Bank Issue Act of 1893 (NSW)

No. XV.

An Act to make Bank Notes a first charge on Bank Assets; aiul to temporarily enable the Governor to declare Bank Notes to

be a legal tender; and to provide for the

retirement of the same during a limited
time and under special circumstances.

[3rd May, 1893.]

~\\T H E R E AS certain causes, operating without as well as within interests temporarily to unjustified discredit and distrust, of which a possible consequence may be grwe inconvenience to the public in relation to the facilities for trade and to the siifnciency of the circulating medium: lie it therefore enacted by the Queen's Most Excellent V y the Colony of New South Wales, have subjected commercial

Majesty, by and with the advice and consent of the Legislative

Council and Legislative Assembly of New South Wales in Parliament assembled, and by the authority of the same, as follows :—

PART I.

Permanent Enactment—Bank Notes.

1. After the passing of this Act, all notes payable on demand, heretofore, or hereafter to be, issued, circulated, or reissued in the said Colony by any Lank under authority of this or any other statute of the said Colony in that behalf, shall to the amount of the issue authorised be a first charge on all the assets and property of that Bank being assets

for the payment of debts or other obligations contracted or entered

upon, or due and payable in the said Colony.

3. The Governor-in-Council may, from time to time as he thinks fit, by proclamation under his hand and published in the Gazelle, and in at least three newspapers in the Colony, declare that the notes payable on demand by any Bank therein named and then or there­ after to be issued, circulated, or reissued within the said Colony under any lawful authority in that behalf shall, during the period limited by the proclamation, be everywhere within the said Colony a good and legal tender of money to the amount therein expressed to be payable. Provided

PART I I .

Temporary enactments—Proclamation by Governor.

2. Swe as provided by section five, the enactments in Part I I

of this Act shall have force for the period of twelve months only

from the passing thereof, and if at the end of that period Parlia­ ment be not in Session, then until the commencement of the then next Session of Parliament, and for one month thereafter, but no longer.

Provided that no proclamation shall be made unless the Governor-in-Council is satisfied that as betwBen the Dank and its creditors its assets excBed its liabilities by at least the sum of the paid-up capital and the reserved profits.

Provided further that the Bank shall pay all such notes of its own issue in gold on presentation at its Head Oflice within the Colony after the expiration of the period limited by any original proclamation under this section, or by successive proclamations thereunder if more than one, and the Governor-in-Council may require adequate security
for the performance of this condition.

Provided also that no proclamation made under the authority of this section shall have force or effect beyond the time during which Part I I of this Act continues and remains in force.
4. Upon publication in the Gazette as aforesaid, any proclama­ tion made under this Act shall to the extent and during the period limited by the proclamation or by this Act, have the force of law, not­ withstanding any provision in any Act, charter, or document whatever.
5. At any time within six months after the expiration of the period limited by any original proclamation under section three, or by

successive proclamations thereunder if there have been more than
one, the Colonial Treasurer, on being satisfied that a Bank note covered

by any such proclamation has been duly presented for payment at the
Bank issuing the same, and has not been paid, shall pay the same in

gold to any bond fide holder, not being a Bank, who may present the
same for payment at the Treasury.

0. Upon the request of the Colonial Secretary, the managing director, manager, or accountant of any Bank shall make full ami true answers to such written inquiries concerning the business and the assets and liabilities of the Bank as the Colonial Secretary thinks fit to make for the purpose of the exercise of the discretion conferred on the Governor-in-Council by section three of this Act, and shall

A'erify the same by his statutory declaration.

PART I I I .

Supplemental.

7. In this Act the word "Bank" includes branch Bank and agency, and means a company or corporation carrying on within the said Colony the business of banking only. The expression " Governor-in-

Council" means the " Governor with the advice of the Executive

Council."

8. This Act may be cited as the " Bank Issue Act of 1893."

No. X V I .