Subject to the provisions of this section, the Postmaster-General may from time to time issue, for purchase by members of the public, securities to be known as Post Office Bonus Bonds (in this Part of this Act referred to as bonus bonds).

A bonus bond may be issued as security for 1 dollar or for 2 or more dollars. For the purposes of participation in any ballot held under this section each dollar so secured shall represent one unit.

A bonus bond shall be deemed not to be a New Zealand Government security for the purposes of section 4 of the Trustee Act 1956.

Every bonus bond issued under this section shall be numbered so as to indicate the units represented by the bond and shall bear on its face the amount which it secures, together with such other information as the Postmaster-General directs.

The Postmaster-General shall cause a register of bonus bonds and a register of holders of bonus bonds to be kept by an officer of the Post Office (in this section referred to as the registrar) at such place or places as the Postmaster-General directs. Every such register shall be kept in such manner and form and contain such particulars as may be prescribed by regulations made under this Act or, in default of any such regulations, as the Postmaster-General from time to time directs. No notice of any trust relating to any bonus bond, whether expressed, implied, or constructive, shall be entered in any such register or be receivable by the Postmaster-General or by any officer of the Post Office.

Subject to the provisions of this section and of any regulations made under this Act, any person who has attained 7 years of age and who is not under any legal disability other than that of being a minor may, on making application on such form as may be provided by the Postmaster-General for the purpose, purchase from any office of the Post Office Savings Bank any number of bonus bonds in his own name:

“Provided that any person having the custody and control of a minor who has not attained 7 years of age may purchase any such bonds in the name and on behalf of that minor:

“Provided also that no such bonds may be purchased in the name of any body corporate or any unincorporated body of persons, or in the names of two or more individual persons.

If any bonus bond is purchased in the name of a minor under 7 years of age otherwise than in accordance with the first proviso to subsection (6) of this section, the bond shall not be void by reason only of that fact; but if, before the minor attains 7 years of age, the Postmaster-General or the registrar becomes aware that the issue was not in accordance with that proviso, he may forthwith cancel the bond and repay the amount secured by it to any person who has the custody and control of the minor. If any cash prize is won by any such minor (being a minor who has not attained 7 years of age) as a result of a ballot held under this section, the provisions of subsection (15) of this section shall apply as if the bond had been purchased in accordance with the aforesaid proviso.

As soon as practicable after the purchase of any bonus bond, particulars of the purchase shall be notified to the registrar by the officer from whom the bond was purchased; and on receipt of the notice the registrar shall record particulars of the purchase of the bond in the register of bonus bonds and in the register of holders of bonus bonds in the manner prescribed by regulations made under this Act or, in default of any such regulations, in the manner directed by the Postmaster-General.

Neither the registered holder of any bonus bond, nor any person to whom the bond is transmitted by operation of law or who is for the time being charged by the law of New Zealand with the administration of the estate of the registered holder of any such bond, may assign the bond to any other person, whether for consideration or otherwise. If any person purports to assign any such bond in contravention of this subsection, that purported assignment shall be of no effect:

“Provided that nothing in this subsection shall prevent any such bond from being transmitted by operation of law to the personal representatives of the registered holder of the bond on his death or to the Official Assignee on the registered holder of the bond being adjudicated bankrupt.

Where the registered holder of a bonus bond dies or is adjudicated bankrupt, it shall be the duty of his personal representatives or of the Official Assignee, as the case may be, to redeem the bond forthwith. If the bond is not so redeemed, the Postmaster-General or the registrar may, on his becoming aware of the death or bankruptcy, by notice in writing to the personal representatives or to the Official Assignee, as the case may require, cancel the bond and, on so doing, shall repay the amount secured by it.

On application being made at any office of the Post Office Savings Bank in New Zealand on a form provided by the Postmaster-General for the purpose,—

The Minister of Finance shall from time to time by notice published in the Gazette fix the rate of interest applicable to bonus bonds. The interest on the amount secured by bonus bonds shall be distributed by the Postmaster-General in the form of cash prizes to holders of bonus bonds in accordance with subsection (13) of this section.

