The Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations 2003

• Citation: S.I. 2003/1633
• Sections: 66

Section 1 Citation, commencement and interpretation

(1) These Regulations may be cited as the Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations 2003, and come into force on the day after the day on which they are made.

(2) In these Regulations “the principal regulations” means the Uncertificated Securities Regulations 2001 .

Section 2 Amendment of the principal regulations

The principal regulations are amended as set out in regulations 3 to 13 of these Regulations.

Section 3 Eligible debt securities–interpretation

In regulation 3(1)–

(a) before the definition of “the 1985 Act”, insert–

“the 1877 Act ” means the Treasury Bills Act 1877 ;

“the 1950 Act ” means the Exchequer and Financial Provisions Act (Northern Ireland) 1950 ;

(b) after the definition of “the 1986 Act”, insert–

“the 1989 Act ” means the Local Government and Housing Act 1989 ;

(c) after the definition of “the 1965 Regulations”, insert–

“the 1968 Regulations ” means the Treasury Bills Regulations 1968 ;

(d) in the definition of “the 1974 Regulations”, omit the words from “and” (where second occurring) to the end;

(e) after the definition of “the 1974 Regulations”, insert–

“the 1990 Regulations ” means the Local Authorities (Borrowing) Regulations 1990 ;

(f) after the definition of “the 1995 Regulations”, insert–

“the 2003 Regulations ” means the Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations 2003;

(g) after the definition of “dematerialised instruction”, insert–

“dematerialised loan instrument” means a security constituted by a loan instrument issued by a local authority in accordance with Part IV of the 1989 Act and the 1990 Regulations as modified by Part 3 of Schedule 1 to the 2003 Regulations;

(h) after the definition of “designated agency”, insert–

“eligible debt security” means–

a security that satisfies the following conditions–

the security is constituted by an order, promise, engagement or acknowledgement to pay on demand, or at a determinable future time, a sum in money to, or to the order of, the holder of one or more units of the security; and

the current terms of issue of the security provide that its units may only be held in uncertificated form and title to them may only be transferred by means of a relevant system;

an eligible Northern Ireland Treasury Bill; or

an eligible Treasury bill;

“eligible Northern Ireland Treasury Bill” means a security–

constituted by a Northern Ireland Treasury Bill issued in accordance with the 1950 Act as modified by Part 2 of Schedule 1 to the 2003 Regulations; and

whose current terms of issue provide that its units may only be held in uncertificated form and title to them may only be transferred by means of a relevant system;

“eligible Treasury bill” means a security–

constituted by a Treasury bill issued in accordance with the 1877 Act and the 1968 Regulations as modified by Part 1 of Schedule 1 to the 2003 Regulations; and

whose current terms of issue provide that its units may only be held in uncertificated form and title to them may only be transferred by means of a relevant system;

(i) after the definition of “enactment”, insert–

“general local authority security” means a local authority security that is not an eligible debt security;

“general public sector security” means a public sector security that is not an eligible debt security;

“general UK Government security” means a UK Government security that is not an eligible debt security;

(j) for paragraph (b) of the definition of “issuer register of securities”, substitute–

(b) in relation to units of securities other than–

(i) shares,

(ii) securities in respect of which regulation 22(3) applies, or

(iii) wholly dematerialised securities,

means a register of persons holding the units, maintained by or on behalf of the issuer or, in the case of general public sector securities, by or on behalf of the person specified in regulation 21(3);

(k) after the definition of “issuer register of securities”, insert–

“local authority”–

in relation to a security referred to in paragraph (a)(i) of the definition of “local authority security”, has the same meaning as in the 1974 Regulations;

in relation to a security referred to in paragraph (a)(ii) or (b) of the definition of “local authority security” or a dematerialised loan instrument, has the same meaning as in the 1989 Act;

(l) for the definition of “local authority security”, substitute–

“local authority security” means a security which is either–

a security other than an eligible debt security which, when held in certificated form is–

transferable in accordance with regulation 7(1) of the 1974 Regulations and title to which must be registered in accordance with regulation 5 of those Regulations; or

a loan instrument within the meaning of section 43(4) of the 1989 Act, which is transferable in accordance with regulation 5(1) of the 1990 Regulations; or

an eligible debt security issued by a local authority;

