National Debt (Conversion) Act 1888

PART II Power to Exchange Consolidated and Reduced Three per Cents, for New Stock

8 Exchange of consols and reduced for new stock

(1) Any holder of any amount of consolidated three per cent stock or reduced three per cent. stock may, by assent signified at any time on or before the twelfth clay of April one thousand eight hundred and eighty-eight, or such later date as may under this Act be allowed in special cases, exchange that amount, for an equal nominal amount of new stock, and such an exchange shall not be considered to be a change or variation of investment by the holder.

(2) Where a person exchanges consolidated three per cent. stock in pursuance of this section he shall on the exchange thereof become entitled to receive in the prescribed manner and at the prescribed time a dividend for one quarter ending the fifth day of April one thousand eight hundred and eighty-eight on the stock given in exchange at the 'rate of fifteen shillings for every one hundred pounds of the nominal amount of that stock (being the amount of interest accrued on that stock between the fifth day of January one thousand eight hundred and eighty-eight and the fifth day of April in the same year), and shall receive the first quarterly dividend on the new stock on the fifth day of July, one thousand eight hundred and eighty-eight.

(3) Where a person exchanges reduced three per cent. stock in pursuance of this section he shall be entitled to receive the dividend payable on that reduced three per cent. stock on the fifth day of April one thousand eight hundred and eighty-eight, and shall receive the first quarterly dividend on the new stock on the fifth day of July one thousand eight hundred and eighty-eight.

9 Power of court, trustees, &c. in relation to exchange of stock. 10. Provision of funds for facilitating conversion

(1) Where any consolidated three per cent stock, or reduced three per cent stock, is standing in the name or in the books of any of the following officers, namely,—

(a) Her Majesty's Paymaster General, on behalf of the Supreme Court of Judicature in England ; or

(b) the Accountant to the Court of Session in Scotland; or

(c) the Accountant General of the Supreme Court of Judicature in Ireland;

the Lord Chancellor in the case of stock standing in the name of Her Majesty's Paymaster General, the Lord President of the Court of Session in the case of stock standing in the name of the Accountant to the Court of Session, and the Lord Chancellor of Ireland in the case of stock standing in the name of the Accountant General of the Supreme Court of Judicature in Ireland, may, with the approval in each case of the Treasury, make regulations as to the mode in which that stock or any part thereof may, with the consent of the persons to whom the dividends on the stock are for the time being payable (which consent any trustee, or other person acting iu a fiduciary character, is hereby authorised to give), or, if the dividends are being accumulated, then with the consent, in the case of England or Ireland, of the judge of the High Court to whose court the cause or matter to the credit of which the stock is standing is attached, or where the cause or matter is not so attached, then with the consent of any judge of the said Court, and with the consent, in the case of Scotland, of the Court of Session, be exchanged for an equal nominal amount of new stock. Provision may be made by such regulations that in specified classes of cases the Lord Chancellor, the Lord President of the Court of Session, or the Lord Chancellor of Ireland, as the case may be, may on behalf of the persons interested in any such stock as aforesaid consent to the exchange thereof, unless dissent from such exchange is signified within the time and in the manner fixed by the regulations.

(2) Where any consolidated three per cent stock or reduced three per cent. stock is standing in the name of the official trustees of charitable funds, an exchange thereof in pursuance of this Act shall be made on the request or with the consent of the trustees or persons acting in the administration of the charity to which that stock belongs ; Provided that the Treasury may make regulations whereby the Charity Commissioners for England and Wales may on behalf of the said trustees or persons consent to the exchange of the stock unless dissent from such exchange is signified within the time and in the manner fixed by the regulations.

(3) Subject to rules of court, any jurisdiction given by this Act to a judge of the High Court shall be exercised by a judge of the Chancery Division.

(4) In the case of stock standing in the names of—

(a) Any such officers or official trustees as aforesaid; or

(b) Any trustee or other person acting in a fiduciary character ; or

(c) Persons absent from the United Kingdom between the twelfth day of March one thousand eight hundred and eighty-eight and the twelfth day of April in the same year;

the stock may be exchanged within such extended time as may be prescribed.

10 Provision of funds for facilitating conversion

(1) Whereas the holders of consolidated three per cent. stock and reduced three per cent. stock are entitled to twelve months notice before redemption; and whereas it is expedient to facilitate the prompt conversion of those stocks into new stock, and to reduce the amount thereof liable to redemption hereafter ; the Treasury shall authorise the Bank to make, in the prescribed manner and at the prescribed time, to such of the holders of either of those stocks as surrender their stock in exchange for new stock, in consideration of their foregoing their right to such notice as aforesaid, a payment of five shillings for every hundred pounds of the new stock given in exchange, and may also, if they think fit, authorise the Bank to pay in respect of stock so surrendered an allowance to recognised agents at a rate not exceeding one shilling and sixpence per cent.

(2) The sums of five shillings per cent. authorised by this section to be paid may be treated by trustees and others as income, but if so treated shall not be subject to income tax.