HC Deb 16 December 1946 vol 431 cc327-8W
112. Sir J. Mellor

asked the Chancellor of the Exchequer the text of the Treasury's guarantee of the principal of, and the interest on, the L.P.T.B. 3 per cent. Guaranteed Stock of 1967–72.

Mr. Dalton

I am circulating the text of the Minute in the OFFICIAL REPORT.

The Minute is as follows: My Lords read the Finance Act, 1934, 24 & 25 Geo. V, Cap. 32, which Act empowers the Treasury, subject to the conditions therein mentioned, to guarantee a loan raised solely for the purpose of providing for the redemption of a loan which has been guaranteed by the Treasury and is redeemable before maturity at the option of the borrower. My Lords have before Them an application from the London Passenger Transport Board that a guarantee be given in respect of an issue by that Board of £12,905,641 of London Transport 3 per Cent. Guaranteed Stock 1967– 1972 about to be issued by the Board. The terms of the said issue and the conditions of the said guarantee as arranged with the Board are contained in an Agreement dated 24th September, 1942, and made between the Board and My Lords. My Lords are satisfied that the conditions laid down in the said Act are fulfilled in the case of this proposed issue, and They accordingly give Their guarantee for the payment of interest at the rate of three per cent. per annum on the said sum of £12,905,641 of London Transport 3 per Cent. Guaranteed Stock 1967–1972 and for the repayment of the said sum of not exceeding £12,905,641 of principal moneys secured by the said Stock on the due dates. This guarantee is conditional upon the said proposed issue being made in accordance with the provisions of the said Agreement dated 24th September, 1942.