Central Bank Act, 1989

Central Bank Act, 1989.

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 1989 Central Bank Act, 1989.

Central Bank Act, 1989.

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 Print Full ActPriontáil an tAcht Iomlán Number 16 of 1989 CENTRAL BANK ACT, 1989 ARRANGEMENT OF SECTIONS

PART I

Preliminary and General Section

Section 1

Short title.

Section 2

Commencement.

Section 3

Interpretation generally.

Section 4

Repeals.

PART II

The Central Bank

Chapter I

Preliminary, Alteration of Penalties and General Offence Provisions

Section 5

Definitions (Part II).

Section 6

Construction and collective citation (Part II).

Section 7

Laying of regulations and orders before Houses of the Oireachtas.

Section 8

Alteration of penalties under Principal Act.

Section 9

Offences and penalties under Act of 1971.

Section 10

Prosecution of offences by Bank.

Section 11

Offences in relation to certain bodies.

Chapter II

General Provisions Relating to the Bank

Section 12

Additional powers and functions of Bank.

Section 13

Fees in respect of supervision by Bank.

Section 14

Composition of Board of Directors.

Section 15

Offices and staff of Bank.

Section 16

Disclosure of information.

Section 17

Prevention of corruption.

Section 18

Keeping of documents.

Section 19

Accounts and records of Bank.

Section 20

Report and returns by Bank.

Section 21

Exemption of Bank from taxes.

Section 22

Winding up of legal tender note fund and transfer of assets to general fund.

Section 23

General fund.

Section 24

Monetary unit and exchange rate.

Section 25

Currency in which contracts, etc., are made.

Chapter III

Licensing and Supervision of Licence Holders

Section 26

Extension of application of licensing and supervisory provisions.

Section 27

Investigation of complaints.

Section 28

Charges, etc., by holders of licences.

Section 29

Amendment of section 2 of Act of 1971.

Section 30

Amendment of section 7 of Act of 1971.

Section 31

Exemption of persons from section 7 of Act of 1971.

Section 32

Grant of licences, etc.

Section 33

Amendment of section 10 of Act of 1971.

Section 34

Revocation of licences.

Section 35

Amendment of section 12 of Act of 1971.

Section 36

Provisions in relation to books and records of holders of licences.

Section 37

Furnishing of information to Bank.

Section 38

Directions by Bank to holders of licences.

Section 39

Amendment of section 22 of Act of 1971.

Section 40

Amendment of section 23 of Act of 1971.

Section 41

Composition of assets and liabilities.

Section 42

Amendment of section 26 of Act of 1971.

Section 43

Amendment of section 27 of Act of 1971.

Section 44

Power of Court to prohibit certain contraventions of, or failure to comply with, Act of 1971.

Section 45

Amendment of section 31 of Act of 1971.

Section 46

Appointment of auditor.

Section 47

Duties of auditor.

Chapter IV

General Provisions Relating to Winding Up

Section 48

Grounds for winding up on application of Bank.

Section 49

Notices, documents to be sent to Bank relating to winding up.

Section 50

Right of Bank to be represented at meetings, etc.

Section 51

Construing of references to winding up, etc.

Section 52

Rules of Court.

Chapter V

Deposit Protection

Section 53

Interpretation (Chapter V).

Section 54

Deposit protection account.

Section 55

Deposits by holders of licences.

Section 56

Review of operation of deposit protection account.

Section 57

Deposit protection account and cesser of banking business where solvent.

Section 58

Vesting in liquidator of deposited amount.

Section 59

Statement of affairs and calculation of payments from deposit protection account, etc. on insolvency.

Section 60

Payment out of deposit protection account on winding up.

Section 61

Effect of payment by Bank under section 60.

Section 62

Eligible deposits.

Section 63

Certain additional persons to be excluded depositors.

Section 64

Provisions applicable to excluded depositors, etc.

Section 65

Calculation of certain payments relating to trustee deposits and joint accounts.

Section 66

Treatment of certain payments out of general fund.

Section 67

Reconstitution of deposit protection account.

Section 68

Exclusion from reconstitution.

Section 69

Crediting of moneys to deposit protection account, distributions, etc.

Section 70

Expenses and remuneration of liquidator under this Chapter.

Section 71

Limitation of time.

Section 72

Regulations (Chapter V).

Section 73

Extension of application of Chapter V.

Chapter VI

Acquiring Transactions

Section 74

Interpretation (Chapter VI).

Section 75

Application (Chapter VI).

Section 76

Limitation on validity of acquiring transactions.

Section 77

Consent of Minister to certain acquiring transactions required.

Section 78

Requirement on Bank before refusal to approve acquiring transaction.

Section 79

Alteration of prescribed percentage.

Section 80

Conditions on approval of proposed acquiring transaction.

Section 81

Right of purported vendor to damages.

Section 82

Notification of proposed acquiring transactions to Bank.

Section 83

Relevant period for purpose of sections 76, 86 and 88.

Section 84

Inquiries by Bank.

Section 85

Communication of Bank's approval or refusal to approve.

Section 86

Appeal to High Court against refusal, etc., of Bank.

Section 87

Contravention of approval, etc.

Section 88

Application of certain other enactments.

Chapter VII

Supervision of Certain Financial Institutions for the purposes of an International Financial Services Centre

Section 89

Definitions (Chapter VII).

Section 90

Application (Chapter VII).

Section 91

Orders (Chapter VII).

Section 92

Supervision, etc. of financial institutions by Bank.

Section 93

Application of sections 17 and 18 of Act of 1971.

Section 94

Establishment of self-regulatory bodies.

Section 95

Power of Court to prohibit failure to comply with requirement or condition under Chapter VII.

Section 96

Report of non-compliance to Minister.

Chapter VIII

Supervision of Financial Futures and Options Exchanges

Section 97

Definitions (Chapter VIII).

Section 98

Gaming and Lotteries Acts.

Section 99

Establishment of exchanges.

Section 100

Existing exchanges.

Section 101

Approval of rules by Bank, conditions, etc.

Section 102

Refusal of Bank to approve rules.

Section 103

Application of section 17 of Act of 1971.

Section 104

Restriction on advertising.

Section 105

Directions by Bank to suspend trading, dealing.

