S.I. No. 55/1966:

NATIONAL BONDS REGULATIONS, 1966.

NATIONAL BONDS REGULATIONS, 1966.

I, JOHN LYNCH, Minister for Finance, in exercise of the powers conferred on me by section 4 of the Central Fund Act, 1965 (No. 4 of 1965), hereby make the following regulations :

1. These Regulations may be cited as the National Bonds Regulations, 1966.

2. In these Regulations--

" the Bank " means the Central Bank of Ireland;

" bond " means a security issued, whether before or after the making of these Regulations, under section 4 of the Central Fund Act, 1965 , and called a National Bond;

" the Minister " means the Minister for Finance;

" the register " has the meaning specified in Regulation 3 (1);

" register certificate " has the meaning specified in Regulation 3 (2).

3. (1) The Bank shall keep a register (in these Regulations referred to as the register) in which there shall be entered the names and addresses of all persons who are for the time being holders of bonds and the distinctive numbers of the bonds of which those persons are respectively for the time being holders.

(2) The Bank shall issue to the registered holder of a bond a certificate of registration (in these Regulations referred to as a register certificate) in such form as may be approved of by the Minister.

(3) Where the names of two or more persons are entered in the register as joint holders of a bond, nothing in the preceding paragraphs of this Regulation shall be construed as requiring the Bank to issue more than one register certificate in respect of that bond and delivery of the relevant register certificate to one of the several joint holders shall be sufficient delivery to all of them.

(4) A register certificate shall be prima facie evidence of the title of the person or persons named therein to the bond specified therein.

(5) The number of holders in a joint holding shall not except with the consent of the Bank, exceed four.

4. Except as hereinafter provided and subject to the provisions of these Regulations, no entry with respect to any trust, expressed, implied or constructive, shall be made in the register or in a register certificate and no notice of any such trust shall be receivable by the Bank in respect of a register certificate.

5. (1) On a proper demand made by a person in whose name any bond is standing, or by any person into whose name the bond is to be transferred, that he may be described in the books of the Bank with respect to that bond as a trustee and whether as a trustee of a trust specified in the demand or as a trustee without any such qualification, the Bank shall make such entries in their books, and in the register certificate, as it reasonably considers necessary for the purposes of complying with the demand.

(2) A demand for the purpose of this Regulation shall be made in writing in such manner as the Bank may require or, on the occasion of a transfer of the bond, by inserting the desired description in the instrument of transfer after the name and address of the transferee.

(3) Where a demand is made under this Regulation, the register certificate shall be transmitted to the Bank with the demand.

6. (1) Nothing in these Regulations shall, as between any trustees, or as between any trustees and the beneficiaries under a trust, be deemed to authorise the trustees to act otherwise than in accordance with the rules of law applying to the trust and the terms of the instrument constituting the trust, or affect the mutual rights of joint bondholders.

(2) Neither the Bank nor any person acquiring any interest in any bonds shall, by reason only of any entry in the books of the Bank in relation to any bonds ar any bondholder, or of anything in any document relating to bonds, be affected with notice of any trust, or of the fiduciary character of any bondholder or of any fiduciary obligation attaching to the holding of any bonds.

7. Where any power of attorney purporting to be executed by a bondholder described in the books of the Bank as a trustee is produced to the Bank, the Bank shall not be concerned to enquire whether the bondholder is entitled under the terms of the trust to give any such power and may act on the power in the same manner as though the bondholder had not been so described, and whether the bondholder is or is not described in the power as a trustee, and whether he does or does not purport to execute the power in his capacity as a trustee.

8. (1) If a register certificate is worn out or defaced, the Bank shall, on surrender of the certificate and payment of a fee of two shillings and sixpence, issue a new certificate to the person entitled to the surrendered certificate.

(2) If it is shown to the satisfaction of the Bank that a register certificate has been lost or destroyed the Bank shall, on receiving indemnity to its satisfaction against all claims in respect of the lost or destroyed certificate, and on payment of a fee of two shillings and sixpence, issue a new certificate to the person entitled to the lost or destroyed certificate.

9. (1) The bonds shall be transferable by instrument in writing in any usual or common form, but, in the case of a bond standing in the names of two or more persons, no transfer of the bond shall be effected if any of those persons has not attained the age of twenty-one years, and, in the case of a bond standing in the name of a person who has not attained that age, no transfer of the bond shall be effected until that person has attained that age.

