Trustee Investments Act 1961

PART IV Supplemental

1 The securities mentioned in Parts I to III of this Schedule do not include any securities where the holder can be required to accept repayment of the principal, or the payment of any interest, otherwise than in sterling.

2 The securities mentioned in paragraphs 1 to 8 of Part II, other than Treasury Bills or Tax Reserve Certificates, securities issued before the passing of this Act by the Government of the Isle of Man, securities falling within paragraph 4 of the said Part II issued before the passing of this Act or securities falling within paragraph 9 of that Part, and the securities mentioned in paragraph 1 of Part III of this Schedule, do not include—

(a) securities the price of which is not quoted on a recognised stock exchange within the meaning of the Prevention of Fraud (Investments) Act, 1958, or the Belfast stock exchange;

(b) shares or debenture stock not fully paid up (except shares or debenture stock which by the terms of issue are required to be fully paid up within nine months of the date of issue).

3 The securities mentioned in paragraph 6 of Part II and paragraph 1 of Part III of this Schedule do not include—

(a) shares or debentures of an incorporated company of which the total issued and paid up share capital is less than one million pounds;

(b) shares or debentures of an incorporated company which has not in each of the five years immediately preceding the calendar year in which the investment is made paid a dividend on all the shares issued by the company, excluding any shares issued after the dividend was declared and any shares which by their terms of issue did not rank for the dividend for that year.

For the purposes of sub-paragraph (b) of this paragraph a company formed—

(i) to take over the business of another company or other companies, or

(ii) to acquire the securities of, or control of, another company or other companies,

or for either of those purposes and for other purposes shall be deemed to have paid a dividend as mentioned in that sob-paragraph in any year in which such a dividend has been paid by the other company or all the other companies, as the case may be.

4 In this Schedule, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say—

• " debenture " includes debenture stock and bonds, whether constituting a charge on assets or not, and loan stock or notes ;

• " enactment " includes an enactment of the Parliament of Northern Ireland;

• " fixed-interest securities " means securities which under their terms of issue bear a fixed rate of interest;

• " local authority " in relation to the United Kingdom, means any of the following authorities—

  (a)

  in England and Wales, the council of a county, a county, metropolitan or other borough (including a borough which has been included in a rural district), an urban or rural district or a parish, the Common Council of the City of London and the Council of the Isles of Scilly ;

  (b)

  in Scotland, a local authority within the meaning of the Local Government (Scotland) Act, 1947 ;

  (c)

  in Northern Ireland, the council of a county, a county or other borough, or an urban or rural district;

• " ordinary deposits " and " special investment " have the same meanings respectively as in the Trustee Savings Banks Act, 1954;

• " securities " includes shares, debentures, Treasury Bills and Tax Reserve Certificates;

• " share " includes stock ;

• " Treasury Bills " includes Exchequer bills and other bills issued by Her Majesty's Government in the United Kingdom and Northern Ireland Treasury Bills.

5 It is hereby declared that in this Schedule " mortgage ", in relation to freehold or leasehold property in Northern Ireland, includes a registered charge which, by virtue of subsection (4) of section forty of the Local Registration of Title (Ireland) Act, 1891, or any other enactment, operates as a mortgage by deed.

6 References in this Schedule to an incorporated company are references to a company incorporated by or under any enactment and include references to a body of persons established for the purpose of trading for profit and incorporated by Royal Charter.

7 The references in paragraph 12 of Part II and paragraphs of Part III of this Schedule to a building society designated under section one of the House Purchase and Housing Act, 1959, include references to a permanent society incorporated under the Building Societies Acts (Northern Ireland) 1874 to 1940 for the time being designated by the Registrar for Northern Ireland under subsection (2) of that section (which enables such a society to be so designated for the purpose of trustees' powers of investment specified in paragraph (a) of subsection (1) of that section).