Central Bank Act, 1942

Central Bank Act, 1942 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1942 Central Bank Act, 1942 Central Bank Act, 1942 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Revised Act Acht Athbh… Print Full ActPriontáil an tAcht Iomlán Number 22 of 1942. CENTRAL BANK ACT, 1942. ARRANGEMENT OF SECTIONS PART I. Preliminary and General. Section 1. Short title, collective citation, and construction. 2. Definitions. 3. The appointed day. 4. Repeals. PART II. Establishment of the Central Bank of Ireland and Dissolution of the Currency Commission. 5. Establishment of the Bank. 6. General function and duty of the Bank. 7. Certain particular powers of the Bank. 8. Certain further powers of the Bank. 9. The capital of the Bank. 10. The seal of the Bank. 11. Interpretation of references to the Commission in the Currency Act, 1927. 12. The Associated Banks. 13. Admission of a bank to be an Associated Bank. 14. Removal of a bank from being an Associated Bank. 15. Dissolution of the Commission. 16. Appointments to the staff of the Bank. 17. Copyright in notes issued by the Bank. 18. General adaptation of references to the Commission. PART III. the Board of Directors of the Bank. 19. Appointment, tenure of office, etc., of the Governor. 20. Prohibition of the Governor holding shares in a bank. 21. Removal of the Governor. 22. The Deputy Governor. 23. Appointment, remuneration, etc, of the Directors. 24. Tenure of office of the Directors. 25. Disqualification of Directors. 26. Panel for appointment of the first banking Directors. 27. Panel for the appointment of banking Directors other than the first such Directors. 28. Notices of vacancies and appointments of certain Directors. 29. Prohibition of certain Directors holding shares in a bank. 30. Operation of disqualification of the Governor or a Director. 31. Oath of secrecy to be taken by the Governor, Directors, and officers. 32. Procedure of the Board. 33. Compensation and superannuation of Chairman, Commissioners, Governor, and Directors. PART IV. Extinction of Consolidated Bank Notes. 34. Definitions in respect of this Part of this Act. 35. Restrictions on amount of consolidated bank notes outstanding. 36. Payment in respect of consolidated bank notes outstanding after cesser of issue. 37. Payments by Associated Banks on consolidated bank notes. 38. Stamp duty in respect of consolidated bank notes. 39. Notes of former banks of issue. 40. Power of banks of issue to write off certain notes. PART V. Deposits by Bankers. 41. Construction of references to holding oneself out as a banker. 42. Obligation to make deposit in the High Court. 43. General provisions in relation to deposits under this Part of this Act. 44. Deposit on behalf of a company before its incorporation. 45. Payment of debts out of deposit. PART VI. Bankers' Licences and the Duties of Licensed Bankers. 46. Application of this Part of this Act. 47. Bankers' licences. 48. Publication of financial statements by licensed bankers. 49. Publication of balance sheets by licensed bankers. 50. Power to required deposit by licensed bankers in certain circumstances. 51. Powers in respect of licensed bankers' clearances. PART VII. Counterfeit and Unauthorised Currency. 52. Definition of “bank note” in this Part of this Act. 53. Extension of the Forgery Act, 1913. 54. Disposal of bank notes, etc., seized under the Forgery Act, 1913. 55. Making, etc., a document purporting to be or resembling a bank note. 56. Prohibition of unauthorised money. 57. Amendment of the Customs Consolidation Act, 1876. PART VIII. Coinage. 58. Amendment of the Coinage Act, 1926. 59. Amendment of the Gold and Silver (Export Control, etc.) Act, 1920. 60. The issue of coins under the Coinage Act, 1926. 61. Copyright in coins. PART IX. Miscellaneous. 62. Winding-up of the note reserve fund and establishment of the currency reserve. 63. Amendment of section 61 of the Currency Act. 64. Amendment of section 3 of the Currency (Amendment) Act, 1930. 65. Power of Bank to obtain information as to hire-purchase businesses. 66. Amendment of the Bills of Exchange Act, 1882, in respect of banker's drafts. 67. Legalisation of bank deposit as a trustee investment. 68. Amendment of section 22 of the Bankers (Ireland) Act, 1845. FIRST SCHEDULE. Enactments Repealed. SECOND SCHEDULE. Rules for the Elections of Panels for the Appointment of Banking Directors. THIRD SCHEDULE. Maximum Amounts Of Consolidated Bank Notes Which May Be Outstanding With The Associated Banks Respectively. Acts Referred to Currency (Amendment) Act, 1930 No. 30 of 1930 Currency Act, 1927 No. 32 of 1927 Ministers and Secretaries Act, 1924 No. 16 of 1924 Industrial and Commercial Property (Protection) (Amendment) Act, 1929 No. 13 of 1929 Finance Act, 1932 No. 20 of 1932 Finance Act, 1937 No. 18 of 1937 Coinage Act, 1926 No. 14 of 1926 Industrial and Commercial Property (Protection) Act, 1927 No. 16 of 1927 Number 22 of 1942. CENTRAL BANK ACT, 1942. AN ACT TO ESTABLISH A BANK TO BE THE PRINCIPAL CURRENCY AUTHORITY IN THE STATE, TO DISSOLVE THE CURRENCY COMMISSION AND TRANSFER ITS POWERS AND DUTIES (WITH CERTAIN MODIFICATIONS) TO THE SAID BANK, TO CONFER ON THE SAID BANK DIVERS OTHER POWERS AND DUTIES, AND TO PROVIDE FOR OTHER MATTERS CONNECTED WITH BANKING, CURRENCY, COINAGE, AND THE MATTERS AFORE SAID AND IN PARTICULAR FOR THE GRADUAL EXTINCTION OF CONSOLIDATED BANK NOTES. [4th November, 1942.] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: PART I. Preliminary and General. Short title, collective citation, and construction. 1.—(1) This Act may be cited as the Central Bank Act, 1942. (2) The Currency Acts, 1927 and 1930, and this Act may be cited together as the Currency and Central Bank Acts, 1927 to 1942. (3) This Act shall be construed as one with the Currency Acts, 1927 and 1930. (4) The expression “this Act” wherever it occurs in the Currency Act shall be construed and have effect as including the Currency (Amendment) Act, 1930 (No. 30 of 1930), and this present Act. Definitions. 2.—In this Act— the expression “the Minister” means the Minister for Finance; the expression “the Currency Act” means the Currency Act, 1927 (No. 32 of 1927), as adapted in consequence of the enactment of the Constitution; the expression “the Commission” means the Currency Commission; the expression “the Bank” means the Central Bank of Ireland established by this Act; the expression “the Board” means the Board of Directors of the Bank; the word “Governor” means the Governor of the Bank; the expression “Director of the Bank” does not include the Governor; the word “Director” means (save where the context otherwise requires) a Director of the Bank; the expression “service Director” means a Director who is in the permanent service of the State; the expression “licensed banker” means the holder of a banker's licence issued to him under this Act and for the time being in force; the expressions “legal tender note”, “consolidated bank note”, “legal tender note fund”, “note reserve fund”, and “general fund” have the same meanings as they respectively have in the Currency Act. The appointed day. 3.—(1) The Minister shall, by order appoint a day to be the appointed day for the purposes of this Act. (2) In this Act the expression “the appointed day” means the day appointed under this section to be the appointed day for the purposes of this Act. Repeals. 