(1)Subject to subsection (2) below, all sums received by the Director of Savings as investment deposits with the National Savings Bank shall from time to time be paid by him into the National Loans Fund in accordance with directions given by the Treasury; and the sums required for repaying, or paying interest on, investment deposits with the Bank shall be charged on that Fund with recourse to the Consolidated Fund.
(2)There may be retained by the Director of Savings out of the sums received by him as mentioned in subsection (1) above such amounts as may be required by him as a working balance; and there shall be paid to him from time to time out of the National Loans Fund (or, as the case may be, the Consolidated Fund) the sums required for repaying, or paying interest on, investment deposits or for increasing his working balance.
(3)The amounts to be retained by or paid to the Director of Savings under subsection (2) above shall be determined by agreement between him and the Treasury.
(4)The Director of Savings shall keep an account of all sums—
(a)received and paid by him in respect of investment deposits;
(b)paid by him into or received by him out of the National Loans Fund; or
(c)received by him out of the Consolidated Fund,
and shall prepare a statement of that account as respects each year ending with [F131st March].
(5)The statement prepared for [F2any period under subsection (4) above shall, before the end of August next following the end of that period,] be transmitted to the Comptroller and Auditor General who shall examine, certify and report on it and lay copies of it, together with copies of his report, before Parliament.
(6)The expenses of the Director of Savings in connection with investment deposits shall be defrayed out of moneys provided by Parliament.
(7)Sections 21 to 23 of the M1National Savings Bank Act 1971 and so much of section 25 of that Act as relates to investment deposits shall cease to have effect; and Schedule 19 to this Act shall have effect as respects the transition from those provisions to the foregoing provisions of this section.
(8)The rate of interest on investment deposits shall be determined by the Treasury instead of by the Director of Savings with the consent of the Treasury; and in the case of an alteration in a rate of interest not affecting deposits received before it is made, the notice of the alteration required by section 6 of the said Act of 1971 may be given after the making of the alteration.
(9)Subsections (1) to (7) above have effect from 1st January 1981 and subsection (8) above from the passing of this Act.
(10)This section and Schedule 19 to this Act shall be construed as one with the said Act of 1971.
Textual Amendments
F1Words in s. 120(4) substituted (31.7.1998) by 1998 c. 36, s. 162(1)(b)
F2Words in s. 120(5) substituted (31.7.1998) by 1998 c. 36, s. 162(5)
Modifications etc. (not altering text)
C1The text of s. 120 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991
C2S. 120(4) amended (31.7.1998) by 1998 c. 36, s. 162(2)
Marginal Citations