The Gilt Strips (Consequential Amendments) Regulations 1997

Construction of provisions applying or referring to strips

4.—(1) This regulation applies for the purposes of—

(a) the application (whether or not by virtue of regulation 3) of any statutory provision in relation to any strip of any government securities, and

(b) the construction of any reference in any statutory provision (including one contained in that provision by virtue of regulation 3) to any strip of any government securities.

(2) For those purposes, strips of government securities shall be taken to be securities which under their terms of issue bear a fixed rate of interest (and not to be variable interest securities).

(3) For those purposes, a payment under a strip of any government securities shall, subject to paragraph (6), be taken to have the character of a capital payment (and not of a payment of income or interest), and, accordingly—

(a) references (in whatever terms) to the redemption of, or repayment of principal in relation to, government securities shall be taken to include references to the payment of amounts secured by strips of government securities (and to the making of payments the rights to which are represented by such strips); and

(b) references (in whatever terms) to dividends or the payment of interest in relation to government securities shall be taken as not including references to payments which are secured (or the right to which is represented) by strips of government securities.

(4) Where a statutory provision applies in relation to strippable government securities only where they will mature for repayment within or, as the case may be, after the end of some relevant period, the provision shall be taken to apply in relation to strips only where they will mature for payment within or, as the case may be, after the end of the corresponding period.

(5) Where the only strippable government securities to which a statutory provision refers are those which will mature for repayment within or, as the case may be, after the end of some relevant period, the only strips to which the provision shall be taken to refer are those which will mature for payment within or, as the case may be, after the end of the corresponding period.

(6) Where any of the investments of the Endowment Fund mentioned in paragraph 5 of the agreement set out in the Schedule to the Agricultural Research Station Act (Northern Ireland) 1927(1) are strips of government securities, payments under the strips may be treated by the Agricultural Research Institute of Northern Ireland as interest from securities and, accordingly, income of the Fund.

(1)

1927 c. 5 (N.I.).