Bank Integration Act 1991
No. 210, 1991
Compilation No. 10
Compilation date: 1 July 2016
Includes amendments up to: Act No. 59, 2015
Registered: 15 July 2016
About this compilation
This compilation
This is a compilation of the Bank Integration Act 1991 that shows the text of the law as amended and in force on 1 July 2016 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Preliminary
1 Short title
2 Commencement
3 Extension to external Territories
4 Crown to be bound
5 Interpretation
6 Extra‑territorial operation of Act
Part 2—Steps leading to bank reorganisations
7 Notice of proposed bank reorganisation
8 Reserve Bank certification
9 Treasurer may fix succession day for a particular receiving bank and transferring bank
10 Interests of depositors of transferring banks to be protected
11 Complementary legislation to be enacted
Part 3—Bank reorganisations
12 Consequence of succession day
13 Assets and liabilities
14 Translated instruments
15 Places of business
16 Transferring banks to lose authority to carry on banking business
17 Legal proceedings and evidence
18 Permitted business names
19 Employment unaffected
20 Receiving banks to do what is necessary to carry out reorganisation
Part 4—Taxation matters
21 Exemptions from certain taxes and charges
22 Application of the Income Tax Assessment Acts
Part 5—Miscellaneous
23 Certificates evidencing operation of Act etc.
24 Certificates in relation to land and interests in land
25 Certificates in relation to other assets
26 Documents purporting to be certificates
27 Compensation for acquisition of property
28 Act to have effect despite other laws
29 Regulations
Schedule 1—Receiving and transferring banks
Overview
The Bank Integration Act 1991 was enacted to facilitate the integration of certain banks within Australia and to address any legal or procedural gaps that might impede such integrations. This Act was passed by the Parliament of Australia and aims to streamline the process of transferring the business of one bank to another while ensuring the protection of depositors' interests and maintaining the stability of the financial system. The Act applies to specified banks and outlines the steps required for successful reorganisation, including the certification process by the Reserve Bank, the enactment of complementary legislation by relevant states, and the protection of depositors' interests. Additionally, it addresses tax implications and provides mechanisms for the transfer of assets, liabilities, and places of business, ensuring that the reorganisation has minimal disruption to the banks' operations and to their customers.
Scope and Application
The Bank Integration Act 1991 applies to specific banks designated in Schedule 1, which include the Australia and New Zealand Banking Group Limited, Bank of New Zealand, Bank of Queensland Limited, Citibank Limited, Commonwealth Bank of Australia, National Australia Bank Limited, National Mutual Royal Bank Limited, and Westpac Banking Corporation, among others, as well as their corresponding savings banks. The Act facilitates the integration of the business of these banks by providing a legal framework for the succession of assets, liabilities, and other business aspects from a transferring bank to a receiving bank. This integration is aimed at achieving a streamlined banking structure in line with the Commonwealth Government policy concerning the integration of banks. The Act also extends its application to external territories and binds the Crown in right of the Commonwealth, of each of the States, of the Northern Territory, and of the Australian Capital Territory. Notably, the Act's extraterritorial application for the Bank of New Zealand and Bank of New Zealand Savings Bank Limited is limited to their Australian operations. The Act does not apply to certain taxes and fees prescribed by the Corporations Regulations of various jurisdictions or imposed by the Corporations (Taxing) Act 1990 of Western Australia. The Governor-General may also make regulations to prescribe matters necessary or convenient for the implementation of the Act, thereby extending its application through subordinate instruments.
Key Provisions
- The Bank Integration Act 1991 provides a legislative framework for the reorganisation and integration of certain banks in Australia. It applies to a range of transactions and steps leading to the statutory vesting of the business of one bank (the "transferring bank") in another (the "receiving bank"). Section 7 of the Act allows a receiving bank to give notice in writing to the Reserve Bank and the Treasurer of its agreement with a transferring bank to seek the statutory vesting of the transferring bank's business in the receiving bank. Section 8 requires the Reserve Bank to certify that the depositors' interests would be adequately protected if the vesting proceeds. Section 9 empowers the Treasurer to fix a "succession day" for the vesting of the transferring bank's business in the receiving bank, provided certain conditions are met under sections 10 and 11. Section 12 then provides that on the succession day, the receiving bank becomes the legal successor to the transferring bank, vesting in it all assets and liabilities of the transferring bank.
- The Act imposes obligations on the parties involved in a bank reorganisation. Receiving banks must ensure they comply with the notice and certification requirements under sections 7 and 8 before the Treasurer can fix a succession day under section 9. Section 11 also requires complementary legislation to be enacted in the relevant state to facilitate the reorganisation. The receiving banks then have duties under sections 18-20 to ensure business names, employment terms, and legal proceedings are appropriately handled on the succession day.
- Breaching any of the requirements or conditions in the Act may result in criminal or civil penalties. However, the Act itself does not specify any maximum penalties for breach. The maximum penalties would depend on the particular breach and the relevant state or federal laws. For example, knowingly providing false information in a certificate under section 23 could potentially result in fines under state or federal false documents legislation. More serious offences like fraud or forgery committed in the course of a bank reorganisation may attract higher penalties under criminal law.
- Area of Law
- Banking Law
- Commercial Law
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Repeal & Amendment
- Licensing & Registration
- Regulatory Standards
- Taxation Law
