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32 1927

CURRENCY ACT, 1927

PART VII.

Financial.

Legal tender note fund.

61. —(1) The Commission shall keep a separate capital fund to be called the legal tender note fund and shall maintain and manage such fund in accordance with this Act.

(2) All gold bullion, moneys, securities, and funds (other than legal tender notes and other than moneys paid by way of a charge for refining gold bullion or a charge corresponding to a charge for coining) paid or transferred to the Commission by any person or from any fund for legal tender notes issued by the Commission to such person or fund shall be carried to the legal tender note fund.

(3) The capital of the legal tender note fund shall be held by the Commission or at its disposal in such one or more of the following forms as the Commission in its absolute discretion shall think proper and in no other form, that is to say:—

(a) gold bullion;

(b) gold coins which are for the time being legal tender in Saorstát Eireann for unlimited amounts;

(c) money in any form which is for the time being legal tender in Great Britain for unlimited amounts;

(d) British Government securities maturing within twelve months;

(e) sterling balances on current or deposit account at the London Agency or any Bank in Great Britain or Northern Ireland.

(4) The Commission shall in its absolute discretion determine from time to time as occasion requires the allocation of the capital of the legal tender note fund amongst the several forms mentioned in the foregoing sub-section or any of them.

(5) All dividends and interest received by the Commission in respect of the capital of the legal tender note fund shall be carried as income to the general fund.

(6) The Commission may, if and whenever it thinks fit, borrow temporarily for the purposes of the legal tender note fund, and may pledge the capital or any part of the capital of the legal tender note fund as security for such borrowing and shall charge all interest on such borrowing against the income of the general fund.

(7) At the end of every half-year the Commission shall value in accordance with current market values the capital assets of the legal tender note fund 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 foregoing sub-section then outstanding) above or below the amount of legal tender notes outstanding at the end of such half-year, 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 mentioned in sub-section (3) of this section equal in value to the amount of such surplus or deficiency, if any.

The note reserve fund.

62. —(1) The Commission shall keep a separate capital fund to be called the note reserve fund and shall maintain and manage such fund in accordance with this Act and shall pay into such fund all moneys which are by this Act required to be paid thereinto and shall pay out of such fund all moneys which are by this Act required to be paid thereout.

(2) The capital of the note reserve fund shall be held by the Commission or at its disposal in such one or more of the following forms as the Commission in its absolute discretion shall think proper and in no other form, that is to say:—

(a) gold bullion;

(b) gold coins which are for the time being legal tender in Saorstát Eireann for unlimited amounts;

(c) money in any form which is for the time being legal tender in Great Britain for unlimited amounts;

(d) British Government securities;

(e) securities guaranteed by the British Government;

(f) sterling balances on current or deposit account at the London Agency or any Bank in Great Britain or Northern Ireland;

(g) legal tender notes.

(3) Subject to the restriction that not more than one-tenth of the capital of the note reserve fund may at any time be held in the form of legal tender notes the Commission shall in its absolute discretion determine from time to time as occasion requires the allocation of the capital of the note reserve fund amongst the several forms mentioned in the foregoing sub-section or any of them.

(4) All dividends and interest received by the Commission in respect of the capital of the note reserve fund shall be carried as income to the general fund.

(5) The Commission may, if and whenever it thinks fit, borrow temporarily for the purposes of the note reserve fund and may pledge the capital or any part of the capital of the note reserve fund as security for such borrowing and shall charge all interest on such borrowing against the general fund.