The Postmaster-General shall from time to time cause a ballot to be held of the units of all registered bonus bonds that the Postmaster-General declares to be eligible for the purpose of ascertaining which of the registered holders of those bonds are to receive the cash prizes referred to in subsection (12) of this section. In respect of ballots held under this subsection, the Postmaster-General shall from time to time determine—

The Postmaster-General shall cause the number of each bond-unit drawn in every ballot held under subsection (13) of this section to be published in the Gazette and by such other means as he may determine from time to time.

Where as a result of a ballot held under this section a cash prize is payable in respect of a bonus bond, the Postmaster-General shall pay the prize out of the Post Office Account—

Before making any payment under subsection (15) of this section, the Postmaster-General shall satisfy himself that the person to whom he proposes to pay the prize is the person entitled to it, and for this purpose may require production of the bond and such evidence of identity of that person as he thinks necessary.

If any prize money won as a result of a ballot held under this section is not claimed or the person entitled to it cannot be traced, or if any bond is cancelled under this section and the person entitled to the money secured by the bond cannot be traced, the Postmaster-General shall hold the money in an ordinary Post Office Savings Bank account on behalf of the person entitled to it; and all the provisions of this Part of this Act relating to such an account and to deposits in any such account, so far as they are applicable, shall apply accordingly.

All money received from the sale of bonus bonds under this section shall be paid into the Post Office Account, and all repayments made in accordance with subsections (10) and (11) of this section and all payments of prizes in accordance with subsection (15) of this section shall, without further appropriation than this section, be made out of that account.

Any money paid into the Post Office Account under subsection (18) of this section, or such part of any such money as the Postmaster-General directs, may be invested in accordance with section 75 of the Public Revenues Act 1953.

Nothing in the Gaming Act 1908 shall apply to bonus bonds or to the sale or purchase of any such bonds or to any cash prize payable under this section to the holder of any such bond or in respect of the holding of a ballot under this section.

Subject to the provisions of this section, the Postmaster-General may from time to time issue, for purchase by members of the public, securities to be known as Post Office National Development Bonds (in this Part of this Act referred to as development bonds).

A development bond may be issued as security for the sum of $10 or for any multiple of $10.

Every development bond issued under this section shall bear on its face the amount which it secures and shall be in such form as the Postmaster-General from time to time directs.

The Postmaster-General shall cause a register or registers of development bonds and of holders of development bonds to be kept by an officer or officers of the Post Office at such place or places as he from time to time directs. Every such register shall be kept in such manner and form and contain such particulars as may be prescribed by regulations made under this Act or, in default of any such regulations, as the Postmaster-General from time to time directs. Except as provided in subsection (8) of this section, no notice of any trust relating to any development bond, whether expressed, implied, or constructive, shall be entered in any such register or be receivable by the Postmaster-General or by any officer of the Post Office.

Subject to the provisions of this section and to any regulations made under this Act, any person who has attained 7 years of age and who is not under any legal disability other than that of being a minor may make application at any office of the Post Office Savings Bank, on a form provided by the Postmaster-General for the purpose, to purchase any number of development bonds, either in his own name or in the name of any other person who has attained 7 years of age or who is not under any legal disability other than that of being a minor:

“Provided that any person having the custody and control of a minor who has not attained 7 years of age may apply to purchase any such bonds in the name and on behalf of that minor:

“Provided also that no application for the purchase of any such bonds may be made in the name of any body corporate or any unincorporated body of persons, or in the names of two or more individual persons.

As soon as practicable after the receipt of any application made under subsection (5) of this section and after the applicant has deposited with the Post Office Savings Bank the amount that he wishes to be secured by the bond for which he has applied, the officer charged with keeping the appropriate register of development bonds and register of holders of development bonds shall, if the application is in accordance with this section and with any regulations made under this Act relating to development bonds, issue to the applicant a development bond as security for the amount deposited by him and shall then record particulars of the issue in the registers in the manner prescribed by regulations made under this Act or, in default of any such regulations, in the manner directed by the Postmaster-General.

