The Treasury Bills (Amendment) Regulations 1999

Title and commencement

1.—(1) These Regulations may be cited as the Treasury Bills (Amendment) Regulations 1999 and shall come into force on 15th November 1999.

(2) Nothing in these Regulations shall have effect in relation to any Treasury bill issued before the commencement of these Regulations.

Amendment of principal Regulations

2.  The Treasury Bills Regulations 1968(1) shall be amended in accordance with the following provisions of these Regulations.

3.  In regulation 1(b), for the words “fixed rate of discount, determined by the Treasury” there shall be substituted the words “price, determined on such basis as the Treasury think fit”.

4.  In regulation 2–

(a) for paragraph (1) there shall be substituted the following–

“(1) An invitation to tender for Treasury bills shall be by notice given by such means as the Treasury may direct, and such notice shall specify (whether itself or by reference to some other document)–

(a) how tenders may be made,

(b) the closing date for tenders, and

(c) the period for which, and the terms and conditions subject to which, the bills are to be issued.”; and

(b) for paragraph (2) there shall be substituted the following–

“(2) For the purposes of paragraph (1)(a) of this regulation, and without prejudice to its generality,–

(a) more than one method of tendering may be specified,

(b) different provision may be specified for different descriptions of tender or tenderer, and

(c) it may be specified as a condition of any method of tendering that the action which is to constitute the tender must take place by a specified time or between specified times.”.

5.  In regulation 3, for paragraph (a) there shall be substituted the following–

“(a) (i) if an NLF bill denominated in sterling, shall be in the form set out in Part 1 of Schedule 1 to these Regulations,

(ii) if an NLF bill denominated in any other currency, shall be in the form set out in Part 1 or Part 2 of Schedule 1,

(iii) if a DMA bill denominated in sterling, shall be in the form set out in Part 3 of Schedule 1, and

(iv) if a DMA bill denominated in any other currency, shall be in the form set out in Part 3 or Part 4 of Schedule 1;”.

6.  In regulation 4–

(a) for paragraph (1) there shall be substituted the following–

“(1) The Treasury may from time to time prepare bills in such denominations as they think fit, and may authorise any other person to prepare bills in such denominations and for such total amounts as the Treasury may authorise”;

(b) in paragraph (2)–

(i) there shall be inserted at the beginning the words “Subject to paragraph (3) of this regulation,”, and

(ii) for the words “Bank of England, under the authority of the Treasury warrant” there shall be substituted the words “Treasury, or such agent as may have been authorised by the Treasury in that behalf,”; and

(c) after paragraph (2) there shall be inserted the following–

“(3) Where a Treasury bill is ready for issue and the Treasury have determined to acquire that bill on issue under paragraph 3(1)(a) of Schedule 5A to the National Loans Act 1968(2) (acquisition of Treasury bills etc by the Treasury for the purpose of exercising their functions with regard to the Debt Management Account), no delivery shall be necessary and the bill shall be deemed to be issued on the date of issue specified in the bill.”.

7.  In regulation 5, before the words “Treasury bills” there shall be inserted the letters “NLF”.

8.  In regulation 6–

(a) for paragraph (1) there shall be substituted the following–

“(1) The principal sum payable in respect of a Treasury bill shall be paid in the currency in which the bill is denominated–

(a) by credit or transfer to an account–

(i) denominated in that currency, and

(ii) specified by the payee for that purpose, or

(b) if the Bank of England determines that–

(i) it has not been furnished with sufficient particulars of such an account, or has not been furnished with such particulars in sufficient time, to enable the credit or transfer to be made on the date of payment of the bill, or

(ii) by reason of any systems failure or otherwise that credit or transfer will not be likely to be made on that date, by banker’s draft at the head office of the Bank of England.”;

(b) for paragraph (1A) there shall be substituted the following–

“(1A) Where–

(a) payment is to be made by banker’s draft in accordance with paragraph (1)(b) of this regulation in circumstances in which any process by which the credit or transfer was to have been made in accordance with paragraph (1)(a) of this regulation had already been initiated, and

(b) the Bank of England determines that that process may result in the credit or transfer being made (whether on the day on which the payment is due or on some later date),

the payment by banker’s draft may be made on such terms and conditions as to repayment or indemnity, or otherwise for preventing any loss to the Bank or the Treasury, as the Bank may determine.”.

(c) paragraphs (1B) to (1K) shall be omitted;

(d) in paragraph (1L),

(i) the words “denominated in ECU or euro” shall be omitted, and

(ii) for the words from “(as the case” to the end of the paragraph substitute the words “the currency in which the bill is denominated”;

(e) in paragraph (1M) the words “denominated in ECU or euro” shall be omitted; and

(f) in paragraph (1N), for the words from “calculations” to the words “any bank” there shall be substituted the words “determinations made”.

9.  In regulation 9, the existing regulation shall become paragraph (1), after which there shall be inserted the following new paragraph–

“(2) In these Regulations, except where the context otherwise requires–

“DMA bill” means a Treasury bill issued by virtue of paragraph 4 of Schedule 5A to the National Loans Act 1968 (which enables the Treasury to borrow for the Debt Management Account by the issue of Treasury bills, the payment of which is charged on the Debt Management Account by sub-paragraphs (5) and (6) of that paragraph); and

“NLF bill” and “NLF Treasury bill” mean a Treasury bill which is not a DMA bill (and the payment of which is, accordingly, charged on the National Loans Fund by section 5 of the Treasury Bills Act 1877(3)).”.

10.  Regulation 9A shall be omitted.

11.  For Schedule 1 there shall be substituted the Schedule set out in the Schedule to these Regulations.

Clive Betts

Jim Dowd

Two of the Lords Commissioners of Her Majesty’s Treasury

25th October 1999