(6) At the end of every half-year the Commission shall value in accordance with current market values the capital assets of the note reserve fund and shall ascertain the extent of the net deficiency, if any, of such capital assets as so valued (less by the capital amount of any temporary borrowing under the foregoing sub-section and the value of any capital assets then transferable to the legal tender note fund, but with the addition of any capital assets then transferable from the legal tender note fund) below one tenth of the maximum amount of consolidated bank notes which might under this Act be outstanding (otherwise than on an extraordinary issue) on the last day of such half-year and, if on any such ascertainment any such deficiency is found to exist, shall as soon as may be transfer to the note reserve fund from the general fund in any of the forms mentioned in sub-section (2) of this section an amount equivalent to whichever of the following amounts is the less, that is to say:—

(a) the amount of such deficiency, or

(b) one-fifth of the surplus of the total amount received by the Commission during such half-year on account of dividends and interest in respect of the capital of the legal tender note fund and the capital of the note reserve fund remaining after deducting from such total amount all (if any) interest payable during such half-year on any temporary borrowing for the purposes of either of such funds.

General Fund.

63. —(1) The Commission shall keep a separate fund to be called the general fund and shall maintain and manage such fund in accordance with this Act.

(2) The Commission shall carry to the general fund all moneys received by the Commission and not required by this Act to be carried to the legal tender note fund or paid into the note reserve fund and the Commission shall draw out of the general fund all payments made by the Commission and not required by this Act to be paid out of the legal tender note fund or out of the note reserve fund, and in particular shall pay out of the general fund the expenses of the Commission.

(3) It shall be lawful for the Commission to exercise the functions of a banker in relation to the moneys for the time being in the general fund.

(4) The Commission may for the purpose of meeting charges required by this Act to be paid out of the general fund borrow on the security of the general fund up to the amount for the time being paid up by. Shareholding Banks on account of their capital liability.

(5) The Minister may, after consultation with the Commission, make regulations providing for the determination periodically of the surplus income of the Commission and may by such regulations enable provision to be made for reserves, depreciation, and other like matters before determination of the surplus income.

(6) The Commission may out of its surplus income as determined under this section pay to Shareholding Banks dividends, at such rate not exceeding six per cent. per annum as the Minister may sanction, on the amount for the time being paid up by them on account of their capital liability.

(7) The Commission shall pay its surplus income as and when determined under this section or the balance of such surplus income remaining after payment of dividends under the foregoing sub-section (as the case may be) into the Exchequer in such manner as the Minister shall direct and may at any time pending such determination pay into the Exchequer such sums on account of surplus income as may be agreed upon by the Minister and the Commission.

Capital liability of Shareholding Banks.

64. —(1) Every Shareholding Bank shall be liable to pay to the Commission the sum of five thousand pounds (in this Act called its capital liability) at the times and in the manner following, that is to say:—

(a) each of the first Shareholding Banks shall, when applying for admission to be one of the first Shareholding Banks, pay the sum of one thousand pounds to the Minister in trust for the Commission and shall pay the residue of its capital liability to the Commission as and when required under this Act so to do by the Commission, and

(b) a Bank admitted to be a Shareholding Bank after the establishment of the Commission shall immediately upon such admission pay to the Commission a sum equal to the amount then already paid by each of the other Shareholding Banks on account of their respective capital liabilities and shall pay the residue of its capital liability as and when required under this Act so to do by the Commission.

(2) All sums paid by the first Shareholding Banks on account of capital liability to the Minister in trust for the Commission shall be paid by the Minister to the Commission immediately after the establishment of the Commission.

(3) Every requisition made by the Commission to Shareholding Banks for a payment on account of capital liability shall be made to all such banks simultaneously and shall require payment of an equal amount from every such Bank.

(4) Every sum payable by a Shareholding Bank to the Commission on account of capital liability shall be recoverable by the Commission as a civil debt in any court of competent jurisdiction, and the failure of a Shareholding Bank to pay in accordance with this section a sum on account of capital liability shall be a ground for removing such Bank from being a Shareholding Bank.

(5) In the event of a Shareholding Bank ceasing by any means to be a Shareholding Bank the Commission shall forth with pay to such Bank the amount then paid up by it on account of its capital liability.

(6) Section 113 of the Stamp Act, 1891 shall not apply to the capital liability of the Shareholding Banks.

Payments on consolidated bank notes.