(m) after the definition of “Operator register of corporate securities”, insert–

“Operator register of eligible debt securities” has the meaning given by regulation 22(3A)(a);

“Operator register of general public sector securities” has the meaning given by regulation 21(1)(a);

(n) omit the definition of “Operator register of public sector securities”;

(o) in paragraph (b) of the definition of “Operator register of securities”, for the words from “public” to the end, substitute “general public sector securities, an Operator register of eligible debt securities or, as the case may be, a register maintained by an Operator in accordance with regulation 22(3)(a);”;

(p) for the definition of “record of uncertificated public sector securities”, substitute–

“record of uncertificated general public sector securities” has the meaning given by regulation 21(2)(a);

(q) in the definition of “record of securities”, for “public sector securities”, substitute “general public sector securities”.

Section 4 Eligible debt securities–interpretation

(1) In regulation 3(3)–

(a) before “public” (wherever occurring), insert “general”;

(b) after “appointed” (where second occurring), insert–

; or

if the security falls within paragraph (a)(ii) of the definition of “local authority security” in paragraph (1) and the local authority has appointed as a registrar a person who is neither an officer nor any other employee of the authority for all of the purposes of the register required to be maintained under section 46(1) of the 1989 Act, to the person so appointed

(2) After regulation 3(3), add–

(4) In respect of a security which is an eligible debt security, references in these regulations to the issuer or the participating issuer of that security (or units of that security) shall be taken to be references to–

(a) a person (“P”) who undertakes as principal to perform the payment obligation constituted by the security in accordance with its current terms of issue; and

(b) any other person who undertakes as principal to perform that obligation in accordance with those terms in the event that P fails to do so.

(5) For the purposes of paragraph (4)(b), a person who undertakes to perform an obligation under a contract of guarantee or other contract of suretyship is not to be regarded as undertaking to perform it as principal.

(6) For the purposes of paragraph (a) of the definition of “eligible debt security” in paragraph (1), a sum of money–

(a) is to be regarded as payable at a determinable future time if it is payable–

(i) at a future time fixed by or in accordance with the current terms of issue of the security; or

(ii) at the expiry of a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening may be uncertain; and

(b) is not to be regarded as payable at a determinable future time if it is payable on a contingency.

Section 5 Participation in respect of securities other than shares

In regulation 19(2), for “the issuer”, substitute “an issuer of that security”.

Section 6 Entries on registers and records in respect of general public sector securities

(1) In the cross-heading before regulation 21, before “public”, insert “general”.

(2) In regulation 21(1) to (3), before “public” (wherever occurring), insert “general”.

(3) In regulation 22(1), for “or public sector securities”, substitute, “, general public sector securities or eligible debt securities”.

(4) In regulation 24(5), before “public”, insert “general”.

(5) In Schedule 4–

(a) in the cross-heading before paragraph 12, before “public” insert “general”;

(b) in paragraph 12(1), before “public”, insert “general”;

(c) in the cross-heading before paragraph 13, before “public” insert “general”;

(d) in paragraph 13, before “public” (wherever occurring), insert “general”.

Section 7 Entries on registers and records in respect of general UK Government securities

In paragraphs 12(2) and 13(2) of Schedule 4, before “UK”, insert “general”.

Section 8 Entries on registers and records in respect of general local authority securities

(1) In regulation 21(3)–

(a) before “local” (where first occurring), insert “general”;

(b) after “appointed” (where second occurring), insert–

; or

if the security falls within paragraph (a)(ii) of the definition of “local authority security” in regulation 3(1) and the local authority has appointed as a registrar a person who is neither an officer nor any other employee of the authority for all of the purposes of the register required to be maintained under section 46(1) of the 1989 Act, the person so appointed

(2) In regulation 21(5), after “security”, insert “falling within paragraph (a)(i) of the definition of “local authority security” in regulation 3(1)”.

(3) After regulation 21(5), add–

(6) Such sanctions as apply to a person appointed as registrar under section 46(1) of the 1989 Act in the event of a default in complying with his obligations under that section with respect to the keeping of a register shall apply to a participating issuer and his officers in the event of a default in complying with paragraph (2)(a) in respect of a local authority security falling within paragraph (a)(ii) of the definition of “local authority security” in regulation 3(1).

