### Kowloon-Canton Railway Corporation Ordinance 《九廣鐵路公司條例》

7B. Land no longer required by the Corporation
(1) Notwithstanding section 7 but without prejudice to section 7A(4), where—
(a) the Director of Lands and the Corporation agree; or
(b) the Director of Lands, in the absence of such agreement, is satisfied,
that land or any interest or other right in respect of land that has been vested in the Corporation is no longer required for the operational purposes of one or more of the railways, he may divest such land or extinguish such interest or other right, and section 7A(2) and (3) shall apply to such divesting or extinguishing with the necessary changes.
(2) Where land is divested or any interest or other right in respect of land is extinguished under this section, the Corporation shall, at its expense—
(a) discharge all encumbrances and shall pay all relevant fees, costs and charges which may be levied in respect of such divesting or extinguishing;
(b) remove all buildings and structures and thereafter either reinstate the land to its former condition to the satisfaction of the Director or put the land in such other condition as the Director may specify.
(3) Upon the divesting of land or the extinguishing of any interest or other right in respect of land, the Government shall have full power to deal with such land as it deems fit, free of all rights or claims on the part of the Corporation.
(4) For the avoidance of doubt, it is hereby declared that the Corporation has the duty to notify the Director of any land or any interest or other right in respect of land to which this section may apply.
(Added 13 of 1998 s. 5)

8. Capital of Corporation
(1) The authorized capital of the Corporation shall be an amount specified by the Financial Secretary under subsection (2) and shall be divided into shares of $100,000 each.
(2) The Financial Secretary shall, on the day this section comes into operation, specify the amount of authorized capital of the Corporation based on the book value of all assets vested in the Corporation, rounded to the nearest $100,000, and shall publish a notice in the Gazette specifying such amount.
(3) The Financial Secretary may, after consulting the Corporation, increase the authorized capital of the Corporation by order published in the Gazette.
(4) Shares in the authorized capital of the Corporation shall be allotted to the Government at par as required in writing by the Financial Secretary.
(5) All shares allotted to the Government under this section shall be registered in the books of the Corporation in the name of The Financial Secretary Incorporated and held by him in trust on behalf of the Government.
(6) The Corporation shall not issue shares otherwise than under this section.
(Replaced 13 of 1998 s. 6)

### Kowloon-Canton Railway Corporation Ordinance 《九廣鐵路公司條例》

9. Power to borrow and to issue stock etc.
(1) Subject to subsection (3) the Corporation may, in any currency and on such terms and conditions as it thinks fit—
(a) borrow or otherwise raise money and charge all or any part of its property as security therefor;
(b) create and issue bonds, notes or other securities which may be charged on the property, undertaking and revenue of the Corporation or any part thereof.
(2) In exercise of the powers conferred by section 4 and subsection (1)(a) the Corporation may purchase property under an agreement providing for the payment of the whole or part of the purchase price by instalments.
(3) The powers conferred by subsection (1) may be exercised to provide the Corporation with such sums or credits as it may require for—
(a) carrying out the purposes referred to in section 4;
(b) repaying money previously borrowed by it therefor and interest, premium or other charge on such money;
(c) repaying sums due to the Government.
(Replaced 13 of 1998 s. 6)

10. Power to enter into other financial transactions
(1) The Corporation may enter into any agreement or arrangement in connection with its financial affairs, including any agreement or arrangement for reducing or compensating for any financial risk, on such terms and conditions as it thinks fit, as if it were a natural person of full age and capacity.
(2) To facilitate an exercise of the power referred to in subsection (1), the Corporation may promote the formation of an incorporated company as a subsidiary in any territory or jurisdiction.
(Replaced 13 of 1998 s. 6)

11. Guarantee by Government
(1) The Financial Secretary may on behalf of the Government, in such manner and on such conditions as he thinks fit, guarantee the repayment of the principal of, the payment of interest on, and the discharge of any other financial obligation in connection with, any sums borrowed by the Corporation up to $500,000,000 or such greater amount as the Legislative Council may, from time to time, by resolution, approve.
(2) Any sum required for fulfilling a guarantee given under this section shall be charged on and issued out of general revenue.
(3) Where any sum is so issued for fulfilling any such guarantee the Corporation shall make to the Government, at such time and in such manner as the Financial Secretary may from time to time direct, payments of such amounts as the Financial Secretary may direct in or towards repayment of that sum and payments of interest on the amount outstanding for the time being in respect of that sum, at such rate as the Financial Secretary may so direct.
(4) Any sums received by the Government in pursuance of subsection (3) shall be paid into general revenue.
(Replaced 13 of 1998 s. 6)

### Kowloon-Canton Railway Corporation Ordinance 《九廣鐵路公司條例》

12. Corporation to act on commercial principles
(1) The Corporation shall conduct its business according to prudent commercial principles and shall ensure as far as possible that, taking one year with another, its revenue is at least sufficient to meet its expenditure.
(2) Subject to the provisions of sections 13 and 14, the profits of the Corporation in any financial year shall be applied by it in such manner as it may, with the prior approval of the Financial Secretary, think fit, being a manner consistent with this Ordinance.
(3) For the purpose of this section and sections 13 and 14, the profits of the Corporation in any financial year are the excess of revenue of the Corporation over the total sum required by it—
(a) to meet the total outgoings of the Corporation properly chargeable to revenue account; and
(b) to enable the Corporation to make such provision for depreciation and renewal of capital assets, bad debts and other purposes, being provision properly chargeable to revenue account, as it may reasonably consider adequate.
(Replaced 13 of 1998 s. 6)

13. Reserve funds
(1) Subject to subsection (2), the Corporation may establish any general or special reserve fund and carry to the credit thereof such sums as it thinks fit and expend the same in any way consistent with this Ordinance.
(2) The Corporation shall not exercise its powers under subsection (1) except with the prior approval of the Financial Secretary and shall, where the Financial Secretary after consultation with the Corporation so directs—
(a) carry the whole or part of the profits of the Corporation in any financial year to the credit of such general or special reserve fund as the Financial Secretary shall approve; or
(b) pay the whole or part of any sum standing to the credit of any such reserve fund into the general revenue.
(Replaced 13 of 1998 s. 6)