Central Bank Act, 1942

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CENTRAL BANK ACT, 1942.

ARRANGEMENT OF SECTIONS

PART I.

Preliminary and General.

Section

Section 1

Short title, collective citation, and construction.

Section 2

Definitions.

Section 3

The appointed day.

Section 4

Repeals.

PART II.

Establishment of the Central Bank of Ireland and Dissolution of the Currency Commission.

Section 5

Establishment of the Bank.

Section 6

General function and duty of the Bank.

Section 7

Certain particular powers of the Bank.

Section 8

Certain further powers of the Bank.

Section 9

The capital of the Bank.

Section 10

The seal of the Bank.

Section 11

Interpretation of references to the Commission in the Currency Act, 1927.

Section 12

The Associated Banks.

Section 13

Admission of a bank to be an Associated Bank.

Section 14

Removal of a bank from being an Associated Bank.

Section 15

Dissolution of the Commission.

Section 16

Appointments to the staff of the Bank.

Section 17

Copyright in notes issued by the Bank.

Section 18

General adaptation of references to the Commission.

PART III.

the Board of Directors of the Bank.

Section 19

Appointment, tenure of office, etc., of the Governor.

Section 20

Prohibition of the Governor holding shares in a bank.

Section 21

Removal of the Governor.

Section 22

The Deputy Governor.

Section 23

Appointment, remuneration, etc, of the Directors.

Section 24

Tenure of office of the Directors.

Section 25

Disqualification of Directors.

Section 26

Panel for appointment of the first banking Directors.

Section 27

Panel for the appointment of banking Directors other than the first such Directors.

Section 28

Notices of vacancies and appointments of certain Directors.

Section 29

Prohibition of certain Directors holding shares in a bank.

Section 30

Operation of disqualification of the Governor or a Director.

Section 31

Oath of secrecy to be taken by the Governor, Directors, and officers.

Section 32

Procedure of the Board.

Section 33

Compensation and superannuation of Chairman, Commissioners, Governor, and Directors.

PART IV.

Extinction of Consolidated Bank Notes.

Section 34

Definitions in respect of this Part of this Act.

Section 35

Restrictions on amount of consolidated bank notes outstanding.

Section 36

Payment in respect of consolidated bank notes outstanding after cesser of issue.

Section 37

Payments by Associated Banks on consolidated bank notes.

Section 38

Stamp duty in respect of consolidated bank notes.

Section 39

Notes of former banks of issue.

Section 40

Power of banks of issue to write off certain notes.

PART V.

Deposits by Bankers.

Section 41

Construction of references to holding oneself out as a banker.

Section 42

Obligation to make deposit in the High Court.

Section 43

General provisions in relation to deposits under this Part of this Act.

Section 44

Deposit on behalf of a company before its incorporation.

Section 45

Payment of debts out of deposit.

PART VI.

Bankers' Licences and the Duties of Licensed Bankers.

Section 46

Application of this Part of this Act.

Section 47

Bankers' licences.

Section 48

Publication of financial statements by licensed bankers.

Section 49

Publication of balance sheets by licensed bankers.

Section 50

Power to required deposit by licensed bankers in certain circumstances.

Section 51

Powers in respect of licensed bankers' clearances.

PART VII.

Counterfeit and Unauthorised Currency.

Section 52

Definition of “bank note” in this Part of this Act.

Section 53

Extension of the Forgery Act, 1913.

Section 54

Disposal of bank notes, etc., seized under the Forgery Act, 1913.

Section 55

Making, etc., a document purporting to be or resembling a bank note.

Section 56

Prohibition of unauthorised money.

Section 57

Amendment of the Customs Consolidation Act, 1876.

PART VIII.

Coinage.

Section 58

Amendment of the Coinage Act, 1926.

Section 59

Amendment of the Gold and Silver (Export Control, etc.) Act, 1920.

Section 60

The issue of coins under the Coinage Act, 1926.

Section 61

Copyright in coins.

PART IX.

Miscellaneous.

Section 62

Winding-up of the note reserve fund and establishment of the currency reserve.

