SCHEDULE 2APPLICATION AND MODIFICATION OF CERTAIN ENACTMENTS
Eligible Treasury bills
1
Section 5 of the National Debt Act 188915 applies in relation to eligible Treasury bills with the following modifications–
a
for “Treasury bills”, substitute, “The record (whether or not in the form of a document) containing the terms of an eligible Treasury bill”;
b
for “be impressed or affixed by machinery or otherwise”, substitute “appear in the record”.
2
A reference to Treasury bills in–
a
section 4 of the Enemy Property Act 195316;
b
Schedule 1 to the Trustee Investments Act 196117;
c
the National Loans Act 196818;
d
section 4(5) of the Government Trading Funds Act 197319;
e
Part I of Schedule 9 to the Companies Act 198520;
f
the Local Authorities (Capital Finance)(Approved Investments) Regulations 199021;
g
Schedule 1 to the Pilotage Act 1987 (Pilotage Commission: Transfer of Property, Rights and Liabilities) Order 199022;
h
regulations 9 and 23A of the Insolvency Regulations 199423;
i
Schedule 2 to the Companies (Summary Financial Statement) Regulations 199524; or
j
Schedule 2 to the Building Societies (Accounts and Related Provisions) Regulations 199825,
includes a reference to uncertificated units of eligible Treasury bills.
Eligible Northern Ireland Treasury Bills
3
A reference to Northern Ireland Treasury Bills in–
a
paragraph 4 of Part IV of Schedule 1 to the Trustee Investments Act 196126; or
b
paragraph 3(7) of Part III of Schedule 2 to the Building Societies (Accounts and Related Provisions) Regulations 199827,
includes a reference to uncertificated units of eligible Northern Ireland Treasury Bills.
Dematerialised loan instruments
4
A reference to a loan instrument in–
a
regulation 2 of the Local Authorities (Capital Finance) Regulations 199728;
b
the Local Authorities (Capital Finance)(Approved Investments) Regulations 199029,
includes a reference to uncertificated units of a dematerialised loan instrument.
Cash ratio deposits
5
In the Cash Ratio Deposits (Eligible Liabilities) Order 199830–
a
the reference to “acceptances” in paragraph (d) of the definition of “items in suspense” in article 2(1) includes a reference to obligations of an eligible institution (within the meaning of the Order) in respect of uncertificated units of an eligible debt security where the obligations correspond, in accordance with the current terms of issue of the security, to obligations under acceptances;
b
the reference in article 2(5) to “any certificates of deposit” includes a reference to uncertificated units of an eligible debt security where the issue of the units corresponds, in accordance with the current terms of issue of the security, to the issue of a certificate of deposit;
c
the reference in paragraph 2 of the Schedule to “certificates of deposit, commercial paper, bonds, notes and other similar instruments” includes a reference to uncertificated units of an eligible debt security where the issue of the units corresponds, in accordance with the current terms of issue of the security, to the issue of a certificate of deposit, commercial paper, bond, note or other similar instrument;
d
the reference in paragraphs 9(a) and 11 of the Schedule to “certificates of deposit and commercial paper” includes a reference to uncertificated units of an eligible debt security where the issue of the units corresponds, in accordance with the current terms of issue of the security, to the issue of a certificate of deposit or commercial paper;
e
the reference in paragraph 9(a) to “any instrument which falls within paragraph 11” includes a reference to any uncertificated units of an eligible debt security that fall within that paragraph as modified by this Schedule;
f
the reference in paragraph 11 to “notes and other similar debt instruments” includes a reference to uncertificated units of an eligible debt security where the issue of the units corresponds, in accordance with the current terms of issue of the security, to the issue of such notes or instruments.
Certificates of deposit
6
1
In an enactment to which this paragraph applies–
a
a reference to a certificate of deposit includes a reference to uncertificated units of an eligible debt security where the issue of those units corresponds, in accordance with the current terms of issue of the security, to the issue of a certificate of deposit which is a certificate of deposit for the purposes of that enactment; and
b
a reference to an amount stated in a certificate of deposit includes a reference to a principal amount stated in, or determined in accordance with, the current terms of issue of an eligible debt security of the kind referred to in subparagraph (a).