(2) Every instrument of transfer shall be delivered to and retained by the Bank, and the relative register certificate shall be transmitted to the Bank with the instrument.

10. The Bank on receiving an instrument of transfer which is duly executed and accompanied by the relative register certificate shall, subject as hereinafter provided, complete a transfer by making such alterations in the register as are necessary to show the effect of the transfer :

Provided that--

(a) the Bank shall not be required to complete a transfer until the expiration of at least ten days from the date on which the instrument of transfer was delivered to the Bank, or until the expiration of at least three days from the date on which a reply from the transferor to any notice sent by the Bank informing him of the proposed transfer would, if posted immediately after the receipt of the notice, reach the Bank in the ordinary course of post; and

(b) the Bank may in any case, if it thinks fit, refuse to recognise an instrument of transfer unless there is produced to the Bank in addition to the register certificate such other evidence as the Bank may reasonably require as to the identity of the transferor and his right to make the transfer, and, in the case of an instrument of transfer executed by a corporate body, unless there is produced to the Bank a statement in writing signed by the Chairman (by whatever title designated) of the body, to the effect that the transfer has the sanction of the body, or, where the business is normally managed by an executive committee (by whatever title designated), of that committee, and where the body has a common seal, that the seal has been duly affixed to the instrument of transfer.

11. On the completion of a transfer, the Bank shall issue to the transferee, without charge, a new register certificate of the bond transferred.

12. Any power of attorney given for any purpose of these Regulations may be retained by the Bank.

13. (1) The Bank may open and keep accounts of bonds in its books under the official description of a person holding any office or position, whether the bonds are held by that person alone or are held by him jointly with other persons; and the personal name of that person need not be stated in the accounts.

(2) Where any bond stands on an account kept under the provisions of this Regulation, any document relating to the bond may be executed by the person for the time being holding the office or position as if the bond stood in his own name.

(3) Where any person in whose name any bond is standing, whether alone or jointly with other persons, is the holder of any office or position, the Bank shall, on a proper demand made by him, or, in the case of a joint account, by all the bond holders, close the existing account and open an account with respect to that bond, or alter the existing account so that it shall become an account, under the official description of that person, either alone or jointly with the other bondholders, as the case may be, and the Bank shall make such entries in its books, and in the register certificate, as it reasonably considers necessary for the purpose of complying with the demand.

In the case of any bond, a demand for the purpose of this provision may be made by any person or persons into whose names the bond is to be transferred, if he or any of them is the holder of any office or position.

(4) A demand for the purpose of this Regulation shall be made in writing in such manner as the Bank may require, or, on the occasion of a transfer of the bond, by describing the person holding the office or position in the instrument of transfer under his official description instead of under his personal description.

(5) Where a demand is made under this Regulation, the register certificate shall be transmitted to the Bank with the demand.

(6) The Bank, before acting on any demand purporting to be made, or on any document purporting to be executed, in pursuance of this Regulation by a person as being the holder of any office or position, may require him to produce evidence to its satisfaction that he is the holder of that office or position.

14. (1) Where any bond stands on a joint account in the name of three or four bondholders and a proper demand has been made with respect to the bond, all things required to be done for the purpose of transferring this bond or any bond for the time being standing on that account may, subject to the provisions of this Regulation, be done and given by a majority of the persons who are the bondholders at the date when the demand is made or, where those persons are four in number and one of them dies, by a majority of the survivors of them.

(2) A demand for the purpose of this Regulation shall be made by the bondholders in whose names the bond is standing, and in writing in such manner as the Bank may require.

(3) A person, whose name is for the time being entered in the books of the Bank as one of the holders of any bond with respect to which a demand has been made under this Regulation, may give notice in writing to the Bank that the demand is revoked, and if notice is so given then the provisions of this Regulation shall as from the receipt of the notice by the Bank cease to apply to that bond.

15. (1) On a proper demand made by the executor or administrator of a sole bondholder or of the last surviving bondholder on a joint account with respect to any bond standing in the name of that bondholder, that bond shall be transferred in the books of the Bank into the personal name of the executor or administrator, and the Bank shall, for that purpose, make all such entries in its books, and in the register certificate, as it reasonably considers necessary for the purpose of complying with the demand :

Provided that if the transfer of the bond is for the time being restrained by distringas or other legal process, the Bank may refuse to comply with the demand.

