(1)For the purpose of giving effect to any conversion or exchange in pursuance of this Act, the Bank shall cancel in their books, as from the date at which the conversion or exchange takes effect, the amount standing in the name of any person of stock to be converted or exchanged, and shall inscribe in their books in the name of that person the amount of new stock to be substituted for the stock so cancelled.
(2)Where any amount of stock is paid off in pursuance of this Act the Bank shall, as from the date of the payment off, cancel that amount of stock in their books.