Gas (Stock) Regulations, 1949
| Jurisdiction | UK Non-devolved |
| Citation | SI 1949/751 |
1949 No. 751
GAS
The Gas (Stock) Regulations, 194914thApril 1949
21stApril 1949
30thApril 1949
Arrangement of Regulations
Part I. Issue and redemption of stock. Regulations 1 to 7
Part II. Provisions relating to stock. Regulations 8 to 13
Part III. Payment of interest and redemption moneys. Regulations 14 to 18
Part IV. Special provisions as to Scotland. Regulations 19 to 21
Part V. Transitional provisions relating to
compensation stock. Regulations 22 to 25
Part VI. Miscellaneous. Regulations 26 to 35
The Minister of Fuel and Power (in these regulations referred to as "the Minister"), with the approval of the Treasury, in exercise of the powers conferred upon him by subsection (2) of section forty-three of the Gas Act, 1948,(a) (in these regulations referred to as "the Act"), and of all other powers him enabling, hereby makes the following regulations:—
PART I. Issue and redemption of stock
Issue of stock.
1.—(1) All stock issued by the Gas Council under the Act (in these regulations referred to as "stock") shall be redeemable stock and shall be created by, and issued in pursuance of, a resolution or resolutions passed by that Council.
(2) The Gas Council may issue such class or classes of stock as they may determine, but each class of stock shall have a distinctive title and shall be issued on the terms and subject to the conditions that all stock at any time belonging to that class shall bear one and the same rate of interest, shall become redeemable on the same conditions, and shall in all other respects be of the same character.
(3) Subject to the provisions of the Act and these regulations, stock may be issued at such date, by such method, for such amount, at such price, at such rate of interest, and subject to redemption on such conditions, as the Gas Council with the consent of the Minister and the approval of the Treasury may determine.
(4) The Gas Council may, by resolution, revoke at any time, in whole or in part, any resolution passed by them for the creation of any stock, in so far as the stock has not been issued thereunder; and notice of any such revocation shall forthwith be given to the Minister.
Redeemability of stock.
2.—(1) Unless previously redeemed or required by the Act to be cancelled, stock shall be redeemed immediately at the expiration of such of period as the Gas Council with the consent of the Minister and the approval of the Treasury may determine in accordance with regulation one.
(a) 11 & 12 Geo. 6. c. 67.
(2) Unless redeemed by means of periodical drawings, no stock (other than stock required by the Act to be cancelled) shall be liable to be redeemed before the expiration of the latest date for redemption specified in the resolution creating such stock, unless at least three months notice of intention to redeem the same has been given and has been advertised in the London Gazette and the Edinburgh Gazette.
Redemption Fund Accounts.
3.—(1) For the redemption of stock there shall be carried in each year of the prescribed period applicable to the stock to an account (in these regulations referred to as a "Redemption Fund Account") of the Gas Council a sum or sums for redeeming or purchasing such stock.
(2) There shall be a separate Redemption Fund Account for all the stock to which each particular prescribed period relates.
(3) The sums to be carried to each Redemption Fund Account shall be either:—
(a) equal yearly or half-yearly sums sufficient without accumulations to redeem or purchase the stock to which the account relates at the expiration of the prescribed period, or
(b) equal yearly or half-yearly sums which, if accumulated at compound interest with such rests and at such rate as the Gas Council, with the consent of the Minister and the approval of the Treasury, may from time to time determine, would be sufficient to redeem or purchase the stock to which the account relates at the expiration of such period, and, in addition thereto, a sum equivalent to interest on the amount from time to time standing to the credit of the account at the rate on which the aforesaid equal yearly or half-yearly sums are based.
(4) The first contribution to each Redemption Fund Account shall be made within twelve months, or, when the sums are to be carried to the Redemption Fund Account half-yearly, within six months, from the commencement of the prescribed period.
Application of sums in Redemption Fund Accounts.
4.—(1) The Gas Council shall from time to time apply the whole or such part as may be necessary of any sum standing to the credit of any Redemption Fund Account in or towards the redemption, according to the terms of issue, of the stock to which the account relates.