Neither the registered holder of any development bond nor any person to whom the bond is transmitted by operation of law or who is for the time being charged by the law of New Zealand with the administration of the estate of the registered holder of any such bond may assign the bond to any other person, whether for consideration or otherwise. If any person purports to assign any such bond in contravention of this subsection, that purported assignment shall be of no effect: “Provided that nothing in this subsection shall prevent any such bond from being transmitted by operation of law to the personal representatives of the registered holder of the bond on his death or to the Official Assignee on the registered holder of the bond being adjudicated bankrupt:

“Provided also that, where the registered holder of a bond has died, his personal representatives may assign the bond to any trustee who may have been appointed in respect of the estate of the deceased bondholder or to any beneficiary who may be entitled to the bond either under the will of the deceased bondholder or under the Administration Act 1952 or any other enactment.

Every development bond shall mature at the expiration of 8 years from the date of its purchase. At any time after the expiration of 3 months from the date on which any such bond was purchased, and on application being made at any office of the Post Office Savings Bank on a form provided by the Postmaster-General for the purpose—

The amount secured by every development bond issued under this section shall bear interest from the date of its purchase at the rate of—

Interest on every development bond issued under this section shall be computed from the date of its purchase, and shall be calculated up to and including the anniversary of the date of purchase of the bond in each year of its currency. All such interest shall be added to the amount secured by the bond for the purpose of calculating interest in any subsequent year. No such interest shall be payable to the registered holder of any such bond, or to such other person as may be entitled under this section to the bond, until the redemption of the bond on or after its maturity or on its earlier surrender.

If any development bond has not been surrendered at the date of its maturity, the interest payable in accordance with subsections (9) and (10) of this section in respect of the amount secured by the bond shall be ascertained at that date and the bond shall be deemed to be surrendered. The amount secured by the bond, together with all interest so ascertained, shall thereafter be deemed to be money deposited in an ordinary Post Office Savings Bank account; and all the provisions of this Part of this Act relating to such an account and to deposits in any such account, so far as they are applicable, shall apply accordingly.

All money received from the sale of development bonds under this section shall be paid into the Post Office Account and all payments made by way of principal and interest to the registered holders of development bonds or to any other person entitled to any such bonds in accordance with this section shall, without further appropriation than this section, be made out of that account.

Any money paid into the Post Office Account under subsection (12) of this section, or such part of any such money as the Postmaster-General directs, may be invested in accordance with section 75 of the Public Revenues Act 1953.

No stamp duty or other duty under the Stamp Duties Act 1954 shall be payable in respect of any bond issued under section 129a or section 129b of this Act or in respect of any instrument which relates solely to the repayment of money secured by any such bond or to any prize or interest payable in respect of it.

Neither the Postmaster-General nor any person acting under his authority shall be liable in respect of any payment properly made or any act properly done under section 129a or section 129b of this Act. Any such payment shall, subject to the provisions of subsection (2) of this section, be deemed to have been a valid payment; and the receipt of the person to whom the money was paid shall be a full discharge to the Postmaster-General for the amount of the payment.

The principal Act is hereby further amended by repealing section 120, and substituting the following section:

Section 118 of the principal Act is hereby consequentially amended by repealing subsection (1), and substituting the following subsection:

Section 126 of the principal Act is hereby amended by omitting the words “or any person claiming in right of a depositor,” and substituting the words “or the registered holder of any bond issued under section 129a or section 129b of this Act or any person claiming to be a depositor or registered holder of any such bond or any rights of a depositor or registered holder of any such bond”.

Section 130 of the principal Act is hereby amended by adding the following paragraphs:

Section 176 of the principal Act is hereby amended by omitting the words “section one hundred and nineteen”, and substituting the words and figures “sections 119, 129a, and 129b”.