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The State Acquisition (Bonds) Act, 1957 (East Pakistan Act)

( ACT NO. XXXVIII Of 1957 )

Holding of Bonds as trustee or by an Office other than public office
6. (1) No notice of any trust in respect of any Bond shall be receivable by the Government, nor shall the Government be bound by any such notice even though expressly given, nor shall the Government be regarded as trustee in respect of any Bond.
 
 
 
 
(2) Without prejudice to the provisions of sub-section (1), the Bank may, as an act of grace and without any liability to the Bank or to the Government, record in its books such directions by the holder of a Bond for the payment of instalments due on a Bond or such other matters relating to a Bond, as the Bank thinks fit.
 
 
 
 
(3) Bonds may be held by a holder of an office, other than a public office,-
 
 
 
 
(a) in his personal name, described in the books of the Public Debt Office and in the Bond as a trustee, whether as a trustee of the trust specified in his application or as a trustee without any such qualification, or
 
 
 
 
(b) by the name of his office.
 
 
 
 
(4) On an application made in writing to the Public Debt Office, in the form required by that Office, by the person in whose name a Bond stands, and on surrender of the Bond, the Public Debt Office may-
 
 
 
 
(a) make an entry in their books describing him as a trustee of a specified trust or as a trustee without specification
 
 
of any trust and issue a Bond in his name described as trustee with or without the specification of the trust, as the case may be, or
 
 
 
 
(b) issue a Bond to him by the name of his office and make entry in its books describing him as the holder of the Bond by the name of his office, according to the applicant's request:
 
 
 
 
Provided that-
 
 
 
 
(i) the request is in conformity with the provisions of sub-section (3); and
 
 
 
 
(ii) the necessary evidence required by the Public Debt Office in terms of sub-section (9) has been furnished.
 
 
 
 
(5) The Bond under sub-section (3) may be held by the holder of the office either alone or jointly with a person or persons holding an office, other than a public office, or another person or an official authorised to hold the Bond by the name of his office.
 
 
 
 
(6) When a Bond is held by a person in the name of his office, any document relating to the Bond may be executed by the person for the time being holding the office by the name in which the Bond is held as if his personal name were so stated.
 
 
 
 
(7) Where any transfer deed, power of attorney or other document purporting to be executed by a Bond-holder described in the books of the Public Debt Office as trustee or as a holder of an office is produced to the Public Debt Office, the Public Debt Office shall not be concerned to inquire whether the executant is entitled under the terms of any trust or document to give any such power or to execute such deed or other document and may act on the transfer deed, power of attorney or document in the same manner as though the executant is a Bond-holder and whether the Bond-holder is or is not described in the transfer deed, power of attorney or document as a trustee or as a holder of an office and whether he does or does not purport to execute the transfer deed, power of attorney or document in his capacity as a trustee or as a holder of the office.
 
 
(8) Nothing in this Act shall, as between any trustees and office-holders, or as between any trustees or office-holders and the beneficiaries, under a trust or any document, be deemed to authorise the trustees or office-holders to act otherwise than in accordance with the provisions of law applicable to trust, the terms of the instrument constituting the trust, or the rules governing the association, of which the Bond-holder is a holder of an office; and neither the Government nor any person holding or acquiring any interest in any Bond shall, by reason only of any entry in any register maintained by or on behalf of the Government or the Bank in relation to any Bond or of anything in any document relating to Bond, be affected with notice of any trust or of the fiduciary character of any holder of any Bond or of any fiduciary obligation attaching to the holding of any Bond.
 
 
 
 
(9) Before acting on any application made, or on any document purporting to be executed in pursuance of this section by a person as being the holder of any office, the Public Debt Office may require the production of evidence that such person is the holder for the time being of that Office.

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Ministry of Law, Justice and Parliamentary Affairs