[Rev. 1973]

LAWS OF GILBERT ISLANDS

CHAPTER 51

EXCHANGE CONTROL

ARRANGEMENT OF SECTIONS

Section

PART I

GOLD AND FOREIGN CURRENCY

1. Dealings in gold and foreign currency.
2. Surrender of gold and foreign currency.
3. Bailees of gold and foreign currency.
4. Travellers' cheques, etc.

PART II

PAYMENT

5. Payments in the Colony.
6. Payments outside the Colony.
7. Compensation deals.

PART III

SECURITIES

8. Issue of securities.
9. Transfer of securities and coupons.
10. Issue of bearer certificates and coupons.
11. Substitution of securities and certificates outside Colony.
12. Payment of capital moneys outside the Colony.
13. Duties of persons keeping registers.
14. Additional provisions as to nominee holdings.
15. Deposit of certificates of title.
16. Additional provisions as to deposited certificates.
17. Special provisions as to dealings in certain securities.
18. Validation of certain transfers.
19. Application of Part III to secondary securities.
20. Interpretation of Part III.

PART IV

IMPORT AND EXPORT

21. Restrictions on import.
22. General restrictions on export.
23. Payment for exports.

PART V

MISCELLANEOUS

24. Duty to collect certain debts.
25. Duty not to delay sale or importation of goods.
26. Property obtained by infringement of ordinance.
27. Provisions supplemental to preceding Provisions of Part V.
28. Transfer of annuities, policies, etc.
29. Settlements.
30. Companies.

PART VI

SUPPLEMENTAL

31. Exemptions.
32. Blocked accounts.
33. Contracts, legal proceedings, etc.
34. Enforcement and administration.
35. Application to Crown.
36. Orders.
37. Other powers.
38. Financial provisions.
39. Branches.
40. Persons leaving the scheduled territories.
41. Determination of residence.
42. General provisions as to interpretation.
43. Continuance in force of certain Defence Regulations.
44. Short title.

SCHEDULES

First Schedule - The Scheduled Territories.
Second Schedule - Foreign Companies.
Third Schedule - Blocked Accounts.
Fourth Schedule - Legal Proceedings, etc.
Fifth Schedule - Enforcement.
Part I - General Provisions as to evidence and information.
Part II - general provisions as to offences.
Part III - Import and export.
_______
7 of 1952.
16 of 1957
G.N. 178/60.
8 of 1971.
9 of 1971.
L.N. 16/72
13 of 1972.

An Ordinance to confer power, and impose duties restrictions, in relation to gold, currency, payments, securities, debts, and the import, export, transfer and settlement of property, and for purposes connected with the matters aforesaid.

Commencement: 15th July 1953 G.N. 163/56

PART I

GOLD AND FOREIGN CURRENCY

Dealings in gold and foreign currency.

1. (1) Except with the permission of the Governor, no person, other than an authorised dealer, shall, in the Colony, buy or borrow any gold or foreign currency from, or sell or lend any gold or foreign currency to, any person other than an authorised dealer.

(2) Except with the permission of the Governor, no person resident in the scheduled territories, other than an authorised dealer, shall, in the Colony, do any act which involves, is in association with or is preparatory to buying or borrowing any gold or foreign currency from, or selling or lending any gold or foreign currency to, any person outside the Colony.

(3) Where a person buys or borrows any gold or foreign currency in the Colony or, being a person resident in the scheduled territories does any act which involves, is in association with or is preparatory to the buying or borrowing of gold or foreign currency outside the Colony, he shall comply with such conditions as to the use to which it may be put or the period for which it may be retained as may from time to time be notified to him by the Financial Secretary.

(4) In this Ordinance -

(a) the expression "foreign currency" does not include any currency or notes issued by the Government or under the law of any part of the scheduled territories but, save as aforesaid, includes any currency other than sterling or Fiji, Australian or New Zealand dollars and any notes of a class which are or have at any time been legal tender in any territory outside the Colony, and any reference to foreign currency, except so far as the context otherwise requires, includes a reference to any right to receive foreign currency in respect of any credit or balance at a bank; and

(b) the expression "the scheduled territories" means the territories specified in the First Schedule, so, however, that the Governor may at any time by order amend the said Schedule, either by the addition or exclusion of territories or otherwise, and the said expression shall be construed accordingly.

Surrender of gold and foreign currency.

2. (1) Every person in the Colony who is entitled to sell, or to procure the sale of, any gold, or any foreign currency to which this section applies, and is not an authorised dealer, shall offer it, or cause it to be offered, for sale to an authorised dealer, unless the Financial Secretary consents to his retention and use thereof or he disposes thereof to any other person with the permission of the Financial Secretary.

The foreign currency to which this section applies is such foreign currency (hereafter in this Ordinance referred to as "specified currency") as may from time to time be specified by order of the Governor.

(2) If a person who has obtained the consent of the Financial Secretary to his retention and use of any gold or specified currency, and has stated in an application for the consent that he requires it for a particular purpose, no longer requires the gold or currency for that purpose, the preceding subsection shall thereupon apply to him in relation to that gold or currency as if the Financial Secretary had revoked his consent to his retention and use thereof.

(3) A person who acquires any gold or specified currency from an authorised dealer shall be treated far the purposes of this section as if the Financial Secretary had consented to the retention and use by him of that gold or currency (subject, however, to any conditions notified to him in accordance with subsection (3) of the preceding section), and as if any statement made by him in an application for that gold or currency as to the purpose for which he requires it had been made by him in an application for the Financial Secretary's consent to his retention and use thereof.

(4) Where a person has become bound under this section to offer or cause to be offered any gold or specified currency for sale to an authorised dealer, he shall not be deemed to comply with that obligation by any offer made or caused to be made by him, if the offer is an offer to sell at a price exceeding that authorised by the Financial Secretary, or without payment of any usual and proper charges of the authorised dealer, or otherwise on any unusual terms.

(5) Where a person has become bound under this section to offer or cause to be offered any gold or specified currency for sale to an authorised dealer and has not complied with that obligation, the Governor may direct that that gold or currency shall vest in the Financial Secretary, and it shall vest in the Financial Secretary accordingly free from any mortgage, pledge or charge, and the Financial Secretary may deal with it as he thinks fit, but the Financial Secretary shall pay to the person who would but for the direction be entitled to the gold or currency such sum as he would have received therefore if he had sold it to an authorised dealer in pursuance of an offer made under this section at the time when the vesting occurred.

(6) In any proceedings in respect of a failure to comply with the provisions of this section, it shall be presumed, until the contrary is shown, that the gold or currency in question has not been offered for sale to an authorised dealer.

Bailees of gold and foreign currency.

3. (1) Every person in, the Colony by whom or to whose order (whether directly or indirectly) any gold or any specified currency in the forest of notes is held in the Colony but who is not entitled to sell it or procure its sale shall notify the Financial Secretary in writing that he so holds that gold or currency.

(2) The Financial Secretary may direct any person in the Colony by whom or to whose order (whether directly or indirectly) any gold or any specified currency in the form of notes is held in the Colony, whether or not he is entitled to sell it or procure its sale, to cause that gold or currency to be kept at all times in the custody of such banker as may be specified in the direction.

Travellers' cheques, etc.

4. (1) This section applies to any document of a kind intended to enable the person to whom the document is issued to obtain foreign currency from some other person on the credit of the person issuing it, and in particular to any traveller's cheque or other draft or letter of credit so intended.

(2) For the purposes of this Ordinance, the person issuing a document to which this section applies, and the person to whom it is issued, shall be deemed respectively to sell and buy foreign currency and where foreign currency is obtained by means of the document to sell and buy that foreign currency.

(3) Any such document not expressed in terms of sterling or Fiji, Australian or New Zealand dollars shall, if it is of a kind intended to eatable the person to whom it is issued to obtain any specified currency, be treated also for the purposes of this Ordinance as itself being specified currency.

(4) Every person in the Colony who holds or to whose order there is held any document expressed in terms of sterling or Fiji, Australia or New Zealand dollars, shall encash it or cause it to be encashed in the scheduled territories with the person issuing it or with a banker, unless the Financial Secretary consents to his retention and use thereof and, where in his application for that consent he has stated that he requires it for a particular purpose, unless also he still requires it for that purpose.

(5) A person who acquires any document to which the last preceding subsection applies from an authorised dealer shall be treated for the purposes of that subsection as if the Financial Secretary had consented to the retention and use by hire of that document (subject, however, to any conditions notified to him in accordance with section 1(3)), and as if any statement made by him in an application for that document as to the purpose for which he requires it had been made by him in an application for the Financial Secretary's consent to his retention and use thereof.

PART II

PAYMENTS

Payments in the Colony.

5. Except with the permission of the Financial Secretary, no person shall do any of the following things in the Colony, that is to say -

(a) make any payment to or for the credit of a person resident outside the scheduled territories; or

(b) make any payment to or for the credit of a person resident in the scheduled territories by order or on behalf of a person resident outside the scheduled territories; or 

(c) place any sum to the credit of any person resident outside the scheduled territories:

Provided that where a person resident outside the scheduled territories has paid a sum in or towards the satisfaction of a debt due from him, paragraph (c) shall not prohibit the acknowledgement or recording of the payment.

Payments outside the Colony.

6. (1) Except with the permission of the Financial Secretary, no person in the Colony shall, subject to the provisions of this section, make any payment outside the Colony to or for the credit of a person resident outside the scheduled territories, and no person resident in the scheduled territories shall in the Colony do any act which involves, is in association with or is preparatory to the making of any such payment.

(2) Nothing in this section shall prohibit the doing of anything otherwise lawful by any person with any foreign currency obtained by him in accordance with the provisions of Part I or retained by him in pursuance of a consent of the Financial Secretary.

Compensation deals.

7. (1) Except with the permission of the Financial Secretary, no person shall in the Colony make any payment to or for the credit of a person resident in the scheduled territories, and no person resident in the scheduled territories shall in the Colony do any act which involves, is in association with or is preparatory to the making of any such payment outside the Colony, as consideration for or in association with -

(a) the receipt by any person of a payment made outside the scheduled territories, or the acquisition by any person of property which is outside the scheduled territories; or

(b) the transfer to any person, or the creation in favour of any person, of a right (whether present or future, and whether vested or contingent) to receive a payment outside the scheduled territories or to acquire property which is outside the scheduled territories.