4.—(1) The several sections of the Currency Act mentioned in the first column of Part I of the First Schedule to this Act are hereby repealed to the extent mentioned in the second column, and as on and from the date specified in the third column, of the said Part of the said Schedule opposite the mention of such section in the said first column. (2) The several enactments specified in Part II of the First Schedule to this Act are hereby repealed to the extent mentioned in the third column, and as on and from the respective dates mentioned in the fourth column, of the said Part of the said Schedule. PART II. Establishment of the Central Bank of Ireland and Dissolution of the Currency Commission. Establishment of the Bank. 5.—(1) On the appointed day there shall be and is hereby established in accordance with this Act a body to be called and known as Banc Ceannais na hEireann or, in the English language, the Central Bank of Ireland, to fulfil the functions assigned to it by this Act. (2) The Bank shall be a body corporate with perpetual succession and an official seal (which shall be judicially noticed) and power to sue and be sued in its corporate name and to hold and dispose of land. (3) The Bank shall be conducted and managed in accordance with this Act by a Board of Directors consisting of— (a) a Governor, and (b) three Directors to be known and in this Act referred to as banking Directors, and (c) such number of other Directors (not exceeding five and not including at any one time more than two service Directors) as the Minister shall from time to time determine. (4) The functions, powers, and duties of the Bank shall be exercised and performed by the Board of Directors for and in the name of the Bank. (5) It shall be lawful for the Board to do, by regulations made by the Board, all or any of the following things, that is to say:— (a) authorise the setting up of committees of the Board consisting of one or more members of the Board either solely or together with one or more officers of the Bank; (b) regulate the procedure and define the functions, powers, and duties of any committee so set up; (c) delegate to any such committee the exercise and performance of any one or more of the functions, powers, and duties of the Bank or of the Board; (d) delegate to the Governor (including the Deputy Governor) or to any Director or to any two or more members of the Board or to any one or more officers of the Bank the exercise and performance of any one or more of the functions, powers, and duties of the Bank or of the Board; (e) impose conditions, limitations, or restrictions on the exercise and performance by any such committee or persons or person of the functions, powers, and duties delegated to them or him under this sub-section; (f) provide in appropriate cases for the review by the Board of decisions taken or things done by any such committee or persons or person in the exercise or performance of any function, power, or duty delegated to them or him under this sub-section. (6) Section 9 of the Ministers and Secretaries Act, 1924 (No. 16 of 1924), shall not apply to the Bank. General function and duty of the Bank. 6.—(1) In addition and without prejudice to the functions, powers, and duties vested by law in the Commission immediately before the appointed day and to such functions, powers, and duties as are specifically conferred or imposed by this Act on the Bank, the Bank shall have the general function and duty of taking (within the limit of the powers for the time being vested in it by law) such steps as the Board may from time to time deem appropriate and advisable towards safeguarding the integrity of the currency and ensuring that, in what pertains to the control of credit, the constant and predominant aim shall be the welfare of the people as a whole. (2) The Minister may, on such occasions as he shall think proper, request the Governor on behalf of the Board or the Board to consult and advise with him in regard to the execution and performance by the Bank of the general function and duty imposed on the Bank by the foregoing sub-section of this section, and the Board shall comply with every such request. Certain particular powers of the Bank. 7.—(1) It shall be lawful for the Bank to do, for the purposes of or through the general fund, all or any of the following things on such occasions and to such extent as the Board shall think proper, that is to say:— (a) buy or sell coin or gold or silver bullion or any foreign currency; (b) receive deposits (not bearing interest) from a Minister of State or any public authority or any Associated Bank, or any other bank or credit institution carrying on business wholly or partly within the State; (c) open accounts in other countries or act as agent, depository, or correspondent of any bank carrying on business in or outside the State; (d) with the consent of the Minister, acquire, hold, or dispose of shares in any international bank formed wholly or mainly by banks which are the principal currency authority in their respective countries; (e) re-discount exchequer bills and bills of local authorities which have previously been accepted, discounted, or endorsed by an Associated Bank or any other bank or credit institution carrying on business wholly or partly within the State and which mature in not more than twelve months from their date; (f) re-discount bills of exchange which are, in the opinion of the Board, first class commercial bills and mature, in the case of bills drawn for agricultural purposes or based on live stock, in not more than twelve months (excluding days of grace) from their date or, in any other case, in not more than six months (excluding days of grace) from their date; (g) fix and publish from time to time the minimum rate or rates at which the Bank will re-discount such exchequer bills, bills of local authorities, or bills of exchange as are mentioned in either of the two next preceding paragraphs of this sub-section; (h) buy, hold, or sell securities of or guaranteed by the State which have been offered for public subscription or tender before being bought by the Bank and are officially quoted on the Dublin Stock Exchange and the Cork Stock Exchange or securities of or guaranteed by the Government of any other country; (i) buy, hold, or sell securities of any public authority which are authorised by law for the investment of trust funds and have been offered for public subscription or tender before being bought by the Bank and are officially quoted on the Dublin Stock Exchange and on the Cork Stock Exchange; (j) make loans or advances to banks and other credit institutions (carrying on business wholly or partly within the State) on the security of such bills of exchange as the Bank is hereinbefore empowered to re-discount or of such securities as the Bank is hereinbefore empowered to buy, or of gold coin or bullion or of documents relating to the shipment or storage of gold coin or bullion; (k) keep registers of securities of the State; (l) keep, for or on behalf of any public authority, registers of any stock issued by such authority; (m) keep the accounts of any bankers' clearing. (2) Each of the following bodies shall be a public authority for the purposes of the foregoing sub-section of this section, and the expression “public authority” shall in that sub-section be construed and have effect accordingly, that is to say:— (a) a commission, board, or other body (whether corporate or unincorporated) charged by law with the execution throughout the State of functions of government or public administration or with the administration throughout the State of any public service (including the provision of credit but excluding transport), and (b) a corporation, council, committee, or other body (whether corporate or unincorporated) charged by law with the execution of functions of local government within a defined area of the State or the execution of functions of public administration or public service (other than transport) of a local character. Certain further powers of the Bank. 8.