The Savings Certificates (Children’s Bonus Bonds) Regulations 1991

Forfeiture of certificates

18.  –

(1) Subject to the provisions of this regulation, if any person–

(a) not being a person entitled under regulation 4 so to do, purchases or holds a certificate; or

(b) purchases or holds any certificate in contravention of regulation 5;

the certificate shall, if the Director of Savings so directs, be forfeited:

Provided that, in any case in which the Director of Savings has directed the forfeiture of any certificates, he may, if he thinks fit, pay to the person concerned or credit to him in the National Savings Bank:

(i) a sum equal to the aggregate amount of the purchase price of the certificates forfeited;

(ii) (in the case of any certificates which the person concerned has purchased or held when he was not entitled so to do under regulation 4) such sum by way of interest, not exceeding the amount of interest which had accrued due in respect of those certificates immediately before the forfeiture thereof, as the Director of Savings may determine;

(iii) (in the case of any certificates which the person concerned has purchased or held in contravention of regulation 5) interest, at such rate as the Director of Savings thinks fit, on a sum equal to the purchase price of those certificates, being interest computed in such manner as the Director of Savings, with the approval of the Treasury, may direct.

(2) For the purposes of the foregoing provisions of this regulation, a multiple certificate shall be taken to be such number of unit certificates as is represented by the multiple certificate.

(3) 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 th4e Director of Savings so directs, be disregarded.

(4) 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 certificate which might be or is affected 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.