1. This Act may be cited as the Loan (Drought Bonds) Amendment Act 1976.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

3. After section 27 of the Loan (Drought Bonds) Act 1969 the following section is inserted:—

Conversion of stock.

“27a. (1) Where the holder of a parcel of stock makes an application under Loan (Income Equalization Deposits) Act 1976 for the conversion of stock included in that parcel into an Income Equalization Deposit, that stock shall be deemed to have been redeemed on the date on which the application was made but—section 12 of the

(a) interest on that stock continues to accrue until the expiration of the month in which the application was made as if the stock had not been redeemed until the end of that month; and

(b) the holder of that stock is not entitled to any payment in respect of the redemption other than a payment in respect of any interest on the stock.

“(2) Where any stock is deemed to have been redeemed by virtue of sub-section (1), an amount equal to the amount of that stock shall be transferred from the Drought Bonds Trust Account to the Income Equalization Deposits Trust Account established under the Loan (Income Equalization Deposits) Act 1976.”.