65. —(1) Every Shareholding Bank shall pay to the Commission in respect of every half-year the following sums (in this Act referred to as payments on consolidated bank notes), that is to say:—

(a) during so much, if any, of such half-year as the maximum amount of consolidated bank notes which might under this Act be outstanding did not exceed six million pounds, a sum calculated at the rate of one and one-half per cent. per annum on the amount of consolidated bank notes outstanding (otherwise than on an extraordinary issue or by way of special excess) from day to day with such Bank during such half year, and

(b) during so much, if any, of such half-year as the said maximum amount exceeded six million pounds, a sum calculated at the rate of one and one-half per cent. per annum on so much of the amount of consolidated bank notes outstanding (otherwise than on an extraordinary issue or by way of special excess) from day to day with such Bank during such half-year as bears to the whole amount of consolidated bank notes so outstanding the same proportion as six million pounds bears to the said maximum amount, and a further sum calculated at the rate of two per cent. per annum on the residue of the amount of consolidated bank notes so outstanding, and

(c) if any consolidated bank notes were during such half year outstanding with such Bank on an extraordinary issue a sum calculated during the first month of the continuous existence of such extraordinary issue at the rate of five per cent. per annum on the amount of consolidated bank notes so outstanding, and during the second month of such continuous existence at the rate of five and one-half per cent. per annum on such amount, and during the third month of such continuous existence at the rate of six per cent. per annum on such amount, and so on, such rate increasing by one-half per cent. per annum for every month of such continuous existence, and

(d) if any consolidated bank notes were during such half year outstanding with such bank by way of special excess, a sum calculated at the rate of three per cent. per annum on the amount of consolidated bank notes so outstanding from day to day with such bank during such half-year, and

(e) such share of the expenses incurred during such half-year by the Commission in providing consolidated bank notes as the Commission shall by regulation prescribe.

(2) Whenever for any reason the amount of consolidated bank notes outstanding with a Shareholding Bank otherwise than on an extraordinary issue is in excess of the amount permitted by or under this Act to be so outstanding, the amount so in excess shall for the purposes of the foregoing sub-section be deemed to be outstanding on an extraordinary issue save in so far (if at all) as the same is determined by the Commission under this section to be outstanding by way of special excess.

(3) Whenever the quota of a Shareholding Bank is reduced under Part VI . of this Act the Commission in its discretion may, where the circumstances appear to it so to warrant, determine that during any specified period ending not more than six months after such reduction of such quota a specified portion (not exceeding the amount by which such quota is so reduced) of the amount of consolidated bank notes outstanding otherwise than on an extraordinary issue with such bank in excess of the amount permitted by or under this Act to be so outstanding shall be deemed for the purposes of this section to be outstanding by way of special excess.

(4) At the end of every half-year the Commission shall ascertain in respect of every Shareholding Bank the amount of the payments on consolidated bank notes payable under this section by it in respect of such half-year and shall send to every Shareholding Bank a certificate showing the said amount so ascertained in respect of it and how such amount is made up, and every Shareholding Bank shall within fourteen days after receiving any such certificate pay to the Commission the amount stated in such certificate to be payable by it.

(5) Every sum payable by a Shareholding Bank to the Commission under this section shall be recoverable by the Commission from such Bank as a civil debt in any court of competent jurisdiction and the non-payment of any such sum by a Shareholding Bank within the time specified in this section for payment thereof shall be a ground for removing such Bank from being a Shareholding Bank.

(6) A certificate under the seal of the Commission stating the amount payable on any occasion by a Shareholding Bank to the Commission under this section and that such amount or a specified portion thereof is due and unpaid shall, in any proceedings by the Commission to recover such amount, be evidence until the contrary is proved of the said matters so stated in such certificate.

(7) For the purpose of this section the period commencing on the day appointed under this Act for the commencement of the issue of consolidated bank notes and ending on the next ensuing 31st day of March or 30th day of September, whichever first occurs, shall be deemed to be a half-year.

Payments on certain out-standing bank notes.

