Banking (Savings Banks) Regulations (Amendment) (Cth)

Statutory Rules 1982 No. 2061

__________

Banking (Savings Banks) Regulations2(Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Banking Act 1959.

 Dated 26 August 1982.

 N. M. STEPHEN

 Governor-General

 By His Excellency’s Command,

JOHN HOWARD

Treasurer

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Banks with which savings banks may deposit money

 1. Regulation 4 of the Banking (Savings Banks) Regulations is amended—

• (a)

  by omitting all the words after “any bank” and substituting “other than another savings bank.”; and

• (b)

  by adding at the end thereof the following sub-regulation:

• “(2)

  In sub-regulation (1), a reference to a bank shall be read as a reference to a person carrying on the business of banking.”.

Investment of funds of savings banks

 2. Regulation 5 of the Banking (Savings Banks) Regulations is amended—

• (a)

  by omitting paragraph (2) (c) and substituting the following paragraph:

  • “(c)

    Treasury Notes;”;

• (b)

  by omitting paragraphs (2) (i) and (j) and substituting the following word and paragraph:

  • “; and

    (i) secured loans to authorized dealers in the short-term money market.”;

• (c)

  by inserting after sub-regulation (2) the following sub-regulation:

• “(2AA)

  A savings bank may, in respect of an amount not exceeding

  6 per cent of the amount on deposit in Australia with the savings bank, being an amount that the savings bank is required, under

  sub-regulation (2), to maintain in investments of the kinds specified in that sub-regulation, maintain that amount, instead, in other investments, not being investments in land, buildings, furniture or equipment used, or to be used, by the bank in the conduct of its business.”;

• (d)

  by omitting sub-regulations (3), (3A) and (4) and substituting the following sub-regulations:

• “(3)

  Before 1 July 1983, a savings bank shall at all times maintain in investments—

  (a) of the kinds specified in paragraphs (2) (a) and (c)—an amount that is not less than 7.5 per cent; or

  (b) of the kinds specified in paragraphs (2) (a), (c) and (d)—an amount that, together with cash on hand in Australia, is not less than 15 per cent,

 of the amount on deposit in Australia with the savings bank.

• “(4)

  On and after 1 July 1983, a savings bank shall at all times maintain in investments of the kinds specified in paragraphs (2) (a), (c) and (d) an amount that, together with cash on hand in Australia, is not less than 15 per cent of the amount on deposit in Australia with the savings bank.”; and

• (e)

  by inserting in sub-regulation (6) “(2AA), (3),” after “(2),”.

 3. Regulation 6 of the Banking (Savings Banks) Regulations is repealed and the following regulations substituted:

Persons from whom savings banks not to accept deposits

“6.

A savings bank shall not accept deposits from another savings bank.

Savings banks not to accept deposits exceeding $100,000 from certain companies or other bodies.

“6A.

(1) A savings bank shall not, in the course of carrying on banking business in Australia, accept on deposit from a company or other body engaged in or formed for the purpose of trading or acquiring pecuniary profit an amount that, together with any amount previously accepted on deposit from that company or other body and currently held by that savings bank, exceeds the sum of $100,000.

“(2)

Sub-regulation (1) does not apply to the acceptance on deposit of an amount from a company or other body engaged in or formed for the purpose of trading or acquiring pecuniary profit if the company or other body is acting in the capacity of trustee in relation to the deposit and the beneficiary is not a company or other body engaged in or formed for the purpose of trading or acquiring pecuniary profit.”.

Persons who may draw cheques on savings banks

 4. Regulation 7 of the Banking (Savings Banks) Regulations is amended by adding at the end thereof the following sub-regulation:

• “(3)

  In sub-regulation (1), a reference to a local authority, company, body, society or club in relation to an account shall not be read as including a reference to a company or other body engaged in or formed for the purpose of trading or acquiring pecuniary profit unless the company or other body is acting in the capacity of trustee in relation to the account and the beneficiary is not a company or other body engaged in or formed for the purpose of trading or acquiring pecuniary profit.”.

The Schedule

 5. The Schedule to the Banking (Savings Banks) Regulations is amended—

• (a)

  by inserting “AUC DISCOUNT LIMITED” after “A.M.P. DISCOUNT CORPORATION LIMITED”; and

• (b)

  by omitting “UNITED DISCOUNT COMPANY OF AUSTRALIA LIMITED”.

 

NOTES

1. Notified in the Commonwealth of Australia Gazette on 31 August 1982.

2. Statutory Rules 1960 No. 6 as amended by 1962 No. 58; 1963 No. 80; 1966 No. 69; 1970 No. 167; 1974 No. 155; 1977 Nos. 63, 86, 87 and 196; 1978 No. 160.