National Debt Act 1883
| Jurisdiction | UK Non-devolved |
| Citation | 1883 c. 54 |
National Debt Act, 1883
(46 & 47 Vict.) CHAPTER 54.
An Act to make further provision respecting the National Debt, and the Investment of Moneys in the hands of the National Debt Commissioners on account of Savings BAnks, and otherwise.
[25th August 1883]
W HEREAS by the Sinking Fund Act, 1875, a fixed annual sum of twenty-eight million pounds was charged on the Consolidated Fund as the permanent annual charge for the national debt:
And whereas various annuities payable out of such permanent annual charge will expire in the year one thousand eight hundred and eighty-five:
And whereas the National Debt Commissioners hold large sums of perpetual annuities on account of trustee savings banks, and Post Office savings banks, and in pursuance of divers Acts, and lastly of the Savings Bank Investment Act, 1866, certain portions of those perpetual annuities have been converted into terminable annuities ending in the year one thousand eight hundred and eighty-five:
And whereas it is proposed to convert certain other portions of the said perpetual annuities into such terminable annuities as herein-after mentioned payable out of the permanent annual charge for the National Debt:
And whereas under the Savings Banks Investment Act, 1866, the Treasury have power from time to time to convert into terminable annuities such amount of perpetual annuities held by the National Debt Commissioners on account of post office savings banks as the Treasury think expedient, and it is expedient for the purpose of carrying into effect the said proposal to confer such power as hereinafter mentioned to convert into terminable annuities perpetual annuities held by the said Commissioners on account of both trustee and post office savings banks:
And whereas in pursuance of the Chancery Funds Act, 1872, perpetual annuities to an amount exceeding sixty-one million pounds capital stock were on the thirty-first day of December one thousand eight hundred and eighty-two standing to the account of ‘the Paymaster General, for the time being on behalf of the Court of Chancery,’ in trust for the suitors of the High Court of Justice, in accordance with the said Act:
And whereas it is expedient to convert a portion of the said perpetual annuities held by the Paymaster General, not exceeding in the whole forty million pounds capital stock, into terminable annuities ending within a period not exceeding twenty years, subject to such provision as herein-after mentioned for the security of the suitors:
And whereas it is expedient to provide for the adjustment from time to time of the terminable annuities into which under this Act, or under the Savings Bank Investment Act, 1866, any perpetual annuities shall be converted, so as to prevent any loss or gain arising to the said Commissioners or the Paymaster General from such conversion:
And whereas it is expedient to make further provision respecting the securities held by the National Debt Commissioners:
Be it therefore 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:
1 Short title.
1. This Act may be cited as theNational Debt Act, 1883.
2 Conversion of part of the perpetual annuities held by National Debt Commissioners on account of trustee and post office savings banks into terminable annuities.
(1)2. (1.) The Treasury shall from time to time in manner provided by this Act, convert into terminable annuities of such amounts as herein-after mentioned such amount of perpetual annuities held by the National Debt Commissioners on account of trustee savings banks, and of post office savings banks, or on either of those accounts, as may be of equivalent capital value.
(2) (2.) The first terminable annuities created in pursuance of this section shall amount in the whole to three million six hundred thousand pounds, and shall be divided into three sets, each of which sets shall be for annual sums amounting in the whole to one million two hundred thousand pounds.
(3) (3.) The annuities in one of such sets shall be for periods of five years, and shall terminate within five years from the thirty-first day of March one thousand eight hundred and eighty-four; the annuities in another of such sets shall be for periods of ten years, and shall terminate within ten years from the same day; and the annuities in the third of such sets shall be for periods of fifteen years, and shall terminate within fifteen years from the same day.
(4) (4.) On the expiration of any terminable annuity created in pursuance of this section, whether originally or on the expiration of another annuity, a new annuity shall be created (by conversion of a sufficient portion of the said perpetual annuities) for a period of fifteen years from the date of such expiration, and of such annual amount as is equivalent to the expiring terminable annuity with the addition of a sum equal to the annual interest on the perpetual annuities converted into the new annuity. Provided that the power under this section of creating any annuity shall not unless continued by Parliament be exercised after the thirty-first day of March, one thousand nine hundred and four.
(5) (5.) The annuities created under this section may be increased above or reduced below the amounts above named for the purpose of such adjustment as is provided by this Act.
3 Conversion of perpetual annuities held by Chancery Paymaster into terminable annuities.
3. The Treasury may, in manner provided by this Act, from time to time convert such amount of perpetual annuities standing to the account of the Paymaster General as the Treasury think expedient, not exceeding in the whole forty million pounds capital stock, into such terminable annuities for periods not exceeding twenty years as will terminate within twenty years from the thirty-first day of March one thousand eight hundred and eighty-four, and may be of equivalent capital value.
4 Provision to prevent loss or gain to National Debt Commissioners and Paymaster General from conversion.
4. In case of the conversion under this Act, of any perpetual annuities into a terminable annuity, the Treasury shall, at the cost of the Consolidated Fund, secure the National Debt Commissioners and the Paymaster General, as the case requires, against any loss arising by means of such conversion, and for the purpose of preventing any loss or gain arising to the National Debt Commissioners or the Paymaster General from such conversion, the following provisions shall have effect:
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