66. —(1) Where the Commission has determined under this Act in respect of any Bank which is at the passing of this Act a bank of issue the proportion appertaining to Saorstát Eireann of the notes of such Bank outstanding immediately before the day appointed for the commencement of the issue of consolidated bank notes there shall be payable by such Bank to the Commission in respect of every half year a sum calculated from day to day at the appropriate rate per cent. per annum on so much of such proportion of such notes as after the day so appointed is for the time being not redeemed in accordance with the directions of the Commission and is not deemed under this Act to be consolidated bank notes outstanding with such Bank otherwise than on an extraordinary issue.

(2) For the purpose of the foregoing sub-section the appropriate rate per cent. per annum shall be three per cent. per annum for the period of twelve months from the day appointed for the commencement of the issue of consolidated bank notes and five per cent. per annum thereafter.

(3) At the end of every half-year the Commission shall ascertain in respect of every Bank which is at the passing of this Act a bank of issue the amount of the payments payable under this section by it in respect of such half-year and shall send to every such Bank a certificate showing the said amount so ascertained in respect of it and how such amount is made up, and every such Bank shall within fourteen days after receiving any such certificate pay to the Commission the amount stated in such certificate to be payable by it.

(4) Every sum payable by a Bank to the Commission under this section shall be recoverable by the Commission from such Bank as a civil debt in any Court of competent jurisdiction and the non-payment of any such sum by any such Bank which is a Shareholding Bank within the time specified in this section for payment thereof shall be a ground for removing such Bank from being a Shareholding Bank.

(5) A certificate under the seal of the Commission stating the amount payable on any occasion by a Bank to the Commission under this section and that such amount or a specified portion thereof is due and unpaid shall in any proceedings by the Commission to recover such amount be evidence until the contrary is proved of the said matters so stated in such certificate.

(6) For the purpose of this section the period commencing on the day appointed for the commencement of the issue of consolidated bank notes and ending on the next ensuing 31st day of March or 30th day of September, whichever first occurs, shall be deemed to be a half-year.

Exemptions from taxes and duties.

67. —(1) Relief from income tax shall be given by repayment or otherwise to the Commission in respect of all income from whatever source accruing to the Commission under or by virtue of this Act.

(2) Part V of the Finance Act 1920 as amended by subsequent enactments shall not apply to the profits of the Commission.

(3) Notwithstanding anything contained in paragraph (b) of clause 10 of the Inland Revenue (Adaptation of Taxing Acts) Order, 1923 (No. 4 of 1923), Exemption (1) of the General Exemptions from all Stamp Duties contained in the First Schedule to the Stamp Act, 1891, shall apply to all transfers made by the Commission of shares in—

(a) the stocks and funds of the Government or Parliament of the late United Kingdom of Great Britain and Ireland, and

(b) the stocks and funds of the Government or Parliament of the United Kingdom of Great Britain and Northern Ireland,

whether such stocks and funds are registered in the books of the Bank of Ireland in Dublin or are registered elsewhere.

(4) Stamp duty shall not be chargeable on any contract note issued to the Commission in any case in which such duty would be payable by the Commission as part of its expenses.

Bankers composition duty.

68. —(1) The composition duty on promissory notes on unstamped paper issued by a licensed banker or on such notes of such banker in circulation shall be paid in respect of the period to which this section relates at that rate which bears to the rate in force at the passing of this Act the same proportion as the number of complete weeks in the said period bears to the number twenty-six.

(2) The conditions of every bond given by a licensed banker under section 7 of the Bankers Composition (Ireland) Act, 1828 shall apply to promissory notes issued by such banker during the period to which this section relates with the modification that, in lieu of the account required by that section to be delivered half-yearly, an account duly verified in accordance with that section of the promissory notes issued by such banker under that Act and in circulation within the meaning of that Act on the Saturday in every week during the said period shall be delivered by such banker to the Revenue Commissioners within fourteen days after the last day of the said period to which this section relates.

(3) This section relates to the period commencing on the 1st day of January or the 1st day of July, whichever shall be the later, next before the day appointed under this Act for the commencement of the issue of consolidated bank notes and ending on the day so appointed for such commencement.