Section 63

Amendment of section 61 of the Currency Act.

Section 64

Amendment of section 3 of the Currency (Amendment) Act, 1930.

Section 65

Power of Bank to obtain information as to hire-purchase businesses.

Section 66

Amendment of the Bills of Exchange Act, 1882, in respect of banker's drafts.

Section 67

Legalisation of bank deposit as a trustee investment.

Section 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.

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.

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.

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.

(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.

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.

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.

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.

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.

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.

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.

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.

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.

(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.

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.

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.

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.

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.

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.

Appointment, remuneration, etc. of the Directors.

23.—(1) The Directors shall be appointed by the Minister.

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.

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.

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.

Notices of vacancies and appointments of certain Directors.

28.—(1) This section applies only to Directors who are neither banking Directors nor service Directors.

Prohibition of certain Directors holding shares in a bank.

29.—(1) This section applies to all Directors except banking Directors.

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.

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.”

Procedure of the Board.

32.—(1) The Board may, by rules or otherwise as it thinks fit, regulate its own procedure.

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.

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.

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.

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.

Payments by Associated Banks on consolidated bank notes.

37.—(1) Every Associated Bank shall pay to the Commission or to the Bank (as the case may require), in respect of every half-year ending after the date of the passing of this Act, the following sums, that is to say:— (a) in respect of the half-year (if any) which is partly before and on and partly after the date of the passing of this Act or which commences on that date— (i) for the portion of such half-year which ends on or consists of the date of the passing of this Act, a sum calculated in accordance with sub-section (1) (except paragraph, (e) thereof) of section 65 of the Currency Act, and (ii) for the portion of such half-year which is subsequent to the date of the passing of this Act, a sum calculated at such rate, not exceeding two and one-half per cent. per annum, as shall from time to time be appointed in that behalf by the Minister on the amount of consolidated bank notes outstanding (up to the maximum amount authorised by this Act to be so outstanding) from day to day with such Associated Bank during the said portion of such half-year; (b) in respect of every half-year which begins after the date of the passing of this Act, a sum calculated at such rate, not exceeding two and one-half per cent. per annum, as shall from time to time be appointed in that behalf by the Minister on the amount of consolidated bank notes outstanding. (up to the maximum amount authorised by this Act to be so outstanding) from day to day with such Associated Bank during such half-year; (c) in respect of every half-year ending after the date of the passing of this Act, a sum calculated at such rate, not exceeding three per cent. per annum, as shall from time to time be appointed in that behalf by the Minister on the amount of consolidated bank notes (if any) outstanding after the said date from day to day with such Associated Bank during such half-year in excess of the amount authorised by this Act to be so outstanding; (d) in respect of every half-year, ending after the date of the passing of this Act, such share of the expenses incurred during such half-year by the Commission or by the Bank in providing consolidated bank notes as shall be prescribed by regulations made by the Commission or by the Bank and for the time being in force.

Stamp duty in respect of consolidated bank notes.

38.—

Section 49

of the Finance Act, 1932 (No. 20 of 1932), as amended by section 15 of the Finance Act, 1937 (No. 18 of 1937), shall apply and have effect in relation to the half-year (if any) which is partly before and on and partly after the date of the passing of this Act or which commences on that date as if the portion of such half-year which ends on or consists of the said date were a half-year, and the said section 49 as so amended shall, in pursuance of the repeal thereof by this Act, not apply or have effect in relation to the portion of such half-year which is subsequent to the said date.

Notes of former banks of issue.

39.—(1) In the case of every Associated Bank which was, at the passing of the Currency Act, a bank of issue, so much of the proportion of notes mentioned in sub-section (4) of section 60 of that Act as is for the time being not redeemed in pursuance of that section shall not, in respect of any day after the date of the passing of this Act, be deemed for the purposes of this Part of this Act to be consolidated bank notes outstanding with such Associated Bank.

Power of banks of issue to write off certain notes.

