92 .1908.] Consolidated Statutes.

New Zealand.

Short Title.

Enactments consolidated.

Savings.

B A N K I N G . 1908, No. 11.

Interpretation. 1880, No. 22, sec. 2 1882, No. 68, sec. 16 1893, No. 15, sec. 2

AN ACT to consolidate certain Enactments of the General Assembly relating to Banking.

BE IT ENACTED by the General Assembly of New Zealand in Parliament assembled, and by the authority of the same, as follows:—

1. (1.) The Short Title of this Act is " The Banking Act, 1908."

(2.) This Act is a consolidation of the enactments mentioned in the Eirst Schedule hereto, and with respect to those enactments the following provisions shall apply :—

(a.) All resolutions, certificates, notifications, and generally all acts of authority which originated under any of the said enactments, and are subsisting or in force on the coming into operation of this Act, shall enure for the purposes of this Act as fully and effectually as if they had origi-nated under the corresponding provisions of this Act, and accordingly shall, where necessary, be deemed to have so originated.

All matters and proceedings commenced under any such enactment, and pending or in progress on the coming into operation of this Act, may be continued, completed, and enforced under this Act.

In this Act, if not inconsistent with the context,— " B a n k " means any person, partnership, corporation, or

company carrying on in New Zealand the business of banking:

"Bank-note" or " n o t e " means the instrument commonly known as a bank-note, that is to say: a promissory note (in whatever form or by whomsoever drawn or made)

(b.)

2.

Banking. " [No. ' l l . 93

issued by a bank and entitling or purporting to entitle the bearer or holder thereof, without indorsement, or without any further or other indorsement than may be thereon at the time of the issuing thereof, to the payment on demand of the sum named therein, not exceeding the sum for which the bank may lawfully issue any such note :

u Charter" of a bank means the Act of Parliament, Royal charter, letters patent, deed of settlement, memorandum of association, or other instrument by or under which the bank is incorporated ; and includes all amendments of such instrument, and also all articles of association, by-laws, rules, and regulations providing for the administration and management of the bank :

" Court " means the Court, Judge, Magistrate, arbitrator, or other person before whom a legal proceeding is held or taken:

" Judge " means a Judge of the Supreme Court: " Legal proceeding " means any civil or criminal proceeding or

inquiry in which evidence is or may be given, and in-cludes an arbitration:

" Officer " of a bank includes the manager, accountant, and cashier of the bank.

Boyal Gharter and Letters Patent. 3. All Royal charters and letters patent granted or to be granted Roval charters and

by His Majesty to any bank shall to all intents and purposes be as effectuaHnNewbe

effectual within New Zealand as Acts of the General Assembly Zealand, thereof. SSO, No. 22, sec. 4

Number of Directors. 4. Notwithstanding anything in the charter of any bank in- Number of directors,

corporated in New Zealand, the number of the directors of such bank 1894, No. 6, sec. 4 is hereby fixed at not less than five nor more than seven ; and, in any case where the number is not in accordance with this provision, the directors of the bank are hereby authorised from time to time to fix the number so as to accord therewith.

Increase of Capital. 5. (1.) Notwithstanding anything in any Act of the General As- Bank may increase

sembly of New Zealand relating to banks or in the charter of any bank haJehoiders1Utl°n

incorporated in New Zealand and carrying on the business of banking 1893 No 15 sec> 3 only, the shareholders or proprietors thereof may from time to time by extraordinary resolution authorise its capital to be increased to such amount and upon such terms, and either with or without special privileges, preferences, and priorities to the holders of shares in such increased capital, as they may from time to time deem expedient, and the same may be increased accordingly.

(2.) Any extraordinary resolution as aforesaid may provide— (a.) That the holders of shares in the increased capital shall

be entitled to such special privileges, preferences, and priorities in respect of any capital subscribed at the time

94 1908.]

New shares may be issued. 1893, No. 15, sec. 4

Certificate of resolution to be evidence. Ibid, sec. 5

Transfer of bank shares not complete until approved by directors of bank. 1894, No. 6, sec. 2

This Act sufficient authority for refusing approval. Ibid, sec. 3 Power to delegate approval of transfers on branch register. 1906, No. 12, sec. 2

Validation. Ibid, sec. 3

of the passing of the extraordinary resolution, and other-wise, as may be expressed in the extraordinary resolution; and

(b.) That the holders of shares in the increased capital shall be exempted from any further or greater liability beyond the amount fixed by the extraordinary resolution as the nominal value of such shares.

