S.I. No. 337/1993 - Prize Bonds Regulations, 1993

S.I. No. 337 of 1993.

PRIZE BONDS REGULATIONS, 1993.

The National Treasury Management Agency ("NTMA"), in exercise of the powers conferred on it by the National Treasury Management Agency Act, 1990 , hereby makes the following Regulations:

1 Citation and commencement.

1.

1. (1) These Regulations may be cited as the Prize Bonds Regulations, 1993.

• (2) These Regulations, except where indicated otherwise, shall be deemed to have come into effect on the 1st day of March, 1992 and supersede The Prize Bonds Regulations, 1989 ( S.I. No. 155 of 1989 ).

2 Interpretation.

2.

2. In these Regulations, unless the context otherwise requires—

"bond" means a prize bond with a principal repayable value of £5;

"bond certificate" means a certificate issued pursuant to Regulation 5;

"draw" means a draw for prizes in respect of bonds held after the 1st day of March, 1992;

"holder" means the person or persons in whose name or names or under whose titles the bond is registered in the register;

"multiple bond" means a bond representing two or more bonds and entitling the holder to receive the aggregate amount of the sums repayable in respect of each of the bonds it represents;

"the Operator" means The Prize Bond Company Limited; and

"register" means the register of bonds kept by the Operator under Regulation 5 and includes any means of recording in electronic or other form, provided that any such recording shall be capable of reproduction in a legible form.

3 Persons entitled to purchase a bond.

3.

3. (1) A bond may be purchased by—

( a ) a person aged 7 years or more;

( b ) two such persons jointly;

( c ) a body corporate or a corporation sole; or

( d ) a partnership, club, society or other unincorporated body.

• (2) A bond may be purchased as a gift for an individual of any age, or for not more than two such individuals jointly and a bond purchased as a gift shall be held in the name of the person or persons for whom it has been purchased.

4 Purchase of bonds.

4.

4. (1) The purchase price of a bond shall be £5 subject to such minimum purchase of bonds as may be prescribed by NTMA from time to time.

• (2) Bonds shall be purchased from the Operator either directly or through agents appointed by the Operator with the prior written consent of NTMA.

• (3) The Operator may attach such terms and conditions to the appointment of an agent under this Regulation as it thinks fit.

5 Issue of bonds and registration.

5.

5. (1) As soon as may be after receipt of the purchase money in respect of bonds, the Operator shall allocate an individual serial number to each bond and a bond certificate showing the relevant serial numbers shall be issued by the Operator to the holder.

• (2) A bond shall be registered in the register of bonds to be kept by the Operator in the name (or, as appropriate, joint names or title) of the purchaser of such bond or the person for whom such bond was purchased.

• (3) The Operator shall record in the register the last address furnished by the holder for the purpose of receiving any document (including the bond certificate) or notification issued by the Operator in relation to the bond.

• (4) A bond shall be deemed to have been issued when it has been registered in the register.

6 Evidence of identity etc.

6.

6. (1) Neither the Operator nor NTMA shall be obliged to enquire as to whether the holder of a bond as recorded in the register holds the bond in the capacity of trustee or agent or otherwise in a fiduciary capacity for any other party.

• (2) Nothing in paragraph (1) of this Regulation shall prejudice the right of the Operator to require evidence to be given to its satisfaction of the identity of any person or of the title of any person to any bond or money or of any matter on which the due exercise of its powers or performance of its duties depends and the Operator may, for the purpose of obtaining any such evidence, require a statutory declaration to be made by any person.

7 Errors and loss of a bond.

7.

7. (1) Any mistake in a bond certificate shall, as soon as practicable after receipt thereof, be notified in writing to the Operator by the person receiving the bond certificate.

• (2) The loss or destruction of a bond certificate shall be notified in writing to the Operator as soon as practicable by the person entitled to such bond certificate.

• (3) If it appears to the Operator that any bond certificate contains an error or has been lost, destroyed, defaced or otherwise mutilated, the Operator may, in its discretion, issue a replacement bond certificate to the person entitled to such bond certificate and may take such other steps and impose such conditions as the Operator considers necessary or desirable to rectify any such matter.

8 Draws for the award of prizes.

8.

8. A draw shall be held each week in the presence of a representative of NTMA at such premises and conducted by such officers of the Operator as may be designated by the Operator with the approval of NTMA.

9 Eligibility for inclusion in draw.

9.

9. (1) A bond shall be included in every draw held after the registration in the register commencing with a draw which is held no later than 8 days after the date of such registration.

• (2) Each bond included in a draw shall have a separate and equal chance of being selected for a prize.

10 Conduct of draws.

10.