40.—(1) Where, for the purpose of computing the payments to be made under section 66 of the Currency Act by an Associated Bank which was, at the passing of that Act, a bank of issue, it is necessary to have regard to the total amount, as ascertained by the Commission, of the notes of such Associated Bank outstanding (including notes in the tills or vaults of such Associated Bank) immediately before the appointed day mentioned in section 60 of the Currency Act, such Associated Bank may, for the said purpose, from time to time write off, with the sanction of the Minister, from the said total amount as so ascertained an amount not exceeding the amount of so many of the said notes of such Associated Bank still outstanding at the time of such writing off as are estimated by such Associated Bank to be unlikely ever to be presented to such Associated Bank for payment.

PART V.

Deposits by Bankers.

Construction of references to holding oneself out as a banker.

41.—(1) For the purposes of this Part of this Act, a person shall (save as is otherwise provided by the next following sub-section of this section) be deemed to hold himself out as a banker— (a) if, being a company or other corporate body carrying on any business whatsoever, the name of such body includes any of the words “bank”, “banker”, or “banking” or any word which is a variant or a derivative of any of those words, or (b) if, being an individual, he carries on any business whatsoever under a name or title (other than his own name without any addition thereto) which includes any of the words “bank”, “banker”, or “banking” or any variant or derivative of any of those words, or (c) if, being a partnership or other unincorporated body carrying on any business whatsoever, the name under which such body carries on such business (not being in the case of a partnership the name or names of one or more of the partners without any addition thereto) includes any of the words “bank” “banker”, or “banking” or any word which is a variant or a derivative of any of those words, or (d) in any case, if by the use, in an advertisement, circular, business card, or other document, of any of the words “bank”, “banker”, or “banking” or any variant or derivative of those words or any phrase analogous thereto he holds himself out or represents himself as conducting or being willing to conduct banking operations with, for, or on behalf of members of the public.

Obligation to make deposit in the High Court.

42.—(1) During the period of three years beginning on the 1st day of January next after the passing of this Act it shall not be lawful for any person to hold himself out as a banker unless he has deposited and keeps deposited in the High Court in accordance with this Part of this Act the sum of ten thousand pounds or, in the case of a person to whom an order under sub-section (3) of this section relates, the sum mentioned in such order.

General provisions in relation to deposits under this Part of this Act.

43.—(1) The following provisions shall apply and have effect in relation to deposits in the High Court made in pursuance of this Part of this Act, that is to say:— (a) every such deposit shall be under the control of the High Court and shall be made with the privity of the Accountant of the Courts of Justice; (b) the Accountant of the Courts of Justice shall issue free of charge on request to any person proposing to make or add to any such deposit the forms requisite for that purpose; (c) any such deposit may, in lieu of being made wholly in money, be made wholly or partly by the deposit of securities authorised by rules of court for the investment of moneys under the control of the High Court; (d) where any such deposit is made or held wholly or partly in money, such money or a specified part thereof shall, on the request and at the cost of the depositor, be invested in such securities authorised as aforesaid as the depositor shall specify; (e) whenever any such deposit has been made, the Accountant of the Courts of Justice shall forthwith inform the Minister of the making of such deposit, the name of the person by whom such deposit was made, and the amount of such deposit, and whenever any such deposit has been added to the said Accountant shall forthwith inform the Minister of the making of such addition and of the amount thereof; (f) the income derived from the securities of which any such deposit is wholly or partly composed shall be paid to the depositor; (g) all or any of the securities of which any such deposit is wholly or partly composed shall, at the request and cost of the depositor, be varied into other securities authorised as aforesaid specified by the depositor or be converted into money; (h) the depositor of any such deposit or his liquidator, personal representative, assignee, or other successor in title may at any time apply, in accordance with rules of court, for the return of such deposit or so much thereof as has not been paid out in pursuance of an order of the High Court under this Part of this Act; (i) where any such application for the return of a deposit has been duly made, such deposit, or so much thereof as has not been paid out as aforesaid, shall, save as is otherwise provided by this Part of this Act, be returned in accordance with such application at the expiration of six months from the receipt of such application; (j) whenever any such deposit, or so much thereof as aforesaid, has been returned in pursuance of the next preceding paragraph of this sub-section, the Accountant of the Courts of Justice shall forthwith inform the Minister of such return.

