Hong Kong Regulations

CAPITAL WORKS RESERVE FUND - PARAGRAPH 4

Resolution made and passed by the Provisional Legislative Council under
section 29(1) of the Public Finance Ordinance ( Cap 2) on 17 December 1997.

RESOLVED with respect to the Capital Works Reserve Fund established by
resolution made and passed by the Legislative Council on 20 January 1982 and
published in the Gazette as Legal Notice No. 18 of 1982, that-

   (a)  the Fund be administered by the Financial Secretary, who may delegate
        his power of administration to other public officers;

   (b)  there be credited to the Fund-

        (i)    premium income received from land transactions;

        (ii)   all moneys received arising from works or commitments entered
               into for the purposes of the Fund;

        (iii)  unclaimed deposits in respect of moneys referred to in
               subparagraph (ii) which have been unpaid for 5 years;

        (iv)   such appropriations from general revenue as may be approved by
               the Provisional Legislative Council or Legislative Council;

        (v)    sums borrowed under section 3 of the Loans Ordinance ( Cap 61)
               where the resolution of the Provisional Legislative Council or
               Legislative Council approving the borrowing so stipulates;

        (vi)   all moneys received by way of interest or dividends earned in
               respect of moneys held in the Fund;

        (vii)  such donations and other moneys as may be received for the
               purposes of the Fund;

   (c)  the Financial Secretary may expend moneys from the Fund for-

        (i)    the purposes of the Government's public works programme;

        (ii)   the purchase and installation of equipment consequential on
               implementing the public works programme;

        (iii)  the development, purchase and installation of major systems and
               equipment used by the Government;

        (iv)   capital subventions;

        (v)    the acquisition of land; and

        (vi)   the payment of redemption money payable in respect of land
               exchange entitlements and of interest payable thereon under the
               New 
               Territories Land Exchange Entitlements (Redemption) Ordinance (
               Cap 495), in accordance with such conditions, exceptions and
               limitations as may be specified by the Finance Committee;

   (d)  the Financial Secretary may-

        (i)    transfer from the Fund to the general revenue any balance in
               the Fund which is not required for the purposes of the Fund;

        (ii)   repay the principal, interest thereon and expenses incurred in
               relation to sums borrowed under section 3 of the
               Loans Ordinance ( Cap 61) where such sums have been credited to
               the Fund;

        (iii)  in his discretion, authorize the investment in such manner as
               he may determine of any moneys held in the Fund at any time;

   (e)  the Director of Accounting Services shall, under the authority of a
        funds warrant issued by the Financial Secretary, pay from the Fund
        such sums as may be required to meet expenditure from the Fund;

   (f)  this resolution shall come into operation* on a date to be appointed
        by the Financial Secretary by notice in the Gazette;

   (g)  on the coming into operation of paragraphs (a) to (f), the suspense
        account, works account and reserve account of the Fund shall be
        cancelled and any moneys remaining in those accounts shall be carried
        forward in their entirety in the Fund; and

   (h)  paragraphs (a) to (n) of the resolution made and passed by the
        Legislative Council on 15 May 1985, and published in the Gazette as
        Legal Notice No. 131 of 1985, and any subsequent amendments made to
        those paragraphs shall cease to apply. (L.N. 610 of 1997)
        ___________________________________________________________________________
        __ Note:

* Commencement date: 1 January 1998.