—It shall be lawful for the Bank to do all or any of the following things on such occasions and to such extent as the Board shall think proper, that is to say:— (a) make provision for the collection and study of data relating to monetary and credit problems and publish informative material in regard thereto; (b) establish and maintain, either directly or indirectly, contact with the monetary authorities established in other countries; (c) do all such things as may be ancillary or incidental to or consequential on the exercise of any of the powers or the performance of any of the duties conferred or imposed on the Bank by this or any other section of this Act or from time to time conferred or imposed on the Bank by law. The capital of the Bank. 9.—(1) The capital of the Bank shall be the sum of forty thousand pounds whereof the sum of twenty-four thousand pounds shall be paid to the Bank by the Minister on the appointed day or as soon thereafter as may be and whereof the residue shall be paid to the Bank by the Minister at such time or times as may be agreed upon by the Board and the Minister. (2) All moneys payable to the Bank by the Minister under the foregoing sub-section of this section shall be charged on and paid out of the Central Fund or the growing produce thereof. (3) When the Minister has paid to the Bank the sum of twenty-four thousand pounds in pursuance of the foregoing provisions of this section, the Bank shall forthwith repay to every bank which is a Shareholding Bank immediately before the appointed day all sums paid by such bank to the Commission in pursuance of section 64 of the Currency Act together with the appropriate dividend on every such sum for the period from the last date up to which dividend had been paid thereon to the date of such repayment. (4) Sub-section (4) of section 63 of the Currency Act is hereby amended by the deletion of the words “for the time being paid up by Shareholding Banks on account of their capital liability”, and the insertion in the said sub-section of the words “of the capital of the Bank for the time being paid up” in lieu of the words so deleted. The seal of the Bank. 10.—(1) The Bank shall provide itself with a seal on or as soon as may be after the appointed day. (2) The seal of the Bank shall be authenticated by the signature of the Governor or of a Director authorised in that behalf by the Board and by the counter-signature of the secretary of the Bank or some other officer of the Bank authorised in that behalf by the Board. (3) Every document purporting to be made or issued by the Bank and to be sealed with the seal of the Bank authenticated in the manner provided by this section shall be received in evidence and shall, without proof of the signature or the authority of any of the persons purporting to sign or counter-sign such document, be deemed, until the contrary is proved, to have been made or issued by the Bank. (4) Until the Bank shall have provided itself with a seal in pursuance of this section, the seal of the Commission shall be deemed to be the seal of the Bank and it shall be lawful for the Bank to use the seal of the Commission accordingly. (5) When the Bank has provided itself with a seal in pursuance of this section, the Board shall cause the seal of the Commission to be so broken or defaced as to be incapable of being used. Interpretation of references to the Commission in the Currency Act, 1927. 11.—(1) On and after the appointed day and subject to the repeals and amendments effected by this Act, the Currency Acts, 1927 and 1930, shall have effect with and subject to the modification that every mention of or reference to the Chairman shall be construed as a mention of or reference to the Governor and every mention of or reference to the Commission shall be construed as a mention of or reference to the Bank, save that any such mention or reference which, expressly or by necessary implication, refers to the members of the Commission shall be construed as a mention of or reference to the Board. (2) A legal tender note may, on and after the appointed day, be either of such form, size and design and printed in such manner and on such paper and numbered and authenticated in such manner as shall have been prescribed (whether before or after the passing of this Act) by the Commission under sub-section (2) of section 45 of the Currency Act (as modified by the foregoing sub-section of this section) before the appointed day or of such form, size and design and printed in such manner and on such paper and numbered and authenticated in such manner as shall be prescribed by the Bank under the said sub-section (2) of the said section 45 (as modified as aforesaid) on or after the appointed day. (3) A consolidated bank note may, on and after the appointed day, be either of such form, size and design, and printed in such manner and on such, paper and numbered and authenticated in such manner as shall have been prescribed (whether before or after the passing of this Act) by the Commission under sub-section (3) of section 51 of the Currency Act (as modified by the first sub-section of this section) before the appointed day or of such form, size and design and printed in such manner and on such paper and numbered and authenticated in such manner as shall be prescribed by the Bank under the said sub-section (3) of the said section 51 (as modified as aforesaid) on or after the appointed day. The Associated Banks. 12.—(1) There shall be associated with the Bank such other banks as are specified or provided for in this section and those banks shall be known and are in this Act referred to as Associated Banks. (2) The eight banks named in the second column of the Third Schedule to this Act shall, on the appointed day, become and be Associated Banks. (3) Sections 42 and 43 of the Currency Act shall, on and after the appointed day, apply and have effect in relation to the Associated Banks with and subject to the modifications that the expressions “the Board”, “Associated Banks”, and “Associated Bank” shall respectively be substituted for the several expressions “the Commission”, “Shareholding Banks”, and “Shareholding Bank” wherever the latter expressions respectively occur in the said sections 42 and 43 . (4) Every reference to or mention of the Shareholding Banks (whether in the singular or the plural) contained in the Currency Act (other than sections 42 and 43 ) shall be construed and have effect on and after the appointed day as a reference to or mention of the Associated Banks (in the singular or the plural as the case may require). (5) Sub-section (4) of section 5 of the Currency (Amendment) Act, 1930 (No. 30 of 1930), is hereby amended by the deletion therefrom of the word “Shareholding”. Admission of a bank to be an Associated Bank. 13.