Explanatory note

The Royal Mint Trading Fund (“the Fund”) was established by the Royal Mint Trading Fund Order 1975 (“the principal Order”) under the Government Trading Funds Act 1973 with effect from 1st April 1975. This Order extends the funded operations to include those operations consisting of the manufacture and supply of gifts and collectible items, other than coins, and any operation incidental or conducive to such manufacture or supply.

The Order also provides for the additional assets (estimated to be £750,000) and additional liabilities (estimated to be £450,000) attributable to the additional operations to be appropriated to the Fund. The net value of the additional assets (estimated at £300,000) will, in accordance with section 2(4) of the 1973 Act, be treated as originating debt of the Fund.

Article 4 of the Order increases the limitation on the total indebtedness of the Fund set by the principal Order. Article 4 provides that the total amount that may be outstanding in respect of loans to the Fund from the National Loans Fund (other than as originating debt), together with the total amount issued to the Fund under section 2A(2A) of the 1973 Act as public dividend capital, shall not at any time exceed £50 million.