The Premium Savings Bonds Regulations 1972

Forfeiture of bonds

19.—(1) Subject to the provisions of this Regulation, if any person—

(a) not being a person entitled under Regulation 4 of these Regulations so to do, purchases or holds a bond; or

(b) purchases or holds any bond in contravention of Regulation 5 of these Regulations (which prescribes the maximum number of unit bonds which may be purchased);

the bond and any money payable in respect thereof shall, if the Director of Savings so directs, be forfeited:

Provided that, if in any case in which the Director of Savings has directed the forfeiture of any bonds, he is satisfied that the contravention in question was inadvertent and that in the circumstances forfeiture will cause undue hardship to the person concerned, he may, if he thinks fit, pay to that person or credit to him in the National Savings Bank a sum equal to the purchase price of the bonds forfeited.

(2) For the purposes of any Order under section 4 of the National Savings Bank Act 1971 (which empowers the Treasury by order to limit the amount of deposits in the National Savings Bank) or any Order having effect as if made under that section, any sum credited to a person under this Regulation shall, if the Director of Savings so directs, be disregarded.

(3) Notice of any forfeiture under this Regulation shall be sent to the person concerned as soon as may be, and the Director of Savings may require any bond which may be or is affected, or any document issued in lieu of such bond, to be delivered up to him for the purpose of being either cancelled or altered or otherwise dealt with, as may be necessary to give effect to the provisions of this Regulation.