Deposit on behalf of a company before its incorporation.

44.—Where a company is intended to be incorporated under the Companies Acts, 1908 to 1924, with, a name which includes any of the words “bank”, “banker”, or “banking”, or any word which is a variant or a derivative of any of those words, the following provisions shall have effect, that is to say:— (a) it shall be lawful for a deposit to be made in the High Court under this Part, of this Act on behalf and in the name of such intended company notwithstanding that such company has not been incorporated; (b) an order under sub-section (3) of section 42 of this Act in relation to the amount of such deposit shall be capable of being made notwithstanding that such company has not been incorporated; (c) the registrar of companies shall not give a certificate of incorporation in respect of such intended company unless or until such deposit has been so made on behalf and in the name of such intended company; (d) when such intended company has been duly incorporated under the said Acts, the said deposit shall be deemed for all purposes to have been made by such company.

Payment of debts out of deposit.

45.—(1) Whenever a person (in this sub-section referred to as the creditor) obtains in any Court a judgment, order, or decree against a person (in this section referred to as the depositor) who has made and maintains a deposit in the High Court under this Part of this Act for the payment of a sum of money in discharge of a liability (whether liquidated or unliquidated) incurred by the depositor in the course of or in relation to the business carried on by him, the High Court may, if it so thinks proper on the application in a summary manner of the creditor, order that the said sum of money and the costs (if any) payable by the depositor to the creditor under the said judgment, order, or decree and also (if the High Court so thinks proper) the creditor's costs of such application be paid to the creditor out of the said deposit so maintained by the depositor.

PART VI.

Bankers' Licences and the Duties of Licensed Bankers.

Application of this Part of this Act.

46.—This Part of this Act does not apply to the Bank or to the Post Office Savings Bank or to any trustee savings bank certified (whether before or after the passing of this Act) under the Trustee Savings Banks Act, 1863.

Bankers' licences.

47.—(1) In this section, the expression “banking business” means a business which consists of or includes the acceptance of deposits payable on demand or on not more than seven days notice, but the acceptance by a trader of deposits from persons employed by him in his trading business or the acceptance by a trader in the normal course of his trading business of deposits from persons who are customers of that trading business or the acceptance by a trader of both those classes of deposits shall not of itself make the trading business of such trader a banking business for the purposes of this section.

Publication of financial statements by licensed bankers.

48.—(1) In this section the word “year” means a period of twelve months beginning on the 1st day of January.

Publication of balance sheets by licensed bankers.

49.—(1) The Minister may, after consultation with the Board, make regulations for either or both of the following purposes, that is to say:— (a) requiring licensed bankers to prepare and publish balance sheets at the times and intervals specified in such regulations; (b) prescribing the form in which the balance sheets of licensed bankers are to be prepared.

Power to required deposit by licensed bankers in certain circumstances.

50.—(1) If at any time it should appear to the Board, with the concurrence of the Minister, that it is expedient so to do, it shall be lawful for the Board to make, with the consent of the Minister, regulations requiring every licensed banker to make with the Bank a deposit (not bearing interest) of a specified amount or calculated in a specified manner whenever after a specified date the assets held by him within the State fall below a specified proportion in relation to his liabilities within the State, and to maintain such deposit so long as such assets are below the said specified proportion.

Powers in respect of licensed bankers' clearances.

51.—(1) If at any time it should appear to the Board, with the concurrence of the Minister, that it is expedient so to do, it shall be lawful for the Board to make, with the consent of the Minister, regulations requiring every licensed banker to settle all or a particular class or particular classes (defined in the regulations) of his clearances by cheques drawn either (as shall be specified in the regulations) on the Bank or on an agent appointed for the purpose by the Bank and requiring every licensed banker, for the purposes of so settling such clearances, to make and maintain with the Bank such balances as may be necessary for the purpose.

