable annuities, the capital value of the existing terminable annuities shall be deemed to be their present value ascertained on the basis of the rate of interest yielded by three per cent. perpetual annuities at the average price of the day, as certified by the Bank of England, on the day of the exchange; and, in calculating the capital value of the new annuities, the interest shall be taken at the same rate;
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(b) In the case of securities given by the National Debt Commissioners in exchange for Local Loans stock, the capital value thereof, if perpetual annuities, shall be calculated at the average price of the day as certified by the Bank of England on the day of exchange, and if a charge created under the Public Works Loans Act, 1879, shall be the capital amount of such charge:
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(6) The date of creation, and the date of exchange, shall respectively be, such day as may be in each case agreed on between the Treasury and the National Debt Commissioners:
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(7) The annuities and securities, or any part thereof, directed by any warrant under this Act to be cancelled shall, after the date specified in the warrant, be cancelled, and all payments in respect thereof shall cease:
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(8) Any terminable annuity payable to the National Debt Commissioners under this Act in pursuance of an exchange for any other terminable annuities shall, so far as it represents interest, be dealt with as the dividends on the perpetual annuities which were converted into the said terminable annuities would have been applied, and so far as it represents principal, shall be dealt with by them as moneys received on account of trustee or post office savings banks:
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(9) The warrants of the Treasury issued in pursuance of this Act shall be a sufficient authority to the Bank of England for doing the things thereby directed.
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[S. 18 rep. 55 & 56 Vict. c. 48, s. 8, Sched.]
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