(2) Nothing in this section shall prohibit the making of any payment in accordance with the terms of a permission or consent granted under this Ordinance.

PART III

SECURITIES

Issue of securities.

8. (1) Except with the permission of the Governor, no person shall in the Colony issue any security or do any act which involves, is in association with or is preparatory to the issuing outside the Colony of any security which is registered or to be registered in the Colony, unless the following requirements are fulfilled, that is to say -

(a) neither the person to whom the security is to be issued nor the person, if any, for whom he is to be a nominee is resident outside the scheduled territories; and

(b) the prescribed evidence is produced to the person issuing the security as to the residence of the person to whom it is to be issued and that of the person, if any, for whom he is to be a nominee.

(2) The subscription of the memorandum of association of a company to be formed under the law of the Colony relating to companies, by a person resident outside the scheduled territories, or by a nominee for another person so resident, shall, unless he subscribes the memorandum with the permission of the Governor, be invalid in so far as it would on registration of the memorandum have the effect of making him a member of or shareholder in the company, so, however, that this provision shall not render invalid the incorporation of the company; and if by virtue of this subsection the number of the subscribers of the memorandum who on its registration become members of the company is less than the minimum number required to subscribe the memorandum, the provisions of the said law relating to the carrying on of business of a company the number of whose members is reduced below the legal minimum shall apply to the company as if the number of its members had been so reduced.

Transfer of securities and coupons.

9. (1) Except with the permission of the Financial Secretary, a security registered in the Colony shall not be transferred, and a security not so registered shall not be transferred in the Colony, unless, in either case, the following requirements are fulfilled, that is to say -

(a) neither the transferor nor the person, if any, for whom he is a nominee is resident outside the scheduled territories; and

(b) the transferor delivers to the transferee at or before the time of the transfer the prescribed declarations as to his residence and that of the person, if any, for whom he is a nominee; and

(c) neither the transferee nor the person, if any, for whom he is to be a nominee is resident outside the scheduled territories; and

(d) except where the security is registered in the Colony otherwise than in a subsidiary register, the Financial Secretary is satisfied that the requirements of paragraph (c) of this subsection are fulfilled:

Provided that -

(i) neither the transferee nor his agent shall be deemed to have committed an offence by reason only that the requirements of paragraph (a) were not fulfilled unless the transferee or, as the case may be, his agent, knew or had reason to believe that those requirements were not fulfilled; and

(ii) neither the transferor nor his agent shall be deemed to have committed an offence by reason only that any of the requirements of paragraphs (c) and (d) have not been fulfilled unless, in the case of a non-fulfilment of the requirements of paragraph (c), the transferor or, as the case may be, his agent, knew or had reason to believe that those requirements were not fulfilled.

(2) Except with the permission of the Financial Secretary, a security not registered in the Colony shall not be transferred outside the Colony if either the transferor or the transferee, or the person, if any, for whom the transferor or transferee is or is to be a nominee, is resident in the Colony.

(3) Except with the permission of the Financial Secretary -

(a) no coupon shall be transferred in the Colony if either the transferee or the person, if any, for whom he is to be a nominee is resident outside the scheduled territories;

(b) no person shall in the Colony do any act which involves, is in association with or is preparatory to the transfer of any coupon outside the Colony if either the transferor or transferee, or the person, if any, for whom the transferor or transferee is or is to be a nominee, is resident in the Colony.

Issue of bearer certificates and coupons.

10. Except with the permission of the Governor, no person shall, in the Colony, issue any bearer certificate or coupon or so alter any document that it becomes a bearer certificate or coupon, and no person resident in the scheduled territories shall in the Colony do any act which involves, is in association with or is preparatory to such issue or alteration outside the Colony.

Substitution of securities and certificates outside the Colony.

11. Except with the permission of the Financial Secretary -

(1) No person in the Colony shall do any act with intent to secure -

(a) that a security which is -

(i) registered in the Colony; or

(ii) transferable by means of a bearer certificate in the Colony;

become, or is replaced by, a security registered outside the Colony or a security transferable by means of a bearer certificate outside the Colony; or

(b) that a certificate of title to any other security, is issued outside the Colony in substitution for or in addition to a certificate of title thereto which is in, or is or had been lost or destroyed in, the Colony.

(2) No person resident in the scheduled territories shall in the Colony do any act which involves, is in association with or is preparatory to any such transaction outside the Colony as is referred to in paragraph (a) or (b) of subsection (1).

Payment of capital moneys outside the Colony.

12. Except with the permission of the Financial Secretary -

(a) no person in the Colony shall do any act with intent to secure that capital moneys payable on a security in the Colony are paid outside the Colony, or that, where the certificate of title to security is in the Colony, capital moneys payable on the security are paid outside the Colony without production of the certificate to the person making the payment;

(b) no person resident in the scheduled territories shall in the Colony do any act which involves, is in association with or is preparatory to any such transaction outside the Colony as is referred to in paragraph (a).

Duties of persons keeping registers.

13. Except with the permission of the Financial Secretary, no Person concerned with the keeping of any register in the Colony shall -

(a) enter in the register the name of any person in relation to any security unless there has been produced to him the prescribed evidence that the entry does not form part of a transaction which involves the doing of anything, prohibited by this Ordinance; or

(b) enter in the register, in respect of any security, an address outside the scheduled territories, except for the purpose of any transaction for which the permission of the Financial Secretary has been granted with the knowledge that it involved the entry of that address; or

(c) do any act in relation to the register which recognises or gives effect to any act appearing to him to have been done with such intent as is mentioned in the two last preceding sections, whether done by a person in or resident in the Colony or not.

Additional provisions as to nominee holdings.

14. (1) Where -

(a) the holder of a security is a nominee and the person for whom he is a nominee is resident outside the scheduled territories; or

(b) the holder of a security is not a nominee and is resident outside the scheduled territories,

then, except with the permission of the Financial Secretary, no person resident in the Colony shall do any act whereby the holder becomes his nominee in respect of the security.

(2) Except with the permission of the Financial Secretary, a person resident in the Colony for whom the holder of a security is a nominee shall not do any act whereby -

(a) the holder, being a person resident outside the scheduled territories, holds the security otherwise than as his nominee; or

(b) the holder, not being a person resident outside the scheduled territories, holds the security as nominee for a person resident outside the scheduled territories.

(3) Where the holder of a security is a nominee, then, except with the permission of the Financial Secretary, neither he, if he is resident in the Colony, nor any person resident in the Colony through whose agency the exercise of all or any of the holder's rights in respect of the security are controlled, shall -

(a) do any act whereby he recognises or gives effect to the substitution of another person as the person from whom he directly receives his instructions unless both the person previously instructing him and the person substituted for that person were, immediately before the substitution, resident in the scheduled territories and not elsewhere; or

(b) do any act whereby he ceases to be a person bound to give effect to the instructions of another person in relation to the security, unless the person who theretofore instructed him is resident in the scheduled territories and not elsewhere.

(4) Where the holder of a security is not a nominee and is resident in the Colony, then, except with the permission of the Financial Secretary, he shall not do any act whereby he becomes the nominee of another person in respect of the security, unless that other person is resident in the scheduled territories and not elsewhere.

(5) No person resident in the scheduled territories shall in the Colony do any act which involves, is in association with or is preparatory to any such transaction outside the Colony as is referred to in this section.

Deposit of certificates of title.

15. (1) This and the next following section apply to any security except -

(a) a security which is registered in the Colony otherwise than in a subsidiary register, and on which none of the dividends or interest is payable on presentment of a coupon; and

(b) any such other securities as may be prescribed.

and in the following provisions of this section and in the next following sections the expressions "security", "certificate of title" and "coupon" mean respectively a security to which the said sections apply, a certificate of title to such a security, and a coupon representing dividends or interest on such a security.

(2) It shall be the duty of every person by whom or to whose order (whether directly or indirectly) a certificate of title is held in the Colony, and of every person resident in the Colony by whom or to whose order (whether directly or indirectly) a certificate of title is held outside the Colony, to cause the certificate of title to be kept at all times, except with the permission of the Financial Secretary, in the custody of an authorised depositary, and nothing in this Part shall prohibit the doing of anything for the purpose of complying with the requirements of this subsection.

(3) Except with the permission of the Financial Secretary, an authorised depositary shall not part with any certificate of title or coupon required under this section to be in the custody of unauthorised depositary:

Provided that this subsection shall not prohibit an authorised depositary -

(a) from parting with a certificate of title or coupon to or to the order of another authorised depositary, where the person from whom the other authorised depositary is to receive instructions in relation thereto is to be the same as the person from whom he receives instructions;

(b) from parting with a certificate of title, for the purpose of, obtaining payment of capital moneys payable on the security, to the person entrusted with payment thereof;

(c) from, parting with a coupon in the ordinary course for collection.

(4) Except with the permission of the Financial Secretary, no capital moneys, interest or dividends shall be paid in the Colony on any security except to or to the order of an authorised depositary having the custody of the certificate of title to that security, so, however, that this subsection shall not be taken as restricting the manner in which any sums lawfully paid on account of the capital moneys, interest or dividends may be dealt with by the person receiving them.

(5) Except with the permission of the Financial Secretary, an authorised depositary shall not do any act whereby he recognises or gives effect to the substitution of one person for another as the person from whom he receives instructions in relation to a certificate of title or coupon, unless there is produced to him the prescribed evidence that he is not by so doing giving effect to any transaction which is prohibited by this Ordinance.

(6) Where a certificate of title which under this section should for the time being be in the custody of an authorised depositary is not in the custody of an authorised depositary, then, except with the permission of the Financial Secretary, no person shall in the Colony, buy, sell, transfer, or do anything which affects his rights or powers in relation to, the security, or do any act which involves, is in association with or is preparatory to any such transaction outside the Colony.

(7) Except with the permission of the Financial Secretary, no person in or resident in the Colony shall, in the case of a certificate of title with coupons (whether attached or on separate coupon sheets), detach any of the coupons otherwise than in the ordinary course for collection.

Additional provisions as to deposited certificates.