PART VII.

Counterfeit and Unauthorised Currency.

Definition of “bank note” in this Part of this Act.

52.—In this Part of this Act the expression “bank note” has the same meaning as it has in the Forgery Act, 1913, as amended or extended by the Currency Act and by this Part of this Act.

Extension of the Forgery Act, 1913.

53.—(1) Currency notes issued by or on behalf of the Government of any country outside the State shall be deemed to be bank notes within the meaning of the Forgery Act, 1913.

Disposal of bank notes, etc. seized under the Forgery Act, 1913.

54.—Where any forged bank note, or any machinery, implement, utensil, or material used or intended to be used for the forgery of a bank note is lawfully seized under a warrant granted under sub-section (1) of section 16 (as adapted by or under subsequent enactments) of the Forgery Act, 1913, or otherwise, such bank note, machinery, implement, utensil, or material (as the case may be) shall, by order of the court by which any person is tried for an offence in relation thereto or, if no person is so tried, by order of the justice of the District Court or by direction of the Peace Commissioner (as the case may be) by whom such warrant was granted, be delivered up to the Commission or a person authorised by the Commission to receive the same or, if such order is made after the appointed day, to the Bank or a person authorised by the Bank to receive the same.

Making, etc. a document purporting to be or resembling a bank note.

55.—(1) If any person makes, or causes to be made, or uses for any purpose whatsoever, or utters any document purporting to be, or in any way resembling, or so nearly resembling as to be calculated to deceive, a bank note or part of a bank note, he shall be guilty of an offence under this sub-section and shall be liable on summary conviction thereof, to a fine not exceeding five pounds.

Prohibition of unauthorised money.

56.—(1) No person shall make, provide, issue, re-issue, or give or receive in payment any document (not being a document excluded by this section from the operation of this section) in writing (whether written on paper or on any other substance or material) which complies with both of the following conditions, that is to say:— (a) the document purports or is expressed to be or is in fact exchangeable for a specified sum of lawful money on presentation by the holder for the time being thereof to a particular person or any two or more particular persons, whether such person or persons is or are or is not or are not specified in the document and whether such presentation is or is not subject to restrictions as to time and place and whether such restrictions (if any) are or are not stated in the document, and (b) the document is intended or purports or appears to be intended to circulate as money or to be used as a substitute for lawful money, whether generally or for a particular purpose or within a particular area.

Amendment of the Customs Consolidation Act, 1876.

57.—(1)

Section 17

of the Customs Consolidation Act, 1876 , is hereby amended by the deletion of the words “British currency” and the insertion, in lieu of those words, of the words “currency which is for the time being legal tender in the State”.

(2)

Section 42

of the Customs Consolidation Act, 1876 , shall be construed and have effect as if the following articles were added to the Table of Prohibitions and Restrictions Inwards in that section, that is to say:— (a) counterfeits of legal tender notes, and (b) counterfeits of consolidated bank notes.

PART VIII.

Coinage.

Amendment of the Coinage Act, 1926.

58.—(1) The Coinage Act, 1926 (No. 14 of 1926), is hereby amended, in relation to coins of the denomination of sixpence or of the denomination of threepence and in either case bearing a date subsequent to the year 1941 and no other coins, as follows, that is to say:— (a) in sub-section (1) of section 2, sub-section (2) of section 5, and the first column of the Schedule, the word “cupro-nickel” is hereby substituted for the word “nickel”, and the said sub-sections and Schedule shall, in relation to the said coins, be construed and have effect accordingly; (b) in the third column of the Schedule the words “cupro-nickel made up of 75 per cent. copper and 25 per cent. nickel” are hereby substituted for the words “pure nickel”, and the said Schedule and also section 2 shall, in relation to the said coins, be construed and have effect accordingly.

Amendment of the Gold and Silver (Export Control, etc.) Act, 1920.

59.—Section 2 of the Gold and Silver (Export Control, etc.) Act, 1920, as adapted by or under subsequent enactments, shall apply and have effect in relation to coins of nickel, cupro-nickel, bronze, or other metal or mixed metals in like manner as it applies and has effect in relation to gold or silver coin.

