PART IV

Supervision of Trustee Savings Banks

24. —(1) A trustee savings bank shall keep at an office or offices in the State such books, accounts and other records as the Central Bank may specify and shall, as soon as may be, notify the Central Bank of the address of every office at which they are kept for the time being; different books, accounts and records may be specified by the Central Bank under this subsection in relation to different trustee savings banks.

(2) (a) An officer of the Central Bank, or a person possessing qualifications or experience that the Governor of the Central Bank considers appropriate, duly authorised in writing in that behalf by the Governor of the Central Bank (referred to subsequently in this section as “an authorised officer”) may, for the purpose of the performance by the Central Bank of its functions under this Act—

(i) investigate the affairs or any particular part of the affairs of a trustee savings bank and its conduct of its business or of any particular part of its business and report to the Central Bank thereon,

(ii) for the purposes of the investigation, upon production, if required, of his authorisation, at all reasonable times enter any office of the bank and examine and take copies of, or of extracts from, any books, accounts or other records found there and kept pursuant to this section and any other records relating to the business of the bank found there,

(iii) require any person in that office—

(I) to give him any information within his knowledge or procurement that he reasonably considers to be necessary for the purposes of the investigation,

(II) to produce to him any books, accounts or records aforesaid that are in his power, possession or procurement,

(III) to permit him to examine and take copies of, or of extracts from, any such books, accounts or records, and

(IV) to give to him any information within his knowledge or procurement in relation to entries in the books, accounts or records that he may reasonably consider to be necessary for the purposes of the investigation.

(b) (i) References in paragraph (a) to a trustee savings bank include references to—

(I) a subsidiary of the bank,

(II) if the bank is a subsidiary—

(A) its holding company, and

(B) any other subsidiary of its holding company,

and

(III) an associated company of the bank.

(ii) In subparagraph (i) “associated company”, in relation to a trustee savings bank, means a company (within the meaning of section 155 of the Act of 1963)—

(I) not less than 20 per cent. in nominal value of whose—

(A) equity share capital, or

(B) shares carrying voting rights (other than voting rights which arise only in specified circumstances),

are held by the bank,

and

(II) an investigation of the affairs, or a specified part of the affairs, of which or of the conduct of the business of which, or a specified part of the business of which, is, in the opinion of the Central Bank, necessary for the purposes of a like investigation in relation to the bank.

(3) Books, accounts and other records kept in pursuance of this section shall be in addition to any books, accounts or other records required to be kept under any other enactment.

(4) Books, accounts and other records may be kept for the purposes of this Act either in a legible form or (whether by electronic or other automatic means) in a non-legible form that is capable of being reproduced in a legible form.

(5) A person who contravenes subsection (1) or obstructs or impedes an authorised officer in the performance of his functions under this section or, without reasonable excuse, fails or refuses to comply with a requirement under this section or who, in purported compliance with such a requirement, gives information to an authorised officer that he knows to be false or misleading shall be guilty of an offence.

25. —(1) The trustees of a trustee savings bank shall furnish to the Central Bank—

(a) at such times as the Central Bank may specify from time to time, such information and returns concerning the business of the bank as the Central Bank may specify from time to time, being information and returns that the Central Bank considers it necessary to have for the due performance of its functions under this Act, and

(b) within such period as the Central Bank may specify, any information and returns (not being information or returns specified under paragraph (a)) concerning the business of the bank that the Central Bank may request in writing, being information and returns that the Central Bank considers it necessary to have for the due performance of its functions under this Act.

(2) A person shall not furnish information to the Central Bank pursuant to subsection (1) that he knows to be false or misleading.

(3) (a) Without prejudice to the generality of subsection (1), in subsection (1) “information and returns” includes audited accounts of the trustee savings banks concerned and reports of the auditor concerned on those accounts.

(b) In this section references to a trustee savings bank include references to—

(i) a subsidiary of the bank,

(ii) if the bank is a subsidiary—

(I) its holding company, and

(II) any other subsidiary of its holding company,

and

(iii) an associated company (within the meaning of section 24 (2) (b) (ii)) of the bank.

(4) A person who contravenes this section shall be guilty of an offence.

26. —(1) Where the Central Bank is of opinion that it is in the public interest to do so or that a trustee savings bank—

(a) has become or is likely to become unable to meet its obligations to its 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 its business, or

(c) has failed to comply with a condition of its licence and the circumstances are such that the Central Bank is of opinion that the stability and soundness of the bank are affected by such failure, or

(d) is conducting business in such a manner as to jeopardise and prejudice the security of deposits with the bank or the rights and interest of depositors with the bank, or

(e) is under common control with one or more than one other enterprise (whether or not any such other enterprise is a trustee savings bank) and the Central Bank is of opinion that the common control is not in the interest of depositors with the first-mentioned trustee savings bank,

the Central Bank may give a direction in writing to that bank to suspend, for such period not exceeding 6 months as shall be specified in the direction, all or any of the following, that is to say:

(i) the carrying on of the business of a trustee savings bank,

(ii) the making of payments (other than those to which subparagraph (i) relates),

(iii) the acquisition or disposal of assets or the incurring or discharging of liabilities,

which have not been authorised by the Central Bank.

