http://www.legislation.gov.uk/id/ukpga/1882/72

PART IIINational Debt and Miscellaneous

21Guarantee from the Consolidated Fund of moneys due from the National Debt Commissioners to Friendly Societies. Investment of moneys belonging to Friendly Societies

Whereas by divers Acts and lastly by the M1Friendly Societies Act, 1875, the societies in those Acts and this Act referred to as friendly societies are authorised to invest the moneys received from members on account of assurances with the National Debt Commissioners, and to pay such moneys to those Commissioners in sums of not less than fifty pounds, and are entitled to receive receipts for such moneys bearing interest at the following rates; that is to say,

For money invested by any society legally established before the 28th day of July 1828, which invested money with the Commissioners before 23rd July 1855.	On account of any assurance made before the 15th day of August 1850.	Threepence per centum per diem.
	On account of any assurance effected after that day.	Twopence per centum per diem.
For money invested by any society legally established between the 28th day of July 1828, and the 15th day of August 1850, which invested any money with the Commissioners before 23rd July 1855.	On account of any assurance made before the 15th day of August 1850.	Twopence halfpenny per centum per diem.
	On account of any assurance effected after that day.	Twopence per centum per diem.
For money invested by any society legally, established since the 15th day of August 1850.	On account of any assurance whenever effected.	Twopence per centum per diem.

And whereas the Commissioners have from time to time invested the moneys so paid to them in parliamentary securities to an account entitled the fund for Friendly Societies, hut such securities have produced less interest than that to which the societies were entitled as above-mentioned, and thereby there has been, as appears from the returns annually laid before Parliament, a gradually increasing deficiency in the value of the securities held by the National Debt Commissioners on the said account to meet the sums due from those Commissioners to the Friendly Societies :

And whereas the M2Customs, Inland Revenue, and Savings Banks Act, 1877, provided that the National Debt Commissioners shall annually make out an account with respect to the year ending on the twentieth day of November, showing on one side the interest accrued from the said securities, and on the other side the interest paid and credited to Friendly Societies; and further, after reciting that it was intended that where the interest accrued from such securities in any year was insufficient to meet the interest required to be paid and credited, such deficiency should be paid out of moneys provided by Parliament, the said Act provided for paying into the exchequer any surplus of interest received over and above the interest paid and credited :

And whereas it is expedient to provide for the payment out of the Consolidated Fund of all capital sums, as well as the interest due from the National Debt Commissioners to Friendly Societies, when the securities held on account of Friendly Societies by the said Commissioners to meet the same have been exhausted :

Be it therefore enacted, as follows :

(1)

Whenever it appears to the Treasury from time to time that by reason of the securities held by the National Debt Commissioners on account of Friendly Societies being exhausted, the moneys in the hands of the National Debt Commissioners standing to the credit of the fund for Friendly Societies will be insufficient to meet the sums which are likely to become due from the National Debt Commissioners to Friendly Societies, the Treasury shall provide money to meet the deficiency out of the Consolidated Fund of the United Kingdom, or the growing produce thereof, in such manner as they may think expedient.

(2)

The Treasury may in any financial year borrow all or any part of the moneys issued in that financial year out of the Consolidated Fund, or the growing produce thereof, in pursuance of this Act, by means of a terminable annuity for such period not exceeding eighteen years from the thirty-first day of December next after the passing of this Act as the Treasury think expedient.

(3)

An annuity created in pursuance of this section shall be created by warrant of the Treasury to the Governor and Company of the Bank of England directing them to inscribe in their books the amount of such annuity in the names directed by the warrant.

(4)

Every such annuity shall be charged on the Consolidated Fund, and shall be added to and paid out of the permanent annual charge for the National Debt, and the permanent annual charge for the National Debt shall, during the period for which the said annuity is created, be increased by the amount of the annuity.

(5)

All money for the time being in the hands of the National Debt Commissioners on account of Friendly Societies shall be invested by them in the like manner as if they were moneys in their hands on account of savings banks, and all enactments relating to the investment of such last-mentioned moneys shall apply accordingly.