15.—(1) A local authority who issue stock or bonds shall make a scheme in accordance with paragraph 15 of Schedule 13 to the Local Government Act 1972 to establish and operate a loans fund for the purpose of defraying expenditure which they are authorised to meet out of money borrowed by them and for the redemption of such stock or bonds.
(2) Where the local authority issue stock or bonds at a discount, the difference between the issue price and nominal value shall form part of the loan.
(3) The expenses of the local authority incurred in the issue of stock or bonds may be charged to capital and may be deemed money raiseable under a statutory borrowing power and may, if the issue was at a premium, be wholly or partly defrayed out of the monies received by way of premium.
16.—(1) The registrar, with the approval of the local authority where the registrar is not the local authority, may close a register relating to stock or bonds of any description during the whole or any part of the period of one month preceding the day on which the interest or redemption money is payable.
(2) Instead of closing a register in the manner aforesaid the registrar may strike the balance for interest on stock or bonds of any description on any day not being more than 37 days before the day on which the interest on such stock or bonds is payable.
(3) Any person who, on the date on which a register is closed or the balance is struck as aforesaid, is entered in that register as the holder of any stock or bonds shall, as between himself and any transferee of such stock or bonds, be entitled to the then current interest thereon.
17. Subject to the provisions of regulation 3(2) above stock and bonds shall be redeemed by payment of any amount equal to the denomination thereof at the redemption date specified in the certificate issued in respect of them; but
(a)bonds, other than negotiable bonds, may be so redeemed at any time before the date so specified where the local authority and the holder so agree; and
(b)stock may be so redeemed at the option of the local authority at any time after the earliest redemption date specified in the certificate issued in respect thereof.
18.—(1) Unless the holder of any stock or bonds otherwise requests in writing the local authority or, where the local authority is not the registrar, the local authority by the registrar shall pay interest and any redemption money due on any stock or bonds by sending a cheque or warrant to the holder by post to his registered address and the posting of that cheque or warrant in a pre-paid letter directed to his address shall be a sufficient discharge to the local authority and the registrar for that interest or redemption money.
(2) Before sending any cheque or warrant in payment of redemption money the registrar may, if he thinks fit, require the holder of any stock or bonds upon which redemption money is to be paid to specify in writing the person to whom the redemption money is to be paid and the address to which the cheque or warrant is to be sent and upon receipt of that specification the registrar shall make the payment of redemption money in accordance therewith.
(3) Before making any payment the registrar may, if he thinks fit, require evidence of the title of any person claiming a right to receive such payment and in particular may require the surrender of the certificate representing the stock or bonds upon which redemption money is to be paid or such indemnity as he may require if the certificate is lost or destroyed.
(4) If any cheque or warrant has not been encashed and has become defaced, lost or destroyed the registrar shall, on receipt of such evidence and indemnity as he may require, and on the surrender of the cheque or warrant where it is defaced, pay the money due.
(5) Every warrant so sent by post shall be deemed to be a cheque and the local authority and the registrar shall, in relation thereto, be deemed a banker within the Bills of Exchange Act 1882.
(6) For the purpose of this regulation the holder means the person whose name is recorded as the holder of the stock or bonds at the date on which the interest or redemption money is payable, or if the register was closed or a balance struck under regulation 16 above, at the date on which the register was closed or the balance struck, and in the case of joint holders the registrar may treat as holder that one of them who is first named in the register or such other of them as they all may in writing direct, but any request or specification in writing given under paragraphs (1) or (2) above must be given by all of the joint holders.
(7) Where the person who would otherwise be the holder of any stock or bonds is deceased his personal representative or personal representatives shall, for the purposes of this regulation, be deemed to be the holder or joint holders of that stock or those bonds.
(8) Where two or more joint holders of any stock or bonds have given a request as to the payment of interest thereon and one of them becomes of unsound mind, such request shall not thereby become void.
(9) Nothing in the preceding provisions of this regulation shall prevent the registrar and any banker from making special arrangements for the payment of any interest or redemption money payable to the holder of any stock or bonds which is receivable by that banker, either on his own behalf, or as nominee of the holder, or otherwise.
19. Any stock or bonds redeemed by the registrar shall thereupon be cancelled and together with all interest thereon which has not become payable shall be extinguished.