(4) In Schedule 4–

(a) in paragraph 12(3), before “local”, insert “general”;

(b) in paragraph 19(2), after “security”, insert “falling within paragraph (a)(i) of the definition of “local authority security” in regulation 3(1)”;

(c) after paragraph 19(2), insert–

(2A) Such sanctions as apply to a person appointed as registrar under section 46(1) of the 1989 Act in the event of a default in complying with his obligations under that section with respect to the keeping of a register shall apply to a participating issuer and his officers in the event of a default in complying with paragraph 13 in respect of a local authority security falling within paragraph (a)(ii) of the definition of “local authority security” in regulation 3(1).

Section 9 Entries on registers and records in respect of eligible debt securities

(1) In regulation 22(3), after “security” (where first occurring), insert “(other than an eligible debt security)”.

(2) After regulation 22(3), insert–

(3A) In respect of every participating security which is an eligible debt security, the Operator shall–

(a) maintain a register, and such a register is referred to in these Regulations as an “Operator register of eligible debt securities”; and

(b) record in that register–

(i) the names and addresses of the persons holding units of that security; and

(ii) how many units of that security each such person holds.

(3) In regulation 22(4), for “(2)(a)(i) or (3)”, substitute, “(2)(a)(i), (3) or (3A)”.

Section 10 Effect of entries on registers

In regulation 24, after paragraph (7), add–

(8) Subject to regulation 29, an entry on an Operator register of eligible debt securities shall be prima facie evidence, and in Scotland sufficient evidence unless the contrary is shown, of any matters which are by these Regulations directed or authorised to be inserted in it.

Section 11 Registration by an Operator of transfers of securities

In regulation 27–

(a) in paragraph (7), for “Immediately upon”, substitute, “Subject to paragraph (7A), immediately upon”;

(b) after paragraph (7), insert–

(7A) Paragraph (7) does not apply in relation to units of an eligible debt security.

Section 12 Requirements for approval of a person as Operator

In paragraphs 12 and 25(e)(ii) of Schedule 1, after “securities”, insert “(other than an Operator register of eligible debt securities)”.

Section 13 Keeping of registers and records of participating securities

In paragraph 16(2) of Schedule 4, after “such register”, insert “(other than an Operator register of eligible debt securities)”.

Section 14 Eligible Treasury bills etc

(1) The power of the Treasury to create and issue Treasury bills in accordance with the 1877 Act includes power to create and issue bills in accordance with the 1877 Act and the 1968 Regulations as modified by Part 1 of Schedule 1.

(2) A bill created and issued by the Treasury in accordance with the 1877 Act and the 1968 Regulations as modified by Part 1 of Schedule 1 is a Treasury bill for the purposes of that Act and those Regulations; and that Act and those Regulations apply in relation to such bills with the modifications set out in Part 1 of Schedule 1.

(3) The power of the Ministry of Finance under section 11(1)(b) of the 1950 Act to borrow money by the creation and issue of Northern Ireland Treasury Bills includes power to borrow money by the creation and issue of Bills in accordance with the 1950 Act as modified by Part 2 of Schedule 1.

(4) A Bill created and issued by the Ministry of Finance in accordance with the 1950 Act as modified by Part 2 of Schedule 1 is a Northern Ireland Treasury Bill for the purposes of that Act; and that Act applies in relation to such Bills with the modifications set out in Part 2 of Schedule 1.

(5) The power of a local authority under section 43(2)(c) of the 1989 Act to borrow money by means of a loan instrument includes power to borrow money by means of an instrument created and issued in accordance with Part IV of the 1989 Act and the 1990 Regulations as modified by Part 3 of Schedule 1.

(6) An instrument created and issued by a local authority in accordance with Part IV of the 1989 Act and the 1990 Regulations as modified by Part 3 of Schedule 1 is a loan instrument for the purposes of that Part and those Regulations; and that Part and those Regulations apply in relation to such instruments with the modifications set out in Part 3 of Schedule 1.

Section 15 Application and modification of certain enactments

(1) Schedule 2, which applies and modifies certain enactments, has effect.

(2) Expressions used in Schedule 2 have, unless the contrary intention appears, the same meaning as in the principal regulations.