16. (1) Where a certificate of title to a security is by the last preceding section required to be and is in the custody of an authorised depositary, the provisions of this section shall, except so far as the Financial Secretary otherwise directs, have effect in relation thereto until -

(a) there are delivered to him the prescribed declarations as to the ownership of the security and the residence of the owners thereof; and

(b) in the case of a certificate of title which -

(i) would ordinarily be accompanied by coupons (whether attached or on separate coupon sheets); but

(ii) when it comes into the custody of the authorised depositary wants, in order to render it complete, any coupons which would not in the ordinary course have been detached for collection,

there have also been deposited with him the coupons so wanting at the time when the certificate of title comes into his custody:

Provided that where the said declarations have been delivered to an authorised depositary and he has parted with the certificate of title, paragraph (a) shall not again apply on the certificate coming into the custody of another authorised depositary or again conning into his own custody.

(2) Except with the permission of the Financial Secretary, the authorised depositary shall not part with or destroy the certificate of title or any coupons belonging thereto, otherwise than as mentioned in paragraphs (b) and (c) of the proviso to section 15 (3), or do any act whereby he recognises or gives effect to the substitution of one person for another as the person from whom he receives instructions in relation thereto:

Provided that, where the person from whom an authorised depositary receives instructions in relation to any certificate of title becomes bankrupt in the Colony or dies, this subsection shall not prohibit the authorised depositary from recognising the trustee in, bankruptcy or personal representative as the person entitled to give instructions in relation to the certificate of title.

(3) The authorised depositary shall place any capital moneys, dividends or interest on the security received by him to the credit of the person by virtue of whose authority he received them, but shall not permit any part of the sums received to be dealt with except with the permission of the Financial Secretary.

Special provisions as to dealings in certain securities

17. (1) The Governor may, if in his opinion there are circumstances rendering it necessary or expedient so to do, by order direct that this section shall apply to such securities as may be prescribed, being securities or which capital moneys, dividends or interest are payable in a specified currency or as respects which the holder has an option to require payment of any capital moneys, dividends or interest thereon in a specified currency.

(2) Except with the permission of the Financial Secretary, no person shall, in the Colony, transfer, or do anything which affects his rights or powers in relation to, any security to which this section applies, and no person resident in the scheduled territories shall in the Colony do any act which involves, is in association with or is preparatory to any such transaction outside the Colony.

Validation of certain transfers.

18. (1) The title of any person to a security for which he has given value on a transfer thereof, and the title of all persons claiming through or under him, shall, notwithstanding that the transfer, or any previous transfer, or the issue of the security, was by reason of the residence of any person concerned other than the first-mentioned person prohibited by the provisions of this Ordinance relating to the transfer or issue of securities, be valid unless the first-mentioned person had notice of the facts by reason of which it was prohibited.

(2) Without prejudice to the provisions of subsection (1), the Financial Secretary may issue a certificate declaring, in relation to a security, that any acts done before the issue of the certificate purporting to effect the issue or transfer of the security, being acts which were prohibited by this Ordinance, are to be, and are always to have been, as valid as if they had been done with the permission of the competent authority, and the said acts shall have effect accordingly.

(3) Nothing in this section shall affect the liability of any person to prosecution for any offence against this Ordinance.

Application of Part III to secondary securities.

19. (1) This Part shall apply, with such modifications (if any), as may be prescribed, in relation to any such document as is mentioned in the following subsection, as if the document created, and were the certificate of title to, a security (hereafter in this Ordinance referred to as a "secondary security").

(2) The documents referred to in the preceding subsection are any letter of allotment which may be renounced, any letter of rights, any warrant conferring an option to acquire a security, any deposit certificate in respect of securities (but not including a receipt by an authorised depositary for any certificate of title deposited in pursuance of this Part), and such other documents conferring, or containing evidence of, rights as may be prescribed.

Interpretation of Part III

20. (1) In this Part -

(a) the expression "registered" includes inscribed;

(b) the expressions "registered in the Colony" and "registered outside the Colony" mean respectively, registered in a register in, and registered in a register outside, the Colony;

(c) the expression "security which is registered in the Colony otherwise than in a subsidiary register" means a security which either-

(i) is registered in the Colony and is not and cannot, without the necessity for an entry in. the register in the Colony, become registered outside; or

(ii) is registered both in the Colony and outside but on a transfer cannot, without the necessity for an entry in the register in the Colony, become registered outside in the name of the transferee; and

(d) the expression "a register" includes any book, file or index in which securities are registered.

(2) For the purposes of any provision of this Part prohibiting the transfer of securities, a person shall be deemed to transfer a security if he executes any instrument of transfer thereof, whether effective or not, and shall be deemed to transfer it at the place where he executes the instrument.

(3) References in this Part to the person holding a certificate of title or coupon shall be construed as references to the person having physical custody of the certificate of title or coupon:

Provided that where the certificate of title or coupon is deposited with any person in a locked or sealed receptacle from which he is not entitled to remove it without the authority of some other person, that other person shall be deemed for the purposes of this provision to have the physical custody thereof.

(4) In this Part, the expression "holder" -

(a) in relation to a security transferable by means of a bearer certificate or to a coupon, includes the person holding the certificate or coupon; and

(b) in relation to a security which is registered in the name of a deceased person, or of any person who, by reason of bankruptcy, unsoundness of mind or any other disability is incapable of transferring the security, means the personal representative, trustee in bankruptcy or other person entitled to transfer the security.

(5) The holder of a security or coupon shall be deemed for the purposes of this Part to be a nominee in respect thereof if, as respects the exercise of any rights in respect thereof, he is not entitled to exercise those rights except in accordance with instructions given by some other person, and references in this Part to the person for whom the holder of a security or coupon is a nominee shall be construed as references to the person who is entitled to give instructions, either directly or through the agency of one or more persons, as to the exercise of any rights in respect of the coupon and is not in so doing himself under a duty to comply with instructions given by some other person:

Provided that -

(a) a person shall not by reason, only that he has a controlling interest in a body corporate be deemed for the purposes of this subsection to be entitled to give instructions to that body corporate as to the exercise of rights in respect of any security or coupon of which it is the holder; and

(b) a person shall not be deemed to hold a security or coupon as a nominee by reason only that he holds it as trustee if he is entitled to transfer the security or coupon without permission from any other person.

(6) A certificate of title shall not for the purposes of this Part be treated as in the custody of an authorised depositary if either -

(a) the depositary has no notice of the nature of the certificate; or

(b) the certificate is deposited with him in a locked or sealed receptacle from which he is not entitled to remove it without the authority of some other person.

(7) Where a certificate of title outside the Colony is by this Part required, to be kept in the custody of an authorised depositary, it shall be deemed to be in the custody of an authorised depositary if -

(a) by his direction or with his assent it is in the custody of some other person who holds it on behalf of and to the order of the authorised depositary; and

(b) the certificate is not deposited with that other person in a locked or sealed receptacle from which he is not entitled to remove it without the authority of a person, other than himself;

and where a certificate of title is by virtue of this subsection deemed to be in the custody of an authorised depositary, references in this Part to the depositary parting with the certificate or a coupon belonging thereto shall be construed as references to his permitting the person having the actual custody thereof to part with it otherwise than to the depositary, and references to his destroying the certificate or such a coupon shall be construed as references to his permitting it to be destroyed.

PART IV

IMPORT AND EXPORT

Restriction on import.

21. (1) The importation into the Colony of -

(a) any notes of a class which are or have at any time been legal tender in the United Kingdom or any part of the United Kingdom; and

(b) any such other notes as may be specified by order of the Governor, being notes issued by a bank or notes of a class which are or have at any time been legal tender in any territory; and

(c) any certificate of title to any security, including any such certificate which has been cancelled, and any document certifying the destruction, loss or cancellation of any certificate of title to a security,

is hereby prohibited except with the permission of the Financial Secretary.

(2) In this section the expression "note" includes part of a note and the expression "security" includes a secondary security.

General restrictions on export.

22. (1) The exportation from the Colony of -

(a) any notes of a class which are or have at any time been legal tender in the United Kingdom or any part of the United Kingdom or in any other territory; and

(b) any postal orders; and

(c) any gold; and

(d) any of the following documents (including any such document which has been cancelled), that is to say -

(i) any certificate of title to a security and any coupon; and

(ii) any policy of assurance; and

(iii) any bill of exchange or promissory note expressed in terms of a currency other than that of a scheduled territory and payable otherwise than within the scheduled territories; and

(iv) any document to which section 4 applies not issued by an authorised dealer or in pursuance of a permission granted by the Financial Secretary;

and any document certifying the destruction, loss or cancellation of any of the documents aforesaid; and

(e) any such articles exported on the person of a traveller or in a traveller's baggage as may be prescribed,

is hereby prohibited except with the permission of the Financial Secretary.

(2) In this section, the expression "note" includes part of a note, the expression "security" includes a secondary security and the expression "coupon" shall be construed in accordance with the meaning of "security".

Payment for exports.

23. (1) The exportation of goods of any class or descriptions from the Colony to a destination in any such territory as may be prescribed is hereby prohibited except with the, permission of the Financial Secretary, unless the Accountant-General is satisfied -

(a) that payment for the goods has been made to a person resident in the Colony in such manner as may be prescribed in relation to goods of that class or description exported to a destination in that territory, or is to be so made not later than six months after the date of exportation; and

(b) that the amount of the payment that has been made or is to be made is such as to represent a return for the goods which is in all the circumstances satisfactory in the national interest:

Provided that the Financial Secretary may direct that, in cases to which the direction applies, paragraph (a) shall have effect as if for the reference to six months there were substituted a reference to such longer or shorter period as may be specified in the direction, or as if the words "or is to be so made not later than six months after the date of exportation" were omitted.

(2) For the purpose of satisfying himself in the case of any goods as to the matters specified in. subsection (1), the Accountant-General may require the person making entry of the goods for export to deliver to the collector or other proper officer together with the entry such declarations signed by such persons as he may require, and where any such declaration has been so required the goods shall not be exported until it has been delivered as aforesaid.

(3) Where the Accountant-General is not satisfied in the case of any goods as to the matters specified in paragraph (b) of the said subsection (1), he shall give his reasons to the person making entry of the goods for export and shall take into consideration any representations made by him.