(2) The Central Bank may revoke a direction under subsection (1) unless an order under subsection (4) has been made in respect of the direction.

(3) The Court may, on application to it in that behalf by the trustee savings bank concerned, make an order terminating a direction under subsection (1).

(4) The Court may, on application to it in that behalf by the Central Bank make an order confirming a direction under subsection (1) or confirming the direction and, subject to subsection (5), extending the period of its operation for such time or times (but so that the period does not exceed 12 months) as the Court may, having regard to all the circumstances, consider appropriate.

(5) A direction to which subsection (4) relates shall cease to have effect—

(a) if the direction was confirmed, upon the expiration of the period to which the direction relates,

(b) if the direction was confirmed and the period of its operation was extended, upon the expiration of that period as so extended,

(c) upon the making of a winding up order in respect of the trustee savings bank concerned, or

(d) where, on the application of the Central Bank or the trustee savings bank concerned, the Court is of opinion that the circumstances justifying the giving of a direction have ceased to exist and that it would be unjust and inequitable not to make an order terminating the direction, upon such date as the Court by order determines,

whichever first occurs.

(6) The Court may, in addition to or in lieu of making an order under subsection (3) or (4), make such other order in relation to the matter as may appear to it to be necessary including an order directing any person who holds money or other assets for or on behalf of the trustee savings bank to which the direction concerned relates not to dispose of any of those assets except on such conditions and in such circumstances as are specified in the order.

(7) Where a direction under this section is in force, then—

(a) winding up proceedings shall not be initiated in relation to the trustee savings bank concerned,

(b) a receiver over the property of the bank shall not be appointed, and

(c) the property of the bank shall not be attached, sequestered or otherwise distrained, or taken in execution,

unless the prior approval of the Court has been obtained.

(8) (a) Where the Central Bank becomes of opinion that, notwithstanding the fact that a trustee savings bank to which a direction has been given under this section appears to it to be able to meet its obligations to its creditors, the circumstances justifying the giving of the direction are likely to continue, it shall forthwith apply to the Court for, and the Court may grant, an order directing the bank to prepare, in consultation with the Central Bank, a scheme for the orderly termination of its business as a trustee savings bank and the discharge of its liabilities to its depositors under the supervision of the Central Bank and to submit the scheme to the Court within 2 months for the approval of the Court.

(b) The Court shall not approve of a scheme under paragraph (a) without hearing the Central Bank and, if there is a dispute concerning the terms of the scheme, the Court may, on application to it in that behalf by the Central Bank or the trustee savings bank concerned, determine the matter.

(c) If a trustee savings bank fails to comply with an order of the Court under this subsection or to carry out a scheme approved of by the Court under this subsection, the Court may, on application to it in that behalf by the Central Bank, make such further order in relation to the matter as it considers appropriate, including an order for the committal of the trustees of the bank or, if it considers it just and equitable to make it, an order for the winding up of the bank.

(9) Where an order for the winding up of a trustee savings bank is made under this section, the law relating to companies (including this Act) shall apply as if the order had been made on a winding up petition under that law and as if for any reference in that law to the presentation of the winding up petition there were substituted a reference to the making of the order under this section.

(10) Where the Court is satisfied that, because of the nature or circumstances of the case or otherwise in the interest of justice, it is desirable to do so, it may hear the whole or part of any proceedings under this section otherwise than in public.

(11) The Court may by order revoke or amend an order made by it under this section.

(12) For the purpose of subsection (1) (e) of this section a trustee savings bank and one or more than one other enterprise shall be deemed to be under common control if the decision as to how or by whom each shall be managed can be made by the same person or by the same group of persons acting in concert.

(13) A trustee savings bank that fails or refuses to comply with a direction under this section shall be guilty of an offence.

27. —(1) The Central Bank may give a direction to the trustees of a trustee savings bank in relation to the information which shall be included in any advertisement published by or on behalf of them or the bank or in any public statement made by or on behalf of them or the bank.

(2) The Central Bank may give a direction to the trustees of a trustee savings bank to refrain, or cause the bank to refrain, during such period as shall be specified in the direction—

(a) from publishing or continuing to publish an advertisement inviting deposits from the public payable on demand or on notice or at a fixed or determinable future date, or

(b) from inviting or continuing to invite such deposits as aforesaid.

(3) The Central Bank shall not give a direction under this section unless it is satisfied that it is desirable to do so in the interest of the orderly and proper regulation of banking.

(4) A person who fails or refuses to comply with a direction under this section shall be guilty of an offence.

28. —(1) Whenever the Minister, by notice in writing given to the Central Bank, so requires, the Central Bank shall give a direction to the trustees of a trustee savings bank requiring them to furnish it with a statement in writing within such period as may be specified in the direction of the expenses incurred by the bank in its management and administration and generally in the carrying on of the business thereof during such period as may be specified in the request.