10. (1) The following provisions shall have effect in relation to the conduct of a draw:

( a ) there shall be a computer-based, software-driven, random number-generation system, which shall be subject to the approval of NTMA (the "system");

( b ) the system shall be capable of generating at random and recording, in the order in which they are generated, a series of any size of bond serial numbers provided always that a number, or series of numbers (the "seed"), be first entered into the system;

( c ) the system shall be subject to such tests for randomness as shall be determined by the Operator with the consent of NTMA;

( d ) a new seed shall be selected by lot for each draw in such manner as may be determined by the Operator with the consent of NTMA and such selection shall be regarded as part of the draw;

( e ) the procedure for selecting bonds for prizes shall be as follows:

• (i) the seed shall be entered into the system;

• (ii) the system shall generate at random a series of bond serial numbers (which may, if circumstances so require, include serial numbers which have not yet been allocated to bonds) and shall record the bond serial numbers so generated and the order in which they are generated;

• (iii) for the purposes of maintaining secrecy in relation to the draw, the size of the series of bond serial numbers generated shall exceed the size required to exhaust the prize fund, and amount of such excess shall be determined by the Operator with the consent of NTMA, and the order in which the bond serial numbers are generated shall be mixed under a password-controlled software command;

• (iv) any serial number generated which has not been allocated to a bond or which is the serial number of a bond—

• (A) which has been cancelled prior to the month in which the draw is held; or

• (B) whose serial number has previously been generated in the same draw

shall be disregarded and shall be ineligible for a prize and for the purpose of ascertaining which serial numbers are to be so disregarded, the register shall be consulted;

• (v) the order in which the serial numbers of the bonds which are eligible for a prize were generated shall then be re-established under a password-controlled software command; and

• (vi) the prizes shall be awarded to such bonds in descending order of amount in the order in which the bond serial numbers were generated until all the prizes have been awarded;

• (2) The serial numbers of the bonds which have been selected for prizes, and the amount of the prize awarded to each bond, shall be displayed to officers of the Operator and NTMA having conduct of the draw in such manner as may be determined by the Operator with the agreement of NTMA.

• (3) The Operator shall notify the holder of each bond to which a prize has been awarded by post, at the address of the holder registered in the register.

11 Determination of prizes.

11.

11. (1) The number of prizes and the amount of each prize to be awarded to bonds selected for prizes in a draw shall be determined by the Operator with the approval of NTMA provided always that the total amount made available for the payment of prizes generally shall not in any event be less than the amount of interest payable on all bonds outstanding.

• (2) For the purpose of paragraph (1) of this Regulation, the rate of interest payable shall be such as may be prescribed by NTMA from time to time.

12 Payment of the sum repayable or of any prize payable in respect of a bond.

12.

12. (1) Subject to these Regulations, the holder shall, on application therefor to the Operator, be entitled at any time to be paid the suit repayable or any prize payable in respect of a bond.

• (2) In the case of the death of any one of two persons being the holder of a bond jointly, every payment in respect thereof shall be made to the surviving holder.

• (3) In the case of a bond issued to two persons each holding office in an unincorporated body, every payment in respect thereof shall be made to the holders for the time being of such offices.

• (4) Upon payment of the sum repayable in respect of a bond, the bond shall be cancelled and the Operator shall record the cancellation in the register.

13 Payment generally.

13.

13. (1) Payment of the sum repayable or of any prize payable in respect of a bond shall be made by the Operator by cheque and payment shall be deemed to have been made on the date on which the cheque is issued by the Operator to the person or persons named on the register.

• (2) The provisions of section 60 and sections 76 to 82 of the Bills of Exchange Act, 1882 and the provisions of the Cheques Act, 1959 (No. 19 of 1959) shall apply to a cheque issued by the Operator as if it were a cheque within the meaning of those Acts.

14 Transfer of bonds.

14.

14. (1) On application to the Operator, the holder of a bond shall be entitled to transfer the bond to any person qualified hereunder to purchase a bond and the Operator shall record the transfer in the register.

• (2) The Operator may attach such conditions to the transfer of bonds as shall be agreed with NTMA including, but without limitation, conditions prescribing a minimum number of bonds which may be transferred and the order in which such bonds may be transferred.

15 Restriction on early repayment and transfer.

15.

15. Except with the consent of the Operator, the sum repayable in respect of a bond shall not be repayable nor shall a bond be transferable at any time prior to the elapse of 90 days after the date of purchase of the bond.

16 Application for payment or for transfer of a bond.

16.

16. (1) Save as otherwise provided by these Regulations, application for payment of the sum repayable or of any prize payable in respect of a bond, or for transfer of a bond, shall be made by the holder in writing in such manner as the Operator may require.

• (2) In the case of a multiple bond, application may be made for the transfer of, or for the payment of the sum repayable in respect of, the whole or (subject to Regulation 14 (2)) part only of the bonds represented by the multiple bond.

17 Application for payment or transfer of a bond where the holder is a child.

17.

17. (1) In the case of a bond held by a child aged 7 years or more, but less than 18 years, application for payment of the sum repayable or any prize payable in respect of the bond, or for transfer of the bond, may be made by the child in accordance with Regulation 16 where it is shown to the satisfaction of the Operator that the consent of the parents or legal guardians of the child has been obtained.

• (2) In the case of a bond held by a child aged less than 7 years—

( a ) application for payment of the sum repayable or of any prize payable in respect of the bond may only be made by the parents or legal guardians of the child; and

( b ) such bond shall not be transferable and the sum repayable in respect of such bond shall not be reinvested in a bond.

18 Insolvency, mental disorder or other lack of capacity.

18.

