National Savings Stock Register (Closure of Register to Gilts) Order 1998
| Jurisdiction | UK Non-devolved |
| Citation | SI 1998/1446 |
| Year | 1998 |
1998 No. 1446
NATIONAL DEBT
The National Savings Stock Register (Closure of Register to Gilts) Order 1998
Made 11th June 1998
Laid before the House of Commons 11th June 1998
The Treasury, in exercise of the powers conferred on them by section 33 of the Bank of England Act 19981, and of all other powers enabling them in that behalf, hereby make the following Order:—
PRELIMINARY
Title and commencement
1.—(1) This Order may be cited as the National Savings Stock Register (Closure of Register to Gilts) Order 1998.
(2) Articles 1 to 29 of this Order shall come into force on 3rd July 1998 and article 30 thereof shall come into force on the specified day.
Interpretation
2.—(1) In this Order, except where the context otherwise requires—
“the Bank” means the Bank of England;
“Bank legislation” means any enactment or subordinate legislation, within the meaning of the Interpretation Act 19782, relating to the books of the Bank or to gilts registered therein, including any applicable provisions of this Order;
“the Commissioners” means the National Debt Commissioners;
“gilts” means stock or bonds of any of the descriptions included in Part I of Schedule 11 to the Finance Act 19423;
“the National Savings Regulations” means the National Savings Stock Register Regulations 19764;
“nomination” means a nomination made and recorded in accordance with the National Savings Regulations5, and “nominator” means the person who made such a nomination;
“qualifying application” means any application properly made to the Director of Savings in accordance with any provision of the National Savings Regulations;
“the Register” means the National Savings Stock Register;
“the specified day” means 20th July 1998;
“stock” means stock or securities registered in the Register;
“transitional gilts” means any gilts which are transferred to the books of the Bank by article 4 below; and
“the transitional weekend” means the period beginning at 5 pm on 17th July 1998 and ending at the beginning of the specified day.
(2) Where any provision of this Order is expressed to apply, on or after the specified day, where any thing is done before that day, that provision shall be construed as applying also where that thing has been done before the commencement of this Order.
CLOSURE AND TRANSFER
Exclusion of gilts from registration in the Register
3. Gilts shall be excluded from registration in the Register on and after the specified day.
Transfer of existing gilts registrations to the books of the Bank
4.—(1) At the beginning of the specified day, all entries in the Register which relate to gilts shall be transferred, by virtue of this paragraph, to the books of the Bank.
(2) The Director of Savings shall amend the Register, and the Bank shall amend its books, to reflect the transfer effected by paragraph (1) above, and any such amendment shall have effect from the beginning of the specified day regardless of when the Register and the books are actually amended.
(3) Where, at the beginning of the specified day, any gilts were not registered in the Register but should have been, those gilts shall be transferred, by virtue of this paragraph, to the books of the Bank and the Bank shall, when the circumstances come to its attention, rectify its books accordingly.
Transfer to the Bank of rights and liabilities of the Director of Savings
5.—(1) Subject to article 15 below, on the specified day the rights and liabilities described in paragraph (2) below shall, by virtue of this paragraph, be transferred from the Director of Savings to the Bank.
(2) The rights and liabilities are all the rights and liabilities of the Director of Savings arising before the specified day in relation to the registration of gilts or any transaction associated therewith.
APPLICATIONS AND PROCEEDINGS
Applications to exchange gilts in the Register for gilts in the books of the Bank
6.—(1) The Director of Savings may, in the circumstances described in paragraph (2) below, decline to process, in accordance with the National Savings Regulations, any qualifying application for the exchange of any gilts in the Register for gilts of a corresponding amount and description in the books of the Bank which is received before the specified day.
(2) The circumstances are that it appears to the Director of Savings that, if the application is processed in the normal manner, the exchange would not be likely to be carried into effect before the gilts are to be transferred to the Bank’s register by virtue of article 4 above.
Applications to exchange gilts in the books of the Bank for gilts in the Register
7.—(1) Subject to paragraph (2) below, where any application to the Bank, in accordance with regulation 17 of the National Savings Regulations, for the exchange of any gilts in the books of the Bank for gilts of a corresponding amount and description in the Register, is received before the specified day, the Bank shall not be required to process that application, save to inform the applicant that it is not processing the application in view of the pending closure and transfer to be effected by articles 3 and 4 above.
(2) If an applicant requests that the application should be proceeded with notwithstanding such impending closure and transfer, the Bank may, if it thinks fit having regard to any representations made by the applicant, proceed with the application insofar as it may be given effect before the specified day.
Applications for the sale of gilts pending on the specified day
8.—(1) Any qualifying application under regulation 11 of the National Savings Regulations for the sale of any transitional gilts which is received before the specified day but not executed before that day shall, on and after that day, be treated as an application for the sale of those gilts through the Bank in accordance with regulations made under section 47(1ZA) of the Finance Act 19426.
(2) Any qualifying application under regulation 11A of the National Savings Regulations7(which, where the Bank of England has given notice that it is prepared to purchase gilts of any description, makes provision for the Director of Savings, at the request of the holder, to offer such gilts for sale, through the Commissioners, to the Bank) requesting the Director of Savings to offer any gilts for sale through the Commissioners to the Bank which is received before the specified day but which has not resulted in the making or determination of such an offer before that day shall, on and after that day, be treated as an offer to sell those gilts to the Bank in accordance with the notice by which the Bank indicated its willingness to purchase gilts of that description.
Applications to purchase gilts pending on the specified day
9. Any qualifying application for the purchase of any gilts in the Register which is received before the specified day but not executed before that day shall, on and after that day, be treated as an application for the purchase, through the Bank, of like gilts in the books of the Bank in accordance with regulations made under section 47(1ZA) of the Finance Act 1942.
Applications to subscribe for gilts pending on the specified day
10.—(1) Any qualifying application to subscribe for any gilts which is received before the specified day but not determined before that day shall, on and after that day, be treated as if it had been made to the Bank in accordance with any applicable Bank legislation and the terms of the prospectus for those gilts.
(2) Any qualifying application to register in the Register gilts which had been subscribed for which is received before the specified day but not executed before that day shall, on and after that day, be treated as an application to the Bank to register those gilts in its books.
(3) Any application made to the Bank under regulation 5(3) of the National Savings Regulations (which enables applications to subscribe for gilts to be registered in the Register to be made to the Bank in accordance with the terms of the prospectus for those gilts) which is received before the specified day but not determined before that day shall, on and after that day, be treated as if it were an application, made in accordance with the terms of the prospectus, to subscribe for gilts to be registered in the books of the Bank.
Applications to transfer gilts pending on the specified day
11.—(1) Any qualifying application to make a transfer in the Register of any gilts which is received before the specified day but not carried into effect before that day shall, on and after that day, be carried into effect by the Bank in its books in accordance with applicable Bank legislation as if—
(a)
(a) the application were an instrument falling within regulation 4(1) of the Government Stock Regulations 19658, and
(b)
(b) the conditions required to be fulfilled by regulation 8 of those Regulations were fulfilled.
(2) For the purposes of paragraph (1), regulation 10 of the Government Stock Regulations 1965 (which provides that the Bank shall not be required to give effect to a transfer until the expiration of ten clear days after the day on which the Bank receives the instrument of transfer) shall, subject to paragraph (3) below, apply...
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