General Loan and Stock Act

81
ORDINANCE No. 14 of 1950
Assented to in His Majesty's name this thirteenth day of
June, 1950. J. D. RANKINE,
Acting Governor. ARRANGEMENT OF SECTIONS
SECTION
1—Short title. 2—Interpretation. 3—Loans to be raised by debentures or
stock. 4—Loans to be a charge upon general
revenue. 5—Borrowing upon debentures. 6—Amount of each debenture. 7—Debentures may be redeemed by annual
drawings or by purchase in the market
or on a date fixed. 8—Interest coupons. 9—Form of debenture and coupons. 10—Debentures and coupons transferable by
delivery. 11—Registry of debentures. 12—Payment of interest. 13—Mode of providing for payment of in-
terest on debentures. 14—Further sums to be remitted for the re-
demption of the debentures. 15—Application of sinking fund. 16—Creation of sinking fund for redemp-
tion of debentures payable on a fixed
date. 17—Disposal of sinking fund when deben-
tures are redeemed by purchase or by
annual drawings. 18—Appointment of day for drawing of de-
bentures. SECTION
I9—Notice of time and place appointed for
drawing. 20—Mode of drawing. 21—Notice of debentures drawn for redemp-
tion. 22—Payment of drawn debentures.

I9—Notice of time and place appointed for
drawing. 20—Mode of drawing. 21—Notice of debentures drawn for redemp-
tion. 22—Payment of drawn debentures.

23—Cesser of interest from day appointed
for payment of principal. 24—Redeemed debentures to be cancelled. 25—Borrowing upon stock. 26—When the principal is to be repaid. 27—Mode of providing for the payment of
interest on stock. 28—Mode of providing for payment of prin-
cipal of stock. 29—Creation of sinking fund. 30—Charge upon general revenue. 31—Expenses to be paid out of sinking fund. 32—Powers of Governor. 33—Exchange of securities for stock. 34—Converted securities to be cancelled. 35—Trustees to apportion amount of sinking
fund released by conversion. 36—Sinking funds released : how to be dis-
posed of. 37—Creation, inscription, registration, issue,
conversion and transfer of stock. 38—Raising of loans in the Colony. 39—Authority for making regulations under
the Colonial Stock Act, 1877. 40—Repeal and saving.

nd transfer of stock. 38—Raising of loans in the Colony. 39—Authority for making regulations under
the Colonial Stock Act, 1877. 40—Repeal and saving.

AN ORDINANCE TO DECLARE THE TERMS AND
CONDITIONS APPLICABLE TO LOANS AUTHOR-
IZED TO BE RAISED BY THE GOVERNMENT OF
THE COLONY AND TO PROVIDE FOR THE
CREATION OF KENYA STOCK
13th June, 1950
WHEREAS it is expedient to define in one Ordinance the
terms and conditions applicable to loans hereinafter authorized
to be raised by the Legislature of the Colony and whereas it is
expedient to provide for the creation of Kenya stock and to
enable the Colony to take advantage of the provisions of the
Acts of the Imperial Parliament entitled the Colonial Stock
Acts, 1877 to 1948, and any Act amending the same :
Date of
commencement.

rovisions of the
Acts of the Imperial Parliament entitled the Colonial Stock
Acts, 1877 to 1948, and any Act amending the same :
Date of
commencement.

82
No. 14 General Loan and Stock 1950
ENACTED by the Governor of the Colony of Kenya,
with the advice and consent of the Legislative Council thereof,
as follows : —
Short title. Interpretation. Loans to be
raised by
debentures
or stock. Loans to be a
charge upon
general revenue. Borrowing upon
d2bentures. Amount of each
debmture. ll,2bentures may
be redeemed by
annual drawings
or by purchase
in the market or
on a date fixed. 1. This Ordinance may be cited as the General Loan and
Stock Ordinance, 1950. 2. In this Ordinance, unless the context otherwise
requires—
"Crown Agents" means the persons for the time being
acting as Crown Agents for the Colonies in England, or any
of them;
"stock" includes both inscribed and registered stock;
"registered stock" means stock transferable by instrument
in writing. 3. Whenever by any Ordinance authority shall have been
given, or shall hereafter be given, to raise any sum of money
for the purposes mentioned in such Ordinance, the Governor,
or the Crown Agents acting on his behalf, may from time to
time, as he or they may deem expedient, raise such sum either
by debentures or by stock, or partly by debentures and partly
by stock. 4.

from time to
time, as he or they may deem expedient, raise such sum either
by debentures or by stock, or partly by debentures and partly
by stock. 4.