(3.) In any such case holders of shares in the increased capital shall be entitled to such privileges, preferences, and priorities, and to such exemption as aforesaid, in the manner and to the extent provided by the extraordinary resolution.

(4.) The increased capital may be raised by the issue of new shares of such amount as the shareholders or proprietors of the bank determine by any extraordinary resolution as aforesaid, and shall, except as provided by this Act and by any extraordinary resolution as aforesaid, be subject to the several provisions of the charter of the bank as if it had been part of the original capital.

(5.) A certificate in writing under the hand of the Chairman of the Board of Directors for the time being of the bank that any extra-ordinary resolution as aforesaid has been duly and lawfully passed, setting forth the terms thereof, shall be conclusive evidence for all purposes and against all persons that such resolution was duly and lawfully passed, and was in the terms set forth in such certificate, and it shall not be necessary to prove the signature or official position of the Chairman.

(6.) For the purposes of this section "extraordinary resolution" means a resolution passed in the manner in which an extraordinary resolution must be passed under the charter of the bank.

Shares. 6. (1.) Notwithstanding anything in the charter of any bank,

no transfer of shares of the bank on which there is any liability shall be complete or shall operate to vest those shares in any person, or to relieve the transferor from liability in respect thereof, until such transfer is approved of in writing by the directors of the bank.

(2.) This Act shall be sufficient authority to the directors to refuse their approval to any transfer of shares on which there is any liability, without assigning any reason therefor.

(3.) Provided that if the branch register upon which any such transfer is to be recorded is kept in any country other than the country in which the head office of the bank is situated, the directors of the bank may, if they think fit, delegate to a duly appointed attorney or attorneys, with power to act jointly or severally, the duty of approving or disapproving in writing such transfer and of regis-tering the same upon such branch register, and the approval of such transfer by such attorney or attorneys shall take the place of the approval by the directors of the bank required by this or any other Act, and shall be as valid to complete any transfer of shares and to relieve the transferor from liability as if such transfer had been approved by the directors themselves.

(4.) Where any bank has before the coming into operation of this Act delegated to any attorney or attorneys the duty of approving

Banking. [No. 11. 95

or disapproving any such transfer and of registering the same upon any branch register, and such transfer has been approved by such attorney or attorneys and registered upon such branch register, such approval shall be as valid and effectual to complete such transfer and relieve the transferor from liability as if such transfer had been approved by the directors themselves before being registered.

7. A certificate under the hand of one or more of the directors Certificate as to of a bank, or under the hand of the attorney or attorneys of the ^ sec 6 bank, if purporting to be issued under the authority of this Act, ' 'sec" specifying any shares held by any person, shall be conclusive proof of the title of such person to the shares therein specified.

Bank-notes. 8. The Governor may by Proclamation declare that any bank Governor may

incorporated by Royal charter or letters patent, and empowered to ^^ban^noteV0

carry on the business of banking in New Zealand, and to issue and 1880_ No 22; ^ 3 circulate therein bank-notes of the bank, may lawfully issue and circulate such notes within New Zealand, but subject to the pro-visions and restrictions in such charter or letters patent contained.

9. All bank-notes of a bank heretofore or hereafter issued, Notes to be a first circulated, or reissued in New Zealand by a bank under authority of on assets of

this or any other Act of the General Assembly shall, to the amount 1893 No n gec 3 of the issue authorised, be a first charge on all the property of that 1894! No. 64,' sec. 2 bank (including the paid-up capital, uncalled capital, and reserve fund), being assets for the payment of debts or other obligations contracted or entered upon, or due and payable in New Zealand ; and shall be payable in gold only at the office of the bank at the place of issue of the said notes respectively, anything contained in any other Act notwithstanding.

10. (1.) Every person commits an offence, and is liable to a Defacing fine not exceeding five pounds, who,— bank-notes.

(a.) After the issue thereof, defaces any bank-note by writing, 1882> No-68>sec-15

printing, stamping, or marking thereon his name or the name of any other person, or any matter relating to the trade, business, occupation, or affairs of any person: or

(6.) Being party or privy to any such defacement of a bank-note, pays away, parts with, puts in circulation, demands payment of, or deposits or offers to deposit in any bank any bank-note so defaced.

