PUBLIC WORKS LOAN (1929)

PUBLIC WORKS LOAN (1929)<br />

PUBLIC WORKS LOAN (1929)

AN ORDINANCE TO MAKE PROVISION FOR CERTAIN LOANS FOR THE CONSTRUCTION OF CERTAIN PUBLIC WORKS AND OTHER PURPOSES.

Ordinance Nos,
26 of 1929

[29^th October
, 1929 ]

Short title.

1. This Ordinance may be cited as the Public Works Loan (1929) Ordinance.

Authority to Governor to borrow for certain purposes.

2. The Governor is hereby authorized to raise by a loan or loans a total sum not exceeding thirty-eight million eight hundred and forty thousand rupees to be appropriated and applied in accordance with the provisions of sections 7 and 10 of this Ordinance and for the purposes specified in the Schedule, and, in addition to such sum as aforesaid, such further sum as may be necessary to defray the expenses of the raising of the loan.

Loans to be a charge upon general revenue and assets.

3. The principal moneys and interest subscribed or payable in respect of a loan authorized by this Ordinance are hereby charged upon and shall be payable out of the general revenue and assets of Ceylon.

Method of issuing loans.

4. A loan authorized by this Ordinance may be
raised by such instalments, at such time or times, and by such of the following methods as the Governor may direct-

(a) by the issue of stock under the provisions of the Ceylon Inscribed Rupee Stock Ordinance ;

(b) by the issue of stock or debentures or both under the provisions of the General Loan and Stock Ordinance ;

Rate of exchange in calculation of amount of sterling loan.

5. For the purpose of calculating the total sum which may be borrowed under the authority of this Ordinance any sum borrowed in sterling currency shall be converted into rupees at the rate of one shilling and six pence to the rupee.

Transfer of sums from an item of Schedule to another purpose.

6. It shall be lawful for the Governor to direct that any sum provided under any item of the Schedule which may not be required for the purpose indicated in that item may be appropriated and applied to any other purpose, whether indicated in the Schedule or not:

Provided that no such transfer of money from any one purpose to any other purpose shall be made unless such transfer shall first have been approved by a resolution of the State Council and by a Secretary of
State.[3]

Refund from loan to general revenue.

7. There shall be refunded out of the proceeds of the loan or loans raised in accordance with section 2 to the general revenue of Ceylon-

(a) all sums expended therefrom prior to the 1st day of October, 1929, not exceeding a total of twenty-five million rupees, in respect of any of the items mentioned in the Schedule ;

(b) all sums which may have been or may be expended therefrom after the 1st day of October, 1929, in respect of any of the said items.

Enlargement of limitation of interest imposed by-section 3 of the Ceylon Inscribed Rupee Stock Ordinance.

8. Notwithstanding the proviso to section 3 of the Ceylon Inscribed Rupee Stock Ordinance, any stock issued under the provisions of that Ordinance for a purpose authorized by or under this Ordinance may bear interest at a rate not exceeding six per centum per annum.

Date of commencement of contributions to sinking fund.

9. If a loan or any part thereof authorized by this Ordinance shall be issued under the provisions of the Ceylon Inscribed Rupee Stock Ordinance, or under the provisions of the General Loan and Stock Ordinance, the date from which contributions to the sinking fund in respect of any stock or debentures so issued shall commence shall be such date, not later than three years after the date from which interest on such stock or debentures shall be payable, as the Governor shall determine.

Power to issue Treasury Bills, and to repay expenditure in respect thereof from money borrowed under this Ordinance.

10.

(1) In anticipation of the issue of the whole or any portion of any loan authorized by this Ordinance, the Governor may, if he shall think fit, raise such instalments of any such loan as he may deem to be required by the issue of Treasury Bills under the Colonial Treasury Bills Ordinance, or the Local Treasury Bills Ordinance-

(2) Sums raised under this section shall be applied in the manner authorized for the loan in anticipation of which they are raised, and upon the raising of such loan the Governor may-

(a) expend from such loan such sums as may from time to time be necessary to meet the liabilities of Ceylon in respect of any such Treasury Bill; and

(b) refund from such loan to the general revenue of Ceylon a sum equal to the amount which shall have been or may be expended therefrom in respect of such liabilities.

Schedules