The principal moneys and interest represented by
debentures or stock issued under the provisions of this Ordin-
ance are hereby charged upon and shall be payable out of the
general revenues and assets of the Colony. 5. When the Governor, or the Crown Agents acting on
his behalf, shall deem it expedient to raise money by deben-
tures, such debentures shall be issued in the United Kingdom
on behalf of the Government of the Colony by the Crown
Agents, upon the best and most favourable terms that can be
obtained, and shall be signed by any one of them on that
behalf. 6. Every debenture issued under the provisions of this
Ordinance shall be for the sum of not less than one hundred
pounds sterling. 7. The debentures shall be redeemable either—
(a) at par on a fixed date to be declared on the issue of
the debentures, such date not being later than sixty
years from the date of issue :

either—
(a) at par on a fixed date to be declared on the issue of
the debentures, such date not being later than sixty
years from the date of issue :

83
1950 General Loan and Stock No. 14
Provided that the Governor, or the Crown Agents
acting on his behalf, may reserve the option to re-
deem the debentures prior to such date on such
conditions as may be declared at the time of issue; or
(b) by annual drawings at par or at the option of the
Governor, or the Crown Agents acting on his behalf,
by purchase at or below par. 8. There shall be attached to every debenture coupons
for the payment of the interest to become due in each half-
year upon the principal represented by the debenture. The
coupons shall be sufficient in number to provide for the
payment of the interest, either during the whole period for
which the debenture has to run, or for such limited period as
the Crown Agents, acting on behalf of the Government of the
Colony may determine. 9. The debentures and the coupons relating thereto shall
be in such form as the Governor, or the Crown Agents acting
on his behalf, may direct or approve. 10. Every debenture and coupon, and the right to receive
the principal and interest represented thereby, shall be trans-
ferable by delivery. 11.

ove. 10. Every debenture and coupon, and the right to receive
the principal and interest represented thereby, shall be trans-
ferable by delivery. 11.

Every debenture shall, before being issued, be
registered in a register book to be kept for that purpose at the
office in London of the Crown Agents. 12. The interest upon the principal represented by each
debenture shall run from the day named in that behalf in the
debenture, and shall be paid half-yearly on the days named
in that behalf in the debenture, at the office in London of the
Crown Agents. 13. (1) So long as any of the debentures remain out-
standing, the Governor shall, in each half-year ending with the
day on which the interest on the debentures falls due,
appropriate out of the general revenues and assets of the
Colony a sum equal to one-half year's interest on the whole
of the debentures issued, including any which may have been
redeemed, but exclusive of any which may have been at any
time exchanged for stock, and shall remit that sum to the
Crown Agents at such time as will enable them to pay thereout
the then current half-year's interest on the day on which it
falls due. Interest coupons. Form of
debenture
and coupons. Debentures
and coupons
transferable
by delivery. Registry of
debentures. Payment of
interest.

ls due. Interest coupons. Form of
debenture
and coupons. Debentures
and coupons
transferable
by delivery. Registry of
debentures. Payment of
interest.

Mode of
providing for
payment of
interest on
debentures.

Mode of
providing for
payment of
interest on
debentures.

84
No. 14 General Loan and Stock 1950
Further sums to
be remitted for
the redemption
of the
debentures. Application of
sinking fund. Creation of
sinking fund for
redemption of
debentures
payable on a
fixed date. (2) Debentures shall not be deemed to be outstanding for
the purpose of this Ordinance by reason only that one or more
of the debentures have not been presented for payment on the
day appointed for payment and have, in consequence, not been
paid. 14.

y that one or more
of the debentures have not been presented for payment on the
day appointed for payment and have, in consequence, not been
paid. 14.

