National Debt and Local Loans Act 1887
| Jurisdiction | UK Non-devolved |
| Citation | 1887 c. 16 |
National Debt and Local Loans Act, 1887
(50 & 51 Vict.) CHAPTER 16.
An Act to amend the law respecting the National Debt and the charge thereof on the Consolidated Fund, and to make further provision respecting Local Loans.
[12th July 1887]
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:
1 Short title.
1. This Act may be cited as theNational Debt and Local Loans Act, 1887.
National Debt.
2 Amendment of 38 & 39 Vict. c. 45. s. 1. as to amount of permanent annual charge and sums payable thereout.
(1)2.—(1.) The amount of the permanent annual charge for the National Debt during the current and every subsequent financial year, shall be the sum of twenty-six million pounds, and twenty-six shall be substituted for twenty-eight in section one of the Sinking Fund Act, 1875.
(2) (2.) There shall be payable as part of the permanent annual charge for the National Debt:
(a.) All such perpetual and terminable annuities, and the interest on all such Exchequer Bonds and other debts as are specified in part one of the First Schedule to this Act; and
(b.) All interest on advances made by the Bank of England or the Bank of Ireland in pursuance of section twelve of the Exchequer and Audit Departments Act, 1866 ; and
(c.) The interest on all loans borrowed under any Act on account of ways and means; and
(d.) The annual amounts payable for the time being to the Bank of England and Bank of Ireland for the management of, or expenses connected with, the National Debt, or any part thereof.
(3) (3.) There shall not be payable as part of the permanent annual charge for the National Debt—
(a.) the deferred annuities, or the interest on the Exchequer bonds, specified in part two of the First Schedule to this Act; or
(b.) any annuities or the interest on any Exchequer bonds, Exchequer bills, Treasury bills, or other loans, created, issued, or borrowed under any Act passed after the passing of this Act, which does not direct the same to be payable as part of the said permanent annual charge.
3 Amendment of 44 & 45 Vict. c. 55. and 47 & 48 Vict. c. 23. as to special sinking fund and decrease of permanent charge.
3. There shall be repealed as from the commencement of this Act;—
(a.) so much of the National Debt Act, 1881, as directs an annual sinking fund as therein mentioned to be paid to the National Debt Commissioners; and
(b.) so much of any Act as provides for any decrease of the permanent annual charge for the National Debt.
4 Exchange of sets of annuities terminating in 1889, 1894, and 1899, for longer terminable annuities.
(1)4.—(1.) The Treasury may exchange the existing sets of terminable annuities created in pursuance of section two of the National Debt Act, 1883 , for such new terminable annuities, for a period not exceeding fifteen years from the commencement of this Act, as may be of equivalent capital value.
(2) (2.) Such new terminable annuities shall be charged on the Consolidated Fund or the growing produce thereof, and shall be payable as part of the permanent annual charge for the National Debt yearly, half-yearly, or quarterly, at such times in each year as may be fixed by the warrant creating them.
(3) (3.) An annuity created under this section shall be periodically adjusted in manner provided by section four of the National Debt Act, 1883, and for that purpose may be increased or reduced, and the National Debt Act, 1883, shall apply for the purpose of the adjustment of a terminable annuity created under this section.
5 Amendment of 38 & 39 Vict. c. 45. s. 5. as to application of old sinking fund.
5. Whereas under section twenty-one of the Revenue, Friendly Societies, and National Debt Act, 1882, the payment of all capital sums due from the National Debt Commissioners to friendly societies, when the securities held on account of those societies by the said Commissioners have been exhausted, was charged on the Consolidated Fund; and whereas the said securities have been exhausted, and the capital debt from the said Commissioners to friendly societies, and thus charged on the Consolidated Fund, is one million three hundred thousand pounds or thereabouts, and it is expedient to provide for the application of the old sinking fund in discharge of such debt (in this section referred to as the friendly societies debt), be it therefore enacted as follows:
The old sinking fund, in addition to the mode of application authorised by the Sinking Fund Act, 1875, and any Act amending the same, may be applied in payment to the National Debt Commissioners of the friendly societies debt or any part thereof, and the provisions of that section with respect to the investment of money in the hands of the National Debt Commissioners on account of friendly societies shall apply to the investment of any money paid to them in pursuance of this section.