(2.) The indorsement of any bank-note for the purpose of identification or for any other lawful purpose is not an offence within the meaning of this section.

Bank Returns. 1 1 . Every bank shall, at the dates and times hereinafter Weekly statement

mentioned, prepare and make up returns in the form in the Second Habnitiesand

Schedule hereto, showing,— i s so , No. 22, sec. 6

(a.) At the close of business on Monday in every week a full and correct account and statement in writing of the assets and liabilities of the bank at each place where the bank carries on the business of banking in New Zealand; and

96

Quarterly abstracts.

.1908.] Consolidated Statutes.

Statement exhibit-ing capital, &c. 1880, No. 22, sec. 7

Banks carrying on business elsewhere.

Abstracts, &c., to be verified. Ibid, sec. 8

And published. Ibid, sec. 9

Penalty for neglect to keep accounts and make returns. Ibid, sec. 10 1882, No. 68, sec. 20

Onus of proof. 1880, No. 22, sec. 11

Penalty for making false statements or return. Ibid, sec. 10

Recovery of fines. Ibid, sec. 12

Oaths, how taken. Ibid, sec. 13

Governor may vary times for preparation of returns. Ibid, sec. 14

(b.) On the last Monday of each quarter ending on the last days of March, June, September, and December respectively a general abstract in writing, from such weekly accounts and statements, of the average amount during that quarter of the assets and liabilities of the bank; and also a separate abstract for each place at which the bank issues notes payable thereat in gold.

12 . (1.) To each of such quarterly abstracts there shall be sub-joined a statement showing the amount of capital of the bank paid up at the close of the quarter, the rate and amount of the last dividend declared to the shareholders or proprietors, and the amount of the reserved profit at the time of declaring that dividend.

(2.) As regards banks that carry on business beyond as well as in New Zealand, it shall be sufficient to state the same several particulars according to the latest advices received in New Zealand.

13. Such quarterly abstracts and statements shall be verified by the oath of the manager, or, in his absence, by the oath of the chief cashier or chief clerk of the bank at the place in respect of which the same are made, and shall be forthwith delivered or transmitted to the Minister of Finance, or to such other public officer as the Governor from time to time appoints.

14. In the case-of each bank every such quarterly abstract and statement, or an abstract or statement compiled therefrom, including all the places of business in New Zealand of the bank in one abstract, shall be published as soon as conveniently may be in the Gazette.

15. (1.) Every bank that neglects to keep the weekly accounts and statements, or to make out and deliver or transmit within twenty-one days after the termination of any quarter the quarterly abstracts and statements hereinbefore mentioned, is liable to a fine of five hundred pounds.

(2.) In any prosecution for any fine under this section the burden of proving that such weekly accounts and statements have been kept, or, as the case may be, that such quarterly abstracts and statements have been made out and delivered or transmitted, shall be on the bank.

16 . (1.) Every manager, chief cashier, or clerk of a bank who, knowing any such abstract or statement to be false in any particular, verifies the same, or is concerned in delivering or transmitting the same as aforesaid, is liable to a fine of one hundred pounds.

(2.) Every fine imposed by this or the last preceding section shall be recovered only by action in the Supreme Court in the manner provided by " T h e Crown Suits Act, 1908"; and no action therefor shall lie unless the same is commenced within two years from the time the offence is alleged to have been committed.

17. Every oath required to be taken under this Act may be taken before any Justice.

18. The Governor may from time to time as he thinks fit, by warrant gazetted, vary for every or any bank at every or any place within New Zealand the several days and times appointed for the making and preparation of the above-mentioned accounts and state-ments and abstracts respectively :

97

Provided that such accounts and statements and abstracts made and prepared in any one year shall not be less in number than are prescribed by this Act, and shall be made and prepared at regular intervals of time.

Books of a Bank. 19. (1.) Subject to the provisions of this section, a copy of any Mode of proof of

entry in the books of a bank shall in all legal proceedings be booksSmbank

received as prima facie evidence of such entry, and of the matters, 1887> No> 5> sec_ 3 transactions, and accounts therein recorded.

