Regulation 17 Exchange of stock on books of Bank of England or Ireland for stock on register

Subject to the terms of the prospectus relating to the issue of any stock on the register, and subject to the provisions of this Regulation, any stock on the books of the Bank of England or of the Bank of Ireland may, if the stock is of a description corresponding to any stock of that issue, be exchanged by the holder thereof for stock on the register of a corresponding amount and description.

Notwithstanding anything in paragraph (1) of this Regulation, no stock of any one description in the beneficial ownership of any particular person shall be exchanged under this Regulation at any time in a calendar year, if, immediately after the completion of the exchange, the aggregate nominal amount of the stock of that description so exchanged in that year, while in the beneficial ownership of that person, would exceed £5,000:

Provided that the foregoing prohibition shall not apply to an exchange of any stock which is in the beneficial ownership of a friendly society entitled under section 331 or 332 of the Income and Corporation Taxes Act 1970 to exemption from income tax.

Every application for an exchange of stock under this Regulation shall be made by sending to the Bank of England or the Bank of Ireland, as the case may be, an application in writing in the approved form, and every such application shall contain a statement, and, if the Bank so requires, be accompanied by a statutory declaration, specifying the name and address of the person who is the beneficial owner of the stock.

For the purpose of effecting any such exchange, the Bank shall, after writing off from its books the stock to be exchanged, send particulars thereof to the Director of Savings, who shall thereupon register stock of a corresponding amount and description in the name of the holder.

For the purposes of this Regulation, stock shall be deemed to be in the beneficial ownership of a person if, and only if, he is beneficially entitled in possession to the income, or to a proportion of the income, derived therefrom, and where a person is so entitled to a proportion of the income, such proportion only of the stock as corresponds to that proportion of the income shall be treated as being in his beneficial ownership.

In this Regulation the expression “stock” includes securities.

Nothing done in pursuance of this Regulation shall be taken to affect the Bank of England or the Bank of Ireland with notice of any trust or of the fiduciary character of any holder, or of any fiduciary obligation attaching to the holding, of any stock.