(2) For the purposes of Regulation 5 and Regulation 14 of these Regulations, executors or administrators by whom a demand is being made under this Regulation shall be deemed to be persons into whose name a bond is to be transferred and the demand shall be deemed to be an instrument of transfer, and a demand under either or both of those Regulations may be made in conjunction with a demand under this Regulation.

(3) A demand for the purpose of this Regulation shall be made in writing in such manner as the Bank may require, and the probate of the will, or the letters of administration to the estate of the deceased bondholder, if the Bank so requires, and also the register certificate, shall be transmitted to the Bank with the demand.

16. If any individual person holding, whether by himself alone or with another person, any bond is of unsound mind or an infant or otherwise under legal disability, anything which under these Regulations is required or authorised to be done by or to the holder or holders of the bond shall or may be done, as respects such person, by or to the committee of, or other person having power in law to administer, his estate.

17. (1) Payment of the sum payable on the redemption of a bond shall be made by the Bank by cheque or warrant or by lodgment to a banking account.

(2) The Bank shall not be required to pay any sum for the redemption of a bond unless the register certificate and any document required by the Bank to be completed in connection with the redemption of such bond have been returned to the Bank.

18. (1) Any mistake in any register certificate or any document received by a person in pursuance of these Regulations shall, as soon as practicable, be notified in writing to the Bank by the person receiving the register certificate or document.

(2) If the Bank is satisfied that any transaction effected or thing done, or purporting to have been effected or done, in accordance with these Regulations has been effected or done in error, the Bank may cancel the transaction and may take all such steps as are, in the opinion of the Bank, necessary to rectify the error, and may for that purpose require the surrender to the Bank of any register certificate or other document.

19. (1) The Minister, the Bank and any person acting under the authority of the Minister or the Bank shall not be liable in respect of any payment duly made or act done in accordance with these Regulations, and any such payment shall, subject to the provisions of these Regulations for saving the rights of third parties, be deemed to have been a valid payment and shall constitute a full discharge to the Minister and the Bank in respect thereof.

(2) Where as respects the sum payable on the redemption of a bond, a cheque or warrant is issued to, or a lodgment to a banking account is made in favour of, some person or persons being neither the holder or holders of the bond nor a person or persons entitled under these Regulations to receive payment in respect thereof, then, if it is shown that--

(a) the cheque or warrant was issued, or the lodgment was made, by the Bank in good faith and without negligence, and

(b) the issue of the cheque or warrant to, or the making of the lodgment in favour of, that person or those persons is attributable to some act or omission on the part of the holder or holders or a person or persons so entitled,

the cheque or warrant shall be deemed to have been duly issued to, or the lodgment shall be deemed to have been duly made in favour of, the person entitled to the sum payable, subject however to the provisions of these Regulations for saving the rights of third parties.

(3) The posting of a letter or envelope containing a cheque, warrant or register certificate addressed to any person at the last address furnished by him to the Bank shall, as regards the liability of the Minister or of the Bank, be equivalent to the delivery of the cheque, warrant or register certificate to the person to whom the letter or envelope was addressed.

20. Nothing in these Regulations for the protection of the Minister or the Bank in respect of any act done or any money paid shall operate to prevent the recovery by any person or his representative of any money lawfully due to him from the person to whom that money was paid by or under the direction of the Minister or the Bank, or from the representatives of that person, or affect the right which any person or his representative may have in respect of a bond against a third party.

21. Where under these Regulations any demand is required to be made or any document to be completed in such manner as the Bank may require, the document in which the demand is to be made or the document to be completed shall contain a full and specific statement of the particulars required to be given, and any such document which is required by the Bank to be signed by any person shall be signed by that person.

22. Nothing in these Regulations shall be held to prejudice the right of the Bank to require evidence to be given to its satisfaction of the identity of any person or of the title of any person to any register certificate, document, or money, or to require evidence that anything purporting to be had or done in pursuance of these Regulations has been duly had or done, or otherwise with respect to any matters on which the due exercise of its powers or performance of its duties under these Regulations depends, and the Bank may, for the purpose of obtaining any such evidence, require a statutory declaration to be made by any person.

GIVEN under my Official Seal, this 16th day of March, 1966.

JOHN LYNCH,

Minister for Finance.

EXPLANATORY NOTE.

Section 4 of the Central Fund Act, 1965 authorised the creation and issue by the Minister for Finance of non-interest bearing securities. These Regulations make provision in relation to the registration and management of National Bonds issued under that section.