Clause 21

In anticipation of the raising of a loan under this Act, the Minister may, if he thinks fit, authorise acceptance by the Authority of advance deposits on such terms as the Authority may determine.

Advance deposits shall be applied to the purchase of stock, bearer bonds or book-entry Government securities issued under this Act after the date the deposits were effectively received by the Authority.

Advance deposits shall carry interest at such rate as may be determined by the Authority which shall be calculated from the date the deposit was effectively received by the Authority.

For the purposes of subsection (3), where cheques for the advance deposits cannot be cleared on the day of receipt, interest shall be calculated from the next working day.

If a depositor wishes the whole or part of the advance deposits made by him to be repaid, he shall give not less than two working days’ notice to the Authority of his intention and the deposits or that part of them, as the case may be, shall be repaid to him together with such interest as may be determined by the Authority.

Interest on advance deposits shall be a charge on the Consolidated Fund and shall be paid half-yearly.

The Minister shall, in each half-yearly period ending with the day on which interest on advance deposits received under this Act falls due, appropriate out of the Consolidated Fund a sum equal to the appropriate half-year’s interest on the advance deposits in order that the interest for that half-year may be paid therefrom.