(2.) Such copy shall not be received in evidence under this Act Ibid, sec. 4 unless it is first proved—

(a.) That the book was at the time of the making of the entry1

one of the ordinary books of the bank, and that the entry was made in the usual and ordinary course of business, and that the book is in the custody or control of the bank ; which proof may be given either orally or by affidavit by a partner or officer of the bank: and

(b.) That the copy has been examined with the original entry Ibid, sec. 5 and is correct; which proof shall be given either orally or by affidavit by some person who has examined the copy with the original entry.

(3.) Any affidavit for the purposes of this section may be sworn before any person authorised to take affidavits.

20 . An officer of a bank shall not, in any legal proceedings to Case in which which the bank is not a party, be compellable either .to produce compenatie to0t

any book of the bank the contents of which can be proved as afore- produce book, &c. said, or to appear as a witness to prove the matters, transactions, ibid, sec. 6 and accounts therein recorded, unless by order of a Judge made for special cause. . •

21 . ( 1 . ) On the application of any party to a legal proceeding Court or Judge may a Court or Judge may, on summons, order that such party be at i ^ 1 g™p~tion'&0' liberty to inspect and take copies of any entries in the books of a bank for any of the purposes of such proceeding.

(2.) An order under this section shall be served on the bank three clear days before the same is to be obeyed, unless the Court or Judge directs otherwise.

(3.) Sunday, and any bank holiday, shall be excluded from the Ibid, sec. 9 computation of time under this section.

(4.) The costs of any application to a Court or Judge under or Costs, for the purposes of this section, and the costs of anything done or to lbld'sec- 8

be done under an order of a Court or Judge made under or for the purposes of this section, shall be in the discretion of the Court or Judge.

(5.) Where any such costs have been occasioned by any default or delay on the part of the bank, the Court or Judge may order that the same or any part thereof be paid to any party by the bank.

(6.) Any such order against a bank may be enforced as if the bank were a party to the proceeding.

22 . Nothing herein shall limit the power of the Controller and Saving of power of Auditor-General, under the authority of any Act for the time being mspLTprivTte* ° in force relating to the public revenues of New Zealand, to inspect accounts.

j j Ibid, sec. 10

98 .1908.] Consolidated Statutes.

the account of a private person in any bank if the Controller and Auditor-General declares that he has reason to believe, and does believe, that money the property of His Majesty or of the Govern-ment of New Zealand, or of any public body whose accounts he is by law required to audit, have been fraudulently or wrongfully paid into the private account of such person.

Bank Holidays. Bank holidays. 23. The several days mentioned in the Third Schedule hereto 1882' No 628SseC2i9 (whi^1 day s a r e herein referred to as " bank holidays ") shall be kept 1902, No. 38, sec. 2 as close holidays in all banks in New Zealand: Provided that—

{a.) Where any bank holiday falls on a Sunday, the day next following shall be observed as a bank holiday within the meaning and for the purposes of this Act:

(b.) If such following day is also a bank holiday, then the next following day which is not a bank holiday shall also be observed as a bank holiday.

Special bank 24. With the previous consent in writing of the Minister of holidays. Finance, but not otherwise, the M anaging Director, General Manager, 1902 No'. 38,Sstc. 3 or other chief officer in New Zealand for the time being of any bank

may, by writing under his hand, appoint any day or portion of a day as a special bank holiday or part holiday at the bank under his direction or control, and such holiday or part holiday may be observed at any specified place or places in which the bank carries on business within New Zealand, subject to the provisions following, that is to say :—

(a.) It shall not be lawful at any time to appoint more than two consecutive days as holidays, or more than three con-secutive days as part holidays :

(b.) Any day or portion of a day so appointed shall be notified by public advertisement,, purporting to be by proper authority, not less than three times within the ten days immediately preceding such day, in some newspaper circulating in the provincial district in which the holiday or part holiday is to be observed :

(c.) A copy of such notice shall be kept visibly exposed in a front window or on or near the main entrance-door of the building in which the bank carries on its business, at the place or places where the holiday or part holiday is to be observed, for at least three days before such day:

(d.) The production of a newspaper containing any such adver-tisement shall be prima facie proof that the holiday or part holiday was duly appointed to be observed at the place or places specified in that advertisement:

(e.) Such day shall be a special bank holiday or part holiday only at the particular bank or banks specified in the notice hereby required:

(/.) Every special bank holiday or part holiday shall be deemed to be a bank holiday within the meaning of this Act at the place or places at which it is appointed as aforesaid to be observed, but at no other:

Banking. [Mo. 11. 99

(g.) Bills due on a part holiday shall be payable on that day within the business hours during which the bank is open.