(4) Any reference in this section to the destination of any goods includes a reference to the ultimate destination thereof.

PART V

MISCELLANEOUS

Duty to collect certain debts.

24. (1) Except with the permission of the Financial Secretary, no person resident in the Colony who has a right (whether present or future and whether vested or contingent) to receive any specified currency, or to receive from a person resident outside the scheduled territories a payment in sterling or Fiji, Australian or New Zealand dollars shall do, or refrain from doing, any act with intent to secure or shall do any act which involves, is in association with or is preparatory to any transaction securing -

(a) that the receipt by him of the whole or part of that currency or, as the case may be, of that payment in sterling or Fiji, Australian or New Zealand dollars, is delayed; or

(b) that the currency or payment ceases, in whole or in part, to be receivable by him:

Provided that nothing in this subsection -

(i) shall, unless the Financial Secretary otherwise directs, impose on any person obligation, in relation to any debt arising in the carrying on of any trade or business, to procure the payment thereof at an earlier time than is customary in the course of that trade or business; or

(ii) shall, unless the Financial secretary otherwise directs, prohibit any transfer to a person resident in Colony and not elsewhere of any right to receive any specified currency or payment in sterling or Fiji, Australia or New Zealand dollars.

(2) Where a person has contravened the provisions of subsection (1) in relation to any specified currency or payment in sterling or Fiji, Australian or New Zealand dollars, the Financial Secretary may give to him or to any other person who appears to the Financial Secretary to be in a position to give effect thereto (being a person in or resident in the Colony) such directions as appear to the Financial Secretary to be expedient for the purpose of obtaining or expediting the receipt of the currency or payment in question, and, without prejudice to the generality of the preceding provisions of this subsection, may direct that there shall be assigned to the Financial Secretary, or to such person as may be specified in the directions, the right to receive the currency or payment or enforce any security for the receipt thereof:

Duty not to delay sale or importation of goods

25. (1) Where -

(a) any permission or consent has been granted under this Ordinance, or under any corresponding provision of the law in force in any territory comprised in the scheduled territories, subject to a condition providing that, or on the faith of an application stating an intention that, any goods should be sold outside the scheduled territories; or

(b) any statement or declaration has been made under any provision of this Ordinance or any such corresponding provision as aforesaid that any goods are to be sold outside the scheduled territories; or

(c) any currency has been obtained in, or by any person resident in the scheduled territories on the faith of an application stating an intention that any goods should be sold outside the scheduled territories,

then, except with the permission of the Financial Secretary, no person resident in the Colony who is entitled to sell or procure the sale of the said goods shall do, or refrain from doing, any act with intent to secure or shall do any act which involves, is in association with or is preparatory to any transaction securing -

(i) that the said sale is delayed to an extent which is unreasonable having regard to the ordinary course of trade; or

(ii) that, on, the said sale, any payment made for the goods is not made in the manner indicated by the condition, statement, or declaration, as the case may be.

(2) Where -

(a) any permission or consent has been granted under this Ordinance, or under any corresponding provisions of the law in force in any territory comprised in the scheduled territories, subject to a condition providing that, or on the faith of an application stating an intention that, any goods should be imported from outside the scheduled territories into any part of the scheduled territories; or

(b) any currency has been obtained in, or by any person resident in, the scheduled territories on the faith of an application stating an intention that any goods should be so imported,

then, except with, the permission of the Financial Secretary, no person resident in the Colony who is entitled to procure the importation of the said goods shall do, or refrain from doing, any act with intent to secure that the importation thereof is delayed to an extent which is unreasonable having regard to the ordinary course of trade,

(3) Where in any such case as is specified in paragraph (a), (b) or (c) of subsection (1), or paragraph (a) or (b) of subsection (2) -

(a) the goods have not been sold or imported as indicated by the condition, statement or declaration within the time thereby indicated or, if no time is thereby indicated, a reasonable time or (in either case) within such further time as may be allowed by the Financial Secretary; or

(b) it appears to the Financial Secretary that the goods cannot be sold or imported as indicated by the condition, statement or declaration;

the Financial Secretary may give to any person resident in the Colony who appears to the Financial Secretary to be in a position to give effect thereto such directions as appear to hire to be expedient as to the manner in which the goods are to be dealt with.

(4) Without prejudice to the generality of the provisions of the last preceding subsection, the power conferred thereby on the Financial Secretary to give directions shall extend to the giving of directions that the goods shall be assigned to the Financial Secretary or to a person specified in the directions.

(5) The powers conferred by the two last preceding subsections in relation to any goods shall extend to the giving of directions with respect to any goods produced or manufactured therefrom, and where goods to be sold outside the scheduled territories or to be imported were to be produced or manufactured from other goods, to the giving of directions with respect to those other goads and any goods produced or manufactured from those other goods.

Property obtained by infringement of Ordinance.

26. (1) Where a person -

(a) has made any payment which is prohibited by this Ordinance; or

(b) being bound under this Ordinance to offer or cause to be offered any specified currency to an authorised dealer, has otherwise disposed of that currency,

the Financial Secretary may direct him to sell or procure the sale of any Property which he is entitled to sell or of which he is entitled to Procure the sale, being property which represents, whether directly or indirectly, that payment or that specified currency, as the case may be, and may by the same or a subsequent direction specify the manner in which, the persons to whom and the terms on which the property is to be sold.

(2) Without prejudice to the generality of the provisions of subsection (1) of this section, the power conferred thereby on the Financial Secretary to give directions shall extend to the giving of directions that the property shall be assigned to the Financial Secretary or to a person specified in the directions.

Provisions supplemental to preceding provisions of Part V.

27. (1) Where, under the preceding provisions of this Part, the to Financial Secretary has power to give directions that any right to receive any currency or payment in sterling or Fiji, Australian or New Zealand dollars or to enforce any security for the receipt thereof, any goods, or any other property shall be assigned to the Financial Secretary, the Financial Secretary shall also have power to direct that the right, goods or property shall vest in the Financial Secretary and it or they shall vest in the Financial Secretary accordingly free from, any mortgage, pledge or charge, and the Financial Secretary may deal with it or them as he thinks fit.

(2) Where, in pursuance of directions under the said provisions, any right, goods or property is or are assigned to the Financial Secretary or to a person specified in the directions, or any right, goods or property vests or vest in the Financial Secretary in pursuance of directions given under subsection (1), the Financial Secretary shall pay the net sum recovered by him in respect of the right, goods or property to the person making the assignment or, in the case of any right, goods or property vested in the Financial Secretary under subsection (1) to the person who but for the directions, would be entitled to the right, goods or property.

Transfer of annuities, policies, etc.

28. (1) Except with the permission of the Financial Secretary, no person resident in the Colony shall transfer to a person resident outside the scheduled territories, or who is to be a nominee for a person resident outside the scheduled territories, any right to the sums assured by any policy of assurance, so, however, that where the person liable for the sums so assured makes any payment thereof to a person resident in the scheduled territories and not elsewhere, or makes, with the permission of the Financial Secretary, any payment thereof to any other person -

(a) he shall not be bound to inquire as to the residence of any person other than the person to whom, and (if it is not the same person) the person to whose order the payment is made; and 

(b) the payment shall, to the extent of the SUMS paid, discharge him from his liability under the policy, notwithstanding that the payment is made to or to the order of a person who was not entitled thereto otherwise than by virtue of a transfer prohibited by this subsection.

(2) Subsections (2) and (3) of section 18 shall apply in relation to any transfer prohibited by this section as they apply in relation to a transfer prohibited by this Ordinance of a security.

(3) In this section, the expression "nominee" has, in relation to any policy, annuity or insurance, the same meaning as the said expression has in Part III in relation to a security.

Settlements.

29. (1) Except with the permission of the Financial Secretary, no person resident in the Colony shall settle any property, otherwise than by will, so as to confer an interest in the property on a person who, at the time of the settlement, is resident outside the scheduled territories, or shall exercise, otherwise than by will, any power of appointment, whether created by will or otherwise, in favour of a person who, at the time of the exercise of the power, is resident outside the scheduled territories.

(2) A settlement or exercise of a power of appointment shall not be invalid by reason that it is prohibited by this section, except so far as it purports to confer any interest on any person who, at the time of the settlement or the exercise of the power, is resident outside the scheduled territories.

(3) Subsections (2) and (3) of section 18 shall apply in relation to a settlement or the exercise of a power of appointment prohibited by this section as they apply in relation to a transfer prohibited by this Ordinance of a security.

(4) For the purpose of this section -

(a) any reference to settling property includes a reference to the making of any disposition, covenant, agreement or arrangement whereby the property becomes subject to a trust, or (in the case of a resettlement) to a different trust; and

(b) a person shall be deemed to have an interest in property if he has any beneficial interest therein, whether present or future, and whether vested or contingent, or falls within a limited class of persons in whose favour a discretion or power in respect of the property is exercisable; and

(c) the expression "will" includes any testamentary disposition.

(5) No person resident in the scheduled territories shall in the Colony do any act which involves, is in association with or is preparatory to any such transaction outside the Colony as is referred to in this section.

Companies.
Second Schedule.

30. (1) Where there is served on any person resident in the Colony a notice in writing that the Financial Secretary wishes any such requirements as are hereinafter mentioned to be complied with by any such body corporate as is specified in the Second Schedule (hereafter in this subsection referred to as a "foreign company"), and that person can, by doing or refraining from doing any act,

(a) cause the foreign company to comply with any of the requirements; or

(b) remove any obstacle to the foreign company complying with any of the requirements; or

(c) render it in any respect more probable that the foreign company will comply with any of the requirements,

then, except so far as permission to the contrary may be given by the Financial Secretary, that person shall do, or, as the case may be, refrain from doing, that act.

The requirements with respect to which such a notice may be given are as follows, that is to say, that the foreign company shall -

(i) furnish to the Financial Secretary such particulars as to its assets and business as may be mentioned in the notice;

(ii) sell or procure the sale to an authorised dealer of any gold or specified currency mentioned in the notice, being gold or specified currency which it is entitled to sell or of which it is entitled to procure the sale;

(iii) declare and pay such dividend as may be mentioned in the notice;

(iv) realise any of its assets mentioned in the notice in such manner as may be so mentioned;

(v) refrain from selling, transferring, or doing anything which affects its rights or powers in relation to, any such securities as may be mentioned in the notice.