Section 106

Revocation of approval of rules.

Section 107

Offences and penalties (Chapter VIII).

Chapter IX

Supervision of Moneybrokers

Section 108

Interpretation (Chapter IX).

Section 109

Orders (Chapter IX).

Section 110

Authorisation to carry on moneybroking business.

Section 111

Supervision, etc. of moneybrokers by Bank.

Section 112

Application of section 17 of Act of 1971.

Section 113

Power of Court to prohibit failure to comply with requirement or condition under Chapter IX.

Section 114

Revocation of authorisations.

Section 115

Publication of names of moneybrokers and notices of revocation of authorisations.

Section 116

Offences and penalties (Chapter IX).

Chapter X

Codes of Practice

Section 117

Codes of practice.

Chapter XI

Legal Tender Notes

Section 118

Provision of legal tender notes.

Section 119

Application of certain enactments.

Section 120

Issue of legal tender notes by Bank.

Section 121

Redemption of legal tender notes.

Section 122

Calling in of legal tender notes.

Section 123

Defacement, etc., of legal tender notes and consolidated bank notes.

PART III

Coinage

Section 124

Definition (Part III).

Section 125

Amendment of section 3 of Act of 1969.

Section 126

Amendment of section 4 of Act of 1969.

Section 127

Legal tender (coinage).

Section 128

Alteration of penalties under Act of 1969.

Section 129

Amendment of section 17 of Act of 1969.

Section 130

Collective citation (Part III).

PART IV

Miscellaneous Provisions Relating to Financial Transactions

Section 131

Amendment of Bankers' Books Evidence Act, 1879.

Section 132

Amendment of Bills of Exchange Act, 1882.

Section 133

Supplementary provision to section 3 of Cheques Act, 1959.

Section 134

Power of Minister to direct suspension of certain business transactions, etc.

Section 135

Payments on public holidays not compellable.

Section 136

Amendment of Money-lenders Act, 1900.

Section 137

Deposit with Bank to be an authorised investment for trustees.

Section 138

Amendment of Trustee (Authorised Investments) Act, 1958.

Section 139

Electronic transfer of certain securities.

Section 140

Retention of certain information in non-legible form.

Section 141

Construction and collective citations.

SCHEDULE Acts Referred to Assurance Companies Act, 1909 9 Edw. 7, c. 49 Bankers' Books Evidence Act, 1879 42 & 43 Vict., c. 11 Bankers' Books Evidence (Amendment) Act, 1959 1959, No. 21 Bills of Exchange Act, 1882 45 & 46 Vict., c. 61 Building Societies Act, 1976 1976, No. 38 Central Bank Act, 1942 1942, No. 22 Central Bank Act, 1961 1961, No. 8 Central Bank Act, 1964 1964, No. 3 Central Bank Act, 1971 1971, No. 24 Cheques Act, 1959 1959, No. 19 Companies Act, 1963 1963, No. 33 Companies Acts, 1963 to 1986 Currency Act, 1927 1927, No. 32 Currency and Central Bank Acts, 1927 to 1971 Decimal Currency Act, 1969 1969, No. 23 Decimal Currency Acts, 1969 and 1970 Exchange Control Act, 1954 1954, No. 30 Finance Act, 1911 1 & 2 Geo. 5, c. 48 Finance Act, 1917 6 & 7 Geo. 5, c. 31 Finance Act, 1980 1980, No. 14 Finance Act, 1986 1986, No. 13 Finance Act, 1987 1987, No. 10 Forgery Act, 1913 3 & 4 Geo. 5, c. 27 Friendly Societies Act, 1896 59 & 60 Vict., c. 25 Gaming and Lotteries Acts, 1956 to 1986 Holidays (Employees) Act, 1973 1973, No. 25 Industrial Credit Act, 1933 1933, No. 25 Larceny Act, 1916 6 & 7 Geo. 5, c. 50 Mergers, Take-overs and Monopolies (Control) Act, 1978 1978, No. 17 Money-lenders Act, 1900 63 & 64 Vict., c. 51 National Debt Act, 1870 33 & 34 Vict., c. 71 Partnership Act, 1890 53 & 54 Vict., c. 39 Petty Sessions (Ireland) Act, 1851 14 & 15 Vict., c. 93 Prevention of Corruption Act, 1906 6 Edw. 7, c. 34 Prevention of Corruption Act, 1916 6 & 7 Geo. 5, c. 64 Public Offices Fees Act, 1879 42 & 43 Vict., c. 58 Stock Transfer Act, 1963 1963, No. 34 Superannuation Act, 1892 55 & 56 Vict., c. 40 Trustee Act, 1893 56 & 57 Vict., c. 53 Trustee (Authorised Investments) Act, 1958 1958, No. 8 Trustee Savings Bank Acts, 1863 to 1979 Number 16 of 1989 CENTRAL BANK ACT, 1989 AN ACT TO AMEND AND EXTEND THE LAW RELATING TO THE CENTRAL BANK OF IRELAND, THE DECIMAL CURRENCY ACTS, 1969 AND 1970, AND THE LAW RELATING TO CERTAIN FINANCIAL TRANSACTIONS AND TO PROVIDE FOR OTHER MATTERS CONNECTED WITH THE MATTERS AFORESAID. [12th July, 1989] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Preliminary and General Short title.

1.—This Act may be cited as the Central Bank Act, 1989.

Commencement.

2.—This Part and

Chapter VII

of

Part II

shall come into operation upon the passing of this Act, and except where otherwise provided for, the other provisions of this Act shall come into operation on such day or days as may be fixed therefor by order or orders of the Minister, either generally or with reference to any particular purpose or provision, and different days may be so fixed for different purposes and different provisions of this Act.

Interpretation generally.

3.—(1) In this Act— “the Bank” means the Central Bank of Ireland; “the Minister” means the Minister for Finance.

Repeals.

4.—The Acts specified in the Schedule are hereby repealed to the extent specified in the third column of that Schedule.

PART II

The Central Bank

Chapter I

Preliminary, Alteration of Penalties and General Offence Provisions Definitions (

Part II

).

5.—In this Part— “the Act of 1971” means the Central Bank Act, 1971 ; “the Principal Act” means the Central Bank Act, 1942 .