(1) The Governor shall, in the half-year ending on
the date specified in the terms of issue of the loan as that on
which the first contribution to the sinking fund shall be taken
and in each subsequent half-year, appropriate out of the said
revenues and assets of the Colony for the formation of a
sinking fund, an additional sum equal to one-half of the annual
contribution specified in the prospectus or, in the case of a loan
not issued publicly, in the terms of issue relating to the loan,
in respect of the total nominal amount of all the debentures
issued, including any which may have been redeemed, but
exclusive of any which may have been at any time exchanged
for stock, and shall remit that sum to the Crown Agents with
the remittance hereinbefore mentioned.

e of any which may have been at any time exchanged
for stock, and shall remit that sum to the Crown Agents with
the remittance hereinbefore mentioned.

(2) Notwithstanding anything to the contrary contained
in sub-section (1) of this section, if at any time the trustees of
the sinking fund of any loan issued under the provisions of
this Ordinance are satisfied that the value of the fund will be
sufficient with further accumulations of interest but without
further payment of contributions to enable the loan to be
redeemed out of the proceeds of the sinking fund not later
than the final redemption date, the Governor may, with the
approval of the Secretary of State, suspend further contributions
to the said sinking fund :
Provided always that contributions to the sinking fund
shall be recommenced if the trustees shall at any time inform
the Governor that this is necessary. 15. The sinking fund shall be applied in the first place
in payment of all expenses of, or incidental to, the redemption
of the debentures and the cost and expenses of all notices
required by this Ordinance to be given, and in the next place,
and subject to the aforesaid payments, in repayment of the
principal moneys for the time being represented by the
debentures. 16.

d in the next place,
and subject to the aforesaid payments, in repayment of the
principal moneys for the time being represented by the
debentures. 16.

In the case of debentures redeemable on a fixed date,
the Crown Agents shall place at interest or invest in the
purchase of such securities as may be approved by the
Secretary of State so much of the money so remitted to them

l place at interest or invest in the
purchase of such securities as may be approved by the
Secretary of State so much of the money so remitted to them

85
1950 General Loan and Stock No. 14
as aforesaid as shall not be required for the payment of
interest for the current half-year, as a sinking fund for the
final extinction of the debt, and the Crown Agents shall also
place at interest or invest in the purchase of like securities the
accumulations of interest or the dividends, interest or produce
of such investments and may, from time to time, with the
approval of the Secretary of State, change any such investments
and shall hold such fund in trust for the repayment of the
principal moneys for the time being represented by the
debentures. 17. In the case of debentures redeemable by annual
drawings, the Crown Agents shall place and keep the moneys
so remitted to them, or so much thereof as may not be
required for immediate payments, at interest, and shall hold
all such moneys and the accumulation thereon in trust to
apply them in the first place to the purchase of the debentures
when they can be obtained at a price not exceeding par, and
secondly, to the redemption of the debentures by means of
annual drawings. 18.

debentures
when they can be obtained at a price not exceeding par, and
secondly, to the redemption of the debentures by means of
annual drawings. 18.

After the date specified in the Ordinance authorizing
a loan as that on which the contributions to the sinking fund
shall commence in respect of that loan, and so long there-
after as any of the debentures remain outstanding and
unsatisfied, the Crown Agents shall in every year, unless the
whole of the money applicable in that year to the redemption
of debentures has been applied in the purchase thereof,
appoint a day in that year for the drawing by lot of the
debentures to be redeemed. 19. If a day is appointed for drawing, the Crown Agents
shall give, by advertisement in the London Times newspaper,
not less than fifteen days' previous notice, specifying the day
on which, and the hour and place at which, the drawing will
take place. 20. On the day and at' the hour and place so specified
the Crown Agents shall hold a meeting, at which the holder
of any debenture may, if he think fit, be present, and shall
then in the presence of such debenture holders, if any, as
may attend, and of a notary public, draw by lot, out of the
whole number of debentures for the time being outstanding,
debentures of the specified nominal amount.

and of a notary public, draw by lot, out of the
whole number of debentures for the time being outstanding,
debentures of the specified nominal amount.

