GOVERNMENT LOANS (CONVERSION) ACT, 1951

AN ACT TO MAKE PROVISION FOR THE CONVERSION OF GOVERNMENT LOANS AND FOR INCIDENTAL MATTERS. [3rd July, 1951.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

1 Definitions.

1.—In this Act—

“the Minister” means the Minister for Finance;

“Government loan” means any of the following:

• (a) the 5% Second National Loan, 1950-60,

• (b) the 4½% Third National Loan, 1950-70,

• (c) the 4% Conversion Loan, 1950-70,

• (d) the 4% Exchequer Bonds, 1950-60,

• (e) any other security charged on the Central Fund and created and issued, whether before or after the passing of this Act, by the Minister;

“new loan” means, in relation to a Government loan, any such security charged on the Central Fund as the Minister creates and issues under this Act for the purpose (whether alone or with other purposes) of the conversion of holdings of the stock of such Government loan;

“the redemption date” means, in relation to a Government loan, the date of the redemption thereof under the relevant redemption;

“stockholder” means a person, or a number of persons jointly, holding any of the stock of a Government loan.

2 Offer of conversion rights to stockholders.

2.—(1) Where the outstanding stock of a Government loan is about to be redeemed, the Minister may, if he so thinks fit, offer, not later than fourteen days before the redemption date, to every stockholder the right to convert as on the redemption date his holding, or any part of his holding, of the stock of such loan into stock of a new loan on specified terms (including, in particular and if the Minister so thinks fit, the giving of a bonus, whether in stock of the new loan or cash).

• (2) Any such offer shall be made—

• (a) by publication in the Iris Oifigiúil, not later than fourteen days before the redemption date, of notice of the offer with such particulars thereof as the Minister thinks proper, and

• (b) by publication of such notice in such further or other manner and at such time or times as the Minister thinks proper.

• (3) If the Minister has made, before the passing of this Act, an offer which would have been an offer in accordance with this Act and valid thereunder if this Act had then been in force, the offer shall be deemed for all purposes to have been made under this section and this Act shall apply in respect thereof, and every application made in pursuance of the offer before the passing of this Act shall be deemed for all purposes to have been made under this Act.

3 Application for and right to conversion.

3.—(1) Where an offer of conversion is made under this Act in respect of stock of a Government loan, every stockholder who duly applies for conversion of his holding or a specified part of his holding of the stock in accordance with the offer shall be entitled to have his holding or the said part of his holding (as the case may be) converted as on the redemption date into stock of the new loan of such amount and upon such terms as are applicable in accordance with the offer.

• (2) An application under this section shall be irrevocable and shall bind the stockholder by whom it is made and his successors in title.

• (3) An application under this section shall be made to such person and in such manner as are specified in the published terms of the offer of conversion or are prescribed by regulations under this Act.

4 Creation and issue of securities.

4.—(1) The Minister may create and issue securities for the purpose (whether alone or with other purposes) of the conversion under this Act of the stock of a Government.

• (2) Securities under this section shall bear such rate of interest and be subject to such conditions as to repayment, redemption or otherwise as the Minister thinks fit.

• (3) The principal and interest of securities under this section shall be charged on the Central Fund or the growing produce thereof.

5 Protection of trustees.

5.—Where an offer of conversion is made under this Act in respect of stock of a Government loan—

• (a) trustees and other persons holding any stock of the loan in a fiduciary capacity and persons having the control or management of any stock of the loan are hereby authorised at their discretion to apply under this Act for the conversion of the whole or any part of such stock or to refrain from the making of any such application, and no such person shall be liable for any loss resulting from his making or refraining from making (as the case may be) any such application,

• (b) if any stock of the loan is held by trustees or other persons in a fiduciary capacity, neither an application under this Act for the conversion of such stock or of any part thereof nor the refraining from making any such application shall be a variation of the investment of the trust funds within the meaning of any provision in the instrument creating or regulating the trust whereby the consent of any person to any such variation is required or such variation is otherwise restricted or controlled.

6 Preservation of existing powers of investment, etc.

6.—(1) A power or direction (whether created or given before or after the passing of this Act) to invest money in a Government loan in relation to which an offer of conversion has been made under this Act shall be construed and have effect as including a power or direction (as the case may be) to invest in the new loan, and no such power or direction shall be terminated by reason only of the conversion and redemption of the Government loan.

• (2) A power of attorney authorising the attorney to transfer specified stock of a Government loan in relation to which an offer of conversion has been made under this Act shall be construed and have effect as authorising the attorney to apply at his discretion under this Act for the conversion of the whole or part of such stock into stock of the new loan, and, where such conversion takes place, to transfer in accordance with the said power the stock of the new loan and any bonus on conversion.

• (3) Where stock is converted under this Act, the stock of the new loan and the dividends thereon shall be subject to the same trusts, charges, rights, distringas and restraints as affect the converted stock and the dividends thereon and any powers, directions, requests as to dividends and other documents relating to the converted stock or the dividends thereon shall apply to the stock of the new loan and the dividends thereon.

7 Protection of Bank of Ireland.

7.—This Act and the regulations made thereunder shall be a full and sufficient indemnity and discharge to the Bank of Ireland and the officers thereof for all things done by the said Bank in pursuance of this Act or of any regulations made under this Act.

8 Provisions applying where bonus in cash is given.

8.—(1) Where an application for conversion is made under this Act and the terms of the conversion include the giving of a bonus in cash—

• (a) payment of the bonus may be made in accordance with the instructions of the applicant,

• (b) the bonus shall, as between persons having any beneficial interest in the holding, belong to the persons entitled to the income of the holding on the day when the bonus is payable,

• (c) any warrant or cheque for payment of the bonus shall not be liable to stamp duty.

• (2) Any bonus in cash shall be charged on the Central Fund or the growing produce thereof.

9 Regulations.

9.—The Minister may make regulations for all or any of the following purposes:

• (a) prescribing the manner in which and the persons to whom applications under this Act for the conversion of stock of a Government loan are to be made and prescribing the evidence which may be accepted by those persons as to matters on which the validity of such applications may depend;

• (b) specifying the persons by whom any such application may be made where a stockholder has died, or is outside the State, or is of unsound mind, or is an infant, or is otherwise under a disability, or where a notice in lieu of distringas is in force with respect to the holding;

• (c) enabling any such application to be made by a majority of the stockholders where stock of the loan is held jointly by more than two persons, whether beneficially or in a fiduciary capacity;

• (d) prescribing the manner in which certificates and other documents relating to stock in respect of which an offer of conversion has been made under this Act are to be dealt with and determining how far such certificates and other documents are to be valid after the redemption date;

• (e) enabling any books or transfer by deed register of a Government loan in relation to which an offer of conversion has been made under this Act to be closed for a period immediately preceding the redemption date.

10 Sinking fund balance not required for redemption.

10.—Where any balance in the sinking fund of a Government loan in relation to which an offer of conversion has been made under this Act is not required to meet redemptions of the loan, the balance shall be paid into the Exchequer and brought to account as money raised by the creation of debt.

11 Expenses.

11.—All expenses incurred by the Minister in carrying this Act into effect shall be charged on the Central Fund or the growing produce thereof.

12 Short title.

12.—This Act may be cited as the Government Loans (Conversion) Act, 1951.