Construction and collective citation (

Part II

).

6.—The Principal Act, the Central Bank Act, 1961 , the Central Bank Act, 1964 , the Act of 1971 and this Part shall be construed together as one Act and may be cited together as the Central Bank Acts, 1942 to 1989.

Laying of regulations and orders before Houses of the Oireachtas.

7.—Every regulation and order (other than regulations under section 15 or to which section 23

Alteration of penalties under Principal Act.

8.—The Principal Act is hereby amended— (a) in section 55, by the substitution of the following subsection for subsection (1): “(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 subsection and shall be liable— (a) on summary conviction to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or (b) on conviction on indictment to a fine not exceeding £10,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both.”; (b) in section 56, by the substitution of the following subsection for subsection (2): “(2) Every person who makes, provides, issues, re-issues, or gives or receives in payment any document in contravention of subsection (1) of this section shall be guilty of an offence under this section and shall be liable— (a) on summary conviction, to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months or to both, or (b) on conviction on indictment, to a fine not exceeding £10,000 or, at the discretion of the court, to imprisonment for a term not exceeding five years, or to both.”; (c) in section 65, by the substitution of the following subsection for subsection (2): “(2) (a) It shall be the duty of every person on whom a notice is served by the Bank under subsection (1) of this section to comply with such notice within the time or on the periodic occasions (as the case may be) specified in such notice, and if he fails so to do, he shall be guilty of an offence under this section and shall be liable, on summary conviction, to a fine not exceeding £1,000. (b) Where a person has been convicted of an offence by virtue of paragraph (a) of this subsection and, after the conviction, the failure to comply continues, the person shall be guilty of contravening this section on every day on which the contravention continues after that conviction and for each such offence he shall be liable on summary conviction to a fine not exceeding £100.”.

Offences and penalties under Act of 1971.

9.—The Act of 1971 is hereby amended by the substitution of the following section for section 58: “58.—(1) Any person who contravenes section 7 , 14 , 17 , 18 or 27 of this Act and a holder of a licence who— (a) has obtained a licence through false statements or any other irregular means, (b) contravenes section 19 , 20 , 26 , 31 or 33 of this Act, (c) commits by act or omission a breach of a condition duly imposed and which relates to a licence, (d) fails to comply with a direction under section 11 (3) (c) (inserted by section 34 of the Central Bank Act, 1989), 21 or 22 of this Act, or a requisition under section 23 of this Act, or (e) contravenes regulations under section 24 or 25 of this Act, shall be guilty of an offence and shall be liable— (i) on summary conviction, to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or (ii) on conviction on indictment, to a fine not exceeding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both, and, if the contravention, breach or failure in respect of which he was convicted is continued after conviction, he shall be guilty of an offence on every day on which the contravention, breach or failure continues after conviction in respect of the original contravention, breach or failure and for each such offence he shall be liable on summary conviction to a fine not exceeding £100 or on conviction on indictment to a fine not exceeding £5,000.

Prosecution of offences by Bank.

10.—An offence under the Central Bank Acts, 1942 to 1989, which is being tried summarily may be prosecuted by the Bank and a statement made by the person conducting such prosecution that the prosecution has been commenced with the authority of the Bank shall be sufficient evidence that the prosecution was so commenced.

Offences in relation to certain bodies.

11.—Where an offence under the Central Bank Acts, 1942 to 1989, is committed by a body corporate or by a person purporting to act on behalf of a body corporate or an unincorporated body of persons and is proved to have been so committed with the consent or approval of, or to have been facilitated by any wilful neglect on the part of, another person (being a director, manager, secretary, member of any committee of management or other controlling authority of such body or official of such body) that other person shall, as well as the body corporate or the person so purporting to act, be guilty of an offence and shall be liable to be proceeded against and punished accordingly.

Chapter II

General Provisions Relating to the Bank Additional powers and functions of Bank.

12.—(1) The repeal of the Currency Act, 1927 , by section 4 shall not affect any function, power or duty exercisable by the Bank by virtue of section 6 (1) of the Principal Act.

Fees in respect of supervision by Bank.

13.—(1) Subject to subsection (3), the Minister may, after consulting the Bank, by regulation prescribe the fee to be paid to the Bank by any person supervised by it under any enactment and different fees may be prescribed for different classes of persons.

Chapter VIII

.

Composition of Board of Directors.

14.—(1) Subject to subsection (3), the Principal Act is hereby amended— (a) by the substitution of the following subsection for subsection (3) of section 5: “(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) such number of other Directors (not exceeding nine and not including at any one time more than two service Directors) as the Minister shall from time to time determine.”; (b) by the deletion of sections 14 (5), 23 (7) and 29; (c) by the substitution of the following section for section 24: “Tenure of office of the Directors.

24.—(1) 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 the expiration by effluxion of time of the term of office of his predecessor.

Offices and staff of Bank.

15.—(1) The Bank may purchase, take on lease, build or otherwise acquire and may equip and maintain such offices and other premises in such places as it considers necessary for the due performance of its functions under this Act and may sell or let any such premises which it considers to be no longer necessary for that purpose.

TABLE

Disclosure of information.

16.—(1) A person, who at the commencement of this section is, or at any time thereafter is appointed, Governor or a Director, officer or servant of the Bank or who is employed by the Bank in any other capacity, shall not disclose, during his term of office or employment or at any time thereafter, any information concerning— (a) the business of any person or body (whether corporate or unincorporate) which came to his knowledge by virtue of his office or employment, or (b) the Bank's activities in respect of the protection of the integrity of the currency or the control of credit, unless such disclosure is to enable the Bank to carry out its functions under the Central Bank Acts, 1942 to 1989, or under any enactment amending those Acts.

Prevention of corruption.

17.—With effect from the commencement of this section, the provisions of the Prevention of Corruption Act, 1906 , and the Prevention of Corruption Act, 1916 , shall apply to every person to whom section 16 relates and, accordingly— (a) section 1 (3) of the said Act of 1906 (as adapted by the Prevention of Corruption Acts, 1889 to 1916, Adaptation Order, 1928 (S.R. & O. No. 37 of 1928)) and section 2 of the said Act of 1916 (as so adapted) shall be construed as if there were included, after the reference to a person holding an office remunerated out of the Central Fund or moneys provided by the Oireachtas, a reference to a person to whom section 16 of the Central Bank Act, 1989, relates, and (b) sections 1 and 2 of the said Act of 1916 (as so adapted) shall be construed as if there were included, after the reference to a statutory body required by law to exercise its functions subject to the direction and control of a Minister who is head of a Department of State, a reference to the Bank.