Disposal of
sinking fund
when debentures
are redeemed
by purchase or
by annual
drawings. Appointment
of day for
drawing of
debentures. Notice of time
and place
appointed for
drawing. Mode of
drawing.

emed
by purchase or
by annual
drawings. Appointment
of day for
drawing of
debentures. Notice of time
and place
appointed for
drawing. Mode of
drawing.

86
No. 14
Notice of
debentures
drawn for
redemption. Payment of
drawn
debentures. Borrowing
upon stock. General Loan and Stock 1950
21. The Crown Agents shall thereupon declare the
distinguishing numbers of the debentures drawn for redemp-
tion, and shall, as soon as may be, by advertisement in the
London Times newspaper, specify those numbers and appoint
a day, not being later as to each debenture than the day on
which the then current half-year's interest thereon is payable,
on which the principal moneys represented by the debentures
so distinguished will be repaid. 22. On the day so appointed the Crown Agents shall,
at their office in London, on demand, pay to the holders of the
debentures drawn for repayment the principal moneys
represented by those debentures, with all interest payable
thereon up to that day. 23. From and after the day appointed for the repay-
ment of any debenture all interest on the principal moneys
represented thereby shall cease and determine, whether pay-
ment of the principal shall have been demanded or not. 24.

nterest on the principal moneys
represented thereby shall cease and determine, whether pay-
ment of the principal shall have been demanded or not. 24.

Upon the repayment of the principal moneys
represented by any debenture, the debenture, with all coupons
thereunto belonging, shall be delivered up to the Crown
Agents, to be by them cancelled and disposed of in such
a manner as the Governor, or the Crown Agents acting on his
behalf, may decide. Any debenture redeemed by purchase
shall likewise be so cancelled and disposed of. 25. When the Governor, or the Crown Agents acting
on his behalf, shall deem it expedient to raise money by the
issue of stock, then such stock shall be issued in the United
Kingdom by the Crown Agents under the provisions of the Act
of the Imperial Parliament entitled the Colonial Stock Act,
1877, upon the best and most favourable terms that can be
obtained. 26.

visions of the Act
of the Imperial Parliament entitled the Colonial Stock Act,
1877, upon the best and most favourable terms that can be
obtained. 26.

(1) All the stock which may be created under the
provisions of this Ordinance shall be redeemable at par on a
date to be named in that behalf by the Crown Agents when
issuing the stock, such date not being later than sixty years
from the date of issue :
Provided that the Governor, or the Crown Agents acting
on his behalf, may reserve the option to redeem the stock in
whole or in part, by drawings or otherwise, at any time prior
to such date on such conditions as may be declared at the
time of issue. Cesser of
interest from
day appointed
for payment
of principal. Redeemed
debentures to
be cancelled. 40 and 41 Vict. Cap. 59. When the
principal is to
be repaid.

nterest from
day appointed
for payment
of principal. Redeemed
debentures to
be cancelled. 40 and 41 Vict. Cap. 59. When the
principal is to
be repaid.

87
1950 General Loan and Stock No. 14
(2) From and after the date appointed for the redemption
of the stock or any part of it all the interest on the principal
moneys represented thereby shall cease and determine, whether
payment of the principal shall have been demanded or not. 27. So long as any of the stock shall remain un-
redeemed, the Governor shall, in each half-year ending with
the day on which the interest on such stock falls due,
appropriate out of the general revenues and assets of the
Colony a sum equal to one half-year's interest on the whole of
such stock, and shall remit that sum to the Crown Agents
at such time as will enable them to pay thereout the then
current half-year's interest on the day when it falls due. Mode of
providing for
The payment of
iaterest on stock. 28.

e them to pay thereout the then
current half-year's interest on the day when it falls due. Mode of
providing for
The payment of
iaterest on stock. 28.

