Laws of the State of Israel
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LAWS OF THE STATE OF ISRAEL VOL. 25 5731—1970/71 FROM 12th CHESHVAN, 5731—11.11.70 to 6th AV, 5731—28.7.71 Authorised Translation from the Hebrew Prepared at the Ministry of Justice PUBLISHED BY THE GOVERNMENT PRINTER LAWS OF THE STATE OF ISRAEL VOL. 25 5731 — 1970/1 FROM 12th CHESHVAN, 5731—11.11.70 to 6th AV, 5731—28.7.71 Authorised Translation from the Hebrew Prepared at the Ministry of Justice PUBLISHED BY THE GOVERNMENT PRINTER CONTENTS Page Laws , 3 Budget Law 194 Index of Laws in the Order of the Dates of Their Adoption by the Knesset 205 Alphabetical Index of Laws 208 EXPLANATIONS /. R. — The Official Gazette during the tenure Iton Rishmi of the Provisional Council of State Reshumot — The Official Gazette since the inception of the Knesset Sections of Reshumot referred to in this translation : Yalkut Ha-Pirsumim — Government Notices Sefer Ha-Chukkim — Principal Legislation Chukkei Taktziv — Budgetary Legislation Kovetz Ha-Takkanot — Subsidiary Legislation Hatza'ot Chok — Bills Chukkei Taktziv (Hatzafot) — Budget Bills Dinei Yisrael (from No. 2 : — The revised, up-to-date and binding Dinei Medinat Yisrael) Hebrew text of legislation enacted be• (Nusach Chadash) fore the establishment of the State P. G. — The Official Gazette of the Mandatory Palestine Gazette Government — The 1934 revised edition of Palestine Laws of Palestine legislation (Drayton) — The authorised English translation, of LSI which this volume forms part, of Is• raeli legislation Laws of the State of Israel — An English edition of the revised text of pre-State legislation (see above) NV Laws of the State of Israel (New Version) LAWS (No. 1) STATE OF ISRAEL BONDS (FIFTH DEVELOPMENT ISSUE) LAW, 5731-1970* 1. The Minister of Finance is authorised to borrow, on behalf of Authorisation the State of Israel, a sum not exceeding 750,000,000 dollars (coin or to accept loan. currency of the United States of America, or its equivalent in currencies of other countries) and for this purpose to issue and sell from time to time bonds in the United States of America and other countries. 2. The bonds issued under this Law (hereinafter referred to as Title and "Bonds") shall be denominated "State of Israel Bonds (Fifth Develop• designation of bonds. ment Issue)" or with such variations of title and with such series designations as the Minister of Finance may determine. 3. The Bonds may be issued in annual or other series, and the Power of Minister of Finance may from time to time determine the form of Minister of Finance. the Bonds and of each series thereof, the amounts in which they shall be issued, subject to the limitation imposed by section 1, the modes of their issue and the terms and conditions applicable to them, including restrictions on their transfer. Such terms and conditions need not be uniform for all series, but may vary from series to series. 4. (a) The bonds may be issued on an interest-bearing basis, on a Denominations, types and capital appreciation basis, or on a combination interest-bearing and characteristics capital appreciation basis, and shall mature at such time or times as may of bonds. be prescribed by the Minister of Finance, provided that no Bond issued un• der this Law shall mature later than 15 years after the date of issue. Bonds issued on an interest-bearing basis shall bear such rate of interest, and bonds issued on a capital appreciation basis shall carry such rate of appreciation and Bonds issued on a combination interest-bearing and capital appreciation basis shall bear such rate of interest and carry such rate of appreciation as may be prescribed by the Minister of Finance, provided that no Bond issued under this Law shall afford an investment yield, taking into account any rate of interest or appreciation and any discount or premium applicable thereto, exceeding 4 p. ct. per annum, com• pounded semi-anually. The Bonds shall be of such denominations and may be sold at such price or prices and redeemed or repurchased before and at maturity upon such terms and conditions consistent with the provisions of this Law as the Minister of Finance may from time to time prescribe. Passed by the Knesset on the 12th Cheshvan, 5731 (11th November, 1970) and published in Sefer Ha-Chukkim No. 607 of the 21st Cheshvan, 5731 (20th November, 1970), p. 2; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 906 of 5731, p. 12. 