The issue of coins under the Coinage Act, 1926.

60.—(1) All coins issued by the Minister under the Coinage Act, 1926 (No. 14 of 1926), on or after the appointed day shall be issued by the Minister through the Bank, and the proceeds of every such issue of coins shall be paid into the general fund and carried therein to the credit of the currency reserve.

Copyright in coins.

61.—(1) The copyright in all coins issued (whether before or after the passing of this Act) under the Coinage Act, 1926 (No. 14 of 1926), or under Part II of the Currency Act and the copyright in the artistic work defining the design of any such coins shall be perpetual and shall belong and, in the case of any such coins issued before the passing of this Act, be deemed always to have belonged to the Minister

PART IX.

Miscellaneous.

Winding-up of the note reserve fund and establishment of the currency reserve.

62.—(1) As soon as may be after the passing of this Act and in any event not later than one month after such passing, the note reserve fund shall be wound up and for that purpose the following provisions shall have effect, that is to say:— (a) there shall be established in the general fund an account to be called the currency reserve; (b) out of the assets of the note reserve fund there shall be transferred to the legal tender note fund such assets (not exceeding two hundred thousand pounds in total value at the market prices current at the time of the transfer) as the Commission shall think proper; (c) the assets transferred to the legal tender note fund in pursuance of the next preceding paragraph of this sub-section shall be applied in writing down in the books of that fund to such extent as the Commission shall think proper the values in such books of such of the assets of the said fund as the Commission shall think proper; (d) the assets of the note reserve fund (other than those assets transferred to the legal tender note fund under the foregoing provisions of this section) shall be transferred to the general fund and the amount thereof shall be placed to the credit of the currency reserve; (e) from and after the winding-up of the note reserve fund in pursuance of this section, the transfers required by sub-section (7) of section 61 (as amended by this Act) of the Currency Act to be made from or to the legal tender note fund to or from the note reserve fund shall be made from or to the legal tender note fund to or from the currency reserve in the general fund.

(3)

Section 50

and sub-section (7) of section 58 of the Currency Act are hereby amended, as from the completion of the winding-up of the note reserve fund, by the substitution of the expression “currency reserve” for the expression “note reserve fund” wherever the latter expression occurs in the said section 50 and the said sub-section (7) respectively.

(4)

Section 4

of the Currency (Amendment) Act, 1930 (No. 30 of 1930), is hereby amended, as from the completion of the winding-up of the note reserve fund, by the substitution of the expression “currency reserve” for the expression “note reserve fund” wherever the latter expression occurs in the said section 4 , and by the substitution of the words “in which assets of the legal tender note fund are for the time being permitted to be held” for the words and figures “mentioned in sub-section (2) of section 62 of the Principal Act” where those words and figures occur in sub-section (1) of the said section 4 .

Amendment of section 61 of the Currency Act.

63.—

Section 61

of the Currency Act is hereby amended by the deletion of sub-section (7) thereof and the insertion in the said section of the following sub-section in lieu of the said sub-section so deleted, that is to say:— “(7) As soon as may be after the last day of February and after the 31st day of August in every year the Commission shall value, at values not exceeding the current market prices on such last day of February or 31st day of August (as the case may be), the capital assets of the legal tender note fund on such last day of February or 31st day of August (as the case may be), and shall ascertain the extent of the net surplus or deficiency, if any, of such capital assets as so valued (less by the capital amount of any temporary borrowing under the next preceding sub-section of this section then outstanding) above or below the amount of legal tender notes outstanding on such last day of February or 31st day of August (as the case may be), and shall, as soon as may be after such ascertainment, transfer (as the case may require) from or to the legal tender note fund to or from the note reserve fund capital assets in any one or more of the forms in which assets of the legal tender note fund are for the time being permitted to be held equal in value to the amount of such surplus or deficiency, if any.”

Amendment of section 3 of the Currency (Amendment) Act, 1930.

