Development Loan Ordinance

This Ordinance may be cited as the Development Loan Ordinance, 1961, and shall come into operation on such date as the Minister may by notification in the Gazette appoint.

The Minister may appoint different dates for the coming into operation of different provisions of this Ordinance.

“advance deposits” means such deposits as are received under the provisions of subsection (1) of section 17 of this Ordinance;

“Bank” means the Bank appointed under section 11 of this Ordinance;

“Crown Agents” means the Crown Agents for Oversea Governments and Administrations in England;

“local stock” means any stock issued in Singapore under this Ordinance or under any of the written laws set out in the Schedule to this Ordinance;

“trustee stock” means any of the securities mentioned in section 4 of the Trustees Ordinance (Cap. 34);

“Treasury” has the meaning assigned to it in the Financial Procedure Ordinance, 1959 (Ord. 39 of 1959).

In anticipation of the raising of any loan under the authority of this Ordinance the Minister may, if he thinks fit, authorise acceptance by the Treasury or the Bank of deposits not exceeding the amount of such loan.

Advance deposits shall be applied to the purchase of stock of the first loan issued by Singapore after the date on which such deposits were received either by the Treasury or by the Bank, unless a depositor gives notice in writing within seven days after the date of issue of such loan that he wishes advance deposits or part thereof made by him to be repaid.

Whenever a depositor gives notice that he wishes the whole or part of the advance deposits made by him to be repaid such deposits or part thereof made by such depositor shall be repaid immediately, but no interest shall be payable thereon.

Advance deposits which are applied to the purchase of stock in accordance with subsection (2) of this section shall carry interest at the rate applicable to such stock calculated from the date the deposit was received by the Treasury or the Bank and such interest shall be a charge on the Consolidated Fund.

The Minister may from time to time raise, in the manner hereinafter provided, a sum of money not exceeding in the whole the sum of four hundred million dollars to be applied in the manner hereinafter provided.

The loan hereby authorised or any part of it may be raised either —

Stock issued under the provisions of this Ordinance shall be issued by the Treasury upon such terms as may be approved by the Minister and shall be authenticated either by the signature of the Minister or by facsimile of such signature or in such manner as may be approved by the Minister.

Stock issued under the provisions of this Ordinance shall be in such form as the Minister may from time to time approve.

All stock issued under the provisions of this Ordinance shall be entered in a register to be kept for the purpose by the Treasury in such form as may from time to time be approved by the Minister.

All stock issued under the provisions of this Ordinance and the right to receive the principal moneys and interest represented thereby shall be transferable by an instrument of transfer registered by the Treasury.

No stock issued under the provisions of this Ordinance shall be registered except in the name of an individual person or persons or of a corporation.

The interest upon the principal moneys represented by stock issued under the provisions of this Ordinance shall be paid half-yearly at the office of the Treasury or at the Bank as shall be specified in the prospectus relating to the issue of such stock.

The Minister shall, in each half-yearly period ending with the day on which interest on stock issued under the provisions of this Ordinance falls due, appropriate out of the Consolidated Fund a sum equal to one half-year’s interest on the whole of the stock so issued in order that the interest for such half-year may be paid therefrom.

The Minister may appoint a Bank to perform the duties of the Treasury under this Part of this Ordinance.

The Minister may fix such fee as he considers reasonable to be charged on the Consolidated Fund for the performance by the Bank of any duties under the provisions of this Ordinance.

Commencing not later than two years after the date on which interest on stock issued under the provisions of this Ordinance shall commence to run, the Minister shall in each half-year ending on the day on which interest on such stock falls due in addition to the sum appropriated in accordance with the provisions of subsection (2) of section 10 of this Ordinance, 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 such stock.

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 such contribution to enable the loan to be redeemed out of the proceeds of the sinking fund when the same falls due to be redeemed, the Minister may suspend further payments of such contributions to the sinking fund:Provided that the Minister may at any time recommence payment of such contribution 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.

The Accountant-General shall in each year pay into the sinking fund created under this section a sum equivalent to the annual interest which would have been payable on any local stock purchased under subsection (3) of this section if such stock had not been purchased as aforesaid.