That Council may, in so far as any such sums are not required to be applied as aforesaid, from time to time apply those sums in purchasing any stock to which the account relates, not being stock of which the terms of issue require redemption to take place by means of periodical drawings (whether or not such drawings are combined with any other method of redemption).
(2) In so far as such sums have not been applied in manner aforesaid, the Gas Council shall invest the said sums in statutory securities, and the annual proceeds arising from every such investment shall be carried to revenue account.
(3) Where the sums to be carried to any Redemption Fund Account have been calculated in the manner provided by sub-paragraph (b) of paragraph (3) of the last foregoing regulation, and money standing to the credit of that account has been applied under paragraph (1) of this regulation, the Gas Council shall carry to the credit of that account each year an additional sum equivalent to the interest which would have been produced by the money so applied if invested at the rate on which the equal yearly or half-yearly payments to that account are based:
Provided that, if the cost of the stock purchased (calculated in accordance with sub-paragraph (b) of paragraph (1) of regulation six) exceeds the amount payable on redemption of the stock, no such additional sum shall be carried to the credit of that account in respect of the amount of the excess.
(4) Notwithstanding anything in the foregoing provisions of this regulation, the Gas Council may, with the consent of the Minister and the approval of the Treasury, employ for any of the purposes for which money may be borrowed by the issue of stock any money for the time being standing to the credit of any Redemption Fund Account and for such purposes as aforesaid sell any securities in which the last mentioned money is for the time being invested and employ the proceeds:
Provided that no money standing to the credit of a Redemption Fund Account shall be so employed unless provision is made for replacing the same, together with any loss of interest occasioned by reason of so employing such money, within the prescribed period.
Provision for adjustment of Redemption Fund Accounts.
5.—(1) If it appears to the Gas Council at any time that the amount standing to the credit of, or the investments representing, any Redemption Fund Account, together with the future yearly or half-yearly sums to be carried to that account under these regulations, will probably not be sufficient at the expiration of the prescribed period to make up a sum equal to the amount required to redeem the stock to which that account relates, the sums to be carried to that account shall be increased annually or otherwise to such extent as will make up the deficiency; and if it appears to the Minister that any such increase is necessary the Gas Council shall increase the sums to be carried to that account to such extent as the Minister may direct.
(2) If the Gas Council desire to accelerate the redemption of the stock to which any Redemption Fund Account relates, they may, with the consent of the Minister and the approval of the Treasury, increase, annually or otherwise, the sums to be carried to that account.
(3) If it appears to the Gas Council at any time that the amount standing to the credit of, or the investments representing, any Redemption Fund Account, together with the future yearly or half-yearly sums to be carried to that account under these regulations, will probably be more than sufficient at the expiration of the prescribed period to make up a sum equal to the amount required to redeem the stock to which that account relates, the sums to be carried to that account may be reduced, either temporarily or permanently, to such extent as the Minister may permit; or the Gas Council may, for so long as the Minister may permit, cease to carry any further sums to that account.
(4) Any surplus standing to the credit of any Redemption Fund Account after the redemption or purchase of the stock and the discharge of the whole of the money to which the account relates, shall be applied to such purpose or purposes as the Gas Council, with the consent of the Minister, may determine.
Provision as to Redemption Fund Accounts.
6.—(1) In any year when money standing to the credit of any Redemption Fund Account is applied in the purchase of any stock to which such account relates, the Gas Council shall, during the year in which the purchase is made, effect the following adjustments:—
(a) (i) the amount of the gross accrued interest on the stock purchased to the date of purchase shall be charged to the appropriate Interest Account and carried to the Redemption Fund Account, or
(ii) if the stock purchased is transferable without a right to the next following interest payment, the amount of the gross rebate interest from the date of purchase to the next following interest date shall be charged to the Redemption Fund Account and carried to the Interest Account; and
(b) if the cost of the stock purchased (inclusive of brokers' commission and other costs of purchase) after deduction of the amount referred to in sub-paragraph (a) (i) of this paragraph or with the addition of the amount referred to in sub-paragraph...
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