Section 1

For the purposes of regulation 14, and the definition of “eligible Treasury bill” in the principal regulations, the 1877 Act is modified as set out in paragraphs 2 to 6, and the 1968 Regulations are modified as set out in paragraphs 7 to 13.

Section 2

In section 2–

(a) before the definition of “prescribed”, insert–

The expression “the 2001 Regulations ” means the Uncertificated Securities Regulations 2001 , as amended from time to time.

(b) after the definition of “prescribed”, add–

The expressions “issue”, “relevant system”, “unit” and “uncertificated” have the same meaning as in the 2001 Regulations, as amended from time to time.

Section 3

In section 4, for the words from “in the prescribed form” to “the bill”, substitute, “for the payment of a principal sum to the holder of one or more uncertificated units of the bill at a date not more than twelve months from the date of issue of that unit or those units”.

Section 4

In section 5, for “of and interest on”, substitute “and interest payable in respect of”.

Section 5

For section 8(2), substitute–

(2) Each Treasury bill (and each uncertificated unit of such bill) shall be for the payment of such a principal sum or sums as may be directed by the Treasury.

Section 6

In section 9–

(a) in subsection (1), omit “mode of payment,”;

(b) omit subsections (2) and (4);

(c) in subsection (3), omit the words from “, by the use” to “otherwise,”;

(d) at the end, add–

No regulation under this Act applies in relation to uncertificated units of a Treasury bill to the extent that it is inconsistent with–

the holding of such units in uncertificated form;

the transfer of title to such units by means of a relevant system; or

the 2001 Regulations.

Section 7

In regulation 1–

(a) before “Treasury bills”–

(i) in the cross-heading before the regulation; and

(ii) where first occurring,

insert “Uncertificated units of”;

(b) in paragraph (a), before “Treasury bills”, insert ““uncertificated units of”.

Section 8

In regulation 2(1)–

(a) before “Treasury bills”, insert “uncertificated units of”;

(b) in subparagraph (c), for “bills”, substitute “units”.

Section 9

For regulation 3, substitute–

(3) –

(1) The terms of a Treasury bill shall include a term to the effect that uncertificated units of the bill–

(a) are issued subject to–

(i) the Treasury Bills Act 1877; and

(ii) these Regulations,

as modified by the Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations 2003;

(b) are issued to raise money either for–

(i) the National Loans Fund (“ NLF ”) under section 12 of the National Loans Act 1968 ; or

(ii) the Debt Management Account (“ DMA ”) under paragraph 4 of Schedule 5A to the National Loans Act 1968; and

(c) entitle the holder of the units to payment of a defined sum out of the NLF or the DMA (as the case may be) on redemption of the units in accordance with the terms on which they are issued.

(2) Where the value of uncertificated units of a Treasury bill is denominated in a currency other than sterling, the terms of the bill shall include a term indicating the circumstances in which, and the conditions subject to which, such units may be exchanged for units whose value is denominated in sterling.

Section 10

In regulation 4–

(a) for paragraph (1), substitute–

(1) The Treasury may from time to time issue uncertificated units of Treasury bills for the payment of such principal sums as they think fit, and may authorise any other person to issue uncertificated units of such bills for the payment of such principal sums as the Treasury may authorise.

(b) omit paragraphs (2) and (3).

Section 11

In regulation 6–

(a) omit paragraphs (1), (1A), (1N) and (2);

(b) in paragraph (1L)–

(i) for “any Treasury bill”, substitute, “any uncertificated unit of a Treasury bill”;

(ii) omit the words from “and in the place” to “is held”;

(iii) for “the bill”, substitute, “the unit”;

(c) for paragraph (1M), substitute–

(1M) If, but for this paragraph, the date for payment of a principal sum in respect of uncertificated units of a Treasury bill would be more than twelve months from the date of issue of those units, the said date for the payment of the principal sum shall be the last day on which the Bank of England is open for business in the period of twelve months from the date of issue of those units.

Section 12

Omit regulations 7 and 8.

Section 13

In regulation 9, after the definition of ““NLF bill” and “NLF Treasury bill””, insert–

“issue”, “uncertificated” and “units” have the same meaning as in the Uncertificated Securities Regulations 2001 , as amended from time to time.