—(1) Any bank may, at any time, on or after the appointed day, apply to the Minister to be admitted to be an Associated Bank, and the Minister, after consultation with the Board, may in his absolute discretion grant or refuse such application. (2) Whenever the Minister grants under this section an application by a bank to be admitted to be an Associated Bank, such bank shall, as on and from the date on which such application is granted, become and be an Associated Bank for the purposes of this Act and of the Currency Act as applied, modified, or amended by this Act. (3) The Minister may require a bank applying under this section to be admitted to be an Associated Bank to furnish to him such information in relation to its business and to permit the Governor or a permanent officer of the Bank specially authorised in that behalf in writing by the Minister to make such inspection of its books as appears to the Minister to be necessary for the due consideration by him of such application. Removal of a bank from being an Associated Bank. 14.—(1) The Minister may, at any time on or after the appointed day, in his absolute discretion remove any Associated Bank from being an Associated Bank either (after consultation with the Board) on any of the grounds expressly authorised by the Currency Act as adapted by this Act or (with the consent of the Board) on any other ground which appears to the Minister to be sufficient. (2) Any Associated Bank may, at any time on or after the appointed day, apply to the Minister to be removed from being an Associated Bank, and, whenever such application is so made by an Associated Bank, the Minister shall forthwith remove such bank from being an Associated Bank. (3) Whenever the Minister removes under this section an Associated Bank from being an Associated Bank, such bank shall forthwith cease to be an Associated Bank, but such removal shall not prevent the subsequent admission under this Act of such bank to be an Associated Bank nor relieve such bank from liability to pay on due presentation the amount of every consolidated bank note outstanding with it at the time of such removal or from liability for payments on consolidated bank notes outstanding with it whether before or after such removal. (4) Except when an Associated Bank is removed on its own application, the Minister shall not remove under this section an Associated Bank from being an Associated Bank without giving such bank a reasonable opportunity of being heard. (5) No banking Director shall vote on any resolution relating to the removal of an Associated Bank of which he is a director or by which he is employed. Dissolution of the Commission. 15.—(1) On the appointed day, the Commission shall become and be dissolved and the members thereof shall cease to hold office but shall not thereby be rendered ineligible for appointment as the Governor or a Director of the Bank. (2) On the appointed day the following provisions shall have effect, that is to say:— (a) the legal tender note fund, the note reserve fund (if then subsisting), and the general fund as they respectively subsist immediately before the appointed day and all investments, moneys, and assets then comprised in those funds respectively and also all other property, whether real or personal (including choses-in-action), which immediately before the appointed day is vested in or held by the Commission shall, on the appointed day and without any conveyance or assignment but subject, where necessary, to transfer in the books of any bank, corporation, or company, become and be vested in the Bank for all the estate, term, and interest for which the same were vested in the Commission immediately before the appointed day; (b) any property transferred by the foregoing paragraph of this sub-section to the Bank which, immediately before the appointed day, is standing in the books of any bank within the jurisdiction of the Oireachtas in the name of the Commission or is registered in the books of any bank, corporation, or company within the said jurisdiction in the name of the Commission shall, upon the request of the Board made on or at any time after the appointed day, be transferred in such books by such bank, corporation, or company into the name of the Bank; (c) where any property transferred or expressed to be transferred to the Bank by paragraph (a) of this sub-section is, immediately before the appointed day, situate outside the jurisdiction of the Oireachtas or is standing or registered in the books of any bank, corporation, or company outside the said jurisdiction, it shall be the duty of the Board to take all such steps as may be requisite to secure the transfer to the Bank of the legal and effective ownership of such property; (d) every chose-in-action transferred to the Bank by paragraph (a) of this sub-section may be sued upon, recovered, or enforced by the Bank in its own name, and it shall not be necessary for the Bank to give notice to the person bound by such chose-in-action of the transfer effected by the said paragraph; (e) every debt and other liability (including unliquidated liabilities arising from torts or breaches of contract) which, immediately before the appointed day, is owing and unpaid or has been incurred and is undischarged by the Commission shall, on the appointed day, become and be the debt or liability of the Bank and shall be paid or discharged by and may be recovered from or enforced against the Bank accordingly; (f) every contract made between the Commission and any other person which is in force or is enforceable immediately before the appointed day and is not fully performed or executed shall, on the appointed day, become and be a contract between the Bank and the said other person and shall be enforceable by or against the Bank accordingly. (3) The amount of all stamp duties paid (whether in pursuance of the laws of the State or of the laws of another country) by the Bank in respect of any transfer or conveyance of property which is executed in order to supplement or give full effect to the transfer of such property effected by the next preceding sub-section of this section shall be refunded to the Bank by the Minister out of moneys provided by the Oireachtas. (4) Every person who, immediately before the appointed day, is in the employment of the Commission in any capacity shall, on the appointed day, become and be transferred to the employment of the Bank in the same capacity and with the same tenure, remuneration, and conditions of service as he had in the employment of the Commission immediately before the appointed day, and in order to secure to every such person on and after the appointed day the like rights and benefits (if any) in relation to superannuation and compensation for loss of employment as he had immediately before the appointed day, the following provisions shall have effect, that is to say:— (a) every