Cap. 2 sub. leg. B

Capital Investment Fund Resolution of the Legislative Council (Format changes—E.R. 1 of 2017) 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—E.R. 1 of 2017) Schedule Part I [paras. 3(b) & 4(b)]Assets, Including Investments and Advances of the Development Loan Fund, Credited to the Fund 1. Exchange Fund debt certificates.2. Short notice and time deposits.3. Cash and bank balances.4. Investments in respect of—(a) Capital investments in the Hong Kong Housing Authority.(b) Hong Kong Building & Loan Agency Limited—Guaranteed Notes.(c) Hong Kong Export Credit Insurance Corporation.5. Advances—Hong Kong Housing Authority—Advance in respect of interest accrued. Part II [para. 3(c)]Investments and Advances of the General Revenue Credited to the Fund 1. Investments—Shares in the Asian Development Bank.2. Advances—Hong Kong Housing Authority—Advance in respect of dividends and interest accrued. Part III [para. 3(d)]Investments and Advances by Way of Waived Land Premium, Donated Works and Other Benefits ,Other Than Cash, Credited to the Fund 1. Capital investments in Hong Kong Housing Authority.2. Shares in the New Hong Kong Tunnel Company Limited.3. Government’s contribution to the initial capital of the Kowloon-Canton Railway Corporation.