Provision of Money for Local Loans.
6 Advance by National Debt Commissioners of money authorised by Parliament for Local Loans.
(1)6.—(1.) When Parliament has authorised the advance of any money for the purpose of loans by the Public Works Loan Commissioners, or by the Fishery Board for Scotland, or by the Commissioners of Public Works in Ireland, or by the Irish Land Commissioners, or for the purpose of similar loans by the Treasury, (all which loans are in this Act referred to as Local Loans,) the National Debt Commissioners shall from time to time issue to the said respective Commissioners or Board, or the Treasury, for the purpose of the loans, such sums as may be for the time being required for that purpose, not exceeding in the aggregate, in the case of each of the respective Commissioners and the Board and the Treasury, the amount authorised by Parliament.
(2) (2.) If the Act authorising such advance of money fixes a period during which the money is to be issued, the said money shall be issued by the National Debt Commissioners during that period and not subsequently.
(3) (3.) For the purpose of passing an annual Act of Parliament authorizing advances under this section, the National Debt Commissioners shall not less than two months before the commencement of every financial year send to the Treasury an estimate of the sums required to be issued for local loans in that year for the advance of which an annual Act is necessary.
(4) (4.) The enactments for the time being in force for the regulation of the said Commissioners and Board, and the money at their disposal, and their securities and the proceedings thereon shall, so far as they are consistent with this Act, respectively apply in the case of money issued to those Commissioners and Board in pursuance of this Act.
7 Establishment of Local Loans Fund and payments of Local Loans thereto.
(1)7.—(1.) There shall be established a Local Loans Fund under the control of the National Debt Commissioners, consisting of such securities and money and applicable to such purposes as are provided by this Act.
(2) (2.) There shall be paid to the National Debt Commissioners in such manner as the Treasury from time to time direct, and carried to the Local Loans Fund, all sums paid or applicable in or towards the discharge of the principal or interest of any Local Loan granted either before or after the passing of this Act, or of any other sum due in respect of such loan, except as otherwise in the Second Schedule to this Act specified; but where any security for a loan is enforced by taking possession, sale, levy of a rate, or otherwise, the net receipts only shall be paid to the National Debt Commissioners in pursuance of this section.
(3) (3.) Accounts shall be kept distinguishing the receipts and expenditure of the Local Loans Fund in respect of capital and in respect of income.
8 Constitution of Local Loans stock.
(1)8.—(1.) For the purposes of this Act, and subject to the limitations thereof, the Treasury may from time to time create a new class of capital stock consisting of perpetual annuities yielding dividends at the rate of three per cent. per annum on the nominal amount of the capital (which stock is in this Act referred to as Local Loans stock).
(2) (2.) Such annuities shall be payable by equal quarterly dividends at such times in each year as may be fixed by the warrant creating the first portion of Local Loans stock, and shall be paid out of the Local Loans Fund, and if such fund is insufficient shall to the extent of such insufficiency be charged on and issued out of the Consolidated Fund or the growing produce thereof, and any sum so issued out of the Consolidated Fund shall be repaid to the Consolidated Fund in manner provided by this Act.
(3) (3.) The Local Loans stock shall not be redeemable until after the expiration of twenty-five years from the commencement of this Act, but after that date may be redeemed at any time, after not less than one month's notice, at the rate of one hundred pounds sterling for every hundred pounds of the capital sums in respect of which the annuities are payable, together with the payment of all arrears of such annuities, including the portions which have accrued since the last date for the payment of dividends.
(4) (4.)...
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