COMPANIES ACT, 1929

503

the company shall have, and shall be deemed always to have had,
power to re-issue the debentures, either by re-issuing the same
debentures or by issuing other debentures in their place.
{2) On a re-issue of redeemed debentures the person entitled
to the debentures shall have, and shall be deemed always to have
had, the same priorities as if the debentures had never been redeemed.
(3) Where a company has power to re-issue debentures which
have been redeemed, particulars with respect to the debentures
which can be so re-issued shall be included in every balance sheet
of the company.

{4) Where a company has either before or after the passing of
this Act deposited any of its debentures to secure advances from
time to time on current account or otherwise, the debentures shall
not be deemed to have been redeemed by reason only of the account
of the company having ceased to be in debit whilst the debentures
remained so deposited.
(5) The re-issue of a debenture or the issue of another debenture
in its place under the power by this section given to, or deemed to
have been possessed by, a company, whether the re-issue or issue
was made before or after the passing of this Act, shall be treated
as the issue of a new debenture for the purposes of stamp duty,
but it shall not be so treated for the purposes of any provision limiting
the amount or number of debentures to be issued:

Provided that any person lending money on the security of a
debenture re-issued under this section which appears to be duly
stamped may give the debenture in evidence in any proceedings for
enforcing his security without payment of the stamp duty or any
penalty in respect thereof, unless he had notice or, but for his
negligence, might have discovered, that the debenture was not
duly stamped, but in any such case the company shall be liable to
pay the proper stamp duty and penalty.

(6) Where any debentures which have been redeemed before
the date of the commencement of this Act are re-issued subsequently
to that date, the re-issue of the debentures shall not prejudice any
right or priority which any person would have had under or by
virtue of any mortgage or charge created before the date of the
commencement of this Act, if section one hundred and four of the
Companies (Consolidation) Act, 1908, as originally enacted, had
been enacted in this Act instead of this section.

3 Edw. 7. c. 69.

76. A contract with a company to take up and pay for any Specific perform-
debentures of the company mav be enforced by an order for specific anes of conieaeis
performance. debentures.

77. It is hereby declared that, notwithstanding anything con-
tained in the statute of the Scots Parliament of 1696, chapter
twenty-five, debentures to bearer issued in Scotland are valid and
binding according to their terms.

Validity of
lebentures to
dearer in Scot.
land.