Under the Nationalist Government, in order to complete the Canton-Hankow Railway and provide supplementary railway funds, the Ministry of Finance and the Ministry of Railway jointly issued the Government Bond, namely the 1934 Six Percent British Boxer Indemnity Government Bond.
The Government Bond is fixed at the value of GBP ￡1,500,000.00 (ONE MILLION FIVE HUNDRED THOUSAND POUNDS) and issued on 1 June 1934.
The Government Bond is issued on 96% of the face value.
The Government Bond interest is set at six percent per annum, accruing from the day of issuance and repayable on the 1st of January and 1st of July every year.
The first repayment term of principal for the Government Bond is from the day of issuance to 1 January 1935. Thereafter, the principal repayment shall be made on a six-month basis. There are 25 terms in total and the total principal and interest shall be paid off by 1 January 1947.
The principal repayment mentioned in the preceding paragraph shall be subject to the Principal and Interest Repayment Chart, based on the method of lottery.
The principal and interest repayable to the Government Bond are designated to the fund the Ministry of Railway borrowed from the United Kingdom for the repayment of Boxer Indemnity. According to the principal and interest amounts specified on the Principal and Interest Repayment Chart, the repayments will be made to the designated bank(s) per each term and deposited into the GBP Boxer Indemnity Government Bond Fund Safekeeping Committee Account as the designated reserve account.
The principal and interest repayable to the Government Bond shall be safeguarded by the Fund Safekeeping Committee, comprised of six representatives – each two of which being appointed respectively by the Ministry of Finance, Ministry of Railway and Sino- British Boxer Indemnity Management Board – and one representative appointed by the Ministry of Audit, four representatives appointed by the receiving bank(s). The articles of incorporation shall be stipulated jointly by the Ministry of Finance and Ministry of Railway and submitted to the Executive Yuan for approval and record keeping.
Matters pertaining to the principal and interest repayable to the Government Bond shall be subject to the Sino-British Boxer Indemnity Government Bond Fund Committee commissioned by the Ministry of Finance and Ministry of Railway. Moreover, the Central Bank of the Republic of China, Bank of China, Bank of Communications and HSBC are appointed as the receiving banks for the repayments of principal and interest.
The Government Bond is restricted to the purpose of Article 1 hereof, without being used otherwise. The Government Bond Safekeeping Committee, comprising of six representatives – each two of which appointed by the Ministry of Finance, Ministry of Railway and Sino-British Boxer Indemnity Management Board and one representative appointed by the Ministry of Audit, shall be responsible for the receipt and safekeeping. The articles of incorporation shall be stipulated by the Ministry of Finance and Ministry of Railway, and submitted to the Executive Yuan for approval and record keeping.
The Government Bond is issued at the values of fifty pounds (￡50.00), one hundred pounds (￡100.00) and one thousand pounds (￡1,000.00).
The Government Bond shall be issued upon the signature of the Finance Minister, countersigned by the Railway Minister.
The Government Bond is unnamed and may be used for free trade and mortgage.
Except holding the rights arising herefrom, the Government Bond holder(s) shall not claim any right against any finished or unfinished section of the Canton-Hankow Railway.
For any conduct, attributable to counterfeit or damage of trust, that is imposed upon the Government Bond, it will be punishable by law by the judicial agencies.
The Act hereunder takes effect upon the day of promulgation.