64.—

Section 3

of the Currency (Amendment) Act, 1930 (No. 30 of 1930), is hereby amended as follows, that is to say:— (a) by the deletion of the word “unanimously” where it occurs in sub-section (1), and (b) by the deletion of the word “unanimous” where it occurs in sub-section (2), and (c) by the insertion in sub-section (3) after the word “sub-sections” of the words “upon a request of the Commission which is not unanimous”, and (d) by the insertion, before sub-section (4), of a new sub-section as follows, that is to say:— “(3A) Every order made under sub-section (1) or sub-section (2) of this section on a unanimous request of the Commission shall be laid before each House of the Oireachtas as soon as may be after it is made, and if a resolution annulling such order is passed by either such House within the next subsequent twenty-one days on which such House has sat after such order is laid before it, such order shall be annulled accordingly, but without prejudice to the validity of anything previously done under such order.”

Power of Bank to obtain information as to hire-purchase businesses.

65.—(1) It shall be lawful for the Bank to obtain from— (a) any person who by way of trade sells goods on the terms commonly called hire-purchase or on any other terms under which the price (with or without an additional sum for interest) is payable by instalments, or (b) any person who carries on the business of financing (whether by loan, guarantee, or otherwise) the sale of goods on any of the terms mentioned in the foregoing paragraph of this section, all such information in relation to the said trade or business (as the case may be) carried on by such person as shall appear to the Board to be necessary or desirable, and it shall be lawful for the Bank, for the purpose of obtaining such information, to serve on any such person a notice in writing requiring him to furnish in writing to the Bank such information (which shall be specified in the notice) either within a specified time not less than fourteen days after the service of the notice or periodically at intervals of not less than three months.

66.—(1) In this section the expression “banker's draft” means a draft payable on demand drawn by or on behalf of a bank upon itself, whether payable at the head office or at some other office of such bank.

Legalisation of bank deposit as a trustee investment.

67.—A trustee, unless expressly forbidden by the instrument (if any) creating the trust, may, in addition to any other mode of investment for the time being authorised by law or by the said instrument (if any), invest any trust funds in his hands (whether such funds are or are not at the time in a state of investment) by placing such funds in an interest bearing deposit account with an Associated Bank or a bank of which a controlling interest is held by an Associated Bank.

Amendment of section 22 of the Bankers (Ireland) Act, 1845.

68.—So much of section 22 of the Bankers (Ireland) Act, 1845 , (as adapted by or under subsequent enactments) as requires the Revenue Commissioners to publish in the Iris Oifigiúil returns made to them under that section shall cease to have effect on the passing of this Act.

FIRST SCHEDULE.

Enactments Repealed.

Part I.

Sections of the Currency Act repealed in whole or in part.

Section Repealed Extent of Repeal Date of Repeal Sections 14 to 28.

The whole of each section.

The appointed day.

Section 30.

The whole of the section.

The appointed day.

Sections 32 to 34.

The whole of each section.

The appointed day.

Section 38.

Sub-sections (2) and (3).

The appointed day.

Sections 39 and 44.

The whole of each section.

The passing of this Act.

Sections 40 and 41.

The whole of each section.

The appointed day.

Section 47.

The words “or the note reserve fund” where those words occur in sub-sections (4), (5), and (6) respectively.

The completion of the winding-up of the note reserve fund.

Sections 53, 54, and 55.

The whole of each section.

The day after the date of the passing of this Act.

Section 62.

The whole of the section.

The completion of the winding-up of the note reserve fund.

Section 63.

In sub-section (2), the words “or paid into the note reserve fund,” and the words “or out of the note reserve fund.”

The completion of the winding-up of the note reserve fund.

Section 63.

Sub-sections (3) and (6); in sub-section (7), the words “or the balance of such surplus income remaining after payment of dividends under the foregoing sub-section (as the case may be)”.

The appointed day.

Section 64.

The whole of the section.

The appointed day.

Section 65.

The whole of the section.

The day after the date of the passing of this Act.

Section 66.

Sub-section (2).

The day after the date of the passing of this Act.

Part II.

