Hong Kong Regulations

CAPITAL INVESTMENT FUND - PARAGRAPH

(Past version on 30/06/1997).

Resolution made and passed by the Legislative Council under section 29 of the
Public Finance Ordinance on 14 March 1990.

RESOLVED that with effect from 1 April 1990-

1. there shall be established a fund to be called the Capital Investment Fund;

2. the Fund shall be administered by the Financial Secretary who may delegate
his power of administration to other public officers;

3. there shall be credited to the Fund-

   (a)  the shares in the MTR Corporation Limited issued to the Financial
        Secretary Incorporated and held by the Financial Secretary
        Incorporated on behalf of the Government; (13 of 2000 s. 65)

   (b)  the assets of, including the investments, and any advances in respect
        of such investments, made from, the Development Loan Fund as at 31
        March 1990 specified in Part I of the Schedule;

   (c)  the investments, and any advances in respect of such investments, made
        from the general revenue as at 31 March 1990 specified in Part II of
        the Schedule;

   (d)  the investments by the Government by way of waived land premium,
        donated works and other benefits other than cash, and any advances in
        respect of such investments, as at 31 March 1990 specified in Part III
        of the Schedule;

   (e)  all sums received by way of repayment of-

        (i)    any advances specified in the Schedule;

        (ii)   any loan or advance made from the Fund under paragraph 5;

   (f)  subject to the Mass Transit Railway Ordinance ( Cap 556) and the
        Kowloon-Canton Railway Corporation Ordinance ( Cap 372) all sums
        received by way of interest or dividend or under profit sharing
        arrangements on the investments, loans or advances specified in the
        Schedule or made under paragraph 5; (13 of 2000 s. 65)

   (g)  such appropriations from the general revenue as may be approved by the
        Legislative Council for the purpose of the Fund;

   (h)  all sums received from the sale or other disposal of all or part of
        any investment specified in the Schedule or made under paragraph 5 or
        7;

   (i)  all sums received by way of interest or dividend on money invested
        under paragraph 7;

   (j)  all such other sums as may be received for the purpose of the Fund;

   (k)  sums borrowed under section 3 of the Loans Ordinance ( Cap 61) where
        the resolution of the Legislative Council approving the borrowing so
        stipulates; (L.N. 400 of 1991)

4. the Fund shall assume-

   (a)  all the liabilities of the Mass Transit Fund as at 31 March 1990 in
        respect of investments from the Mass Transit Fund for the purpose of
        or in connection with the mass transit railway system in accordance
        with such conditions, exceptions and limitations as have been
        specified by the Finance Committee;

   (b)  all the liabilities of the Development Loan Fund as at 31 March 1990
        in respect of the investments made from the Development Loan Fund
        specified in Part I of the Schedule; and

   (c)  the liability of the general revenue as at 31 March 1990 in respect of
        promissory notes issued to the Asian Development Bank for share
        subscription;

5. the Financial Secretary may expend moneys from the Fund for the purpose of-

   (a)  meeting the liabilities assumed under paragraph 4 under terms and
        conditions already approved by the Finance Committee as at 31 March
        1990;

   (b)  financing loans, advances and investments (including investments by
        way of waived land premium, donated works or other benefits

(other than cash)) to or in such persons as may be approved by the Finance
Committee, in accordance with such terms and conditions as may be specified by
the Finance Committee; or

   (c)  repaying or, where appropriate, paying the principal and interest of
        and expenses incurred in relation to sums borrowed under section 3 of
        the Loans Ordinance ( Cap 61) where the sums have been credited to the
        Fund; (L.N. 400 of 1991)

6. 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;

7. the Financial Secretary may, in his discretion, authorize the investment of
moneys forming the unexpended balance held in the Fund at any time in interest
bearing securities in such manner as he may determine;

8. the Financial Secretary may from time to time transfer from the Fund to the
general revenue any balance held in the Fund which is not in his opinion
reasonably required for the purpose of the Fund;

9. the Development Loan Fund and the Mass Transit Fund shall be closed.

10. (Omitted as spent) (Enacted 1990)