# The Savings Certificates Regulations 1991, Regulation 21: Forfeiture of certificates


(1) Subject to the provisions of this regulation, if anyperson—
(a) not being a person entitled under regulation 4 or Part I ofSchedule 1 so to do, purchases or holds a certificate; or
(b) purchases or holds any certificate in contravention of regulation 5or Part II of Schedule 1 (which prescribe the maximum number of unitswhich may be purchased);
the certificate shall, if the Director of Savings so directs, beforfeited:
Provided that, in any case in which the Director of Savings hasdirected the forfeiture of any certificates, he may, if he thinks fit, pay tothe person concerned or credit to him in the National Savings Bank:
(i) a sum equal to the aggregate amount of the purchase price ofthe certificates forfeited;
(ii) (in the case of any certificates which the person concernedhas purchased or held when he was not entitled so to do under regulation4) such sum by way of interest, not exceeding the amount of interestwhich had accrued due in respect of those certificates immediatelybefore the forfeiture thereof, as the Director of Savings maydetermine;
(iii) (in the case of any certificate which the person concernedhas purchased or held when he was not entitled so to do under Part I ofSchedule 1) such sum by way of bonus or otherwise, not exceeding theamount of the bonus or other sum which had accrued due in respect ofthose certificates immediately before the forfeiture thereof, as theDirector of Savings may determine;
(iv) (in the case of any certificates which the person concernedhas purchased or held in contravention of regulation 5 or Part II ofSchedule 1) interest, at such rate as the Director of Savings thinksfit, on a sum equal to the purchase price of those certificates, beinginterest computed in such manner as the Director of Savings, with theapproval of the Treasury, may direct.
(2) For the purposes of the foregoing provisions of this regulation, amultiple certificate shall be taken to be such number of unitcertificates as is represented by the multiple certificate.
(3) For the purposes of any Order under section 4 of the NationalSavings Bank Act 1971 (which empowers the Treasury by order to limit theamount of deposits in the National Savings Bank) or any Order havingeffect as if made under that section, any sum credited to a person underthis regulation shall, if the Director of Savings so directs, bedisregarded.
(4) Notice of any forfeiture under this regulation shall be sent to theperson concerned as soon as may be, and the Director of Savings mayrequire any certificate which might be or is affected to be delivered upto him for the purpose of being either cancelled or altered or otherwisedealt with, as may be necessary to give effect to the provisions of thisregulation.

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Source: https://www.legislation.gov.uk/uksi/1991/1031/regulation/21 (the official version)
Page: https://openlegislation.uk/savings-certificates-regulations-1991/regulation-21
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.