Cinematograph Film Production (Special Loans) Act 1949
| Jurisdiction | UK Non-devolved |
| Citation | 1949 c. 20 |
| Year | 1949 |
Cinematograph Film Production (Special Loans) Act , 1949
(12, 13 & 14 Geo. 6) CHAPTER 20
An Act to make temporary provision for the lending of money to be employed in financing the production or distribution of cinematograph films; to provide for the taking over by a national corporation established for the purpose aforesaid of the assets and liabilities of National Film Finance Company Limited; and for purposes connected with the matters aforesaid.
[9th March 1949]
Be it enacted by the King's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
1 The National Film Finance Corporation.
(1) There shall be established, in accordance with the provisions of this Act, a body corporate to be called the National Film Finance Corporation (hereinafter in this Act referred to as ‘the Corporation’)—
(a ) to take over the assets and liabilities of National Film Finance Company Limited; and
(b ) to make, during the five years beginning with the passing of this Act, loans to be employed in financing the production or distribution of cinematograph films to persons who, in the judgment of the Corporation, while having reasonable expectations of being able to arrange for the production or distribution of cinematograph films on a commercially successful basis, are not for the time being in a position otherwise to obtain adequate financial facilities for the purpose on reasonable terms from an appropriate source.
(2) The Corporation shall consist of a chairman and a managing director appointed by the Board of Trade, and such number of other members, not being less than three nor more than five, as the Board may from time to time determine.
(3) The members of the Corporation shall be appointed from among persons appearing to the Board of Trade qualified as having had experience, and shown capacity, in matters relating to finance, industry, commerce, administration or law.
(4) The provisions of the Schedule to this Act shall have effect with respect to the remuneration of members of the Corporation out of funds of the Corporation, as to the appointment, and tenure and vacation of office, of the said members, as to the dissolution of the Corporation and otherwise in relation to the Corporation.
2 Loans by the Corporation.
(1) Loans by the Corporation shall be for such period not exceeding five years from the date of the making thereof, and shall carry such interest, as the Corporation may determine, and the Corporation may require any such security to be given for the repayment thereof, together with any sums due in respect of interest, as may be available.
(2) The interest determined by the Corporation in respect of a loan shall be such interest as the Corporation consider reasonable, regard being had to the current market rates of interest, to the standing of the borrower and to the degree of likelihood that the making of the loan will result in the production or distribution of films on a commercially successful basis.
(3) The Corporation shall not, except in such classes of case as the Board of Trade may approve, make a loan to any person unless he is carrying on the business of distributing cinematograph films to persons carrying on the business of exhibiting such films to the public, and the loan is to be employed in financing the production of such films.
(4) The Corporation shall not make a loan to any person for the purpose of financing the production of a film or programme of films unless that person agrees to produce from time to time to the Corporation, as and when required by them so to do, an estimate of the cost of producing—
(a ) that film or, as the case may be, each film in that programme of films; and
(b ) any other films the production of which he finances, either in whole or in part, or in the commercial success of which he has any financial interest, at any time before the loan is completely repaid,
and, in making any such loan and exercising their other powers under this Act in relation to any such loan, the Corporation shall have regard to the amount which might reasonably be expected to be received by the person to whom the loan is made from the distribution—
(i) of the film or films the production of which is to be financed by means of the loan; and
(ii) to such extent, if any, as appears proper in the circumstances, of the said other films.
(5) In this section, references to interest (except in the phrase ‘the current market rates of interest’) include references to rights to share in profits.
3 Powers of Board of Trade as to exercise of functions of Corporation.
(1) The Board of Trade may, after consultation with the Corporation, give to them directions of a general character as to the exercise of their functions and the Corporation shall comply with any such directions.
(2) The Corporation shall furnish the Board of Trade with such information concerning the financial position of the Corporation as the Board of Trade may from time to time require.
(3) The Corporation shall as soon as possible after the end of each financial year of the Corporation make a general report to the Board of Trade as to the exercise by the Corporation of their functions during that year, and the report for any year shall set out the directions given to the Corporation under subsection (1) of this section during that year.
(4) The Board of Trade shall lay a copy of every such report of the Corporation before Parliament.
4 Advances by Board of Trade to Corporation.
(1) For the purposes of enabling the Corporation to perform their functions, the Board of Trade, with the consent of the Treasury, may, within the five years beginning with the passing of this Act, make advances to the Corporation:
Provided that the aggregate amount of the principal outstanding in respect of any advances under this subsection shall not at any time exceed five million pounds.
(2) The Corporation shall make to the Board of Trade, at such times and in such manner as the Board may with the approval of the Treasury direct,—
(a ) payments of such amounts as the Board may with like approval direct in or towards repayment of advances made to the Corporation under subsection (1) of this section; and
(b ) payment of interest on any sums for the time being outstanding in respect of such...
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