Keeping of documents.

18.—(1) No provision of the National Debt Act, 1870 , or of the Central Bank Acts, 1942 to 1989, shall be construed as requiring the Bank to preserve any document or other record for a period of more than 6 years after the latest date of the period to which such document or other record relates and no regulation under section 17 of the Finance Act, 1911 , or section 37 of the Finance Act, 1917 , shall provide for the preservation of such document or other record for a period of more than the said 6 years.

Accounts and records of Bank.

19.—(1) The Bank shall keep all proper books of account and other books and records, and shall within 6 months after the end of every year prepare and transmit to the Comptroller and Auditor General a statement of accounts in respect of such year in such form as shall be approved of, from time to time, by the Minister after consulting with the Bank.

Report and returns by Bank.

20.—(1) The Bank shall, within 6 months after the expiration of every year, prepare and send to the Minister a report of its proceedings during such year and the Minister shall cause copies of the report to be laid before each House of the Oireachtas as soon as possible after its receipt by him.

Exemption of Bank from taxes.

21.—Notwithstanding any provision of the Tax Acts or the Capital Gains Tax Acts, profits, income and chargeable gains of the Bank shall be exempt from corporation tax, income tax and capital gains tax.

Winding up of legal tender note fund and transfer of assets to general fund.

22.—(1) As soon as possible after the date on which this section comes into operation and in any event with effect from a date not later than one month thereafter, the legal tender note fund shall be wound up by the Bank and the assets of that fund shall be transferred to the general fund.

General fund.

23.—(1) Notwithstanding the repeal of section 63 of the Currency Act, 1927 , the Bank shall continue to keep the fund called the general fund to which it shall carry all receipts and out of which it shall draw all payments.

Monetary unit and exchange rate.

24.—(1) The monetary unit of the State shall be the Irish pound which shall be issued in legal tender form.

Currency in which contracts, etc., are made.

25.—Every contract, sale, payment, bill, note, instrument, and security for money, and every transaction, dealing, matter, and thing whatever relating to money or involving the payment or the liability to pay any money which is made, executed, entered into, done, or had on or after the coming into operation of this section shall be made, executed, entered into, done and had according to coins or notes which are for the time being legal tender in the State and not otherwise, unless the same be made, executed, entered into, done or had according to a currency other than the currency of the State.

Chapter III

Licensing and Supervision of Licence Holders Extension of application of licensing and supervisory provisions.

26.—Where, after consulting with the Bank and with such Ministers of the Government (if any) as he considers it appropriate to consult with in the circumstances, the Minister is of the opinion that, in respect of any class of financial business which is not supervised by the Bank under the Central Bank Acts, 1942 to 1989, it is necessary for— (a) the protection of the public or any class thereof from financial loss, or (b) the orderly and proper regulation of financial markets, that such class of financial business ought to be either or both licensed and supervised by the Bank, he may by regulations apply to the said class all or any of the licensing and supervisory provisions (including those provisions which relate to auditors and liquidators) of Part II of the Act of 1971 or of this Chapter or Chapters I , II and IV with such modifications or adaptations as he considers appropriate.

Investigation of complaints.

27.—(1) The Minister may, by regulations made after consultation with the Bank, require the holder of a licence to establish or join in establishing a scheme or schemes for the investigation of complaints against that holder or an associated company in relation to a prescribed matter of complaint.

Charges, etc., by holders of licences.

28.—(1) Each holder of a licence shall, within two months of the coming into operation of this section (in the case of existing licence holders) or of the grant of a licence (in any other case), notify the Bank of— (a) all charges imposed by such holder in relation to the provision of any service to the public or to any class of the public, and (b) any term or condition upon or subject to which such service is provided.

Amendment of section 2 of Act of 1971.

29.—Section 2 of the Act of 1971 is hereby amended— (a) by the substitution, respectively, of the following definitions for the definitions of “banking business” and “the Court”: “‘banking business’ means business which consists of— (a) the business of accepting deposits payable on demand or on notice or at a fixed or determinable future date, or (b) the business of taking funds, other than deposits, from the public payable on demand or on notice or at a fixed or determinable future date (whether or not involving the issue of securities or other obligations, however described), but excluding— (i) deposits with a trader from persons employed by him in his trading business or from his customers in the normal course of his trading business and deposits or instalments in respect of the letting or selling of goods under a hire-purchase agreement or a credit-sale agreement, or (ii) the taking of other funds by a person from the public where it can be shown that— (I) no part of the business activities of the person so taking or of any other person is financed wholly or substantially out of those funds, and (II) such funds are, in the normal course of business, taken on a casual or incidental basis only, or (iii) moneys taken solely as a premium in respect of the issue or renewal of a life assurance policy issued by a holder of an authorisation under the European Communities (Life Assurance) Regulations, 1984 (S.I. No. 57 of 1984), or either or both of the businesses aforesaid and any other business normally carried on by a bank and ‘banking’ and words cognate thereto shall be construed accordingly; ‘the Court’ means, except where the context otherwise requires, the High Court;”; (b) by the substitution, respectively, of the following definitions for the definitions of “general fund”, “gold bullion”, “issue” and “legal tender note”: “‘general fund’ means the fund to which section 63 of the Currency Act, 1927 , related and which continues to be kept by the Bank by virtue of section 23 of the Central Bank Act, 1989; ‘gold bullion’ includes any gold coins other than gold coins which are for the time being legal tender in the State; ‘issue’, when used in relation to legal tender notes, includes the re-issue of any such note which has ceased to be outstanding; ‘legal tender note’ means a legal tender note provided and issued under and in accordance with the Central Bank Acts, 1942 to 1989, and any other enactment amending or extending those Acts or under any Act repealed by the Central Bank Act, 1989;”.

Amendment of section 7 of Act of 1971.