(2) Except with the permission of the Financial Secretary, no person resident in the Colony shall do any act whereby a body corporate which is by any means controlled (whether directly or indirectly) by persons resident in the Colony ceases to be controlled by persons resident in the Colony:

Provided that this subsection shall not prohibit any person from selling any securities authorised to be dealt in on any recognised stock exchange in the Colony if the sale takes place in pursuance of an agreement entered into in the ordinary course of business on that exchange.

No person resident in the scheduled territories shall in the Colony do any act which involves, is in association with or is preparatory to any such transaction outside the Colony as is referred to in this subsection.

(3) Except with the permission of the Financial Secretary, no person resident in the Colony shall lend any money or securities to any body corporate resident in the scheduled territories which is by any means controlled (whether directly or indirectly) by persons resident outside the scheduled territories:

Provided that this subsection shall not apply where the lender after making such inquiries as are reasonable in the circumstances of the case does not know and has no reason to suspect that the body corporate is controlled as aforesaid.

No person resident in the scheduled territories shall in the Colony do any act which involves, is in association with or is preparatory to any such transaction outside -the Colony as if referred to in this subsection.

(4) For the purposes of this section and of the Second Schedule, persons resident in the Colony or outside the scheduled territories shall be deemed to control a body corporate notwithstanding that other persons are associated with them in the control thereof if they can together override those other persons.

(5) In this section the expression "security" includes a secondary security.

PART VI

SUPPLEMENTAL

Exemptions.

31. Any provision of this Ordinance imposing any obligation or prohibition shall have effect subject to such exemptions as may be granted by order of the Governor, and any such exemption may be either absolute or conditional.

Blocked accounts.

32. Where -

(a) under any provision contained in Part 11, the permission of the Financial Secretary is required for the making of a payment or the placing of any sum to the credit of any person resident outside the scheduled territories; or

(b) any payment falls to be made by an authorised dealer on the sale of any gold or specified currency by any foreign company within the meaning of section 30 (1), being a sale made to comply with any requirement notified under that subsection,

Third Schedule.

the Financial Secretary may direct that the sum payable or to be credited shall be paid or credited to a blocked account only, and, where such a direction is given, the provisions of the Third Schedule shall have effect in relation to the payment or crediting of the sum.

Contracts, legal proceedings, etc.

33. (1) It shall be an implied condition in any contract that, where, by virtue of this Ordinance, the permission or consent of the Financial Secretary is at the time of the contract required for the performance of any term thereof, that term shall not be performed except in so far as the permission or consent is given or is not required:

Provided that this subsection shall not apply in so far as it is shown to be inconsistent with the intention of the parties that it should apply, whether by reason of their having contemplated the performance of that term in despite of the provisions of this Ordinance or 
for any other reason.

1882 c. 61.

(2) Nothwithstanding anything in the Bills of Exchange Act 1882, neither the provisions Ordinance, nor any condition, whether express or to be implied having regard to those provisions, that any payment shall not be made without the permission of the Financial Secretary under this Ordinance, shall be deemed to prevent any instrument being a bill of exchange or promissory note.

Fourth Schedule.

(3) The provisions of the Fourth Schedule shall have effect with respect to legal proceedings, arbitrations, bankruptcy proceedings, the administration of the estates of deceased persons, the winding up the companies, and proceedings under deeds of arrangement or trust deeds for behoof of creditors.

Enforcement and administration.
Fifth Schedule.

34. (1) The provisions of the Fifth Schedule shall have effect for the purpose of the enforcement of this Ordinance and of any Defence Regulation continued in force by or replaced under this Ordinance.

(2) Persons belonging to the following classes, that is to say -

(a) bankers, authorised dealers, authorised depositaries;

(b) persons to whom any powers of the competent authority under this Ordinance are delegated;

(c) persons who with the permission of the competent authority are in possession of documents which would, but for the permission, have to be in the custody of an authorised depositary;

(d) persons concerned with the keeping of any register in the Colony; and

(e) persons entrusted with the payment of capital moneys, dividends or interest in the Colony,

shall comply with such directions as may be given to them respectively by the Financial Secretary, being-

(i) in the case of any such persons, directions as respects the exercise of any functions exercisable by them by virtue of, or by virtue of anything done under, any provision of this Ordinance or of any Defence Regulations continued in force by or replaced under this Ordinance; or

(ii) in the case of authorised dealers, such directions as aforesaid or directions as to the terms on which they are to accept gold or foreign currency or directions requiring them to offer their gold or specified currency for sale to the Bank of England on such terms as may be specified in any such directions.

Application to Crown.

35. This Ordinance shall bind the Crown and shall apply to transactions by a Government department or other person acting on behalf of the Crown, and the competent authority shall not, by virtue of any contract made by them or on their behalf in relation to any securities, be under any obligation to grant any permission under Part III or any exemption from the provisions of Part III.

Orders making transitional provisions and power to replace 
certain Defence Regulations.

36. (1) The Governor may by order make such transitional provisions as appear to him necessary or expedient in consequence of the exercise by him of any other power to make orders under this Ordinance.

(2) The Governor may make such regulations to replace the Defence Regulations specified in section 43 or any one or more of them as are, in his opinion, necessary for purposes ancillary to the principal objects of this Ordinance:

Provided that such regulations shall not be brought into operation until the date on which such Defence Regulations shall cease to be in force in the Colony.

Other powers.

37. (1) Any permission, consent or authority granted under this other Ordinance -

(a) may be either general or special; and

(b) may be revoked by the competent authority; and may be absolute or conditional; and

(c) may be limited so as to expire on a specified date, unless renewed; and

(d) shall be published in such a way as, in the opinion of the competent authority, to give any person entitled to the benefit of it an adequate opportunity of getting to know of it, unless in his opinion publication is not necessary for that purpose.

(2) Any directions given under any provision of this Ordinance -

(a) may be either general or special; and

(b) may be revoked or varied by subsequent directions; and

(c) shall be given to such persons and in such manner as the competent authority thinks appropriate, and if so given shall be valid for all purposes.

(3) Notwithstanding paragraph (c) of the last preceding subsection, a person shall not by virtue of any direction given by the competent authority under this Ordinance, be convicted of an offence against this Ordinance, unless the direction was served on him or he knew, or avoided getting to know, of the giving thereof:

Provided that where reasonable steps were taken for the purpose of bringing the purport of the direction to his notice, it shall be for him to show that he neither knew nor avoided getting to know of the giving thereof.

(4) The competent authority may, to such extent and subject to such restrictions and conditions as he may think proper, delegate or authorise the delegation of any of his powers (other than any power to make orders or to give authority to apply for a search warrant) to any person, or class or description of persons, approved by him, and references in this Ordinance shall be construed accordingly.

(5) Any document stating that any permission, consent, authority or direction is given under any of the provisions of this Ordinance by the competent authority, and purporting to be signed on his behalf, shall be evidence of the facts stated in the document.

Financial provisions.

38. Any expenses incurred under or by virtue of this Ordinance by any Government department shall be paid out of the Consolidated Fund with the authority of the Governor, and any sums received under or by virtue of this Ordinance by any Government department shall be paid into the Consolidated Fund.

Branches.

39. (1) The Governor may by order or direction provide that, for such of the purposes of this Ordinance as may be specified in the order or direction -

(a) any transaction with or by a branch of any business, whether carried on by a body corporate or otherwise, shall be treated in all respects as if the branch were a body corporate resident where the branch is situated; and

(b) the making of any book entry or other statement recording a debit against a branch of any business in favour of any other branch of that business, shall be treated as a payment to that other branch; and

(c) any property held by or on behalf of the person carrying on the business shall be deemed to be held by such of the branches of the business as may be determined in accordance with the order or direction,

and any such order or direction which makes, for any of the purposes of Part III, such provision as is mentioned in paragraph (c) may contain provisions declaring the circumstances in which a branch is to be treated as nominee for any other branch.

(2) Any reference in subsection (1) to a branch of a business shall be deemed to include a reference to the head office of that business.

(3) Subsections (1) and (2) shall apply in relation to any body of persons (whether corporate or unincorporated) carrying on any activity, whether for the purpose of profit or not, as they apply in relation to a business.

Persons leaving the scheduled territories.

40. Where a person resident in the Colony leaves the scheduled territories, the Financial Secretary may, before, at or after the time he leaves the scheduled territories, direct that, for such period as may be specified in the direction, payments by him or on his behalf and to him, or to his credit and transactions in or in relation to securities or secondary securities in which he is in any way concerned shall, whether or not he continues to be resident in the Colony, be subject to such restrictions as may be specified in the direction.

Determination of residence.

41. (1) For the purposes of this Ordinance, a personal representative of a deceased person shall, unless the Financial Secretary otherwise directs, be treated as resident in the territory where the deceased person was resident for the purposes in question at the time of his death and as not resident elsewhere, so far as relates to any matters in which the personal representative is concerned solely in his capacity as such.

(2) The Financial Secretary may give directions declaring that for all or any of the purposes of this Ordinance a person is to be treated as resident or not resident in such territories as may be specified in the directions.

General provisions as to interpretation.