(2) Statements received by the Central Bank pursuant to subsection (1) shall be transmitted to the Minister forthwith.

(3) A person who fails or refuses to comply with a direction under this section shall be guilty of an offence.

29. —(1) The trustees of a trustee savings bank shall in each year publish a statement in such form and manner, at such times and containing information in relation to such matters concerning the business of the bank as may be specified in relation to the bank or in relation to trustee savings banks generally in a direction given by the Central Bank to the bank or, as the case may be, the banks aforesaid.

(2) Without prejudice to the generality of subsection (1), a statement in relation to a trustee savings bank under that subsection shall show the state of the affairs of the bank on such date as may be specified in the relevant direction under that subsection and the results of its trading during such period as may be so specified.

(3) Different specifications may be made by the Central Bank under this section in relation to different trustee savings banks.

(4) A person who contravenes this section shall be guilty of an offence.

30. —(1) The trustees of a trustee savings bank shall—

(a) cause to be displayed and kept on display in a conspicuous place in every office, branch of the bank or other place in which the bank carries on business a copy of its latest balance sheet together with, if it is so specified in a direction given by the Central Bank, a copy of a statement in such form and containing information in relation to such matters concerning the business of the bank as may be so specified, and

(b) cause to be furnished on demand to any creditor of the bank, a copy of the latest such balance sheet and the latest such statement (if any).

(2) Different specifications may be made by the Central Bank under this section in relation to different trustee savings banks.

(3) A person who contravenes this section shall be guilty of an offence.

31. —(1) (a) The Central Bank may from time to time give a direction to a trustee savings bank requiring it to maintain—

(i) a specified ratio,

(ii) a ratio that does not exceed a specified ratio, or

(iii) a ratio that is not less than a specified ratio,

between its assets and liabilities.

(b) A specified ratio under paragraph (a) may be expressed as a percentage of the assets or liabilities concerned.

(2) A direction under this section may be expressed to apply—

(a) in relation to all trustee savings banks or to a specified trustee savings bank or specified trustee savings banks,

(b) in relation to the total assets or total liabilities of the trustee savings bank or each of the trustee savings banks concerned or to specified assets or assets of a specified kind or specified liabilities or liabilities of a specified kind of the trustee savings bank concerned or each of the trustee savings banks concerned,

(c) in relation to a specified time or times or period or periods,

and different ratios, assets, liabilities, times and periods may be specified in a direction under this section in relation to different trustee savings banks.

(3) A person who fails or refuses to comply with a direction under this section shall be guilty of an offence.

32. —(1) The special account in the name of the Minister opened in the Bank of Ireland pursuant to section 31 of the Finance Act, 1940 (referred to subsequently in this section and in section 33 as “the special account”) shall, notwithstanding the repeal of that section by this Act, continue to be maintained by the Minister.

(2) The trustees of a trustee savings bank shall pay into the special account or invest in the purchase of securities of the Government such proportion of the moneys deposited with the bank (referred to subsequently in this section as “the designated proportion”) as may be determined by the Central Bank after consultation with the Minister and the Central Bank shall determine, after the like consultation, what proportion (if any) of the designated proportion should be paid as aforesaid and what proportion (if any) thereof should be invested as aforesaid.

(3) The Minister may make regulations—

(a) in relation to the making of payments of moneys into and withdrawals of moneys from the special account, for the investment of moneys to the credit of that account and generally for its management, and

(b) in relation to the realisation of securities purchased pursuant to subsection (2),

and the regulations may specify the circumstances in which and the conditions subject to which such withdrawals and realisations may be made and the proportions of the moneys and securities, respectively, aforesaid that may be withdrawn and realised.

(4) The Minister shall pay to the trustees of a trustee savings bank, on any moneys paid by them into the special account, interest at such rate as may be determined by the Minister, after consultation with the Central Bank.

(5) Regulations under subsection (3) may provide—

(a) that moneys paid into the special account may be paid into the Post Office Savings Bank Fund, and

(b) for the payment out of that Fund to the Minister of moneys so paid into it and for the payment to the Minister of interest on moneys so paid into it at such rate or rates as may be determined by the Minister.

(6) Where a person fails or refuses to make a payment or investment in accordance with subsection (2), he shall be guilty of an offence.

33. —The Minister shall, not later than the 30th day of June in each year, lay before each House of the Oireachtas a statement showing the aggregate amount standing to the credit of the trustee savings banks in the special account on the last day in the preceding year on which those banks were open for business.

34. —(1) Where, on application to it in a summary manner by the Central Bank, the Court is of opinion that a contravention of section 24 or 25 or a failure or refusal to comply with a condition of a licence, or a direction under section 27 , has occurred, the Court may by order prohibit the continuance of the contravention, failure or refusal by the person or persons concerned.

(2) On an application to it under this section, the Court may make such interim or interlocutory order as it considers appropriate.

(3) Where the Court is satisfied that, because of the nature or circumstances of the case or otherwise in the interests of justice, it is desirable to do so, it may hear the whole or part of any proceedings under this section otherwise than in public.