30.—Section 7 of the Act of 1971 is hereby amended by the substitution of the following subsection for subsection (4): “(4) (a) Subsection (1) of this section shall not apply in relation to— (i) the central banks in the other states that are members of the European Communities, (ii) the Agricultural Credit Corporation public limited company, the company formed and registered by virtue of section 2 of the Industrial Credit Act, 1933 , the Post Office Savings Bank, a trustee savings bank certified under the Trustee Savings Banks Acts, 1863 to 1979, or (iii) a building society, an industrial and provident society, a friendly society, a credit union or the manager or trustee under a unit trust or collective investment scheme in respect of the carrying on of the business of the scheme. (b) Where the Minister is of the opinion that it is in the interest of the orderly and proper regulation of banking or of any other financial market he may, after consultation with the Bank and with such Minister of the Government or other persons as he may consider appropriate to so consult in the circumstances, by order amend paragraph (a) (ii) so as to add thereto any body or category of persons or to delete therefrom any body or category of persons mentioned therein for the time being.”.

Exemption of persons from section 7 of Act of 1971.

31.—The Act of 1971 is hereby amended by the substitution of the following section for section 8: “8. (1) (a) Where, by reason only of a person's use in a name or title of any of the words ‘bank’, ‘banker’ or ‘banking’ or any word which is a variant, derivative or translation of or is analogous to any of those words, the person would be deemed to be holding himself out as a banker, the Bank may exempt the person from the provisions of section 7 of this Act if, in the opinion of the Bank, the person does not in fact carry on or propose to carry on banking business and does not otherwise hold himself out or represent himself as a banker or as carrying on banking business. (b) The Bank may at any time revoke an exemption under this subsection where it is of the opinion that at any time after being exempted the person concerned has carried on banking business or otherwise has held himself out or represented himself as a banker or as carrying on a banking business and, upon the exemption being so revoked, that person shall forthwith take all necessary measures to cease using the name or title concerned containing the word to which the revoked exemption related.

Grant of licences, etc.

32.—(1) Section 9 of the Act of 1971 is hereby amended: (a) by the insertion of the following subsection after subsection (1): “(1A) The Bank shall not grant a licence under this section to a person applying for it unless that person satisfies the Bank that it is— (a) a company, or (b) a credit institution within the meaning of Council Directive 77/780/EEC of 12 December, 1977(1), which has been duly authorised for the purposes of that Directive.”; (b) by the substitution of the following subsection for subsection (3): “(3) Whenever the Bank proposes to refuse to grant a licence to a person— (a) it shall— (i) within the period of six months after the date of the receipt of the application for the licence, or (ii) where additional information in relation to the application has been sought by the Bank, within the period of six months after the date of the receipt by the Bank of the additional information or the period of twelve months after the date of the receipt of the application for the licence whichever period first expires, notify the person in writing that it intends to seek the consent of the Minister to the proposed refusal and of its reasons for the refusal and that the person may, within the period of twenty-one days after the date of the giving of the notification, make representations in writing to the Minister in relation to the proposed refusal, (b) the person may make such representations in writing to the Minister within the time aforesaid, and (c) the Minister shall, before deciding to give or withhold his consent, consider any representations duly made to him under this subsection in relation to the proposed refusal.”.

Amendment of section 10 of Act of 1971.

33.—Section 10 of the Act of 1971 is hereby amended by the substitution of the following paragraph for paragraph (c) of subsection (3): “(c) the Bank shall, before deciding to impose the condition or amend or add to the conditions of the licence, as the case may be, consider any representations duly made to it under this subsection in relation to the imposition, amendment or addition, as the case may be, and where, after so considering, the Bank decides on an imposition, amendment or addition, as the case may be, that differs from that specified in the notification concerned, it shall not be necessary to give a new notification under this subsection if the difference results in the condition concerned being no more onerous than would be the case had the Bank decided to impose the condition or amend or add to the conditions of the licence, as the case may be, in accordance with the notification concerned.”.

Revocation of licences.

34.—The Act of 1971 is hereby amended by the substitution of the following section for section 11: “11. (1) The Bank may— (a) revoke a licence if the holder of the licence so requests, (b) with the consent of the Minister, revoke a licence if the holder of the licence— (i) (I) has not commenced to carry on banking business within twelve months of the date on which the licence was granted, or (II) has ceased to carry on banking business and has not carried it on during a period of more than six months immediately following the cesser, (ii) being a company, is being wound up, (iii) is a credit institution to which section 9 (IA) (b) of this Act (as amended by the Central Bank Act, 1989) relates, which is being duly wound up or otherwise dissolved, (iv) has obtained the licence through false statements or any other irregular means, (v) becomes unable to meet his obligations to his creditors or suspends payments lawfully due by him or no longer possesses sufficient own funds (being own funds to which Council Directive 77/780/EEC of 12 December, 1977, relates) or can no longer be relied upon to fulfil his obligations towards his creditors, and in particular no longer provides security for the assets entrusted to him, (vi) fails to maintain a deposit in the Bank of an amount determined in accordance with section 55 of the Central Bank Act, 1989, (vii) is convicted on indictment of an offence under any provision of this Act or an offence involving fraud, dishonesty or breach of trust, (viii) has his head office in another state that is a member of the European Communities and the authority in that state that exercises in that state functions corresponding to those of the Bank under this Chapter has withdrawn authorisation from the institution of which the holder is a branch, (c) with the consent of the Minister, revoke the licence if, since the grant of the licence, the circumstances relevant to the grant have changed and are such that, if an application for a licence were made in the changed circumstances, it would be refused.

Provided however that if immediate action by the Bank is called for it shall not be necessary for the Bank to consult as aforesaid but in such a case the Bank shall notify the authority concerned of the revocation of the licence.”.

Amendment of section 12 of Act of 1971.

35.—Section 12 of the Act of 1971 is hereby amended by the substitution of the following subsection for subsection (3): “(3) The Bank shall keep each of the following informed of the names of the holders of licences, that is to say: (a) the Commission of the European Communities; (b) the Registrar of the Supreme Court; (c) the officer for the time being managing the Central Office of the High Court; (d) every County Registrar; (e) every District Court Clerk.”.

Provisions in relation to books and records of holders of licences.

