SCHEDULE 1

PART 1ELIGIBLE TREASURY BILLS

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 20019, 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–

    1. a

      the holding of such units in uncertificated form;

    2. b

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

    3. c

      the 2001 Regulations.