42. (1) In this Ordinance, except so far as the contrary is expressly provided or the context otherwise requires, the following expressions have the meanings hereby assigned to them, that is to say -

"authorised dealer" means, in relation to gold or any foreign currency, a person for the tinge being authorised by an order of the Governor to act for the purposes of this Ordinance as an authorised dealer in relation to gold, or, as the case may be, that foreign currency;

"authorised depositary" means a person for the time being authorised by an order of the Governor to act as an authorised depositary for the purposes of Part III;

"bearer certificate" means a certificate of title to securities by the delivery of which (with or without endorsement) the title to the securities is transferable;

"certificate of title to securities" means any document of title whereby a person recognises the title of another to securities issued or to be issued by the first-mentioned person, and in the case of any such document with coupons (whether attached or on separate coupon sheets) includes any coupons which have not been detached;

"coupon" means a coupon representing dividends or interest on a security;

"foreign currency" has the meaning ascribed to it by section 1;

"gold" means gold coin or gold bullion;

"policy of assurance" means any policy securing the payment of a capital sum or annuity on the occurrence of a specified event which is certain to happen and includes -

(a) any policy by which the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life; and

(b) any policy securing the payment of an immediate annuity; and the reference in this definition to the occurrence of a specified event which is certain to happen shall include the occurrence, which is certain to happen, of one of specified events none of which by itself is certain to happen;

"prescribed" means prescribed, for the purposes of the provision in question, by order of the competent authority;

"scheduled territories" has the meaning ascribed to it by section 1;

"secondary securities" has the meaning ascribed to it by section 19;

"securities" means shares, stock, bonds, notes (other than promissory notes), debentures, debenture stock, units under a unit trust scheme and shares in an oil royalty;

"specified currency" has the meaning ascribed to it by section 2 as extended by section 4;

"sterling" means United Kingdom currency;

"unit trust scheme" means any arrangements made for the purpose, or having the effect, of providing for persons having funds available for investment, facilities for the participation by them, as beneficiaries under a trust, in profits or income arising from the acquisition, holding management or disposal of any property whatsoever;

"unit" means, in relation to a unit trust scheme, a right or interest (whether described as a unit, as a sub-unit or otherwise) which may be acquired under the scheme.

(2) Any Provision of this Ordinance (however worded) the effect of which is to prohibit the doing of any act where a person to or by whom the act is to be done or who stands in a specified relation to any property possesses any specified attribute as to residence or otherwise shall, where the act is done to or by two or more persons or, as the case may be, where two or more persons stand jointly in that relation to the property, operate to prohibit the doing of that act if any of those persons possess that attribute; and any provision of this Ordinance imposing an obligation on any person to do an act if he possesses any specified attribute as to residence or otherwise shall, in relation to any act which can only be done by two or more persons jointly -

(a) where all those persons possess that attribute, operate to impose a joint obligation on all of them to do the act; and

(b) where some only of there possess that attribute, operate to impose a separate obligation on each one of them who possesses that attribute to do all he can to secure the doing of the act.

(3) Any power conferred by this Ordinance to prescribe the declarations which are to be furnished on any occasion shall include a power to require that the declarations shall be made by specified persons and shall be verified in a specified manner.

(4) Nothing in this Ordinance shall be construed as requiring the Financial Secretary to pay any sum otherwise than in sterling or Fiji, Australian or New Zealand dollars or otherwise than in the Colony, and any provision of this Ordinance requiring the Financial Secretary to pay any sum to any person shall, where that sum is in a specified currency, be construed as a provision that the Financial Secretary shall pay to that person the amount in sterling of Fiji, Australian or New Zealand dollars which he would have received for the specified currency if he had sold it to an authorised dealer in pursuance of an offer made under section 2 at the true when the said sum is paid.

(5) The obligations and prohibitions imposed by this Ordinance shall, subject to the express limitations contained therein apply to all persons, notwithstanding that they are not British subjects.

Continuance in force of certain Defence Regulations.

43. (1) Regulations 1, 2, 2A, 3A and 24 of the Defence (Finance) Regulations 1941 shall, notwithstanding that any enactment or order relating thereto has expired or shall hereafter expire, by virtue of this Ordinance continue in force:

Provided that the Governor may at any time revoke any such Defence Regulations either in whole or in part.

(2) The Defence Regulations referred to in subsection (1) shall be construed as a reference to those Regulations as in force on 15th July 1953.

Short title.

44. This Ordinance may be cited as the Exchange Control Ordinance.
___________________

FIRST SCHEDULE

SCHEDULED TERRITORIES
(Section 1)

l. The fully self-governing countries of the British Commonwealth except Canada,

2. Any Colony under the dominion of Her Majesty.

3. Any territory administered by the government of any part of Her Majesty's dominions under the trusteeship system of the United Nations.

4. Any British protectorate or British protected state.

5. South-West Africa.

6. The Irish Republic.

7. Iceland.

8. Burma.

9. The Hashernite Kingdom of the Jordan

10. The United Kingdom of Libya.

SECOND SCHEDULE

FOREIGN COMPANIES
(Section 30)

1. The bodies corporate in question are bodies corporate not incorporated under the law of the Colony in the case of which any of the following conditions is fulfilled -

(a) that the body corporate is by any means controlled (whether directly or indirectly) by persons resident in the Colony;

(b) that more than one-half of the sums which, on a liquidation thereof, would be receivable by holders of share or loan capital would be receivable directly or indirectly by or for the benefit of persons resident in the Colony;

(c) that more than one-half of the assets which, on a liquidation thereof, would be available for distribution after the payment of creditors would be receivable directly or indirectly by or for the benefit of persons resident in the Colony; or

(d) that more than one-half -

(i) of the interest payable on its loans and loan capital, if any; or

(ii) of the dividends payable on its preference share capital, if any; or

(iii) of the dividends payable on its share capital, if any, not being preference snare capital,

is receivable, directly or indirectly, by or for the benefit of persons resident in the Colony.

2. Where the identity of the persons by whore or for whose benefit any sum, assets, interest or dividends are directly or indirectly receivable depends on the exercise by a person resident in the Colony of a power of appointment or similar power, the mm, assets, interest or dividends shall, for the purposes of this Schedule, be deemed to be receivable directly or indirectly by or for the benefit of persons resident in the Colony.

THIRD SCHEDULE

BLOCKED ACCOUNTS
(Section 32)

1. In this Schedule, the expression "a blocked account" means an account opened as a blocked account at an office or branch in the Colony in favour of any person by a banker authorised by the Financial Secretary to open blocked accounts, and the expression "the banker" means, in relation to any person, a banker who opens a blocked account in favour of that person.

2. Where a direction is given that a payment is to be made to a blocked account only, then, subject to the next following paragraph -

(a) the manner in which the payment may be made shall be either -

(i) to the banker, with a direction that it is to be credited to a blocked account of that person (which direction may, in the case of a payment by means of a cheque or warrant, be made by marking the cheque or warrant with the words "blocked account of" (naming the person in question) or words to the same effect); or

(ii) by a crossed cheque or warrant drawn in favour of that person, marked with the words "payable only to blocked accounts of payee" or words to the same effect; and 

(b) the sum collected shall be credited by the banker to a blocked account of that person.

3. Where a direction is given that a sum is to be paid or credited to a blocked account only, then, notwithstanding the direction, the sum may, with the consent of the person to whom it is to be paid or credited, and subject to the requirements of Part III, be invested instead in the purchase for that person of any such investments as may be prescribed for the purposes of paragraph (a) of the proviso to the next following paragraph.

4. Any sum standing to the credit of a blocked account shall not be dealt with except with the permission of the Financial Secretary:

Provided that, subject to compliance with the requirements of Part III -

(a) the whole or any part of any such sum may, at the request of the person in whose name the account stands, be invested through the banker in such investments as may be prescribed; and

(b) nothing in this Schedule shall be construed as restricting the manner in which the investments acquired may be dealt with.

5. Where a person in whose name a blocked account is standing becomes bankrupt in the Colony or dies, the banker may, notwithstanding anything in paragraph 4 of this Schedule, transfer the account to the name of the trustee in bankruptcy or personal representative, but, save as aforesaid, no change shall, except with the permission of the Financial Secretary, be made in the name in which the account stands; and where any such change is made (whether or not the permission of the Financial Secretary, is necessary therefor) the account shall remain a blocked account notwithstanding the change, and the provisions of this Schedule shall apply accordingly.

6. Where -

(a) a sum is due from any person to any other person but the Financial Secretary directs that it shall be paid or credited to a blocked account only; and

(b) the person to whom the sum is due nominates such an account to the person from whom the sum is due,

the last mentioned person is under a duty to the person to whom the sum is due to cause the sum to be paid or credited to that blocked account, and the crediting of any sum to a blocked account in pursuance of a direction of the Financial Secretary shall, to the extent of the sum credited, be a good discharge to the person from whom the sum is due:

Provided that in the case of a sum due under a contract this paragraph shall not apply in so far as it is shown to be inconsistent with the intention of the parties that it should apply.

FOURTH SCHEDULE

LEGAL PROCEEDINGS, ETC.
(Section 33)

1. The provisions of Part II shall apply to sums required to be paid by any judgment or order of any court or by any award as they apply in relation to other sums, and it shall be implied in any judgment or order of any court in the Colony, and in any award given under the law of the Colony, that any sum required to be paid by the judgment, order or award (whether as a debt, as damages or otherwise) to which the said provisions apply shall not be paid except with the permission of the Financial Secretary.

2. Nothing in this Ordinance shall be construed as preventing the payment by any person of any sum into any court in the Colony but the provisions of Part II shall apply to the payment of any sum out of court, whether under an order of the court or otherwise, to or for the credit of any person resident outside the scheduled territories.

3. Without prejudice to the provisions of any enactments relating to the making of rules of court, rules of court -

(a) enabling any person who is required by any judgment order or award to pay any sum, if he apprehends that the payment of that sum is unlawful under this Ordinance except with the permission of the Financial Secretary, to pay that stun into court; and

(b) declaring that payment of a sum into court by virtue of the preceding sub-paragraph, together with the delivery to the other party concerned of such evidence of the payment as may be prescribed by the rules, shall, to the extent of the payment, be a good discharge to the person making the payment; and

(c) so regulating the process of execution which may issue in respect of any sum required to be paid by any judgment, order or award as to secure that, unless it is shown, in such manner as may be prescribed by the rules, that the permission of the Financial Secretary for the payment of the suns is not required under this Ordinance or has been given without conditions, the proceeds of the execution will be paid into court, and, so far as is necessary for that purpose, varying the form of any writ of execution or other similar document or the duties of the sheriff or other officer to whom any such writ or other similar document is directed,

maybe made by the appropriate rule making authority:

Provided that the form of any bankruptcy notice shall be such as may be prescribed by the Financial Secretary.

4. (1) In any proceedings in a prescribed court and in any arbitration proceedings, a claim for the recovery of any debt shall not be defeated by reason only of the debt not being payable without the permission of the Financial Secretary and of that permission not having been given or having been revoked.

