Local Authorities Loans (Scotland) Act 1891
| Jurisdiction | UK Non-devolved |
| Citation | 1891 c. 34 |
Local Authorities Loans (Scotland) Act, 1891
(54 & 55 Vict.) CHAPTER 34.
An Act to provide increased Facilities for the raising of Money by Local Authorities in Scotland by the issue of Debentures, Stock, or otherwise.
[21st July 1891]
B E it enacted by the Queen'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:
Preliminary.
1 Short title.
1. This Act may be cited as theLocal Authorities Loans (Scotland) Act, 1891.
2 Extent of Act.
2. This Act shall extend to Scotland only.
3 Commencement of Act.
3. This Act shall come into operation on the first day of December, one thousand eight hundred and ninety-one, which day is herein-after referred to as the commencement of this Act.
4 Interpretation.
(1)4.—(1.) In this Act, if not inconsistent with the context, the following terms have the meanings herein-after respectively assigned to them; that is to say,—
The expression ‘local authority’ means any county council, town council, or other authority whatsoever having power to levy a rate as in this Act defined:
Provided that where in any burgh there are police commissioners or other commissioners or trustees having powers of levying and borrowing on the security of a rate, this Act shall be carried into execution by the town council, and in so far as necessary to give effect to the provisions of this Act the powers aforesaid at the commencement of this Act vested or which at any future time may be vested in the commissioners or trustees aforesaid shall be transferred to and may be exercised by the town council as local authority in respect thereof:
The expression ‘rate’ means an assessment or rate the proceeds of which are applicable to public local purposes, and which is leviable on lands and heritages, and includes any sum which though obtained in the first instance by a precept, certificate, or other document requiring payment from some authority or officer, is or can be ultimately raised out of a rate, and the levy of a rate includes the issue and enforcement of any such precept, certificate, or document as aforesaid, and expressions relating to the levy and the assessment of a rate shall be construed accordingly:
The expression ‘rate’ also includes water rates or rents, gas rates or rents, and charges for supply of water or gas, or the hire of meters or fittings connected therewith:
The expression ‘bank’ means any bank in Scotland established by or in pursuance of the powers contained in any Act of Parliament or royal charter:
The expression ‘stock’ when used alone means stock created under the powers of this Act; and the expression ‘stock-holder’ means a holder of such stock:
The expression ‘statutory declaration’ means a declaration under the Statutory Declarations Act, 1835 :
The expression ‘prescribed’ means prescribed by the Secretary for Scotland:
The expression ‘bond’ includes bond and disposition in security:
The expression ‘burgh’ includes royal and parliamentary burghs and any populous place the boundaries whereof have been fixed and ascertained under the provisions of the General Police and Improvement (Scotland) Act, 1862 , or of the Acts therein recited or under the provisions of any local Act.
(2) (2.) Any power whether or not coupled with a duty of borrowing or continuing on loan or reborrowing money or of redeeming or paying off or creating or continuing payment of or in respect of any annuity rentcharge rent or other security representing or granted in lieu of consideration money for the time being existing under this Act or under any Act of Parliament public or local passed or to be passed or under any Provisional Order confirmed by Act of Parliament passed or to be passed or under any order or sanction of any Government department made or given or to be made or given by authority of any Act of Parliament passed or to be passed is for purposes of this Act a statutory borrowing power.
(3) (3.) Where in any burgh there is a common good according to the law and usage of Scotland the town council may from time to time apply to the Secretary for Scotland to determine the amount which the town council may borrow on the security of such common good, having regard to the capital value thereof and all other circumstances affecting the same, and the Secretary for Scotland may, after such inquiry as he shall deem proper, by order determine such amount accordingly, and the order shall be published in the Edinburgh Gazette; and thereafter the town council shall be deemed to have a statutory borrowing power within the meaning of this Act over the common good to the amount so determined by the Secretary for Scotland.
(4) (4.) Any security in which trustees are for the time being by or under any Act of Parliament passed or to be passed authorised to invest trust money, and any mortgage, bond, debenture, debenture stock, corporation stock, or other stock, annuity, rentcharge, rent, or other security authorised by or tinder any Act of Parliament passed or to be passed of any local authority in Great Britain except the local authority taking the security, is for purposes of this Act a statutory security.
(5) (5.) The provisions of this Act referring to interest apply to and include instalments of an annuity and half-yearly or other payments of or in respect of a rentcharge, rent, or other statutory security.
Creation and Charge of Stock.
5 Creation of stock.
(1)5.—(1.) Where the local authority have for the time being any statutory borrowing power, then subject and according to the provisions of this Act the local authority may from time to time by resolution exercise the power by creation of redeemable stock, to be from time to time issued for such amount within the limit of the power, at such price, to bear such half-yearly or other dividends, and to be so transferable, that is to say, in books or by deed, as the local authority by the resolution direct: Provided that all stock at any one time and from time to time so created shall be created on and subject to such terms and conditions as that the game shall form one and the same class of stock, bearing one and the same rate of dividend, and redeemable at the option of the local authority at such one and the same time, not exceeding sixty years from the first creation of the stock, as the Secretary for Scotland, on the application of the local authority, may approve, and the whole of the stock shall be redeemed and extinguished within such period.
(2) (2.) All stock at any time and from time to time so created shall rank equally, without any priority or preference by reason of any precedence in the date of any statutory borrowing power, or in the date of creation of any portion of stock, or in the date of issue of any portion of stock, or on any other ground whatsoever, and shall also rank equally with all other securities of the local authority at any time after the date of the first creation of any stock under this Act granted by the local authority in pursuance of any statutory borrowing power.
(3) (3.) The resolution for the first creation of stock shall provide that such stock shall be redeemable, at the option of the local authority, at par, that is to say, at the rate of one hundred pounds sterling for every nominal amount of one hundred pounds stock issued at such time and in such manner as the local authority by that resolution declare.
(4) (4.) Each resolution for creation of stock shall specify after what period the stock thereby created is redeemable, and within what period the stock is to be redeemed and extinguished.
(5) (5.) Stock so created shall be designated by the local authority as redeemable stock, and shall bear such further designation as the Secretary for Scotland, on the application of the local authority, may approve.
6 Confirmation of resolution by Secretary for Scotland.
6. A resolution of a local authority, as in the last section mentioned, shall not take effect unless and until—
(1) (1.) It is confirmed at a subsequent meeting of the local authority, held after the resolution has been published in the prescribed manner, and after the expiration of the prescribed time, being not earlier than fourteen days after the first publication of such resolution; and
(2) (2.) It is confirmed by the Secretary for Scotland by an Order under his hand and seal of office.
7 Borrowing power to be exerciseable for actual sum raiseable.
7. Each statutory borrowing power of the local authority shall, subject to the provisions of this Act, be construed to authorise the local authority to create and issue stock from time to time to such nominal amounts as in the aggregate will, according to the price of issue, produce the actual amount of money for the time being lawfully raiseable by the local authority under that power, or some portion of that actual amount, or (as the case may be) the actual amount of money properly payable by the local authority as consideration on payment off or redemption by the local authority of any mortgage, bond, debenture, debenture stock, corporation stock, or other stock, annuity, rentcharge, rent, or other security granted or created by the local authority.
8 Charge of stock.
(1)8.—(1.) All stock for the time being issued, and the dividends thereon, shall be and the same are by virtue of this Act charged indifferently on the whole revenues of the local authority from time to time arising from the lands and heritages, undertakings, and other property for...
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