(1) The Governor shall, in the half-year ending on Mode of
the date specified in the terms of issue of the loan as that on providing for
payment of
which the first contribution to the sinking fund shall be taken principal
and in each subsequent half-year, appropriate out of the said of stock
revenues and assets of the Colony for the formation of a
sinking fund an additional sum equal to one-half of the annual
contribution specified in the prospectus or, in the case of a
loan not issued publicly, in the terms of issue relating to the
loan, in respect of the total nominal amount of such stock
including any such stock which may at any time have been
issued in exchange for debentures under the authority of this
Ordinance, and shall remit the sum to the Crown Agents with
the remittance hereinbefore mentioned.

exchange for debentures under the authority of this
Ordinance, and shall remit the sum to the Crown Agents with
the remittance hereinbefore mentioned.

(2) Notwithstanding anything to the contrary contained
in sub-section (1) of this section, if at any time the trustees of
the sinking fund of any loan issued under the provisions of
this Ordinance are satisfied that the value of the fund will
be sufficient with further accumulations of interest but without
further payment of contributions to enable the loan to be
redeemed out of the proceeds of the sinking fund not later
than the final redemption date, the Governor may with the
approval of the Secretary of State, suspend further contribu-
tions to the said sinking fund :
Provided always that contributions to the sinking fund
shall be recommenced if the trustees shall at any time inform
the Governor that this is necessary. 29. The Crown Agents shall, for the purpose of forming
such sinking fund, from time to time place at interest or invest
Creation of
sinking fund

sary. 29. The Crown Agents shall, for the purpose of forming
such sinking fund, from time to time place at interest or invest
Creation of
sinking fund

88
No. 14 General Loan and Stock 1950
Charge upon
genera] revenue. in the purchase of such securities as may from time to time
be approved by the Secretary of State so much of the money
so remitted to them as aforesaid as shall not be required for
the payment of interest for the current half-year and shall also
place at interest or invest in the purchase of like securities,
the accumulations of interest or the dividends, interest, or
produce of such investments, and may from time to time, with
the approval of the Secretary of State, change any such invest-
ments, and shall hold such fund in trust for the repayment of
the principal moneys for the time being represented by the
stock. 30. In case the sinking funds provided for by this Ordin-
ance shall be insufficient for the payment of all the principal
moneys borrowed under the authority of this Ordinance at
the time the same shall have become due, the Governor shall
make good the deficiency out of the general revenues and
assets of the Colony. 31. All expenses of or incidental to the management of
the sinking fund, or to the payment of the principal moneys
borrowed, shall be paid out of the sinking fund. 32.

of or incidental to the management of
the sinking fund, or to the payment of the principal moneys
borrowed, shall be paid out of the sinking fund. 32.

The Governor shall also have, and may from time
to time exercise, the following powers and authorities or any
of them—
(a) he may authorize the Crown Agents when issuing any
loan in the form of debentures to declare that such
debentures will be convertible into stock at such
dates and on such terms and conditions as may be
prescribed by the Crown Agents at the time of the
issue of the debentures;
(b) he may declare all or any of the Colony's loans,
whether existing in the form of stock or debentures,
and whether issued before or after the commence-
ment of this Ordinance, to be convertible into stock
to be issued under the provisions of this Ordinance;
(c) he may authorize the creation and issue of such an
amount of stock in exchange for the securities held
for such loans as may be necessary;
(d) he may authorize the creation and sale of any such
stock or debentures for the purpose of raising money
for redeeming any outstanding loans, whether issued
before or subsequent to the commencement of this
Ordinance, for paying any expense in the creation
Expenses to be
paid out of
sinking fund. Powers of
Governor.

subsequent to the commencement of this
Ordinance, for paying any expense in the creation
Expenses to be
paid out of
sinking fund. Powers of
Governor.

Debentures
convertible into
stock on
conditions
prescribed by
the Crown
Agents at time
of issue. Conversion
of loans
generally. Creation and
issue of stock
in exchange for
other securities. Creation and
sale of stock
or debentures
to raise loans and
for other
purposes.

nerally. Creation and
issue of stock
in exchange for
other securities. Creation and
sale of stock
or debentures
to raise loans and
for other
purposes.

