The Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations 2003

Modification of the Treasury Bills Act 1877

1.  For the purposes of regulation 14, and the definition of “eligible Treasury bill” in the principal regulations, the 1877 Act is modified as set out in paragraphs 2 to 6, and the 1968 Regulations are modified as set out in paragraphs 7 to 13.

2.  In section 2–

(a)before the definition of “prescribed”, insert–

• “The expression “the 2001 Regulations” means the Uncertificated Securities Regulations 2001(1), as amended from time to time.”;

(b)after the definition of “prescribed”, add–

• “The expressions “issue”, “relevant system”, “unit” and “uncertificated” have the same meaning as in the 2001 Regulations, as amended from time to time.”.

3.  In section 4, for the words from “in the prescribed form” to “the bill”, substitute, “for the payment of a principal sum to the holder of one or more uncertificated units of the bill at a date not more than twelve months from the date of issue of that unit or those units”.

4.  In section 5, for “of and interest on”, substitute “and interest payable in respect of”.

5.  For section 8(2), substitute–

“(2) Each Treasury bill (and each uncertificated unit of such bill) shall be for the payment of such a principal sum or sums as may be directed by the Treasury.”.

6.  In section 9–

(a)in subsection (1), omit “mode of payment,”;

(b)omit subsections (2) and (4);

(c)in subsection (3), omit the words from “, by the use” to “otherwise,”;

(d)at the end, add–

• “No regulation under this Act applies in relation to uncertificated units of a Treasury bill to the extent that it is inconsistent with–

  (a)

  the holding of such units in uncertificated form;

  (b)

  the transfer of title to such units by means of a relevant system; or

  (c)

  the 2001 Regulations.”.