scheme made by the Commission under sub-section (4) of section 31 of the Currency Act which is in force immediately before the appointed day shall continue in force on and after the appointed day and shall be observed and performed by the Bank accordingly; (b) for the purposes of every scheme continued in force by the foregoing paragraph of this sub-section and of every scheme which may be made by the Bank under the said sub-section (4) of section 31 on or after the appointed day, service in the employment of the Commission (including service in any other employment which is deemed by such scheme to be service in the employment of the Commission) shall be deemed to be service in the employment of the Bank and the period of service (including service deemed as aforesaid) of any person in the employment of the Commission ending immediately before the appointed day and the period of service of such person in the employment of the Bank beginning on and continuing after the appointed day shall be deemed to be one continuous period of service in the employment of the Bank. Appointments to the staff of the Bank. 16.—(1) Subject to the provisions of the next following sub-section of this section, every appointment, under sub-section (2) of section 31 of the Currency Act of an officer or servant of the Bank shall be made by competition (including a qualifying or competitive test in Irish) to be conducted according to regulations to be made by the Board, and the Board may, in relation to any such competition, impose such conditions of entry, limitations, and safeguards as it thinks proper. (2) The foregoing sub-section of this section shall not apply to appointment to a position in respect of which appointment by competition is, in the opinion of the Board, unsuitable. Copyright in notes issued by the Bank. 17.— Section 12 of the Industrial and Commercial Property (Protection) (Amendment) Act, 1929 (No. 13 of 1929), shall apply and have effect in relation to legal tender notes and consolidated bank notes respectively issued by the Bank in like manner and as fully as it applies and has effect in relation to legal tender notes and consolidated bank notes issued by the Commission, save that the copyright in any such notes issued by the Bank shall belong, by virtue of the said section 12 , to the Bank. General adaptation of references to the Commission. 18.—Every mention of or reference to the Commission which is contained in any enactment (other than the Currency Acts, 1927 and 1930) in force on the appointed day shall, on and after that day, be construed and have effect as a mention of or reference to the Bank. PART III. The Board of Directors of the Bank. Appointment, tenure of office, etc., of the Governor. 19.—(1) The Governor shall be appointed by the President on the advice of the Government and shall receive such remuneration and allowances and be subject to such conditions of service as the Board shall from time to time determine. (2) The term of office of every Governor shall (unless he sooner dies, resigns, is removed, or becomes disqualified) be seven years from, in the case of the first Governor, the appointed day or, in the case of every subsequent Governor, the expiration by effluxion of time or the earlier cesser from any cause (as the case may be) of the tenure of office of his predecessor. (3) A Governor retiring on the expiration by effluxion of time of his term of office shall be eligible for re-appointment. (4) The following provisions shall apply and have effect in relation to every Governor, that is to say:— (a) he shall, during his term of office, be disqualified from being nominated or elected and for sitting or receiving payment as a member of Dáil Eireann or of Seanad Eireann or as Uachtarán; (b) he shall, during his term of office, be ineligible for election as a director of any bank whatsoever; (c) if, at the time of his appointment, he is a director of any bank whatsoever, he shall divest himself of such directorship within ten days after his appointment and, if he fails so to do, he shall at the expiration of such ten days be disqualified from holding the office of Governor; (d) if and whenever he is adjudged bankrupt (whether in the State or in any other country) or makes a composition or arrangement with his creditors or is sentenced by a court of competent jurisdiction to suffer imprisonment or penal servitude, he shall forth-with become and be disqualified from holding the office of Governor. (5) In the next preceding sub-section of this section the expression “any bank whatsoever” does not include an international bank formed wholly or mainly by banks which are the principal currency authority in their respective countries. Prohibition of the Governor holding shares in a bank. 20.—(1) Every person appointed to be Governor shall within three months after his appointment absolutely sell or otherwise dispose of all shares in any bank which he shall, at the time of his appointment, own or be interested in for his own benefit. (2) If and whenever any shares in a bank shall come to or vest in the Governor by will or succession for his own benefit, he shall, within three months after the same shall have so come to or vested in him, absolutely sell or otherwise dispose of the same or his interest therein. (3) The Governor shall not purchase, take or become interested in for his own benefit any shares in any bank. (4) If the Governor shall retain, purchase, take, or become or remain interested in any shares in any bank in contravention of this section he shall forthwith become and be disqualified from holding the office of Governor. (5) In this section the word “bank” includes a bank incorporated outside the State as well as a bank incorporated in the State, and references to shares in a bank shall be construed as including stock, shares, debentures, debenture stock, bonds, or other securities of such bank. Removal of the Governor. 21.—(1) If the Governor becomes by ill-health permanently incapacitated for performing his duties as Governor he may be removed from office by the President on the advice of the Government. (2) If the Board, by unanimous vote of all the Directors, requests the President to remove the Governor from office for cause stated, it shall be lawful for the President on the advice of the Government to remove the Governor from office. The Deputy Governor. 22.—(1) Whenever the Governor is temporarily unable, by reason of absence, ill-health, or any other cause, to discharge the duties of his office, he may appoint any one of the Directors to act as Deputy Governor during such inability and, if he fails so to do, the Board may appoint any one of the Directors to act as aforesaid. (2) Whenever the office of Governor becomes vacant, the Board may appoint any one of the Directors to act as Deputy Governor during such vacancy, but no Director so appointed shall act as Deputy Governor after the expiration of three months from the occurrence of the vacancy which occasioned his appointment. (3) A Director appointed under this section to act as Deputy Governor shall, while so acting, have, exercise, and perform such of the rights, powers, and duties of the Governor as shall be delegated to him by the Governor or, where he is appointed by the Board, by the Board. (4) A Director appointed under this section to act as Deputy Governor shall, while so acting, be paid such (if any) remuneration and allowances as the Board shall determine. (5) A Director appointed under this section to act as Deputy Governor shall not, by reason of such appointment, vacate his office as Director. Appointment, remuneration, etc. of the Directors. 