LOCAL AUTHORITIES (STOCK) REGULATIONS, 1934,(a) Dated JUNE 21, 1934, Made by the MINISTER OF HEALTH UNDER SECTION 204 OF THE LOCAL GOVERNMENT ACT, 1933 (23 & 24 GEO. 5. C. 51).
| Jurisdiction | UK Non-devolved |
| Citation | SI 1934/619 |
1934 No. 619
LOCAL GOVERNMENT, ENGLAND
5. Finance
(1) Creation and Issue of Stock
THE LOCAL AUTHORITIES (STOCK) REGULATIONS, 1934,(a) DATED JUNE 21, 1934, MADE BY THE MINISTER OF HEALTH UNDER SECTION 204 OF THE LOCAL GOVERNMENT ACT, 1933 (23 & 24 GEO. 5. C. 51).The Minister of Health in exercise of the powers conferred on him by Section 204 of the Local Government Act, 1933, hereby makes the following Regulations:—
Short title.
1. These Regulations may be cited as the Local Authorities (Stock) Regulations, 1934.
(a) These regulations are in the form approved by resolutions of both Houses of Parliament.
General
Interpretation.
2.—(1) In these Regulations, unless the context otherwise requires, the following words and expressions have the respective meanings hereby assigned to them:—
"The Minister" means the Minister of Health;
"Local Authority" means a county council, other than the London County Council, the council of a borough and an urban or rural district council;
"The Act of 1933" means the Local Government Act, 1933;
"Statutory borrowing power" means a power of borrowing money conferred on a local authority by or under any enactment;
"Stock" means stock created by the local authority under Part IX of the Act of 1933 or under any enactment repealed by that Act.
(2) The Interpretation Act, 1889, applies to the interpretation of these Regulations as it applies to the interpretation of an Act of Parliament.
Creation and Redemption of Stock
Creation of stock.
3.—(1) Subject to the provisions of these Regulations and with the consent of the Minister (which consent shall be expressed in an order, in these Regulations referred to as a "consent order"), a local authority who desire to exercise any statutory borrowing power may by resolution create redeemable stock for that purpose.
(2) The resolution may be in the form set out in the Schedule to these Regulations or in a form substantially to the like effect and shall specify—
(a) the borrowing powers to be exercised;
(b) the amount of stock to be issued;
(c) the price at which the stock is to be issued;
(d) the rate of interest and the half-yearly or other intervals at which the interest will be payable;
(e) the period after which the stock is to be redeemable at par at the option of the local authority;
(f) the period within which the stock must be redeemed or purchased and extinguished;
(g) the name of the stock; and
(h) whether the stock is to be transferable in books or by deed:
Provided that in lieu of specifying any of the matters mentioned in sub-paragraphs (b) to (g) of this paragraph the resolution may, if the local authority think fit, indicate the procedure by which any of those matters shall be determined.
(3) Except with the consent of the Minister, stock shall not be issued at a price lower than ninety-five per cent.
(4) The period within which stock must be redeemed or purchased and extinguished shall not exceed sixty years.
Consolidation of loans.
4. With a view to the consolidation for the purpose of repayment of loans which a local authority have raised or intend to raise by the issue of stock the authority may prepare, and the Minister may approve, with or without modifications, a scheme of consolidation, and the scheme shall fix the period or periods within which the loans which it is proposed to consolidate shall be repaid and for that purpose may extend or vary any periods originally fixed as the periods within which provision was required to be made for the repayment of the several loans, due regard being had to the amounts of the loans and the periods so originally fixed.
Stock (Interest) Account.
5.—(1) For the payment of interest on each class of stock there shall in each year be carried to a separate account of the county fund or the general rate fund, as the case may be, a sum or sums equal to the aggregate amount of all interest payable on the stock of that class during the year.
(2) Such account shall be called the Stock (Interest) Account and shall be distinguished by number or otherwise from the corresponding account relating to stock of another class, and in these Regulations every such account is referred to as the "interest account."
(3) The local authority shall from time to time pay the interest on the stock and charge the payments to the interest account.
Stock (Sinking Fund) Account.
