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Regulation 5 Payments in respect of bonds

Original text. Later amendments are not shown.

(1)

Regulation 8 is amended as follows.

(2)

For paragraph (1) there shall be substituted—

“(1)

Every payment in respect of a bond shall be made by crossed warrant except to the extent that—

(a)

payment is made by any other means in accordance with the terms and conditions subject to which the bond is held,

(b)

the Director of Savings otherwise directs, or

(c)

the applicant for the payment requests that all or part of the amount payable be used to—

(i)

purchase another bond or bonds or any other description of security issued by the Treasury for the purpose of raising money under the auspices of the Director of Savings, or

(ii)

make a deposit with the National Savings Bank,

and the Director of Savings consents thereto.

(1A)

In the absence of a direction or request within paragraph (1) above, every application for payment in respect of a bond shall be treated as conferring authority on the Director of Savings—

(a)

subject to the terms and conditions subject to which the bond is held, to issue a crossed warrant for that amount and pay it in accordance with the terms of the warrant, or

(b)

to make payment by such other means (if any) as may be provided for in those terms and conditions.

(1B)

The death of any person who made an application for payment in respect of a bond shall not of itself determine the authority mentioned in paragraph (1A) above, but if the Director of Savings receives notice that the applicant has countermanded such authority or has died, the Director of Savings—

(a)

shall not issue a warrant or, if such a warrant has already been issued, shall take all reasonable steps to stop payment thereof, and

(b)

shall not initiate the making of payment by other means or, if such payment has already been initiated, shall take all reasonable steps (if any) as may, having regard to the nature of the means of payment concerned, be within his power to prevent completion of the payment.”.

(3)

Paragraphs (3) and (5) shall be omitted.

(4)

For paragraph (6) there shall be substituted—

“(6)

The posting of a warrant to any person at the last address furnished to the Director of Savings shall, as regards the liability of the Treasury or the Director of Savings, be equivalent to the delivery of the warrant to that person.”.