36.—The Act of 1971 is hereby amended by the substitution of the following section for section 17: “17.—(1) A holder of a licence shall keep at an office or offices within the State such books and records (including accounts) as may be specified from time to time by the Bank in the due discharge by the Bank of its statutory functions and shall notify the Bank of the address of every office at which any such book or record is kept for the purposes of this subsection.

Furnishing of information to Bank.

37.—The Act of 1971 is hereby amended by the substitution of the following section for section 18: (1) “18. (1) A holder of a licence and any person carrying on a business— (a) of an associated enterprise to which subsection (3) of this section relates, (b) in respect of which that person is, by virtue of section 7 (4) (a) (ii) of this Act, exempted from the obligation to hold a licence, (c) as an investment trust company, (d) as a moneybroker, (e) as a financial intermediary, or (f) of issuing, holding or otherwise participating in any market in financial instruments including those to which

Chapter VIII

of the Central Bank Act, 1989, applies; shall each furnish the Bank— (i) at such times as the Bank may specify from time to time, such information and returns concerning the business to which the licence relates or the carrying on of a business as aforesaid by such person, as the case may be, as the Bank may specify from time to time, being information and returns which the Bank considers it necessary to have for the due performance of its statutory functions; (ii) within such period as the Bank may specify, any information and returns (not being information or returns specified under paragraph (i) of this subsection) concerning the business to which the licence relates or the carrying on of a business as aforesaid by such person, as the case may be, that the Bank may request in writing, being information and returns which the Bank considers it necessary to have for the due performance of its statutory functions.

Directions by Bank to holders of licences.

38.—The Act of 1971 is hereby amended by the substitution of the following section for section 21: “21.—(1) Where the Bank is of the opinion that it is in the public interest to do so, or that the holder of a licence— (a) has become or is likely to become unable to meet his obligations to his creditors, or (b) is not maintaining or is unlikely to be in a position to maintain adequate capital resources having regard to the volume and nature of his business, or (c) has failed to comply with any condition imposed in relation to the licence in accordance with section 10 of this Act and the circumstances are such that the Bank is of the opinion that the stability and soundness of the holder are affected by such failure, or (d) is conducting business in such a manner as to jeopardise and prejudice the security of deposits taken by him or the rights and interests of persons who made those deposits, or (e) is under common control with one or more than one other enterprise (whether or not any such other enterprise is the holder of a licence) and the Bank is of the opinion that the common control is not in the interest of persons maintaining deposits with the first mentioned holder of a licence, the Bank may give a direction in writing to that holder to suspend, for such period, not exceeding six months, as shall be specified in the direction, all or any of the following, that is to say— (i) the carrying on of banking business, (ii) the making of payments to which paragraph (i) of this subsection does not relate, (iii) the acquisition or disposal of other assets or liabilities, which have not been authorised by the Bank.

Amendment of section 22 of Act of 1971.

39.—Section 22 of the Act of 1971 is hereby amended: (a) by the substitution of the following subsections for subsection (2): “(2) The Bank may give a direction to a holder of a licence to refrain from— (a) publishing or continuing to publish, or (b) causing to be published or to be continued to be published, during such period as shall be specified in the direction an advertisement inviting deposits from the public. (2A) The Bank may give a direction to a holder of a licence to refrain from— (a) publishing or continuing to publish, or (b) causing to be published or to be continued to be published, an advertisement containing information in respect of any service provided or to be provided to the public or any charge, term or condition upon which a service is so provided (or to be so provided) which, in the opinion of the Bank is false, misleading or calculated to deceive.”; (b) by the addition of the following subsection after subsection (3): “(4) In this section: ‘advertisement’ includes every form of recommendation of any matter to which this section relates including, in particular, the display or publication of any such matter by way of notice, leaflet, circular, pamphlet, brochure, photograph, film, video, sound broadcasting, television, electronic communication or personal canvassing; ‘deposits’ includes any funds taken from the public and payable on demand or on notice or at a fixed or determinable future date.”.

Amendment of section 23 of Act of 1971.

40.—Section 23 of the Act of 1971 is hereby amended by the substitution of the following subsection for subsection (4): “(4) In this section— ‘liabilities’ include such contingent liabilities as may be specified by the Bank from time to time for the purposes of this section; ‘specified’ means specified by the Bank in a requisition under this section.”.

Composition of assets and liabilities.

41.—The Act of 1971 is hereby amended by the insertion of the following section after section 23: “23A. The Bank may, from time to time, specify as respects a holder of a licence requirements as to the composition of its assets and requirements as to the composition of its liabilities.”.

Amendment of section 26 of Act of 1971.

42.—Section 26 of the Act of 1971 is hereby amended by the addition of the following subsection— “(7) The Minister may, after consultation with the Bank and where he is of the opinion that it would not be against the orderly and proper regulation of banking, by order— (a) in the case of either or both subsections (2) and (3) of this section, apply those subsections or restrict their application to any person or class of persons, and (b) in the case of subsection (6) of this section, amend that subsection by the addition thereto or deletion therefrom, of any instrument specified in that subsection, and, in the case of each subsection, whether or not previously affected by virtue of this subsection.”.

Amendment of section 27 of Act of 1971.

43.—Section 27 of the Act of 1971 is hereby amended: (a) by the insertion of the following subsection after subsection (2): “(2A) If an advertisement or other solicitation for deposits is published and it does not include the name and address of the person who arranged with the publisher for the advertisement or solicitation, then the Bank may, at any time within the period of twelve months after any publication of the advertisement, request the publisher to supply the name and address of that person to the Bank and the publisher shall forthwith comply with that request.”; (b) by the substitution of the following subsection for subsection (3): “(3) (a) In this section ‘deposits’ does not include deposits with a trader by persons employed by him in his trading business or by his customers in the normal course of his trading business or deposits in respect of the letting or selling of goods under a hire-purchase agreement or a credit-sale agreement. (b) Reference in this section or section 58

Power of Court to prohibit certain contraventions of, or failure to comply with, Act of 1971.

44.—The Act of 1971 is hereby amended by the insertion of the following section after section 28: “28A. (1) Where, on an application made in a summary manner by the Bank, the Court is of the opinion that there has occurred or is occurring— (a) a contravention of section 17 or 18 of this Act, or (b) a failure to comply with a condition imposed in relation to a licence by virtue of section 10, or with a direction under section 22 , of this Act, the Court may, by order, prohibit the continuance of the contravention or failure by the person or persons concerned.

