Cap 279C rule 11 Reserve fund (GRANT SCHOOLS PROVIDENT FUND RULES; EDUCATION ORDINANCE)

Contents of Section

Chapter:	279C	Title:	GRANT SCHOOLS PROVIDENT FUND RULES	Gazette Number:	L.N. 177 of 2000
Rule:	11	Heading:	Reserve fund	Version Date:	19/05/2000

Remarks:

Adaptation amendments retroactively made - see 55 of 2000 s. 3

(1) A reserve fund shall be maintained, to which shall be-

(a) credited each year-

(i) the proceeds of any realization upon sale or maturity of any investment during the year in so far as such proceeds exceed the value of such investment carried in the books of the fund at the time of such sale or maturity;

(ii) the net amount of any Government donation

and DSS school donation (if any)

, including any dividend earned thereby, standing to the credit of any contributor to whom, under rule 13, such donation is not payable; (L.N. 78 of 2000)

(iii) such proportion of the income derived from investments and deposits as the board may think fit; and

(iv) any gain arising from the revaluation of investments of the fund as at 31 August of any year; and (L.N. 162 of 1996)

(b) debited each year-

(i) any loss incurred upon sale or maturity during the year of any investment having regard to the value of such investment carried in the books of the fund at the time of such sale or maturity;

(ii) such outgoings or losses incurred by the fund as the Chief Executive may in special circumstances authorize or direct in writing; and (L.N. 162 of 1996; 55 of 2000 s. 3)

(iii) any loss arising from the revaluation of investments of the fund as at 31 August of any year. (L.N. 162 of 1996)

(2) Where in any year the credit balance of the reserve fund, after crediting all the items specified in paragraph (1)(a), is less than the total of all the debits specified in paragraph (1)(b), an amount representing such difference shall be debited to the income and expenditure account and credited to the reserve fund.
(3) Where in any year, after crediting and debiting all the items specified in paragraph (1), there is a credit balance in the reserve fund, such proportion as may be required to meet the 5 per cent dividend, guaranteed under rule 12(1), shall be debited to the reserve fund and credited to the income and expenditure account.
(4) Where in any year, after crediting and debiting all the items specified in paragraphs (1) and (3), the credit balance of the reserve fund exceeds the aggregate of an amount equal to 5 per cent of the credit balance of the contributors' accounts as at 31 August and the total amount of any outstanding Government loans made under rule 12(2), any such excess may, at the discretion of the board, be credited to the contributors' accounts under rule 12(5).
(5) When in any year the Financial Secretary determines under rule 12(4) that any Government loan made under rule 12(2) shall be repaid, either in whole or in part, then-

(a) if the credit balance of the reserve fund exceeds the amount of the loan to be repaid, that amount shall be debited to the reserve fund and credited to the dividend deficiency account; and

(b) if the credit balance of the reserve fund is less than the amount of the loan to be repaid, an amount representing such difference shall be debited to the income and expenditure account and credited to the reserve fund.

(6) In this rule and in rule 12, "income and expenditure account" (收支帳目) means the account maintained for receiving the credits of income from investments and income other than of a capital nature, and the debits of expenses other than of a capital nature, relating to the operation of the fund and for determining the surplus or deficit resulting from the operation.

(L.N. 239 of 1982)