(2) No court shall be prescribed for the purpose of this paragraph unless the Financial Secretary is satisfied that adequate provision has been made therefore by rules of court for the purposes specified under paragraph 3.

5. (1) In any bankruptcy, in the winding up of any company or in the administration of the estate of any deceased person (being a bankruptcy, winding up or administration carried on under the law of the Colony), a claim for a sum not payable without the permission of the Financial Secretary shall, notwithstanding that the permission has not been given or has been revoked, be admitted to proof as if it had been given and had not been revoked:

Provided that nothing in this sub-paragraph shall be construed as affecting the application of the provisions of Part II to payments by any trustee, liquidator, personal representative or other person in any such bankruptcy, winding up or administration.

(2) The provisions of this Ordinance restricting the making of settlements shall not apply to any deed of arrangement made for the benefit of creditor generally, and the provisions of sub-paragraph (1) shall apply in relation to proceedings under any deed of arrangement as they apply in relation to proceedings in bankruptcy.

6. A debt for the payment of which the permission of the Financial Secretary is required under this Ordinance shall, if in other respects it complies with the requirements of the law of the Colony relating to bankruptcy, be allowed to be a good petitioning creditor's debt, notwithstanding the said requirement, if and to the extent that the debt can be satisfied either by a payment into court or by a payment to a blocked account.

FIFTH SCHEDULE

ENFORCEMENT
(Section 34)

PART I

General provision as to evidence and information

l. (1) Without prejudice to any other provisions of this Ordinance, the Financial Secretary may give to any person in or resident in the Colony directions requiring him, within such time and in such manner as may be specified in the directions, to furnish to him, or to any person designated in the directions as a person authorised to require it, any information in his possession or control which the Financial Secretary or the person so authorised, as the case may be, may require for the purpose of securing compliance with or detecting evasion of this Ordinance or any Defence Regulations continued in force by or replaced under this Ordinance.

(2) A person required by any such directions as aforesaid to furnish information shall also produce such books, accounts or other documents (hereafter in this Part of this Schedule referred to as "documents") in his possession or control as may be required for the said purpose by the Financial Secretary or by the person authorised to require the information, as the case may be.

(3) Nothing in the preceding provisions of this paragraph shall be taken to require any person who has acted as counsel or solicitor for any person to disclose any privileged communication made to him in that capacity.

(4) Where a person is convicted on indictment for failing to give information may make an order requiring the offender, within such period as may be specified in the order, to comply with the requirement to give the information or produce the documents.

2. (1) if the court is satisfied by information on oath given by a person authorised by the Financial Secretary to act for the purposes of this paragraph either -

(a) that there is reasonable ground for suspecting that an offence against this Ordinance or against any Defence Regulation continued in force by or replaced under this Ordinance has been or is being committed and that evidence of the commission of the offence is to be found at any premises specified in the information, or in any vehicle, vessel or aircraft so specified; or

(b) that any documents which ought to have been produced under the preceding paragraph and have riot been produced are to be found at any such premises or in any such vehicle, vessel, or aircraft,

they may grant a search warrant authorising any police officer, together with any other persons named in the warrant and any other police officers, to enter the premises specified in the information or, as the case may be, any premises upon which the vehicle, vessel or aircraft so specified may be, at any time within one month from the date of the warrant, and to search the premises or, as the case may be, the vehicle, vessel or aircraft.

(2) A person authorised by any such warrant as aforesaid to search any premises or any vehicle, vessel or aircraft, may search every person who is found in, or whom he has reasonable ground to believe to have recently left or to be about to enter, those premises or that vehicle, vessel or aircraft, as the case may be, and may seize any article found in the premises or in the vehicle, vessel or aircraft which he has reasonable ground for believing to be evidence of the commission of any offence against this Ordinance or against any Defence Regulation continued in force by or replaced under this Ordinance or any documents which he has reasonable ground for believing ought to have been produced under the preceding paragraph:

Provided that no female shall, in pursuance of any warrant issued under this paragraph, be searched except by a female.

(3) Where, by virtue of this paragraph, a person has any power to enter any premises, he may use such force as is reasonably necessary for the purpose of exercising that power.

3. (1) Any article coming into the possession of an executive authority (whether in consequence of the seizure of the article under or by virtue of this Ordinance or otherwise) which the authority has reasonable ground for believing to be evidence of the commission of an offence against this Ordinance or against any Defence Regulation continued in force by or replaced under this Ordinance may be retained for a period of three months or, if within that period there arc commenced proceedings in respect of such an offence in which the article is, or can properly be, adduced in evidence, until the final determination of those proceedings.

(2) For the purposes of this paragraph, any person to whom any powers of the competent authority under this Ordinance are delegated or on whom any functions are conferred by or by virtue of this Ordinance or any Defence Regulation continued in force by or replaced under this Ordinance, including any police officer, shall be deemed to be an executive authority.

(3) For the purposes of this paragraph, any proceedings shall be deemed not to have been finally determined so long as there is pending any appeal in the matter of the proceedings, and an appeal in that matter shall be deemed to be pending during the ordinary time within which such an appeal may be lodged, and, if such an appeal is duly lodged, the appeal shall be deemed to be pending until it is decided or withdrawn.

(4) The powers conferred by this paragraph in relation to any article shall be in addition to, and not in derogation of, any powers otherwise exercisable in relation thereto.

4. No person in or resident in the Colony shall -

(a) with intent to evade the provisions of this Ordinance, or of any Defence Regulation continued in force by or replaced under this Ordinance, destroy, mutilate, deface, secrete or remove any documents;

(b) in furnishing any information for any of the purposes of this Ordinance or of any such Defence Regulation, make any statement which he knows to be false in a material particular, or recklessly make any statement which is false in a material particular;

(c) obstruct any person in the exercise of any powers conferred on him by virtue of this Part of this Schedule.

PART II

General provisions as to offences

1. (1) Any person in or resident in the Colony who contravenes any restriction or requirement imposed by or under this Ordinance, or any Defence Regulation continued in force by or replaced under this Ordinance, and any such person who conspires or attempts, or aids, abets, counsels or procures any other person, to contravene any such restriction or requirement as aforesaid, shall be guilty of an offence punishable under this Part of this Schedule:

Provided that an offence punishable by virtue of Part in of this Schedule shall not be punishable under this Part of this Schedule.

(2) Where an offence punishable under this Part of this Schedule has been committed by a body corporate, any person who at the time of the commission of the offence was a director, general manager, secretary or other similar officer of the body corporate, or was purporting to act in any such capacity, shall be deemed to be guilty of that offence, unless he proves that the contravention was committed without his consent or connivance and that he exercised all such diligent: to prevent the commission of the offence as he ought to have exercised having regard to the nature of his functions in that capacity and to all the circumstances.

(3) Any person who commits an offence punishable under this Part of this Schedule shall be liable -

(a) an summary conviction, to imprisonment for three months and to a fine;

(b) on conviction on indictment, to imprisonment for two years and to a fine; and where the offence is concerned with any currency, any security, any gold, any goods or any other property, the court may, if they think fit so to do, order the currency, security, gold, goods or property to be forfeited,

(4) Except in the case of a body corporate convicted on indictment, the maximum fine which may be imposed for an offence punishable under this Part of this Schedule shall be -

(a) on summary conviction one thousand dollars; and

(b) on conviction on indictment two thousand dollar;

currency, any security, any payment, any gold, any goods or any other property, and does not consist only of a failure to give information or produce books, accounts or other documents with respect thereto when require so to do under Part I of this Schedule, a larger fine maybe imposed not exceeding three times the amount or value of the currency, security, payment, gold, goods or property.

2. (1) No proceedings for an offence punishable under this Part of this Schedule shall be instituted, except by or with the consent of the Attorney-General:

Provided that this sub-paragraph shall not prevent the issue or execution of a warrant for the arrest of any person in respect of such an offence, or the remanding in custody or on bail of any person charged with such an offence.

(2) Proceedings against any person in respect of an offence punishable under this Part of this Schedule may be taken before the appropriate court in the Colony having jurisdiction in the place where that person for the time being.

(3) Any proceedings under a law establishing summary jurisdiction which may be taken against any person in respect of any offence punishable under this Part of this Schedule may, notwithstanding anything to the contrary in that law, be taken at any time within twelve months from the date of the commission of the offence or within three months from the date on which evidence sufficient in the opinion of the Financial Secretary to justify the proceedings comes to the knowledge of the Financial Secretary, whichever period last expires, or, where the person in question was outside the Colony at the date last mentioned, within twelve months from the date on which he first arrives in the Colony thereafter.

(4) For the purposes of this paragraph a certificate of the Financial Secretary as to the date on which such evidence as aforesaid came to the knowledge of the Financial Secretary shall be conclusive evidence thereof.

3. The maximum period of imprisonment that may be imposed by a court of summary jurisdiction in the Colony -

(a) in respect of the non-payment of a sum adjudged to be paid by a conviction for an offence punishable under this Part of this Schedule; or

(b) in respect of the default of a sufficient distress to satisfy any such sum, shall, in cases where the sum exceeds forty dollars, be increased in accordance with the following scale, that is to say, -

Where the amount of the sum adjudged to be paid by the conviction, as ascertained by the conviction, -
	The said period shall not exceed -	
Exceeds $40 but does not exceed $200 .. .. .. .. .. ..
Exceeds $200 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..	Four months
Six months	

PART III

Import and export

1. (1) The enactments relating to customs shall, subject to such modifications, if any, as may be prescribed to adapt them to this Ordinance apply in relation to anything prohibited to be imported or exported by any of the provisions of Part IV of this Ordinance except with the permission of the Financial Secretary as they apply in relation to goods prohibited to be imported or exported by or under any of the said enactments, and any reference in the said enactments to goods shall be construed as including a reference to anything prohibited to be imported or exported by any of the provisions of the said Part IV except with the permission of the Financial Secretary.

Cap. 55.

(2) Reference in this paragraph to the enactments relating to customs shall be taken as including references to the Customs Ordinance.

Cap. 55.

2. Any declaration required to be given under Part IV of this Ordinance shall, for the purposes of the Customs Ordinance, be deemed to be a declaration in a matter relating to customs.

Cap. 55.