6.—(1) For the redemption or purchase and extinction of each class of stock the local authority shall establish a separate account of the county fund or the general rate fund, as the case may be, to be entitled the Stock (Sinking Fund) Account, and the said account shall be distinguished by number or otherwise from the corresponding account relating to stock of another class, and in these Regulations every such account is referred to as the "sinking fund account."
(2) The local authority shall keep in connection with the sinking fund account—
(a) an account showing the securities on which all sums carried to the sinking fund account are from time to time invested;
(b) separate accounts relative to each undertaking or purpose for or in respect of which any statutory borrowing power is exercised by them by the issue of the stock; and
(c) separate accounts relative to each statutory borrowing power so exercised.
(3) The accounts to be kept under sub-paragraphs (b) and (c) of the last preceding paragraph shall show—
(i) the amount of stock for the time being chargeable to each undertaking or purpose;
(ii) if more than one statutory borrowing power has been exercised in respect of an undertaking or purpose, the amount of stock attributable to the exercise of each such borrowing power;
(iii) the amount of stock attributable to each statutory borrowing power which has been redeemed or purchased and extinguished by means of the sinking fund account,
and shall further show in relation to each undertaking or purpose—
(iv) all money being capital, or in the nature of capital, carried to the sinking fund account and in the opinion of the local authority properly attributable to that undertaking or purpose;
(v) all money carried to the sinking fund account as the equivalent of interest on the last-mentioned money;
(vi) all money and securities transferred or carried to the sinking fund account under Article 10 of these Regulations, and all money carried to the sinking fund account as the equivalent of interest on the last-mentioned money or securities;
(vii) all money carried to the sinking fund account as contributions from the revenues of the local authority in respect of redemption or purchase and extinction of stock; and
(viii) all money carried to the sinking fund account as the equivalent of interest of the last-mentioned money.
Sums to be credited to the sinking fund account.
7.—(1) The amounts to be carried to the sinking fund account in respect of each loan represented by stock throughout the period within which the loan is required to be repaid or, if a scheme for the consolidation of loans is in operation, throughout the period fixed by the scheme shall be, as the local authority with the consent of the Minister may determine, either—
(a) such equal annual sums as would, with accumulations at a rate to be determined from time to time by the Minister,(a) be sufficient, after payment of all expenses, for the purpose of purchasing the amount of stock at par within that period; or
(b) such equal annual sums as would, without accumulations, be sufficient for the purpose aforesaid:
Provided that—
(i) if stock is issued by a local authority to raise money which they are authorised to lend to a parish council or other authority and which is to be repaid to them by instalments, the sums to be carried in each year to the sinking fund account shall be such sums as are in that year due to be paid to the local authority by way of repayment of capital; and
(ii) if stock is issued for raising a loan and the local authority are authorised to postpone commencing provision for repayment of the loan, the provisions of this Article shall apply with the necessary modifications;
(iii) if stock is issued for paying off money previously borrowed in respect of which no period for repayment was prescribed by or under the enactment conferring the statutory borrowing power, the period by reference to which the annual sums aforesaid are to be substituted shall be such as the local authority, with the consent of the Minister, may determine; and
(iv) the provisions of Section 214 of the Act of 1933, which enable or require adjustments of amounts payable to a sinking fund to be made in certain circumstances, shall apply to the amounts payable to the sinking fund account.
(2) The interest in any year from the investment of the sums carried to the sinking fund account shall form part of the revenue for that year of the county fund or the general rate fund, as the case may be, but in the case of a sinking fund account to which accumulations are required to be carried the contribution to be made to the sinking fund account out of the county fund or the general rate fund, as the case may be, shall in that year be increased by a sum equal to the interest that would have accrued to that account during that year, if interest had been accumulated therein at the rate per cent. per annum on which the annual payments to the account are based.
Stock issued at a discount etc.
8. For the purpose of calculating the sums required to be carried to the sinking fund account—
(a) where stock has been issued at a discount, so much of the stock as represents the difference between the price of the stock as issued and its nominal value; and
(b) where stock has been issued for the purpose of defraying the expenses of the creation and issue of any stock, the amount of stock created and issued for that purpose,
shall be deemed to represent a loan repayable at the date at which the stock is first redeemable at par at the option of the local authority.
(a)...
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