Bank Act 1892

1Remuneration to Bank of England for management of unredeemed debt inscribed in books

There shall be paid to the Bank of England during the period in this Act mentioned as remuneration for the management of the National Debt inscribed in their books, an annual sum calculated at the rate of three hundred and twenty-five pounds for every million pounds of such debt up to five hundred million pounds, and at the rate of one hundred pounds for every million pounds of such debt above the said five hundred million pounds: Provided that during the said period the said annual sum shall not be less than one hundred and sixty thousand pounds.

2Remuneration to Bank of Ireland for management of unredeemed debt inscribed in books

There shall be paid to the Bank of Ireland, during the period in this Act mentioned, as remuneration for the management of the National Debt inscribed in their books an annual sum calculated at the rate of four hundred and twenty-five pounds for every million pounds, if such debt does not exceed thirty million pounds, and if it does exceed that sum, then at the rate of three hundred pounds for every million pounds of such debt: Provided that during the said period the said annual sum shall not be less than eight thousand pounds.

3Remuneration to Bank of England for management of Exchequer bonds and bills and Treasury bills

There shall be paid to the Bank of England, during the period in this Act mentioned, for the management in every financial year, of Exchequer bonds, Exchequer bills, and Treasury bills, an annual sum calculated at the rate, as respects Exchequer bonds and Exchequer bills, of one hundred pounds, and, as respects Treasury bills, of two hundred pounds, for every million pounds of bonds or bills outstanding on the last day of the previous financial year.

4General provision as to payments for management of unredeemed debt and of Exchequer bonds and bills and Treasury bills

(1)The annual sums fixed by this Act for the management of the National Debt inscribed in the books of the Bank of England or Ireland and of Exchequer bonds, Exchequer bills, and Treasury bills shall be payable in respect of that management for every financial year up to and including the year ending the thirty-first day of March, one thousand nine hundred and twelve, and thereafter from year to year until Parliament otherwise directs.

(2)The annual sums for the said management in any financial year shall be paid before the fifth day of July in the following financial year.

(3)The National Debt Commissioners shall certify the amount of the unredeemed National Debt which on the last day of every financial year is inscribed in the books of the Bank of England and Bank of Ireland respectively, and the annual sums for the management of the Debt in the following financial year shall be calculated on the amount so certified.

(4)Such certificate shall state the nominal capital amount of all the unredeemed National Debt so inscribed, and shall state the capital amount of every terminable annuity at fifteen years purchase thereof if originally created for a term exceeding fifty years, and at ten years purchase thereof if originally created for a term of fifty years or under.

(5)The said annual sums shall continue to be payable out of the permanent annual charge for the National Debt.

(6)For the purpose of calculating the said annual sums, the National Debt shall include the Local Loans stock and Guaranteed Land stock, but such proportion of those sums as is payable in respect of the management of the two last-mentioned stocks shall be paid to the Bank in the case of the Local Loans stock out of the Local Loans fund, and in the case of Guaranteed Land stock out of money provided by Parliament for the service of the Irish Land Commission.

5Rate of interest on Government debt to the Banks of England and Ireland

Whereas the Bank of England and the Bank of Ireland respectively have consented to the annuity or interest on the debt to them from the public being reduced to the rate of two and three-quarters per cent per annum until the fifth day of April one thousand nine hundred and three; Be it therefore enacted as follows:

(1)The annuity or interest payable as part of the permanent annual charge for the National Debt—

(a)in respect of the debt due from the public to the Bank of England, (which at the passing of this Act amounts to eleven million fifteen thousand and one hundred pounds); and

(b)in respect of the debt due from the public to the Bank of Ireland, (which at the passing of this Act amounts to two million six hundred and thirty thousand seven hundred and sixty-nine pounds four shillings and eightpence),

shall be at the rate of two pounds fifteen shillings per cent per annum, until the fifth day of April, one thousand nine hundred and three, and after that day, at the rate of two pounds ten shillings per cent per annum : Provide that if the Bank concerned by notice in writing to the Treasury six months before the said day decline to accept such lower rate of interest, the debt to that Bank may be paid off without further notice, and until payment, the said annuity or interest shall continue to be payable at the rate of two pounds fifteen shillings per cent per annum.

(2)The said annuity or interest shall be paid by equal quarterly payments on the fifth day of January, the fifth day of April, the fifth day of July, and the fifth day of October in each year.

6Mode of dealing with dead Bank of England notes

(1)Where Bank of England notes issued more than forty years have not been presented for payment, the Bank of England may write off the amount, or any proportion of the amount of the said notes from the total amount of notes issued from the issue department, and the Bank Charter Act 1844 shall apply as if the amount of notes so written off had not been issued ; Provided that—

(a)a return of the amount of notes so written off shall be forthwith sent to the Treasury and laid by them before Parliament; and

(b)this section shall not affect the liability of the Bank to pay any note included in the amount so written off, and if it is presented for payment the amount shall either be paid out of the bank notes, gold coin, or bullion, in the banking department, or, if it is exchanged for gold coin or bullion in the issue department, or for a note issued from the issue department, a corresponding amount of gold coin or bullion shall be transferred from the banking department and appropriated to the issue department.

(2)This section shall be construed as one with the [7 & 8 Vict. c. 32.] Bank Charter Act, 1844.

7Internal regulations and stock of Bank of England

(1)It shall be lawful for Her Majesty the Queen to grant, and for the Bank of England to accept, a supplemental charter regulating the internal affairs of the corporation of the Bank of England, and if such charter is granted the Acts specified in Part III. of the schedule to this Act shall be repealed as from the date of such supplemental charter to the extent in the third column of that schedule mentioned.

(2)Notwithstanding the repeal of any enactment by this Act the capital stock of the Bank of England as existing at the passing of this Act shall be subject to the enactments so far as unrepealed which relate to stock of the Bank of England, and the holders of the stock shall be members of the corporation of the Bank of England.

8Short title, commencement, and repeal

(1)This Act may be cited as the Bank Act, 1892.

(2)This Act shall take effect as from the beginning of the current financial year.

(3)The Acts set out in Parts I. and II. of the schedule to this Act are hereby repealed to the extent in the third column of that schedule mentioned.