The Government Stock (Amendment)Regulations 1990

Explanatory Note

(This note is not part of the Regulations)

These Regulations make three groups of amendments to the Government Stock Regulations 1965 (S.I. 1965/1420—“the principal Regulations”). First, they insert a new regulation 3B, which deals with the procedure to be followed by the Bank of England when redeeming stock. A notice is to be sent to the registered holder of stock which is to be redeemed, not later than eight weeks before the redemption date (regulation 3B(2) ). This notice must contain particulars of the redemption date and inform the holder that, unless a request to the contrary signed by the holder is received by the Bank by a date specified in the notice (which date cannot be more than four weeks before the redemption date) a warrant in respect of the redemption monies drawn in favour of the holder will be sent to him at the address recorded on the register (regulation 3B(3) ). Where any stock which is to be redeemed is registered in the names of more than one person as joint holders, the notice is to be addressed to all joint holders, and is to state that, unless a request to the contrary signed by each registered joint holder is received by the Bank, the warrant in respect of the redemption monies will be drawn in favour of, and sent to, the first named holder. The right of the Bank of England to require the written consent of the stockholder in any case where it considers it appropriate is, however, preserved.

Secondly, these Regulations amend the principal Regulations by inserting a new regulation 6(4). This enables the Bank of England to transfer stock registered in the name of a deceased person without the production of a grant of probate, letters of administration or confirmation if the total value of all holdings of stock registered in the name of the deceased does not exceed £5,000. The Bank may transfer the stock to anyone appearing to be entitled to take out such a grant, letters, or confirmation or to anyone else whom the Bank consider a fit and proper person to receive it.

Finally, the principal Regulations are amended by the insertion of new regulations 22A and 22B. Regulation 22A provides an indemnity for the Bank of England in respect of any payment duly made or act duly done according to the Regulations, and further provides for warrants posted to the person entitled to receive payments to be deemed to have been delivered to that person. This regulation is subject to regulation 22B which contains a saving for the rights of third parties.