23.—(1) The Directors shall be appointed by the Minister. (2) The banking Directors shall be appointed from a panel prepared for the purpose by representatives of the Associated Banks in accordance with this Act. (3) The Civil Service Regulation Acts, 1924 and 1926, shall not apply to a Director. (4) Every Director shall receive such remuneration and allowances and be subject to such conditions of service as the Minister shall from time to time determine having regard to the prevailing standards of the Associated Banks in fixing the remuneration, allowances, and conditions of service of their directors. (5) Every Director shall be ordinarily resident within the State, and a person who is not so resident shall not be eligible for appointment as a Director. (6) A Director shall, while he holds that office, be disqualified from being nominated or elected and from sitting or receiving payment as a member of Dáil Eireann or of Seanad Eireann or as Uachtarán. (7) A Director (other than a banking Director) shall, while he holds that office, be ineligible for election as a director of any bank whatsoever and shall, if at the time of his appointment he is a director of any bank whatsoever, divest himself of such directorship within ten days after his appointment and, if he fails so to do, he shall at the expiration of such ten days be disqualified from holding the office of Director. Tenure of office of the Directors. 24.—(1) Of the first banking Directors— (a) one, to be selected by lot at the first meeting of the Board, shall, unless he sooner dies, resigns, or becomes disqualified, hold office for two years from the appointed day, and (b) one other, also to be selected by lot at the first meeting of the Board, shall, unless he sooner dies, resigns, or becomes disqualified, hold office for four years from the appointed day. (2) Of the first Directors who are neither banking Directors nor service Directors— (a) one, to be selected by lot at the first meeting of the Board, shall, unless he sooner dies, resigns, or becomes disqualified, hold office for one year from the appointed day, and (b) one other, also to be selected by lot at the first meeting of the Board, shall, unless he sooner dies, resigns, or becomes disqualified, hold office for three years from the appointed day. (3) Subject to the provisions of the two foregoing sub-sections of this section, every Director (other than a service Director and a Director appointed to fill a casual vacancy) shall, unless he sooner dies, resigns, or becomes disqualified, hold office for five years from (as the case may require) the appointed day or the expiration by effluxion of time of the term of office of his predecessor. (4) Every Director (other than a banking Director or a service Director) who, after the appointment of the first Directors, is appointed for a purpose other than filling a vacancy amongst the Directors (other than as aforesaid) shall hold office for five years from the day as on and from which he is appointed. (5) Every service Director, shall hold office at the pleasure of the Minister and may be removed by the Minister at any time. (6) A person appointed to fill a casual vacancy in the office of Director (other than the office of a service Director) shall hold office for the residue of the term for which the Director whose death, resignation, or disqualification created the vacancy would have held office if he had not died, resigned, or become disqualified. Disqualification of Directors. 25.—If and whenever a Director other than a service Director— (a) becomes by ill-health permanently incapacitated for performing his duties as such Director, or (b) is adjudged bankrupt (whether in the State or in any other country) or makes a composition or arrangement with his creditors, or (c) is sentenced by a court of competent jurisdiction to suffer imprisonment or penal servitude, or (d) ceases to be ordinarily resident within the State, or (e) absents himself from all meetings of the Board for a period of six months without the permission of the Board, he shall forthwith become and be disqualified from holding the office of Director. Panel for appointment of the first banking Directors. 26.—(1) Not more than thirty nor less than ten days before the appointed day, the Minister shall appoint a time and place (in this section referred to as the appointed time and place) for the meeting of representatives of the Associated Banks for the election of the panel from which the first banking Directors are to be appointed. (2) The Minister shall cause every Associated Bank to be informed in writing of the appointed time and place. (3) Every Associated Bank may cause one, and only one, representative nominated by it in that behalf to attend at the appointed time and place, and the several such representatives who attend at that time and place shall then or within three days thereafter elect, in accordance with the Rules contained in the Second Schedule to this Act, a panel of six persons eligible and willing to act as banking Directors, and shall forthwith communicate to the Minister in accordance with the said Rules the names of the six persons so elected. (4) If a panel is duly elected in accordance with the foregoing provisions of this section, the first banking Directors shall be appointed from amongst the persons so elected to such panel. (5) If the said representatives of the Associated Banks who attend at the appointed time and place fail to elect in accordance with this section the said panel of six persons or if no representatives of the Associated Banks attend at the appointed time and place, it shall be lawful for the Minister to appoint such three eligible persons as he shall think proper to be the first banking Directors, but subject to the restrictions that, if and so far as eligible and suitable persons willing to act can be found amongst the directors of the several Associated Banks, no person who is not a director of an Associated Bank shall be appointed by the Minister under this sub-section, and in any event no person who is in the permanent service of the State shall be so appointed. Panel for the appointment of banking Directors other than the first such Directors. 27.