Finance Act 1917

32 Depreciation fund

(1) The Treasury shall by regulations establish a depreciation fund in connection with the five per cent. war loan 1929-1947 and the four per cent. war loan 1929-1942 in accordance with the terms upon which those loans were raised, and may issue out of the Consolidated Fund or the growing produce thereof from time to time such sums as may be required for the purposes of that fund :

Provided that the aggregate sums so issued shall at no time exceed an amount equal to one-eighth of one per cent. per month, calculated as from the seventeenth day of February nineteen hundred and seventeen, of the total nominal value of the stock and bonds of those loans originally created whether as a result of subscriptions or conversions.

(2) The regulations may provide—

(a) for the manner in which the fund is to be applied, including the purchase for cancellation from any Government account of stock or bonds purchased between the said seventeenth day of February and the passing of this Act in anticipation of the establishment of the fund ; and

(b) for the cancellation of any stock or bonds to the purchase of which the fund has been applied.

(3) The Treasury may, if they think fit at any time, for the purpose of providing for the issue of sums out of the Consolidated Fund under this section or for the repayment to that fund of all or any part of the sums so issued, borrow money in any manner in which money is authorised to be borrowed for the purposes of the present war; and all sums so borrowed shall be paid into the Exchequer.