25. (1.) No employee of a bank shall be employed during any E m p l o y e e s not

part of a bank holiday or special bank holiday except for the purpose hoi?daysd °n

of dealing with correspondence and urgent matters of the day. 1902, No. 38, sec. 4 (2.) Every bank that commits a breach of this section is liable

for each offence to a fine not exceeding five pounds in respect of each employee so employed.

(3.) This section shall not apply in the case of any person employed on the day, or any one of the seven days immediately preceding or following the day, upon which the bank balances its books for the half-year, nor in the case of any caretaker of the bank premises :

Provided that not less than seven days' notice in writing of the day on which the bank balances its books as aforesaid shall be given to the Inspector of Factories.

Disposal of Bank Documents. 26. (1.) All cheques and bank drafts in the possession of the Dheesfc °fci ofb

bank on which they are drawn, and all bills of exchange or pro- bankers! 7

missory notes in the possession of a bank and made payable at that 1907, No. 61, sec. 2 bank, may be destroyed by such bank after the expiration of ten years from the date thereof in the case of documents payable on demand, or from the due date thereof in the case of all other documents.

(2.) This section shall apply to cheques, drafts, bills, and notes received by a bank either before or after the coming into operation of this Act.

(3.) No such document shall be destroyed under the authority of this section at any time after a demand for the delivery of such document has been made to the bank by the person entitled thereto.

SCHEDULES.

FIRST SCHEDULE E N A C T M E N T S CONSOLIDATED.

1880, No. 22.—" The Ba^ks and Bankers Act, 1880." 1882, No. 68.—"The Banks and Bankers Act Amendment Act, 1882." 1887, No. 0.—" The Banks and Bankers Act Amendment Act, 1887." 1893, No. 11.—" The Bank-note Is^ue Act, 1893. ' 1893, No. 15.—" The Banks and Bankers Act Amendment Act, 1893." 1894, No. 6.—" The Bank Directors and Shares Transfer Act, 1894." 1894, No. 64.—" The Banking Act, 1891." 1902. No. 38.—" The Bank Holidays Act, 1902." 1906, No. 12.—"The Bank-shares Transfer Act, 1906." 1907, No. 61 . - - " The Bills of Exchange Act Amendment Act, 1907."

1 — 7 * .

100

Sec t i on 11. 1880, N o . 22, First Schedule .

S E C O N D S C H E D U L E .

B A N K R E T U R N .

S T A T E M E N T of the Average Amount, of L I A B I L I T I E S and A S S E T S of the at , during ended

BANK

Liabi l i t ies .

Notes in circulation ...

Bills in circulation

Balances due to other banks

Government deposits ...

Other | bearing interest deposits J-d • • , r (Bearing interest

Assets.

£ Coined gold and silver, and other

coined metal Gold and silver in bullion or bars Notes and bills of other banks... Balances due from other banks Landed property Amount of all other securities—

1. Notes and bills discounted 2. Government securities (New

Zealand or otherwise) ... 3. Other funded securities ... 4. Debts due to bank (exclu-

sive of debts abandoned as bad)

5. Securities not included under the above heads ...

Total average liabilities Total average assets

Amount of the capital stock paid up at the close of the quarter ended , 19

Rate of last dividend declared to the shareholders : Amount of the last dividend declared : Amount of the reserved profits at the time of declaring such dividend : Dated at , this day of , 19

I, A. B., swear that to the best of my knowledge and belief the foregoing abstract is a true and faithful account of the average amount of liabilities and assets at of the above-named bank, during the period specified, and that the same was made up from the weekly accounts and statements thereof kept in pursuance of " The Banking Act, 1908."

A. B. Sworn at , this day of 19 , before me—

C. D., Justice.

Sect ion 23. 1902, N o . 38, Schedule .

THIRD S C H E D U L E .

B A N K H O L I D A Y S .

New Year's Day. Good Friday. The day after Good Friday. Easter Monday. Whit Monday. Christmas Day. The day after Christmas Day. The 17th day of March, being

Patrick's Day. Saint

The 23rd day of April, being Saint George's Day.

The 30th day of November, being Saint Andrew's Day.

The Sovereign's Birthday. The Prinpe of Wales's Birthday. The second Wednesday in October, being

Labour Day.