—(1) Not more than thirty nor less than ten days before the expiration by effluxion of time of the term of office of a banking Director and also as soon as conveniently may be after the office of a banking Director becomes vacant otherwise than by effluxion of time, the Board shall notify every Associated Bank in writing of such prospective or actual vacancy and shall in such, notification request such Associated Bank to cause one, and only one, representative to attend at a time and place (in this section referred to as the appointed time and place) appointed by the Board and stated in such notification to elect a panel of three persons from amongst whom such vacancy may be filled. (2) Whenever two or three vacancies amongst the banking Directors occur at or about the same time, the Board may, if they think it convenient so to do, send to every Associated Bank one, and only one, notification under the foregoing sub-section of this section in respect of all such vacancies, and where the Board so send only one such notification they shall, in such notification, state that the representatives attending at the appointed time and place are required to elect, if there are two and only two such vacancies, a panel of five persons or, if there are three such vacancies, a panel of six persons from amongst whom such vacancies may be filled. (3) The several representatives of the Associated Banks (not being more than one representative from each such Bank) who attend at the appointed time and place shall then or within three days thereafter elect, in accordance with the Rules contained in the Second Schedule to this Act, a panel of persons eligible and willing to act as banking Director and shall forthwith communicate to the Minister and to the Board the names of the persons so elected. (4) The panel to be elected in pursuance of the next preceding sub-section of this section shall be, if there is only one vacancy to be filled, a panel of three persons or, if there are two and only two vacancies to be filled, a panel of five persons, or, if there are three vacancies to be filled, a panel of six persons. (5) If a panel is duly elected in accordance with the foregoing provisions of this section, the said vacancy or vacancies (whether prospective or actual) shall be filled from amongst the persons so elected to such panel. (6) If the said representatives of the Associated Banks who attend at the appointed time and place fail to elect in accordance with this section the said panel or if no representatives of the Associated Banks attend at the appointed time and place, it shall be lawful for the Minister to appoint such eligible person or persons as he shall think proper to fill the said vacancy or vacancies, but subject to the restrictions that, if an eligible and suitable person or if and so far as eligible and suitable persons willing to act can be found amongst the directors of the several Associated Banks, no person who is not a director of an Associated Bank shall be appointed by the Minister under this sub-section, and in any event no person who is in the permanent service of the State shall be so appointed. Notices of vacancies and appointments of certain Directors. 28.—(1) This section applies only to Directors who are neither banking Directors nor service Directors. (2) Not less than ten days before the expiration by effluxion of time of the term of office of a Director to whom this section applies the Board shall notify the Minister of such prospective vacancy. (3) As soon as may be after the Board becomes aware that the office of a Director to whom this section applies has become vacant otherwise than by effluxion of time, the Board shall notify the Minister of such vacancy. (4) Whenever the Minister appoints a person to be a Director to whom this section applies he shall cause notice of such appointment having been made and of the name and other particulars of the person appointed to be given forthwith to the Board. (5) Whenever a Director to whom this section applies ceases by any means to hold office as such Director and the Minister determines to reduce the number of such Directors and for that purpose not to fill the vacancy occasioned by such cesser, such cesser shall for the purposes of this Act (except this section) be deemed not to have occasioned a vacancy in the membership of the Board. (6) Whenever the Minister, for the purpose of reducing the number of Directors to whom this section applies, determines not to fill a vacancy which has occurred amongst those Directors, he shall cause the Board to be informed of such determination. Prohibition of certain Directors holding shares in a bank. 29.—(1) This section applies to all Directors except banking Directors. (2) A Director to whom this section applies shall within three months after his appointment absolutely sell or otherwise dispose of all shares in any bank which he shall, at the time of his appointment, own or be interested in for his own benefit. (3) If and whenever any shares in a bank shall come to or vest in a Director to whom this section applies by will or succession for his own benefit, he shall within three months after the same shall have so come to or vested in him, absolutely sell or otherwise dispose of the same or his interest therein. (4) A Director to whom this section applies shall not purchase, take, or become interested in for his own benefit any shares in any bank. (5) If a Director to whom this section applies shall retain, purchase, take, or become or remain interested in any shares in any bank in contravention of this section he shall forthwith become and be disqualified from holding the office of Director. (6) In this section the word “bank” includes a bank incorporated outside the State as well as a bank incorporated in the State and references to shares in a bank shall be construed as including stock, shares, debentures, debenture stock, bonds, or other securities of such bank. Operation of disqualification of the Governor or a Director. 30.—(1) No disqualification of the Governor or a Director under any provision of this Act shall operate to remove him from his office until a resolution has been passed by the Board declaring him to be disqualified on a stated ground from holding his said office. (2) No member of the Board shall vote on a resolution under this section in relation to his own disqualification. Oath of secrecy to be taken by the Governor, Directors, and officers. 31.—(1) The Governor and every Director and also every officer of the Bank shall, immediately after his appointment and before he begins to act as Governor or Director or as such officer, take and subscribe before a Peace Commissioner an oath in the following form:— “I, __________, do solemnly swear that I will not disclose any information relative to the business, records, or books of any bank which may come to my knowledge by virtue of my position as the Governor or a Director or an officer of the Central Bank of Ireland, except to such persons only as shall act in the execution of the statutes regulating the said Bank and where it shall be necessary to disclose the same to them for the purposes of any such statute.” (2) Every person who, having been appointed to be the Governor or a Director or being or having been appointed to be an officer of the Bank, acts as the Governor or a Director or as such officer (as the case may be) before he has taken the oath required by this section shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding one hundred pounds. (3) Every officer of the Commission who on the appointed day becomes an officer of the Bank by virtue of this Act shall take, the oath required by this section on or as soon as conveniently may be after the appointed day, and if he so takes the said oath he shall be deemed to have complied with this section and shall not be liable to any penalty for acting as an officer of the Bank before having taken the said oath. Procedure of the Board. 