2
This paragraph applies to–
a
sections 56(1), (3) and (5), 56A(1) and (2), 349(3A) and (4), 477A(1A) and (10), 481(5) and (5A), 482(6) and 710(3) of, paragraph 8 of Schedule 20 to, the Income and Corporation Taxes Act 198831;
b
paragraph 12(e) of Schedule 2 to the Financial Services and Markets Act 200032;
c
Parts I and II of Schedule 2 to the Building Societies (Accounts and Related Provisions) Regulations 199833.
Commercial paper
7
A reference to commercial paper in Schedule A1 or Schedule 2A to the Insolvency Act 198634 includes a reference to uncertificated units of an eligible debt security where the issue of the units corresponds, in accordance with the current terms of issue of the security, to the issue of commercial paper within the meaning of article 9(3) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 200135.
Securities etc creating or acknowledging indebtedness
8
1
In a provision to which this paragraph applies, a reference to securities, instruments or investments creating or acknowledging indebtedness (or creating or acknowledging a present or future indebtedness) includes a reference to uncertificated units of eligible debt securities.
2
This paragraph applies to–
a
Schedule 1 to the Trustee Investments Act 196136;
b
section 98(1) of the Local Government Act 197237;
c
section 92(3) of the Local Government (Scotland) Act 197338;
d
section 3(6) of the Licensing (Alcohol Education and Research) Act 198139;
e
228(6)(b) of the Companies Act 198540;
f
paragraph 2 of Schedule 2 to the Criminal Justice Act 199341;
g
section 17(7A) of the Bank of England Act 199842;
h
paragraph 12(f) of Schedule 2, and paragraph 23 of Schedule 11, to the Financial Services and Markets Act 200043;
i
section 74(8) of the Postal Services Act 200044;
j
regulation 3 of the Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations 198745;
k
paragraph 2 of the Schedule to the Traded Securities (Disclosure) Regulations 199446;
l
paragraph 8 of Schedule 1 to the Railway Pensions (Transfer and Miscellaneous Provisions) Order 199447;
m
the Schedule to the British Coal Staff Superannuation Scheme (Modification) Regulations 199448;
n
the Schedule to the Mineworkers' Pension Scheme (Modification) Regulations 199449;
o
the Schedule to the Industry-Wide Coal Staff Superannuation Scheme Regulations 199450;
p
regulations 2(1), 3(2) and 7(2) of, and Schedule 1 to, the Public Offers of Securities Regulations 199551;
q
regulation 2(1) of the Occupational Pension Schemes (Minimum Funding Requirements and Actuarial Valuations) Regulations 199652;
r
regulations 5(3)(b) and 8 of the Occupational Pension Schemes (Investment) Regulations 199653;
s
regulation 1(3) of the Stakeholder Pension Schemes Regulations 200054;
t
Schedule 1 to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001;
u
Part IV of Schedule 3 to the Social Security (Contributions) Regulations 2001;
v
the Government Resources and Accounts Act 2000 (Investment by Devolved Administrations)(Public-Private Partnership Business) Order 2001;
w
articles 17(1), 31(1), 77(1) and 78 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.
Acceptance of certain instruments
9
The reference to a person becoming party to an instrument in each of article 17(2) and article 31(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 includes a reference to a person assuming rights and obligations in respect of uncertificated units of an eligible debt security in accordance with its current terms of issue.
Public offers of securities
10
In regulation 3(4) of the Public Offers of Securities Regulations 1995–
a
in subparagraph (a), the reference to debentures having a maturity of less than one year from their date of issue includes a reference to uncertificated units of an eligible debt security where the issue of the units corresponds, in accordance with the current terms of issue of the security, to the issue of a debenture having a maturity of less than one year from its date of issue;
b
in subparagraph (b), the reference to bills of exchange accepted by a banker includes a reference to uncertificated units of an eligible debt security where the issue of the units corresponds, in accordance with the current terms of issue of the security, to the issue of a bill of exchange accepted by a banker.
