REPAYMENT OF CERTIFICATES

Repayment warrants7.

(1)

Every payment of an amount repayable in respect of a certificateshall be made by a warrant except to the extent that the Director ofSavings otherwise directs or the applicant for the repayment requeststhat all or part of the amount repayable be used to purchase anothercertificate or a National Savings Capital Bond and the Director ofSavings consents thereto; and accordingly in the absence of such requestor direction every application for payment of any such amount shall betreated as implying an authority to him to issue a warrant for thatamount and to pay it in accordance with the terms of the warrant, andthe death of the person who made the application for repayment shall notof itself determine such authority; but if the Director of Savingsreceives notice that the applicant has died or has countermanded suchauthority, the Director of Savings shall not issue the warrant or, if ithas already been issued, shall take all reasonable steps to stop paymentthereof.

(2)

The provisions of section 76, subsections (1), (3), (4) and (5) and,so far as it relates to crossed cheques, subsection (6) of section 77and sections 78, 79, 80 and 81 of the Bills of Exchange Act 18824 (which relate to crossed cheques) and of sections 3 and4 of the Cheques Act 19575 (which relate to unindorsed cheques as evidence ofpayment and to the protection of collecting bankers) shall apply to anycrossed warrant issued under these Regulations as if the warrant were acheque drawn on the Director of Savings by the officer issuing thewarrant, but nothing in these Regulations shall make any such warrantnegotiable.

(3)

An uncrossed warrant shall not be paid until the receipt for theamount thereby payable has been duly signed by the payee or by someperson authorised by the payee to receive payment:

  • Provided that, where such a warrant is paid to a person purportingto be the payee or to be a person authorised by the payee to receivepayment, then, notwithstanding that the receipt on the warrant wassigned by some person being neither the payee nor a person soauthorised, the making of the payment shall be a full discharge to theTreasury and to the Director of Savings for the amount thereof, if it isshown that the payment was made in good faith and without negligence,and that the making of the payment is attributable to some act oromission on the part of the holder of the certificate to which thewarrant relates or on the part of the payee or the person soauthorised.

(4)

Notwithstanding anything in paragraph (3) above, where an uncrossedwarrant for the amount repayable in respect of any certificate is madepayable to the holder of the certificate, it may be paid to anotherperson who signs the receipt on the warrant and forthwith reinvests theamount of the payment in certificates in the name of the holder of therepaid certificate; and the making of the payment shall be a fulldischarge to the Treasury and to the Director of Savings for the amountthereof.

(5)

Except where the Director of Savings otherwise directs, a warrantshall not be paid until the certificate in respect of which therepayment is to be made has been delivered to the Director of Savings.

(6)

An uncrossed warrant shall be payable at the place named in thewarrant or otherwise in accordance with the directions containedtherein. The Director of Savings may dispatch the warrant to such place,and where he does so shall dispatch a notice informing the payee that hehas done so.

(7)

For the purpose of determining the amount repayable in respect of acertificate, the payment of the amount repayable thereunder shall bedeemed to be effected on the date appearing on the warrant.

(8)

Subject to paragraph (9) below, the date appearing on the warrantshall, unless the holder has requested a later date, be not more than 21days from the date on which application for payment of the amountrepayable in respect of a certificate is received by the Director ofSavings in accordance with regulation 6(1) above; and where the holderhas requested that the warrant be dated with a later date, the dateappearing on the warrant shall be no later than that date save that theDirector of Savings may set a different date (being not more than 10 days after the requested date) if, having regard to the terms on which the certificate was issued, he is satisfied that such different date would be in the interests of the holder.

(9)

If the Director of Savings is satisfied that it is or was notpracticable to dispatch the warrant in time to enable payment thereof tobe made on a date within paragraph (8) above, then the date appearing onthe warrant shall be no later than the earliest date by which he issatisfied it would be practicable for the payee to obtain paymentthereof. In this paragraph the expression“payment” in relation to a crossed warrant shall include paying in thewarrant at a bank or other institution.

(10)

Paragraphs (7), (8) and (9) of this regulation shall apply and bedeemed always to have applied to all certificates, purchased and notrepaid before the coming into force of these Regulations, provided thatin respect of certificates purchased and not repaid before 11 February1991 the date appearing on the warrant shall not be a date which wouldresult in the amount repayable being less than the amount that, havingregard to the date on which the warrant is dispatched, would have beenrepayable if the Savings Certificates (Amendment) Regulations 19916 (which came into force on 11 February 1991) had not comeinto force in respect of such certificates.

(11)

The posting of—

(a)

a warrant, or

(b)

the notice referred to in paragraph (6) above, where in accordancewith that paragraph an uncrossed warrant is dispatched to the place atwhich it is payable,

to any person at the last address furnished to the Director ofSavings shall, as regards the liability of the Treasury or the Directorof Savings, be equivalent to the delivery of the warrant or notice tothat person.