3. If anything prohibited to be exported by any provision of the said Part IV is exported in contravention thereof, or is brought to a quay or other place, or wafer-borne, for the purpose of being so exported the exporter or his agent shall be liable to the same penalty as that to which a person is liable for an offence to which the Customs Ordinance applies.

Cap. 55.

4. Without prejudice to any of the preceding provisions of this Part of this Schedule any person who, on any occasion, is about to leave the Colony or arrives in the Colony (which person is hereafter in this paragraph referred to as "the traveller") shall, if on that occasion he is required so to do by an officer of Customs or an immigration officer -

(a) declare whether or not he has with him anything prohibited to be imported or exported by any of the provisions of the said Part IV except with the permission of the Financial Secretary; and

(b) produce any such thing as aforesaid which he has with him,

and the officer may examine or search any article which the traveller has with him for the purpose of ascertaining whether he is conveying or has in his possession any such thing, and, if the officer has reasonable grounds for suspecting that the traveller has about his person any such thing, search him, and may seize anything produced as aforesaid or found upon such examination or search as aforesaid as to which the officer has reasonable ground for suspecting that it is prohibited to be imported or exported by any of the provisions of the said Part IV except with permission of the Financial Secretary.

Provided that no female shall be searched in pursuance of this paragraph except by a female.

5. Paragraph 1 (2) of Part II of this Schedule shall apply also to offences punishable by virtue of this part of this Schedule.

[Subsidiary]
SUBSIDIARY LEGISLATION

Foreign Currency specified by order under section 2 (1)
G.N.216/56
Belgian francs 
Congolese francs
Canadian dollars
Danish and Faroese kroner
Deutschemarks
Djibouti francs
Francs of the French franc area
Indo Chinese piastres
Italian lire
Luxembourg francs
Pondicherry rupees
Guilders of the Netherlands, Surinam and the Netherlands Antilles
Norwegian kroner
Panamanian dollars 
Philippine pesos 
Portuguese escudos 
Swedish kroner 
Swiss francs
United States dollars

Permission for exportation under section 22 (1)

G.N. 166.56.
The exportation from the Colony of postal orders and currency in the form of Australian notes not exceeding the sum of forty dollars Australian per adult person is permitted.

Order under section 42 authorising a person to act as an authorised dealer

L.N. 11/71
All branches of the Bank of New South Wales for the time being situated in the Colony are authorised dealers in relation to gold and all foreign currencies.

Order under section 42 authorising a person to act as an authorised depositary

G.N.164/56
The Accountant-General is authorised to act as an authorised depositary for the purposes of Part III.

NOTE
DEFENCE REGULATIONS 1941

The following is the text of the regulations kept in force by virtue of section 43 of this Ordinance. The Regulations are as amended by the Defence (Finance) (Amendment) Regulations 1941, the Defence (Finance) (Amendment) Regulations 1942 and section 43 of the Exchange Control Ordinance 1952. "Governor" has been substituted for "High Commissioner". "Financial Secretary" has been substituted for "Resident Commissioner" in view of the transfer of power effected by the First Schedule to the Miscellaneous Amendments (Declaration and Transfer of Powers) Ordinance 1971.

Citation.

1. These Regulations may be cited as the Defence (Finance) Regulations 1941.

Power to restrict dealing with and to acquire securities.

2. (1) The Governor may by order direct -

(a) that, subject to any exemptions for which provision may be made by the order, no person shall, except with permission granted by the Financial Secretary, sell, transfer, or do anything which involves the creation of a charge on, securities of any such class as may be specified in the order, being a class of securities which, in the opinion of the Governor, are likely to be marketable outside the Colony, and

(b) that the owner of any securities of the said class shall, in such manner and within such period as may be specified in the order, make a return to the Financial Secretary giving such particulars with respect to those securities as may be so specified.

For the purposes of this paragraph a person who mortgages or pledges a security shall be deemed thereby to create a charge on the security.

(2) At any time while an order made under paragraph (1) with respect to securities of any class is in force, the Governor, if he is of the opinion that it is expedient so to do for the purpose of strengthening the financial position of the Colony, may, by an order made generally with respect to any specified securities of that class, or by a direction given on his behalf by the Financial Secretary with respect to any securities of that class of which any particular person is the owner, transfer to the Financial Secretary the securities to which the order or direction relates, at a price which, in the Governor's opinion, is not less than the market value of the securities on the date on which the order was made or the direction given. Such price shall be specified in an order to be made by the Governor, or in a direction to be given on his behalf by the Financial Secretary, not later than thirty days after the date of the order or direction by which the securities were transferred.

(3) Where any order is made or any direction is given under paragraph (2) with respect to any securities -

(a) those securities shall forthwith vest in the Financial Secretary free from any mortgage, pledge or charge and may, subject to any instructions which the Governor may give in respect thereto, be dealt with by the Financial Secretary he shall think fit;

(b) the owner of any of those securities, and any person who is responsible for keeping any register or book in which any of those securities is registered or inscribed, or who is otherwise concerned with the registration or inscription of any of those securities, shall do all such things as are necessary, or as the Financial Secretary may direct to be done, for the purpose of securing that the security and any document of title relating thereto will be delivered to the Financial Secretary or to such person as the Financial Secretary may direct, and, in the case of any registered or inscribed security, that the security will be registered or inscribed in the name of the Financial Secretary or of such person as the Financial Secretary may direct.

(4) The duty to deliver any security under paragraph (3) shall include a duty to do all such things as are necessary to secure that any dividends or interest on that security becoming payable on or after the date of the making of the order or the giving of the direction will be paid to the Accountant-General; and where, in the case of any security payable to bearer which is delivered in pursuance of the said paragraph, any coupons representing any such dividends or interest are not delivered with the security, such reduction in the price payable therefor shall be made as the Governor thinks fit:

Provided that, where the price stated in the order or direction in relation to any securities is ex any dividend or ex any interest, this paragraph shall not apply to that dividend or interest or to any coupon representing it.

(5) A certificate signed by any person authorised in that behalf by the Financial Secretary that any specified securities are securities transferred to the Financial Secretary under this regulation shall be treated by all persons responsible for keeping any registers or books in which the securities are registered or inscribed, or who are otherwise concerned with the registration or inscription of those securities, as conclusive evidence that the securities have been so transferred.

(6) This regulation shall not apply to any security if the Financial Secretary is satisfied that at all times since the fifth day of September, nineteen hundred and thirty-nine, all the persons interested in the security, other than persons interested therein merely as trustees or merely by virtue of any mortgage, pledge or charge created before the said day, but including any persons beneficially interested therein under a trust, were not resident in the Colony.

(7) Where, by virtue of paragraph (3) (a), any security has become vested in the Financial secretary then, at any time before the steps required by sub-paragraph (b) of that paragraph to be taken in relation to that security have been taken, the Financial Secretary may, by a declaration made in writing, divest himself of the security; and thereupon the order or direction in consequence of which the security so became vested in the Financial Secretary shall be deemed, for all purposes, not to have been made or given with respect to that security.

(8) For the purposes of this regulation, the expression "security" includes a deposit receipt in respect of the deposit of securities.

(9) At any time while an order made under paragraph (1) with respect to securities of any class is in force the Governor, if he is of opinion that it is expedient to do so for the purpose of strengthening the financial position of the Colony, may, by an order made generally with respect to any specified securities of that class, or by a direction given on his behalf by the Financial Secretary, with respect to any securities of that class of which any particular person is the owner, direct that -

(a) the securities to which the order or direction relates shall be sold in such manner and within such period as may be specified in or under the order or direction;

(b) any foreign currency representing the proceeds of sale of those securities shall be disposed of in such manner as may be prescribed by the order or direction; and

(c) there shall be furnished to such person as may be prescribed in the order or direction such documents or information relating to the matters aforesaid as may be so prescribed;

and any person who is, at the date of the making of the order or the giving of the direction, an owner of those securities shall do all such things as are necessary or as the authority prescribed in the order or direction may direct to be done for the purpose of giving full effect to the order or direction.

Directions as to documents of title.

2A. The Financial Secretary may give such directions as to the custody and disposition of documents of title relating to securities or relating to any class or description of securities specified in the direction, as appear to him to be expedient.

Special directions.

3A. Where the Governor is satisfied that, owing to changes in the external or internal Special position of any State, action is being, or is likely to be, taken to the detriment of the directions economic position of the Colony or otherwise to the prejudice of the efficient prosecution of the war, the Governor may by order give general or special directions prohibiting, either absolutely or to such extent as may be specified in the directions, the carrying out, except with permission granted by him, or on his behalf by the Financial Secretary, of any order given by or on behalf of -

(a) the State or the Sovereign thereof or any person resident therein, or

(b) any body corporate which is incorporated under the laws of that State or is under the control of that State or the Sovereign thereof or any person resident therein,

insofar as the order -

(i) requires the person to whom the order is given to make any payment or to part with any gold or securities; or

(ii) requires any change to be made in the persons to whose credit any sum is to stand or to whose order any gold or securities are to be held.

Definitions

20. In these regulations, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say -

"currency notes" means currency notes which are legal tender in the Colony;

"banknotes" means banknotes which are legal tender in the United Kingdom or in any part thereof;

"foreign currency" means any currency other than sterling or Australian currency; 

"gold" means gold coin or gold bullion;

"owner", in relation to any security, includes any person who had power to sell or transfer a security, or who has the custody thereof, or who receives, whether on his own behalf or on behalf of any other person, dividends or interest thereon, or who has any other interest therein, and includes in a case where securities are held on any trust, or dividends or interest thereon are paid into any trust fund, any trustee or any person entitled to enforce the performance of the trust, or to revoke or vary, with or without the consent of any other person, the trust or any of the terms thereof, or to control the investment of the trust moneys;

"security" includes -

(a) shares, stacks, bonds, notes, debentures, debenture stock and Treasury bills,

(b) a deposit receipt in respect of the deposit of securities,

(c) a unit or sub-unit of a unit trust,

(d) a warrant conferring an option to acquire a security,

(e) a share in an oil royalty;

"sterling area" means the United Kingdom, the Gilbert and Ellice Islands Colony, and such other territories as may be declared by order of the Governor to be included in the sterling area.