32.—(1) The Board may, by rules or otherwise as it thinks fit, regulate its own procedure. (2) Four members of the Board personally present shall form a quorum at a meeting of the Board. (3) The Board may act notwithstanding one or more vacancies in its membership. (4) At any meeting of the Board the Governor may, in the event of an equality of votes, exercise a second or casting vote. Compensation and superannuation of Chairman, Commissioners, Governor, and Directors. 33.—(1) The Commission may, at any time before the appointed day, make, with the approval of the Minister, a scheme providing for the following things, that is to say:— (a) the grant by the Bank of compensation for loss of office to the person who is the Chairman of the Commission immediately before the appointed day, provided that person is not appointed to be the Governor as on and from the appointed day, and (b) the grant by the Bank of compensation for loss of office to any person who is, immediately before the appointed day, a member of the Commission holding office otherwise than at the pleasure of the Minister and does not become a Director holding office as on and from the appointed day, and (c) the grant by the Bank of a superannuation allowance or gratuity to or for the benefit of every Governor who ceases to hold office otherwise than by becoming disqualified, and (d) the grant by the Bank of a superannuation allowance or gratuity to or for the benefit of every Director (other than a service Director) who devotes the whole of his time to his duties as such Director and ceases to hold office otherwise than by becoming disqualified. (2) If the Commission does not make under the foregoing sub-section of this section such scheme as is mentioned in that sub-section, it shall be lawful for the Board to make, with the approval of the Minister, such scheme on or at any time after the appointed day. (3) The Bank shall carry into effect the scheme made under the foregoing provisions of this section. (4) A scheme made under this section may provide that a Governor who has held office as Chairman of the Commission may, for the purposes of such scheme, add his period of service as such Chairman to his period of service as Governor and reckon both those periods as one continuous period of service as Governor. PART IV. Extinction of Consolidated Bank Notes. Definitions in respect of this Part of this Act. 34.—(1) In this Part of this Act the word “half-year” means a period of six months ending on the 31st day of March or the 30th day of September, and the expression “Associated Bank” means one of the eight banks named in the second column of the Third Schedule to this Act and does not apply to any other bank. (2) References in this Part of this Act to consolidated bank notes outstanding with an Associated Bank shall be construed as referring to and including all consolidated bank notes which, at the time to which the reference relates, have been issued by the Commission or by the Bank to that Associated Bank and have not been accepted by either the Commission or the Bank for retirement. Restrictions on amount of consolidated bank notes outstanding. 35.—(1) The maximum amount of consolidated bank notes which may be outstanding with any particular Associated Bank mentioned in the second column of the Third Schedule to this Act— (a) on any day during the period commencing on the day after the date of the passing of this Act and ending on the 31st day of December, 1944, shall not exceed the amount stated in the third column of the said Third Schedule opposite the name of such Associated Bank in the second column of that Schedule; (b) on any day during the triennial period ending on the 31st day of December, 1947, shall not exceed the amount stated in the fourth column of the said Third Schedule opposite the name of such Associated Bank in the second column of that Schedule; (c) on any day during the triennial period ending on the 31st day of December, 1950, shall not exceed the amount stated in the fifth column of the said Third Schedule opposite the name of such Associated Bank in the second column of that Schedule; (d) on any day during the triennial period ending on the 31st day of December, 1953, shall not exceed the amount stated in the sixth column of the said Third Schedule opposite the name of such Associated Bank in the second column of that Schedule. (2) The Commission shall before the appointed day and the Bank shall on and after that day each take such steps, by restriction of issue or otherwise, as it thinks fit towards ensuring that the amount of consolidated bank notes outstanding with an Associated Bank on any day during a period mentioned in the foregoing sub-section of this section does not exceed the maximum amount indicated in that sub-section in respect of such Associated Bank for such period. (3) No consolidated bank notes shall be issued by the Bank to any Associated Bank after the 31st day of December, 1953. (4) It shall not be lawful for any Associated Bank to pay out any consolidated bank notes in respect of which it is the responsible bank after the 31st day of December, 1953, and if any Associated Bank shall pay out any consolidated bank note in contravention of this sub-section, such Associated Bank shall be liable to pay to the Bank a sum equal to one-tenth of the amount of such note. (5) Sub-section (3) of section 58 of the Currency Act shall cease to have effect as on and from the 1st day of January, 1954, and every regulation made and direction given under that sub-section which is in force immediately before that day shall similarly cease to have effect. (6) No consolidated bank notes shall be issued by the Commission or by the Bank to any bank which is not one of the eight banks named in the second column of the Third Schedule to this Act. (7) Whenever any amalgamation, partition, transfer, or other change occurs amongst the eight banks mentioned in the second column of the Third Schedule to this Act, it shall be lawful for the Board, with the consent of the Minister, to make such (if any) adjustment of all or any of the amounts stated in the third, fourth, fifth, and sixth columns respectively of the said Third Schedule as shall, in the opinion of the Board, be requisite or desirable in consequence of such amalgamation, partition, transfer, or other change. Payment in respect of consolidated bank notes outstanding after cesser of issue. 36.—(1) Every Associated Bank shall, after the 31st day of December, 1953, and before the 1st day of January, 1957, pay to the Bank such sum as shall be equal to the amount (if any) of consolidated bank notes outstanding with such Associated Bank on the date of such payment. (2) Every sum paid by an Associated Bank to the Bank in accordance with sub-section (1) of this section shall be placed by the Bank to the credit of the currency reserve. (3) Upon payment by an Associated Bank to the Bank in accordance with sub-section (1) of this section of the sum required by that sub-section to be so paid by such Associated Bank, the following provisions shall have effect in respect of such Associated Bank, that is to say:— (a) such Associated Bank shall cease to be liable to pay the amount of any consolidated bank note outstanding with such Ass …