Building societies
11
In the Building Societies Act 198655–
a
the reference in section 7(2)(c) to bills of exchange, instruments or agreements creating or acknowledging indebtedness and accepted, made, issued or entered into by the society or any such undertaking includes a reference to uncertificated units of an eligible debt security in respect of which the obligations of the society or any such undertaking correspond, in accordance with the current terms of issue of the security, to those of the society or undertaking under such a bill of exchange, instrument or agreement;
b
the reference in section 7(3)(b)(ii) to indebtedness created or acknowledged by bills of exchange, instruments or agreements accepted, made, issued or entered into by the society or any such undertaking includes a reference to indebtedness of the society or any such undertaking in respect of uncertificated units of an eligible debt security where the indebtedness corresponds, in accordance with the current terms of issue of the security, to that created or acknowledged by such a bill of exchange, instrument or agreement;
c
in section 8–
i
the reference in subsection (2)(b) to a transferable instrument includes a reference to uncertificated units of an eligible debt security the holding of which confers, in accordance with the current terms of issue of the security, a right to receive an amount referable to a deposit with the building society that issued the units;
ii
neither the definition of “transferable instrument” in subsection (9) nor subsection (10) apply in relation to uncertificated units of an eligible debt security of the kind mentioned in subsubparagraph (i).
12
In Part III of Schedule 2 to the Building Societies (Accounts and Related Provisions) Regulations 199856–
a
in paragraph 3(3), a reference to similar debt instruments includes a reference to uncertificated units of an eligible debt security which are similar to uncertificated units of an eligible Treasury bill, or to uncertificated units of an eligible Northern Ireland Treasury Bill;
b
in paragraph 3(4), a reference to bills includes a reference to uncertificated units of an eligible debt security where the issue of the units corresponds, in accordance with the current terms of issue of the security, to the issue of such a bill;
c
in paragraph 9(b), the definition of “floating rate note” includes uncertificated units of an eligible debt security the holding of which confers, in accordance with the current terms of issue of the security, a right to receive a principal sum and interest at a rate which is variable at times specified, or determined in accordance with, the current terms of issue of the security;
d
in paragraph 9(c), the definition of “fixed rate note” includes uncertificated units of an eligible debt security the holding of which confers, in accordance with the current terms of issue of the security, a right to receive a principal sum and interest at a rate which is fixed as specified, or determined in accordance with, the current terms of issue of the security.
Bearer securities etc
13
A reference to bearer securities in–
a
sections 1 and 7(3) of the Trustee (Northern Ireland) Act 195857;
b
paragraph 14(2) of Schedule 6 to the Aircraft and Shipbuilding Industries Act 197758; and
c
paragraph 4 of Schedule 12 to the Finance Act 198959,
includes a reference to uncertificated units of eligible debt securities.
14
A reference to securities payable to bearer in–
a
section 7(1) of the Trustee (Northern Ireland) Act 1958;
b
section 31(a) of the Industrial and Provident Societies Act 196560;
c
regulation 8 of the Land Settlement (Annuities) Regulations 191961,
includes a reference to uncertificated units of eligible debt securities.
15
A reference to bearer instruments in articles 41(1) and 42(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 200162 includes a reference to uncertificated units of an eligible debt security the holding of which confers, in accordance with the current terms of issue of the security, rights which correspond to those conferred by an investment of a kind falling within paragraph 15(1) of Schedule 1 to that Order.
Application and modification of other enactments
16
Section 7(1) of the Trustee (Northern Ireland) Act 1958 applies in relation to uncertificated units of eligible debt securities with the omission of the words after “bank”.
17
The reference in paragraph 6 of Schedule 1 to the Local Government Act 197263 to “other securities so transferable” includes a reference to uncertificated units of eligible debt securities.
18
In any enactment, a reference to an enactment modified by these Regulations or the principal regulations includes a reference to that enactment as so modified.