Amendment of section 31 of Act of 1971.

45.—Section 31 of the Act of 1971 is hereby amended by the substitution of the following subsection for subsection (1): “(1) Where a holder of a licence ceases to carry on banking business in circumstances to which section 57 of the Central Bank Act, 1989, applies, he shall, as soon as may be, notify all persons having deposits (including deposits on current accounts) with him of such cesser and he shall, if any such person so demands, pay to that person forthwith the amount of his deposit together with the amount of any interest accrued thereon.”.

Appointment of auditor.

46.—(1) The Bank may, in writing require any holder of a licence— (a) to notify the Bank at least 15 days— (i) before notices are sent to the shareholders concerning the proposed appointment or reappointment of a person to the office of auditor of the holder for the purposes of the Companies Acts, 1963 to 1986, or (ii) before the directors of the holder fill any casual vacancy in the office of auditor by virtue of section 160

Duties of auditor.

47.—(1) If the auditor of a holder of a licence— (a) has reason to believe that there exist circumstances which are likely to affect materially the holder's ability to fulfil his obligations to persons maintaining deposits with him or meet any of his financial obligations under the Central Bank Acts, 1942 to 1989, or (b) has reason to believe that there are material defects in the financial systems and controls or accounting records of the holder, or (c) has reason to believe that there are material inaccuracies in or omissions from any returns of a financial nature made by the holder to the Bank, or (d) proposes to qualify any certificate which he is to provide in relation to financial statements or returns of the holder under the Companies Acts, 1963 to 1986, or the Central Bank Acts, 1942 to 1989, or (e) decides to resign or not seek re-election as auditor, he shall report the matter to the Bank in writing without delay.

Chapter IV

General Provisions Relating to Winding Up Grounds for winding up on application of Bank.

48.—(1) Notwithstanding section 215 of the Companies Act, 1963 , the Bank may, by presenting a petition, apply to the Court to have the holder of a licence wound up on any of the following grounds: (a) that the holder is or, in the opinion of the Bank, may be unable to meet its obligations to its creditors; (b) that the holder has failed to comply with a direction of the Bank under section 21 of the Act of 1971 and the Court has not set aside the direction; (c) that the licence has been revoked and the holder has ceased to carry on the business of banking; (d) that the Bank considers that it is in the interest of persons having deposits (including deposits on current accounts) with the holder that the holder be wound up.

Notices, documents to be sent to Bank relating to winding up.

49.—Where the holder of a licence or former holder of a licence is being wound up and the Bank is not a creditor, any notice or document, by whatever name called, which is required to be sent to a creditor of the holder or former holder shall be sent also to the Bank.

Right of Bank to be represented at meetings, etc.

50.—(1) An officer of the Bank, or any other person, duly authorised in writing in that behalf by the Governor of the Bank may attend any meeting of creditors of a holder or former holder of a licence.

Construing of references to winding up, etc.

51.—Where the context so admits and the circumstances may so require, references in the Central Bank Acts, 1942 to 1989, to the winding up of a holder or former holder of a licence or to any provision of the Companies Acts, 1963 to 1986, which relates to winding up shall, where a holder or former holder of a licence is a company incorporated outside the State or is an institution to which section 9(1A) (as amended by this Part) of the Act of 1971 relates, be construed as references to the corresponding provisions in the law of the foreign jurisdiction concerned and, accordingly, the provisions of the Central Bank Acts, 1942 to 1989, shall apply to the winding up or dissolution concerned and, where necessary, with such modifications as the Court may order.

Rules of Court.

52.—The rules of court relating to the winding up of companies shall, pending the making of rules of court for the purposes of this Part, apply for such purposes with such adaptations as may be necessary.

Chapter V

Deposit Protection Interpretation (

Chapter V

).

53.—In this Chapter— “child” includes a person of full age; “connected person” in relation to another person, means a person maintaining deposits (including deposits, if any, on current accounts) with the holder or former holder of a licence which has become insolvent and is being wound up and where the person is— (a) the spouse of that other person, (b) the child or grandchild of that other person or the child or grandchild of the spouse of that other person, (c) the parent or grandparent of that other person, (d) the brother, sister, stepbrother or stepsister of that other person, (e) a partner of that other person to whom, together, the Partnership Act, 1890 , applies (whether or not with any other persons), (f) the spouse of a connected person to whom paragraph (b), (d) or (e) applies and in relation to the appropriate other person to whom the relevant paragraph relates, (g) a body corporate and that other person is a chief officer, secretary or member of any board or other committee of management, by whatever name called, of the body corporate, (h) a body corporate and that other person is a relevant beneficial owner of the body corporate, or (i) a body corporate and that person is, together with any person to whom paragraph (a), (b), (c), (d), (e), (f) or (g) applies, a relevant beneficial owner of the body corporate; “deposit protection account” means the account established and maintained by virtue of section 54 ; “eligible deposits” has the meaning assigned to it by section 62 ; “excluded depositor” means a person maintaining deposits (including deposits, if any, on current accounts) with the holder or former holder of a licence which has become insolvent and is being wound up and, in relation to that holder or former holder of the licence where the person is— (a) a chief officer, secretary or member of any board or other committee of management, by whatever name called, (b) a relevant beneficial owner of that holder or former holder of the licence, (c) together with connected persons, a relevant beneficial owner of that holder or former holder of the licence, (d) subject to section 64 , a connected person to a person specified in paragraph (a), (b) or (c), (e) subject to section 64 , a trustee of a trust for the benefit of a person specified in paragraph (a), (b), (c) or (d), (f) a holding company, a subsidiary company, another subsidiary company of the same holding company or a company (not being a subsidiary company) in respect of which the holder or former holder is a relevant beneficial owner, or

(g) a person excluded by virtue of section 63 ; “interbank deposits” means deposits with a holder of a licence by any of the following, that is to say— (a) another holder of a licence; (b) any person, not being the holder of a licence, established outside the State who, in the opinion of the Bank, is duly authorised outside the State to carry on the business of banking; (c) the Bank; (d) the Agricultural Credit Corporation public limited company; (e) the company formed and registered by virtue of section 2 of the Industrial Credit Act, 1933 ; (f) a trustee savings bank certified under the Trustee Savings Banks Acts, 1863 to 1979; (g) a building society; (h) such other persons as may be specified by regulations under section 72 ; and deposits with the holder of a licence by any of its offices outside the State shall be deemed to be interbank deposits; “relevant beneficial owner”, in relation to a body corporate, means a person who is beneficially entitled (either directly or indirectly) to 20 per cent. or more in nominal value of either the allotted share capital or the shares carrying voting rights (other than voting rights which arise only in specified circumstances) in the body corporate.

