Norfolk Island Penny Savings Bank Act 1935 (NI)

NORFOLK ISLAND

NORFOLK ISLAND PENNY SAVINGS BANK ACT 1935

[Consolidated as at 8 March 2013 on the authority of the Administrator and in accordance with the Enactments Reprinting Act 1980] ________

TABLE OF PROVISIONS

1. Short title 2. Definitions 3. Investments 4. Unlawful investments 5. Restriction on loans 6. Moneys not to be lent to certain persons 7. Existing investments 8. Audit 9. Regulations

NORFOLK ISLAND

Norfolk Island Penny Savings Bank Act 1935 ____________________________________________________________

An Act relating to the Penny Savings Bank of Norfolk Island.

Short title 1. This Act may be cited as the Norfolk Island Penny Savings Bank Act 1935. Definitions 2. In this Act, unless the contrary intention appears — "the Bank" means the association of persons carrying on, at the commencement of this Act, the business of banking under the name of "The Norfolk Island Penny Savings Bank", and includes any association of persons carrying on that business whether under that name or any other name. Investments 3. The Bank shall, as nearly as may be invest and maintain its funds as follows — (a) A sum not exceeding twenty per centum of those funds shall be deposited or kept in other banks approved by the Administrator or retained in cash; (b) A portion not exceeding three-tenths of the balance of those funds may be invested in loans upon security by way of mortgage of any lands and hereditaments held in fee simple in Norfolk Island or in property acquired by foreclosure or in bank premises; and (c) A portion being as nearly as possible seven-tenths of the balance specified in paragraph 3(b) of this section shall be invested in securities of the Commonwealth or of a State or prescribed securities.

Unlawful investments 4. If the Bank invests any of its funds otherwise than in accordance with the provisions of the last preceding section, every member of the Bank, and every officer or employee of the Bank directly or indirectly knowingly concerned in, or party to, that investment shall be guilty of an offence. Penalty: Imprisonment for 12 months. Restriction on loans 5. Notwithstanding anything contained in section 3 of this Act, the Bank shall not lend upon security of mortgage of any lands or hereditaments held in fee simple more than two-thirds of the value of those lands and hereditaments. Moneys not to be lent to certain persons 6. (1) The Bank shall not lend money to — (a) any member of the Bank (b) any officer or employee of the Bank; (c) any company or society in or of which any member of the Bank is a director or member of the committee of management; or (d) any firm of which any member of the Bank or any such officer or employee is a member. (2) A member or an officer or employee of the Bank shall not directly or indirectly borrow any of the funds of the Bank. (3) Every member, officer or employee of the Bank knowingly contravening any provision of this section, or being directly or indirectly knowingly concerned in, or party to, any such contravention, shall be guilty of an offence. Penalty: Imprisonment for 12 months. (4) Nothing in this section shall prevent the Bank from depositing money in any bank which is approved by the Administrator. Existing investments 7. All funds of the Bank invested at the commencement of this Act shall, as soon as may be, be invested in accordance with the provisions of section 3 of this Act. Audit 8. (1) The Administrator shall appoint an officer to audit the books of the Bank. (2) The officer so appointed shall conduct the audit at least once in every year. (3) The directors and officers of the Bank shall make available for inspection by the officer appointed to audit the books of the Bank, all books, documents, securities and moneys of, or relating to, the Bank. Penalty: $100. Regulations 9. The Commonwealth Minister may make Regulations, not inconsistent with this Act, prescribing all matters which are required or permitted to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act.