Section 14

For the purposes of regulation 14, and the definition of “eligible Northern Ireland Treasury Bill” in the principal regulations, the 1950 Act is modified as set out in paragraphs 15 to 17.

Section 15

In section 11(1)(b), after “Northern Ireland Treasury Bills”, insert “(and uncertificated units of such Bills)”.

Section 16

In section 40, after subsection (1), insert–

(2) In this Act–

“the 2001 Regulations” means the Uncertificated Securities Regulations 2001 , as amended from time to time;

“issue”, “relevant system”, “unit” and “uncertificated” have the same meaning as in the 2001 Regulations.

Section 17

In the First Schedule–

(a) in paragraph 2, for the words from “the principal” to the end, substitute, “a principal sum to the holder of one or more uncertificated units of the Bill at a date not more than twelve months from the date of issue of that unit or those units.”;

(b) in paragraph 3, for “each Bill”, substitute “each uncertificated unit of a Northern Ireland Treasury Bill”;

(c) in paragraph 4–

(i) for “Each Bill” substitute, “The record (whether or not in the form of a document) which contains the terms of a Northern Ireland Treasury Bill”;

(ii) for “be impressed or affixed by machinery or otherwise”, substitute “appear in the record”;

(d) in paragraph 5, for “Bills shall be prepared”, substitute, “Uncertificated units of Northern Ireland Treasury Bills shall be issued”;

(e) in paragraph 6–

(i) in subparagraph (a), omit “, payment”;

(ii) omit subparagraphs (b) and (d);

(iii) in subparagraph (c), omit the words from “, by the use” to “otherwise,”;

(f) after paragraph 6, add–

(7) No regulation under this Schedule applies in relation to uncertificated units of a Northern Ireland Treasury Bill to the extent that it is inconsistent with–

(a) the holding of such units in uncertificated form;

(b) the transfer of title to such units by means of a relevant system; or

(c) the 2001 Regulations.

Section 18

For the purposes of regulation 14, and the definition of “dematerialised loan instrument” in the principal regulations, Part IV of the 1989 Act is modified as set out in paragraphs 19 to 23, and the 1990 Regulations are modified as set out in paragraphs 24 to 33.

Section 19

In section 43(4)–

(a) for “document which, directly or by reference to any other document”, substitute “security which is constituted by a record (whether or not in the form of a document), which”;

(b) in subparagraph (d), for “instrument”, substitute “security”;

(c) after subparagraph (d), insert–

(da) states that uncertificated units of the security are transferable in no other manner than by means of a relevant system in accordance with the 2001 Regulations; and

(d) in subparagraph (e), for “an instrument which is transferable by delivery”, substitute “a security which is an eligible debt security within paragraph (a) of the definition of “eligible debt security” in regulation 3(1) of the 2001 Regulations”.

Section 20

In section 43(5), for “any document”, substitute “any security”.

Section 21

After section 43(5), add–

(5A) No regulation under subsection (5) applies in relation to uncertificated units of a loan instrument to the extent that it is inconsistent with–

(a) the holding of such units in uncertificated form;

(b) the transfer of title to such units by means of a relevant system; or

(c) the 2001 Regulations.

Section 22

In section 46–

(a) in paragraph (a) of subsection (4), for “an instrument (whether or not being a loan instrument) transferable by delivery”, substitute “uncertificated units of a loan instrument”;

(b) for subsection (8), substitute–

(8) A certified copy of the kind referred to in subsection (7) is not evidence of title to an uncertificated unit of a loan instrument.

Section 23

In section 66(1)–

(a) after paragraph (a), insert–

(aa) “relevant system”, “security”, “uncertificated” and “unit” have the same meaning as in the 2001 Regulations;

(b) after paragraph (d), add–

(da) “the 2001 Regulations” means the Uncertificated Securities Regulations 2001 ;

Section 24

In regulation 2–

(a) in the definition of “loan instrument”–

(i) for “instruments which are transferable by delivery”, substitute “eligible debt securities within paragraph (a) of the definition of “eligible debt security” in regulation 3(1) of the 2001 Regulations”;

(ii) omit “and (6)”;

