The Land Fund must receive and hold specified assets and revenues, pay its administration and management expenses, and assume certain liabilities and indemnity obligations. The Financial Secretary has powers to manage the fund, delegate those powers, authorize investments, and transfer certain cumulative investment revenue to general revenue.
Land Fund Resolution of the Provisional Legislative Council (Format changes—E.R. 1 of 2017) Resolution made and passed by the Provisional Legislative Council under section 29 of the Public Finance Ordinance (Cap. 2) on 23 July 1997. Resolved that with effect from the establishment of the Government of the Hong Kong Special Administrative Region on 1 July 1997—1. there shall be established a fund called the Land Fund;2. the Land Fund shall receive and hold all of the assets, including all accounts receivable, net of expenses, transferred, upon the establishment of the Government of the Hong Kong Special Administrative Region, from the Hong Kong Special Administrative Region Government Land Fund established by a Declaration of Trust of the Hong Kong Special Administrative Region Government Land Fund Trust made on 13 August 1986 to the Government of the Hong Kong Special Administrative Region and which have become part of the general revenue in accordance with section 3 of the Ordinance and the provisions of the Declaration of Trust of the Hong Kong Special Administrative Region Government Land Fund Trust;3. the Land Fund shall be administered and managed by the Financial Secretary who may delegate his power of administration and management to other public officers;4. there shall be credited to the Land Fund—(a) all sums earned by way of interest, dividends or other investment revenue relating to the investment of the Hong Kong Special Administrative Region Government and all sums earned from the sale or other disposal of all or part of any assets of the Hong Kong Special Administrative Region Government Land Fund, after the deduction of all of the expenses relating to the administration and management of the Hong Kong Special Administrative Region Government Land Fund; and(b) all accounts receivable and all sums earned by way of interest, dividends or other investment revenue relating to the investment of the Land Fund and all sums earned from the sale or other disposal of all or part of any assets of the Land Fund, after the deduction of all of the expenses relating to the administration and management of the Land Fund;5. all expenses relating to the administration and management of the Land Fund, including expenses for meeting the management staff costs, and the costs incurred by the Trustees of the Hong Kong Special Administrative Region Government Land Fund Trust in the dissolution of the Trust in accordance with clause 29 of the Declaration of Trust of the Hong Kong Special Administrative Region Government Land Fund Trust, and any accounts payable in respect of the Hong Kong Special Administrative Region Government Land Fund after 30 June 1997, shall be met at the expense of the Land Fund;6. the Land Fund shall assume—(a) all the liabilities of the Trustees of the Hong Kong Special Administrative Region Government Land Fund Trust incurred before and outstanding upon the dissolution of the Trust, in accordance with clause 29 of the Declaration of Trust of the Hong Kong Special Administrative Region Government Land Fund Trust; and(b) all the obligations of the Financial Secretary to indemnify the Trustees and each of them and each of their personal representatives and estates from and against all actions, proceedings, claims and demands and all costs and expenses in respect of or arising out of the administration of the Hong Kong Special Administrative Region Government Land Fund Trust, in accordance with the covenant clause 9 of a Vesting Deed executed on 1 July 1997;7. the Financial Secretary may, in his discretion, authorize and direct the investment of any assets of the Land Fund which are not immediately required to meet expenses in respect of the Land Fund at any time in such manner as he may determine; (L.N. 88 of 2024)8. the Financial Secretary may from time to time transfer from the Land Fund to the general revenue any amount of the cumulative investment revenue—(a) that is generated from the assets of the Land Fund held in a notional savings account within the fiscal reserves called the Future Fund; and(b) that is brought back from the Future Fund to the Land Fund. (L.N. 88 of 2024) Editorial Note: Please also see the following Resolutions of the Legislative Council— (a) L.N. 117 of 2003 (regarding the transfer of a sum of $120,000,000,000 to the general revenue); (b) L.N. 126 of 2004 (regarding the transfer of a sum of $40,000,000,000 to the general revenue).