3 (b) The Minister of Finance may authorise the acceptance of outstanding obligations of the State of Israel in payment for the Bonds, and he may designate the obligations of the State of Israel which may be so accepted and the terms and conditions of such acceptance. Signature 5. (a) A Bond shall bear the State Seal or State Emblem or a en Bonds. facsimile of either. (b) A Bond shall bear the signature of the Prime Minister and the Minister of Finance or the facsimile of such signatures printed from engraving; the coupon annexed to a Coupon Bond need only bear the facsimile of the signature of the Minister of Finance. (c) The Minister of Finance may prescribe that a Bond shall be signed by additional persons appointed by him in that behalf from among persons employed in the service of the State of Israel; notice of the appointment shall be published in Reshumot. Repayment 6. The principal, interest, appreciated principal and redemption or at maturity. repurchase price payable under the Bonds shall, subject to the provision of section 8 for repurchase with Israel currency at the option of the holder, be paid in legal currency of the United States of America out of the general revenues and assets of the State of Israel. The full faith and credit of the State of Israel is pledged for such payment. Redemption 7. The Minister of Finance is empowered to prescribe the terms and repurchase and conditions upon which Bonds may be redeemed or repurchased before maturity. prior to maturity, provided, however, that if Bonds are issued in series, the State of Israel shall call no Bond of any series for redemption unless it has called for redemption all Bonds of prior series. Sinking fund 8. The Minister of Finance may issue directions for the establishment and repurchase of a sinking fund and prescribe the terms and conditions upon which with Israel currency. the State of Israel shall, upon the demand of the holder of a Bond, repurchase the Bond with Israel currency. Exemption 9. (a) The Bonds shall be exempt from stamp duty. from taxes. (b) If the actual owner of a Bond is resident abroad, the principal, interest, appreciated capital and redemption or repurchase price pay• able thereunder, or any income or gain obtained in transactions therein, shall be free of all taxes, whether ad valorem or otherwise, and whether of specific or general applicability, which are, or may in the future be, imposed in Israel. Administration. 10. The Minister of Finance may appoint Fiscal Agents in the United States of America and other countries for the purposes of this Law and may enter into contracts on behalf of the State of Israel with any person for the carrying out of any operation incidental to the issue, flotation, registration and transfer of the Bonds. 4 11. (a) The Minister of Finance is charged with the implementation Implementation of this Law and may - and "P^tioi.•. (1) execute, either personally or through a person appointed by him in that behalf in writing, any document (including any contract of the kind referred to in section 10) deemed by him to be necessary or desirable for the implementation of this Law; (2) appoint agents abroad in order to carry on in his name the sale of, and other services connected with, the Bonds; (3) appoint registrars and transfer agents and establish offices for maintaining records of the registration and transfer of the Bonds. (b) The expenses incidental to the implementation of this Law shall be paid out of general revenues and assets of the State of Israel. (c) The Minister of Finance may make regulations as to any matter relating to the implementation of this Law. GOLDA MEIR YAACOV S. SHAPIRO Prime Minister Minister of Justice Acting Minister of Finance SHNEUR ZALMAN SHAZAR President of the State (No. 2) STATE OF ISRAEL BONDS (THIRD DEVELOPMENT INVESTMENT ISSUE) LAW, 5731-1970* 1. The Minister of Finance is authorised to borrow, on behalf of Authorisation the State of Israel, a sum not exceeding 250,000,000 dollars (coin to accept loan. or currency of the United States of America, or its equivalent in currencies of other countries) and for this purpose to issue and sell from time to time bonds in the United States of America and other countries. 2. The bonds issued under this Law (hereinafter referred to as Title and "Bonds") shall be denominated "State of Israel Bonds (Third De• designation of bonds. velopment Investment Issue)" or with such variations of title and with such series designations as the Minister of Finance may determine. 3. The Bonds may be issued in annual or other series, and the Power of Minister of Finance may from time to time determine the form of Minister of the Bonds and of each series thereof, the amounts — not less than Finance. Passed by the Knesset on the 12th Cheshvan, 5731 (11th November, 1970) and published in Sefer Ha-Chukkim No. 607 of the 21st Cheshvan, 5731 (20th November, 1970), p. 4; the Bill and an Explanatory Note were published in Hatza'ot Chok No.