(b) after the definition of “The Stock Exchange”, insert–

“eligible debt security”, “issue”, “Operator”, “relevant system”, “security”, “uncertificated” and “unit” have the same meanings as in the 2001 Regulations;“the 2001 Regulations” means the Uncertificated Securities Regulations 2001 ;

Section 25

In regulation 3–

(a) in paragraph (2)–

(i) for “under” (where first occurring), substitute “in respect of particular units of”;

(ii) for “instrument is” (wherever occurring), substitute “units are”;

(iii) for “under the instrument” (where second and third occurring), substitute “in respect of those units”;

(b) in paragraph (3)–

(i) for “under”, substitute “in respect of particular units of”;

(ii) after “specified in the”, insert “terms of the”;

(c) in paragraph (4), for “under”, substitute “in respect of particular units of”;

(d) in paragraph (5)–

(i) for “under”, substitute “in respect of particular units of”;

(ii) after “specified in” insert, “, or determined in accordance with the terms of,”;

(iii) in subparagraph (b), for “the instrument”, substitute “those units”;

(e) after paragraph (8), add–

(9) Paragraphs (6) to (8) do not apply in respect of uncertificated units of loan instruments.

Section 26

In regulation 4–

(a) in paragraph (1)–

(i) for “loan instrument”, substitute “uncertificated units of a loan instrument (other than a loan instrument which is an eligible debt security within paragraph (a) of the definition of “eligible debt security” in regulation 3(1) of the 2001 Regulations)”;

(ii) in subparagraph (a), for “the instrument is”, substitute “those units are”;

(iii) in subparagraph (c)–

(aa) for “under the instrument”, substitute “in respect of those units”;

(bb) for “issue of the instrument”, substitute “issue of those units”;

(b) in paragraph (2), for “a loan instrument”, substitute “uncertificated units of a loan instrument”.

Section 27

In regulation 5–

(a) in paragraph (1), for “The”, substitute “Subject to paragraph (3), the”;

(b) after paragraph (2), add–

(3) Uncertificated units of a loan instrument shall only be transferable by means of a relevant system in accordance with the 2001 Regulations.

Section 28

In regulation 6–

(a) for “a” (where second occurring), substitute “uncertificated units of a”;

(b) for “a further loan instrument”, substitute “further such units”;

(c) in paragraph (a), for “instrument”, substitute “units”;

(d) in paragraph (b)–

(i) for “instrument” (wherever occurring), substitute “units”;

(ii) for “was”, substitute “were”.

Section 29

In regulation 7–

(a) for paragraphs (1) and (2), substitute–

(1) Subject to paragraphs (4) and (7) below, a local authority may not issue units of a loan instrument which is an eligible debt security within paragraph (a) of the definition of “eligible debt security” in regulation 3(1) of the 2001 Regulations unless the issue of the units amounts to the issue of a bill, sterling commercial paper or a sterling medium term note in accordance with paragraph (2).

(2) For the purposes of these Regulations, the issue of units of a loan instrument amounts to–

(a) the issue of a bill if–

(i) the terms upon which the units are issued require that all payments to be made by the authority in respect of the units fall to be made not later than 187 days after the date of issue of the units; and

(ii) the issue of the units does not amount to the issue of sterling commercial paper or of a sterling medium term note in accordance with sub-paragraphs (b) or (c) below;

(b) the issue of sterling commercial paper if–

(i) the terms upon which the units are issued require that all payments which fall to be made by the authority in respect of the units are to be in sterling and to be made not earlier than seven days and not later than one year after the date of issue of the units; and

(ii) the requirements of paragraph (2A) below are satisfied;

(c) the issue of a sterling medium term note if–

(i) the terms upon which the units are issued require that all payments which fall to be made by the authority in respect of the units are to be in sterling and all such payments other than payments in respect of interest are to be made later than one year but not later than five years after the date of issue of the units; and

(ii) the requirements of paragraph (2A) below are satisfied.

(2A) The requirements of this paragraph are satisfied in relation to units of a loan instrument if the terms upon which the units are issued require that–

(a) the aggregate redemption value of the units at the date of issue is not less than £100,000; and

(b) the units are transferable only if their aggregate redemption value at the date of transfer is not less than £100,000.