Deposit protection account.

54.—The Bank shall establish and maintain in the general fund an account to be known as the deposit protection account.

Deposits by holders of licences.

55.—(1) Upon the establishment of the deposit protection account, the deposit standing maintained with the Bank immediately before the coming into operation of this section by each holder of a licence and calculated in accordance with section 13 of the Act of 1971 shall be transferred to that account in respect of that holder and, accordingly, that section shall cease to have effect upon such coming into operation.

Review of operation of deposit protection account.

56.—The Bank shall keep the operation of the deposit protection account under review and may, if it considers it expedient to do so after having regard to such factors as it considers relevant, from time to time make recommendations to the Minister in relation to all or any of the following, that is to say: (a) the making of regulations under section 72

Deposit protection account and cesser of banking business where solvent.

57.—(1) Where the holder of a licence or a former holder of a licence ceases to carry on banking business in circumstances other than those provided for by section 58

Vesting in liquidator of deposited amount.

58.—(1) Where a holder of a licence or a former holder of a licence is unable to pay his debts and is being wound up, either voluntarily or by the Court, the Court may, on the application of the liquidator concerned, order that the amount standing deposited by the holder or former holder in the deposit protection account shall, together with any interest accrued and interest that may accrue and subject to the other provisions of this Chapter, vest in the liquidator by his official name.

Statement of affairs and calculation of payments from deposit protection account, etc. on insolvency.

59.—(1) This section applies to the holder or former holder of a licence which is unable to pay its debts and is being wound up either voluntarily or by the Court.

Provided that no such amendment shall have any effect in relation to a holder or former holder of a licence which, at the time the relevant provision in the order under this subsection comes into operation, is unable to pay its debts and is being wound up.

Payment out of deposit protection account on winding up.

60.—(1) There shall be paid, out of the amount vesting in a liquidator under section 58

Effect of payment by Bank under section 60 .

61.—(1) Where the Bank has made or becomes liable to make a payment under section 60 to persons maintaining eligible deposits, then as regards the amount of the payment in respect of each such person that amount shall be admitted by the Court (or, in the case of a voluntary winding up, by the liquidator) as a proved debt due to the Bank and the Bank shall have the same priority as would be enjoyed by the person were no such amount paid or payable.

Eligible deposits.

62.—(1) In this Chapter “eligible deposits”, in relation to every person maintaining deposits (including deposits on current accounts) with the holder or former holder of a licence which is being wound up, means the amount of the total liability of the holder or former holder remaining due to every such person in respect of— (a) deposits denominated in Irish pounds, and (b) any deposits denominated otherwise than in Irish pounds as may be specified (either generally or in particular) by regulations under section 72

Certain additional persons to be excluded depositors.

63.—Where the Bank is satisfied that a person maintaining deposits (including deposits, if any, on current accounts) with the holder or former holder of a licence which has become insolvent and is being wound up has directly or indirectly any responsibility for the circumstances giving rise to, or has profited or attempted to profit from, the insolvency, the person shall, unless an excluded depositor by virtue of any other provision of this Chapter, be an excluded depositor by virtue of this section.

Provisions applicable to excluded depositors, etc.

64.—(1) Where the Bank is of the opinion that a person is an excluded depositor by virtue of— (a) being a connected person to whom paragraph (c) or (d) of the definition of “excluded depositor” in section 53 applies, or (b) being a trustee of a trust for the benefit of a connected person to whom paragraph (e) of the definition of “excluded depositor” in section 53 applies, or (c) section 63 , or that a person is a person to whom section 62

Calculation of certain payments relating to trustee deposits and joint accounts.

65.—(1) Where— (a) a person maintaining deposits (including, if any, deposits on current accounts) with the holder or former holder of a licence which has become insolvent and is being wound up does so as trustee, and (b) any beneficiary of the trust concerned is beneficially entitled against the trustees to any identifiable part of that amount, either absolutely or jointly with a fixed number of other beneficiaries, then, the amount the beneficiary is so entitled to shall be treated, but only for the purpose of ascertaining an appropriate calculation— (i) where the beneficiary is entitled absolutely, as if it were deposited in a separate account maintained by the beneficiary and legal ownership had passed to the beneficiary, (ii) where the beneficiary is entitled jointly with a fixed number of other beneficiaries, as if it were deposited in a separate account in the nature of a joint account maintained by the beneficiaries and legal and joint ownership had passed to the beneficiaries concerned.

Treatment of certain payments out of general fund.

66.—(1) Subject to subsection (2) and whether or not payments have been made to which section 60 relates, the Bank may, at its discretion and to such extent as it may deem proper from time to time charge on the deposit protection account any other payment out of the general fund which, in the opinion of the Bank, was applied— (a) to protect the interests of persons or any class of persons maintaining deposits with one or more holders or former holders of licences, or (b) to promote the orderly and proper regulation of banking.

Reconstitution of deposit protection account.

67.—(1) Subject to section 68 , the Bank shall from time to time apportion among the holders of licences, in proportion to the amounts of their respective deposits required to be maintained at the time of such apportionment in the deposit protection account, any payments charged on that account (other than any repayment or any part thereof for the purposes of this Chapter) in accordance with section 60 or section 66 together with any moneys due but not paid to the holders in accordance with section 69 and the amount so ascertained in respect of each holder shall, subject to subsection (2) be debited against, or credited to, as the case may be, that holder's deposit in the said account.

Exclusion from reconstitution.

68.—Where the Bank is satisfied that a reconstitution of the deposit protection account by apportionment solely in accordance with section 67