Section 12

Commencing not later than two years after the date on which interest on stock or bearer bonds issued under the provisions of this Act commences to run, the Minister shall in each half-year ending on the day on which interest on the stock or bearer bonds falls due in addition to the sum appropriated in accordance with section 10(2) appropriate out of the Consolidated Fund for the formation of a sinking fund a sum equal to one-half of the annual contributions specified in the prospectus relating to the issue of the stock or bearer bonds.

Notwithstanding subsection (1), the Minister may from time to time appropriate out of the Consolidated Fund money for the purpose of making additional contributions to the sinking fund established under subsection (1):Provided that the total amount in the sinking fund with the additional contributions does not exceed the outstanding principal moneys represented by the stock and bearer bonds.

All appropriations from the Consolidated Fund made prior to 27th September 1985 to such sinking fund shall be deemed to have been lawfully made in accordance with the provisions of this Act.

If at any time the Minister is satisfied that the value of the sinking 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 when it falls due to be redeemed, the Minister may suspend further payments of contributions to the sinking fund:Provided that the Minister may at any time recommence payment of such contributions if he considers this to be necessary.

The Minister may at any time apply all or any part of the moneys in the sinking fund created under this section to the purchase of trustee stock or local stock or of any other stock, fund, security or investment mentioned in section 7(3) of the Financial Procedure Act [Cap. 109].

The Accountant-General shall in each year pay into the sinking fund created under this section a sum equal to the annual interest that would have been payable on any local stock purchased under subsection (5) if such stock had not been purchased as aforesaid.