89
1950 General Loan and Stock No. 14
of stock, and otherwise for carrying out the
provisions of this Ordinance;
(e) any conversion so authorized may be effected either
by an arrangement with the holders of existing
securities or by purchase thereof out of moneys
raised by the sale of stock, or partly in one way and
partly in the other. Arrangements
for conversion. 33. Nothing in this Ordinance contained shall authorize
an increase of the capital or of the annual charge on any loan,
except—
(a) when securities exchanged for stock bear a rate of
interest not less than the stock, an additional amount
of stock may be created and issued to make up the
difference in saleable value between the securities
and the stock;
(b) in the case of the conversion of securities into stock
the Crown Agents shall issue such an amount of
stock as may be required to defray the stamp duties
and all other expenses incidental to the conversion;
(c)in accordance with such terms and conditions as may
be prescribed under paragraph (a) of section 32 of
this Ordinance. 34.

ental to the conversion;
(c)in accordance with such terms and conditions as may
be prescribed under paragraph (a) of section 32 of
this Ordinance. 34.

The securities exchanged or otherwise converted
into stock under the provisions of this Ordinance shall be
forthwith cancelled by the Crown Agents, and the debentures
surrendered shall be cancelled and transmitted to the Governor
of the Colony. 35. The trustees of the sinking fund appointed under
this Ordinance, and acting under any Ordinance authorizing
the issue of any securities which may be exchanged into stock
or cancelled or purchased under the provisions of this Ordin-
ance, shall determine what amount of the sinking fund held
by them and created for repayment of such securities shall
be released and in the determination of such question the
trustees shall take into consideration the value of the whole
investments held by them on account of such sinking funds,
the amount of the debt remaining a charge on such sinking
funds, and such matters as the trustees may think fit to take
into account. Exchange of
securities
for stock. Converted
securities to be
cancelled. Trustees to
apportion
amount of
sinking fund
released by
conversion.

account. Exchange of
securities
for stock. Converted
securities to be
cancelled. Trustees to
apportion
amount of
sinking fund
released by
conversion.

No. 14 General Loan and Stock 1950
Sinking funds
released:
how to be
disposed of. Creation. inscription,
registration,
issue, conversion,
and transfer
of stock. Raising of loans
in the Colony. 36. So much of the sinking funds as may be released
shall either be transferred to the trustees of the stock sinking
fund, or be disposed of in such a manner as the Governor
with the advice and consent of the Legislative Council may
direct. 37. The Crown Agents may from time to time, at the
request of the Governor, make arrangements for all or any of
the following things—
(1) for inscribing and registering stock in their beoks;
(2) for managing the creation, inscription, registration
and issue of stock, including the issue of certificates
of title in respect of such stock;
(3) for effecting the conversion of loans into stock;
(4) for paying interest on stock and managing the trans-
fers thereof;
(5) for issuing stock certificates to bearer, and, as often
as occasion shall require, re-inscribing or re-
registering them;
(6) for effecting the exchange or conversion of inscribed
stock into registered stock. 38.

asion shall require, re-inscribing or re-
registering them;
(6) for effecting the exchange or conversion of inscribed
stock into registered stock. 38.

This Ordinance shall be applicable only to the
raising of loans in the United Kingdom, and nothing in this
Ordinance contained shall prevent the raising of loans in the
Colony upon such terms and conditions as shall be specified in
any Ordinance authorizing the raising of such loans. 39. Authority is hereby given for the making of regula-
tions under section 16 of the Colonial Stock Act, 1877, to
provide, that, in accordance with section 1 of the Colonial
Stock Act, 1948, stock issued (whether before or after the
passing of the last mentioned Act) under the provisions of
this Ordinance or of the General Loan and Inscribed Stock
Ordinance shall be transferable by instrument in writing in
accordance with the regulations and in no other manner. 40. The General Loan and Inscribed Stock Ordinance
is hereby repealed without prejudice to the rights of any
person who holds stock or bonds in any loan issued under the
authority thereof. Authority for
making
regulations
under the
Colonial Stock
Act, 1877. 40 and 41 Vict. Cap. 59. 12 and 13 Geo. 6 Cap. 1. Cap. 46. Repeal and
saving. Cap. ".6