# The Local Authority (Stocks and Bonds) Regulations 1974, Regulation 4


(1) Where a local authority has raised money by means of any security and have the power, with the consent of the holder, or otherwise, to redeem, they may redeem that security with money raised by the issue of stock or, with the consent of the holder, substitute stock for that security.
(2) A local authority may, in money or stock or both, make a reasonable payment to the holder referred to in paragraph (1) above for his consent or for otherwise compensating him for the redemption or substitution of his security.

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Source: https://www.legislation.gov.uk/uksi/1974/519/regulation/4 (the official version)
Page: https://openlegislation.uk/local-authority-stocks-and-bonds-regulations-1974/regulation-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.