27. Acceptance of advance deposits

In anticipation of the raising of a loan under Part 3* by the issue of Government securities, the Minister may, if the Minister thinks fit, authorise acceptance by the Authority of advance deposits on such terms as the Authority may determine.

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

For the purposes of subsection (2), where cheques for the advance deposits cannot be cleared on the day of receipt, interest is to be calculated from the next working day.

Interest on advance deposits must be paid half‑yearly.

The Minister must, in each half‑yearly period ending with the day on which interest on advance deposits falls due, appropriate out of the Government Securities 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 from that sum.

If a depositor wishes the whole or part of the advance deposits made by the depositor to be repaid, the depositor must give at least 2 working days’ notice to the Authority of the depositor’s intention and the advance deposits or that part of them (as the case may be) must be repaid to the depositor together with such interest as may be determined by the Authority.

Advance deposits may be converted to Government securities issued under this Act on such date as may be agreed between the Authority and the depositors.