18. If a holder is under a legal disability for any reason including but without limitation:

( a ) any holder in respect of which an assignee in bankruptcy, receiver, liquidator, administrator, examiner or other party lawfully entitled to deal with the assets of a holder in the event of insolvency has been appointed;

( b ) any holder who is a person of unsound mind and whose affairs are administered by a committee, attorney or other person having legal authority to act in that behalf;

( c ) any holder whose affairs are administered by a parent, legal guardian or other lawfully appointed person by reason of such holder being a minor or otherwise

then, anything which is required to be done by or to the holder of such bond shall or may be done by or to any of the persons (other than the holder) referred in (a), (b) and (c) above, as appropriate, or any other person having power in law to administer such a holder's assets and the Operator may pay the whole or any part of the sum repayable or any prize payable in respect of the bond to any such person or to any person satisfying the Operator that he will duly account therefor to the holder.

19 Arrangements on the death of a bond holder.

19.

19. This Regulation shall come into effect on the 20th day of November, 1993.

• (1) Upon the death of a person being the sole holder of a bond (or, in the case of the joint holding of a bond, the deaths of both persons who are the holder), the Operator may pay the sum repayable or any prize payable in respect of the bond to the person or persons entitled to be so paid.

• (2) Where the holder has died or, in the case of the joint holding of a bond, both persons who are the holder have died, the person or persons lawfully entitled to the bond or having the lawful authority to act in the administration thereof, shall, as soon as practicable following the date of such death or deaths, notify the Operator of that fact and of the beneficiaries (if any) entitled to a transfer of such bond or to the repayment of any sum repayable in respect of such bond.

• (3) Upon receipt of a request for transfer and subject always to the provisions of Regulation 5 (2), the Operator shall transfer the bond to the relevant transferee and shall record the transfer in the register.

• (4) For the purposes of paragraphs (5) and (6) of this Regulation, the "additional period" means the period of 72 calendar months calculated from the first day of the month following the month in which the death occurred.

• (5) A bond which has not been repaid shall be eligible for the award and payment of prizes for the lifetime of the holder plus the additional period. Such eligibility to the award and payment of prizes shall cease after the elapse of such additional period but shall revive in the event of a transfer of such bond under paragraph 3 of this Regulation and thereafter shall be for the benefit of the transferee.

• (6) If a prize has been awarded to a holder who has died (or, in the case of the joint holding of a bond, both holders who have died) and the award of such prize was made after the elapse of the additional period and notification of the death (or deaths) had not been received by the Operator, the prize shall not be paid to such deceased holder or holders and the amount of such prize shall, as soon as practicable thereafter, be added to the prizes to be awarded in subsequent draws as determined by the Operator with the consent of NTMA.

20 Savers.

20.

20. (1) Neither NTMA nor the Operator shall be liable in respect of any payment made or act done in good faith under these Regulations, and any such payment or act done shall be deemed to have been a valid payment or act and shall constitute a full discharge of the liability of NTMA or the Operator to make such payment or to perform such act.

• (2) The posting by the Operator of any document (including a bond certificate) or notification addressed to the holder of a bond at the address for that holder recorded in the register shall constitute good delivery of such document or notification to such holder.

• (3) Nothing in this Regulation shall operate to prevent the recovery by any person or his or her lawful representative of any money lawfully due to such person from the party to whom that money was paid by or under the direction of NTMA or the Operator or affect the right which any person or any such representative may have in respect of a bond against a third party.

21 Information and Non-disclosure.

21.

21. (1) The Operator shall ensure that the public has reasonable access to the serial numbers of bonds to which prizes have been awarded by means of publication and display in selected post offices and upon application being made to the Operator, the Operator shall furnish a list of such serial numbers to the applicant provided however that the name or names of any holder shall not be published, displayed or otherwise disclosed by the Operator save in accordance with paragraph (2) of this Regulation.

• (2) The name or names of the holder, the number of bonds held by the holder and the amounts paid or payable in respect of a bond shall not be disclosed, save—

( a ) to such holder, or to a person authorised in that behalf by the said holder;

( b ) to an officer of either the Operator or NTMA engaged in the management of prize bonds or ensuring compliance with these Regulations;

( c ) to the parents or legal guardians of the holder where such holder is under the age of 18 years; and

( d ) where the circumstances so require, to a person or persons to whom the Operator has the right to pay the sum repayable or any prize payable in respect of the bond pursuant to these Regulations or otherwise by law.

• (3) The Operator may disclose to any person or to such person's lawful representative seeking in good faith to recover any money lawfully due to him from a party to whom that money was paid, the name and address of such party and may, subject to any applicable laws, render to the first-mentioned person or to such person's lawful representative such further information or assistance as may, in the opinion of the Operator, be necessary to effect due recovery by the person to whom such money is lawfully due.

Dated this 19th day of November, 1993.

The Seal of the National Treasury Management Agency was

affixed hereto in the presence of:

MICHAEL J. SOMERS.

EXPLANATORY NOTE.

These Regulations replace the Prize Bonds Regulations, 1989 and provide for the new computer-based prize bond draw and for the transfer of prize bonds. They also update certain administrative procedures.