(b) in paragraph (3)–

(i) for “paragraph (2)”, substitute “paragraph (2A)”;

(ii) for “loan instrument” substitute “units”;

(c) in paragraph (5), for “loan instrument is” (wherever occurring), substitute, “units are”;

(d) in paragraph (8)–

(i) a reference to paper includes a reference to units of a loan instrument where the issue of the units amounts to the issue of sterling commercial paper for the purposes of the 1990 Regulations; and

(ii) a reference to a note includes a reference to units of a loan instrument where the issue of the units amounts to the issue of a sterling medium term note for the purposes of the 1990 Regulations;

(e) in paragraph (9)–

(i) for the words from “Any” to “local authority shall”, substitute “The terms of a loan instrument, the issue of whose units amounts to the issue of sterling commercial paper or a sterling medium term note for the purposes of these Regulations shall”;

(ii) in subparagraph (b), for “under the instrument”, substitute “in respect of the units”;

(iii) in subparagraph (c), for “it is”, substitute “the issue of its units is equivalent to the issue of”;

(iv) omit subparagraph (d);

(v) in subparagraph (e), for “the instrument is”, substitute “units of the instrument are”;

(vi) after subparagraph (e), add–

(f) include a term to the effect that the authority must, at the request of a person who holds units of the instrument, provide that person with a record (whether or not in the form of a document) containing the information referred to in subparagraphs (a) to (c) and (e) of this paragraph as applicable at the time the units were issued.

(f) after paragraph (10), insert–

(10A) References in paragraphs (4) and (7) to (9) to, or to the issue of, a bill, sterling commercial paper or a sterling medium term note include references to, or to the issue of, units of a loaninstrument in circumstances where the issue of those units amounts to the issue of a bill, sterling commercial paper or a sterling medium term note (as the case may be) in accordance with paragraph (2).

Section 30

After regulation 8(5), add–

(6) This regulation does not apply to payments which fall to be made in respect of uncertificated units of loan instruments.

Section 31

After regulation 9(12), add–

(13) This regulation does not apply in respect of uncertificated units of loan instruments, loans in respect of which such units are issued, or any transfer of rights and obligations in respect of such loans.

Section 32

In Schedule 1–

(a) in paragraph 1–

(i) in subparagraphs (a) and (e), for “under the instrument”, substitute “in respect of the units”;

(ii) in subparagraph (c), for “to the instrument”, substitute “in respect of the units”;

(iii) in subparagraph (f), for “instrument”, substitute “units”;

(iv) in subparagraphs (g) and (h), for “instrument is”, substitute “units are”;

(b) in paragraph 5–

(i) in subparagraph (a), for “loan instrument is”, substitute “units are”;

(ii) in subparagraph (b), for “under the loan instrument”, substitute “in respect of the units.”.

Section 33

In Schedule 2–

(a) in paragraph 1, for the definition of “relevant security”, substitute–

“relevant security” means units of a loan instrument, the issue of which amounts to the issue of sterling commercial paper or a sterling medium term note in accordance with regulation 7 in a case to which this Schedule applies.

(b) omit paragraph 2(o).

Section 1

Section 5 of the National Debt Act 1889 applies in relation to eligible Treasury bills with the following modifications–

(a) for “Treasury bills”, substitute, “The record (whether or not in the form of a document) containing the terms of an eligible Treasury bill”;

(b) for “be impressed or affixed by machinery or otherwise”, substitute “appear in the record”.

Section 2

A reference to Treasury bills in–

(a) section 4 of the Enemy Property Act 1953 ;

(b) Schedule 1 to the Trustee Investments Act 1961 ;

(c) the National Loans Act 1968 ;

(d) section 4(5) of the Government Trading Funds Act 1973 ;

(e) Part I of Schedule 9 to the Companies Act 1985 ;

(f) the Local Authorities (Capital Finance)(Approved Investments) Regulations 1990 ;

(g) Schedule 1 to the Pilotage Act 1987 (Pilotage Commission: Transfer of Property, Rights and Liabilities) Order 1990 ;

(h) regulations 9 and 23A of the Insolvency Regulations 1994 ;

(i) Schedule 2 to the Companies (Summary Financial Statement) Regulations 1995 ; or

(j) Schedule 2 to the Building Societies (Accounts and Related Provisions) Regulations 1998 ,

includes a reference to uncertificated units of eligible Treasury bills.