Trustee Investments Act 1961

Part IV U.K. Supplemental

1The securities mentioned in Parts I to III of this Schedule do not include any securities where the holder can be required to accept repayment of the principal, or the payment of any interest, otherwise than in sterling.

2The securities mentioned in paragraphs 1 to 8 of Part II, other than Treasury Bills or Tax Reserve Certificates, securities issued before the passing of this Act by the Government of the Isle of Man, securities falling within paragraph 4 of the said Part II issued before the passing of this Act or securities falling within paragraph 9 of that Part, and the securities mentioned in paragraph 1 of Part III of this Schedule, do not include—

(a)securities the price of which is not quoted on [F1a recognised investment exchange within the meaning of the M1Financial Services Act 1986];

(b)shares or debenture stock not fully paid up (except shares or debenture stock which by the terms of issue are required to be fully paid up within nine months of the date of issue).

3The securities mentioned in paragraph 6 of Part II and paragraph 1 of Part III of this Schedule do not include—

(a)shares or debentures of an incorporated company of which the total issued and paid up share capital is less than one million pounds;

(b)shares or debentures of an incorporated company which has not in each of the five years immediately preceding the calendar year in which the investment is made paid a dividend on all the shares issued by the company, excluding any shares issued after the dividend was declared and any shares which by their terms of issue did not rank for the dividend for that year.

For the purposes of sub-paragraph (b) of this paragraph a company formed—

(i)to take over the business of another company or other companies, or

(ii)to acquire the securities of, or control of, another company or other companies,

or for either of those purposes and for other purposes shall be deemed to have paid a dividend as mentioned in that sub-paragraph in any year in which such a dividend has been paid by the other company or all the other companies, as the case may be.

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4In this Schedule, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say—

• “debenture” includes debenture stock and bonds, whether constituting a charge on assets or not, and loan stock or notes;

• “enactment” includes an enactment of the Parliament of Northern Ireland;

• “fixed-interest securities” means securities which under their terms of issue bear a fixed rate of interest;

• “local authority” in relation to the United Kingdom, means any of the following authorities—

  (a)

  in England and Wales, the council of a county, a . . . F5 borough . . . F6, an urban or rural district or a parish, the Common Council of the City of London [F7the Greater London Council] and the Council of the Isles of Scilly;

  (b)

  in Scotland, a local authority within the meaning of the M2Local Government (Scotland) Act, 1947;

  (c)

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• “securities” includes shares, debentures [F10units within paragraph 3 of Part III of this Schedule], Treasury Bills and Tax Reserve Certificates;

• “share” includes stock;

• “Treasury Bills” includes . . . F11 bills issued by Her Majesty’s Government in the United Kingdom and Northern Ireland Treasury Bills.

5U.K.It is hereby declared that in this Schedule “mortgage”, in relation to freehold or leasehold property in Northern Ireland, includes a registered charge which, by virtue of subsection (4) of section forty of the M3Local Registration of Title (Ireland) Act 1891, or any other enactment, operates as a mortgage by deed.

6References in this Schedule to an incorporated company are references to a company incorporated by or under any enactment and include references to a body of persons established for the purpose of trading for profit and incorporated by Royal Charter.

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