Other enactments repealed.

Number and Year Short Title Extent of Repeal Date of Repeal No. 14 of 1926.

The Coinage Act, 1926 .

Section 11

.

The appointed day.

No. 30 of 1930.

The Currency (Amendment) Act, 1930 .

In sub-section (1) of section 3 the words “or the note reserve fund or both those funds” and the words “or to the list of forms contained in sub-section (2) of section 62 of the Principal Act or to both of those lists,” and in sub-section (4) of the said section 3 , the words “or section 62 ” and the words “or both those sections (as the case may be)”.

The completion of the winding-up of the note reserve fund.

No. 20 of 1932.

The Finance Act, 1932 .

Section 49

.

The day after the date of the passing of this Act.

No. 18 of 1937.

The Finance Act, 1937 .

Section 15

.

The day after the date of the passing of this Act.

SECOND SCHEDULE.

Rules for the Elections of Panels for the Appointment of Banking Directors.

Rules applicable to every case.

1.—In this Schedule the word “representative” means a representative of an Associated Bank present at a meeting for the election of a panel, and the word “meeting” means a meeting of representatives to elect a panel.

2.—The representatives shall elect one of their number to be the chairman of the meeting and such chairman shall conduct the proceedings at the meeting, but shall not have any second or casting vote.

3.—Save as is otherwise provided by these Rules, all questions arising at the meeting shall be decided by the vote of the majority of the representatives.

4.—The meeting may be adjourned from time to time but shall not be adjourned to a time later than three days after the time appointed under this Act for the meeting.

5.—At the conclusion of the election the chairman shall prepare a statement in writing setting forth the names of the representatives and the names of the banks they respectively represented and the names, addresses, and descriptions of the persons forming the panel elected at the meeting, and such statement shall then be signed by the chairman and at least one-third of the other representatives and shall be sent by the chairman to the Minister in accordance with this Act.

Rules applicable to the election of the panel for the first banking Directors.

6.—Every representative may nominate six candidates and no more for election.

7.—The election shall be by rounds and on each round every representative shall have six votes but may not, in any one round, give more than one vote to any one candidate.

8.—On the first round, all the candidates shall be voted on and, subject to Rules Nos. 11 and 12 of these Rules, any candidate who on such round receives a number of votes exceeding half the number of representatives present shall be elected and the six (or such lesser number as the chairman shall fix) candidates who receive the least number of votes shall be eliminated.

9.—On the second round, all the candidates except those elected or eliminated on the first round shall be voted on and, subject to Rules Nos. 11 and 12 of these Rules, any candidate who on such round receives a number of votes exceeding half the number of representatives present shall be elected and the six (or such lesser number as the chairman shall fix) candidates who receive the least number of votes shall be eliminated.

10.—The third and every subsequent round shall be conducted in a similar manner.

11.—If on any round, by reason of an equality of votes amongst the candidates who receive the least number of votes, it is not possible to eliminate six (or the lesser number fixed by the chairman) of the candidates, the chairman shall determine how many and which candidates are to be eliminated on that round.

12.—If on any round a greater number of candidates than the number required to be elected receive a number of votes exceeding half the number of representatives present, the chairman shall determine how many candidates, if any, shall be elected on that round 13.—The election shall be continued until the full panel of six persons has been elected.

Rules applicable to the election of the panel for banking Directors other than the first such Directors.

14.—Where a panel of three persons is to be elected, the foregoing Rules Nos. 6 to 13 (inclusive) shall apply and have effect as if they were here repeated with the substitution of the number “three” for the number “six” wherever the latter number is mentioned in those Rules.

15.—Where a panel of five persons is to be elected, the foregoing Rules Nos. 6 to 13 (inclusive) shall apply and have effect as if they were here repeated with the substitution of the number “five”for the number “six” wherever the latter number is mentioned in those Rules.

16.—Where a panel of six persons is to be elected, the foregoing Rules Nos. 6 to 13 (inclusive) shall apply and have effect as if they were here repeated without modification.

THIRD SCHEDULE.