The Government Stock (Amendment) Regulations 1998

• Citation: S.I. 1998/1749
• Sections: 10

Section 1

These Regulations may be cited as the Government Stock (Amendment) Regulations 1998 and shall come into force on 20th July 1998.

Section 2

The Government Stock Regulations 1965 shall be amended in accordance with the following provisions of these Regulations.

Section 3 Sale and purchase of stock through the Bank of England

After regulation 3B, there shall be inserted the following—

“SALE AND PURCHASE OF STOCK THROUGH THE BANK OF ENGLAND”

Purchase of stock through the Bank of England

(3C)

(1) Stock in the English Register may be purchased through the Bank of England in accordance with the provisions of this regulation.

(2) Application to purchase stock under this regulation shall be made by delivering to the Bank an application in the approved form accompanied, except where the Bank otherwise directs, by a sum sufficient to include the purchase price of the stock and the proper amount payable under regulation 3E hereof by way of commission on the purchase.

(3) As soon as practicable after receiving such an application the Bank shall effect the purchase of the stock.

(4) If the sum received by the Bank in respect of an application to purchase stock under this regulation is insufficient to defray the aggregate of the purchase price of the stock and the commission payable under regulation 3E hereof, and the Bank nevertheless effects the purchase, the Bank shall send to the applicant a notification of the amount of the deficiency, and, if that amount is not received within seven days after the day on which the notification was sent, the Bank may effect the sale of the stock and may, before paying the proceeds of that sale to the applicant, deduct from those proceeds—

(a) the amount of the deficiency, and

(b) the amount payable under regulation 3E hereof by way of commission on the sale.

(5) If the sum received by the Bank in respect of an application to purchase stock under this regulation exceeds the sum required to defray the amount of the purchase price of the stock and the commission payable under regulation 3E hereof in respect of the purchase, the Bank shall return to the applicant the amount of the excess.

(6) The Bank may return any such excess by means of a warrant sent by post and, in the absence of special instructions, any such warrant may be sent to any address given in the application to purchase the stock.

Sale of stock through the Bank of England

(3D)

(1) Stock in the English Register may be sold through the Bank of England in accordance with the provisions of this regulation.

(2) Application to sell stock under this Regulation shall be made by sending to the Bank an application in the approved form accompanied, except where the Bank otherwise directs, by any certificate relating to the stock.

(3) Subject to paragraph (4) of this Regulation, as soon as practicable after receiving such an application, the Bank shall effect the sale of the stock.

(4) The Bank may decline to effect a sale under this Regulation unless there is furnished to them such evidence as they may require of the right of the applicant to authorise the sale.

(5) On completion of the sale of any stock under this Regulation, the Bank shall, before paying the proceeds of the sale to the person entitled to it, deduct the amount payable under regulation 3E hereof by way of commission on the sale.

(6) The Bank may pay the net proceeds of the sale by means of a warrant sent by post and, in the absence of special instructions, any such warrant may be sent to any address given in the application to sell the stock or to the address specified in the Register in relation to the person who, immediately before the sale was effected, was registered as the holder of the stock.

Commission chargeable on purchase or sale of stock through the Bank of England

(3E) Commission shall be payable to the Bank on the purchase or sale of stock through the Bank under regulation 3C or 3D hereof at the rates specified in Schedule 3 to these Regulations.

Section 4 Sale and purchase of stock through the Bank of England

Regulation 23 shall be amended—

(a) by substituting for the definition of “the Bank”, the following—

“approved” means approved by the Bank of England;

“the Bank”—

(a) in regulations 3C to 3E hereof, means the Bank of England,

(b) in relation to the approval of a form of request to remove stock from the English Register to the Irish Register or from the Irish Register to the English Register, means the Bank of England and the Bank of Ireland, and

(c) in any other case, means the Bank of England or the Bank of Ireland;

(b) in the definition of “stock”, by inserting “3C to 3E,” after “1(1) ”.

Section 5 Sale and purchase of stock through the Bank of England

After Schedule 2 to the Regulations there shall be inserted the Schedule set out in the Schedule to these Regulations.

Section 6 Period after which Banks of England and Ireland may destroy instruments of transfer retained by them

In regulation 4(2) (which provides that any instrument of transfer which the Bank of England or the Bank of Ireland retain under paragraph (1) of that regulation may be destroyed at any time following the expiration of thirty years after the date of registration of the transfer), for the words “thirty years” there shall be substituted the words “twelve years”.

a PURCHASES

does not exceed £5,000

b PURCHASES

exceeds £5,000

a SALES

do not exceed £5,000

b SALES

exceed £5,000