COMMONWEALTH BANK.
No. 18 of 1911.
An Act to provide for a Commonwealth Bank.
[Assented to 22nd December, 1911.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the
House of Representatives of the Commonwealth of Australia, as follows:—
PART
I.—PRELIMINARY.
Short
title.
1. This
Act may be cited as the Commonwealth Bank Act 1911.
Commencement.
2. This
Act shall commence on a day to be fixed by proclamation.
Parts.
3. This
Act is divided into Parts as follows:—
Part I.—Preliminary.
Part II.—Establishment
of the Bank.
Part III.—Management
of the Bank.
Part IV.—General
Provisions.
Part V.—Savings
Bank Business.
Part VI.—Issue
of Debentures by the Bank.
Part VII.—Miscellaneous.
Definitions.
4. In
this Act, unless the contrary intention appears—
“the Bank” means the Commonwealth Bank of Australia established by this
Act,
“the Governor” means the Governor of the Bank.
PART
II.—ESTABLISHMENT OF THE BANK.
Establishment
of Bank.
5. A
Commonwealth Bank, to be called the Commonwealth Bank of Australia, is hereby
established.
Incorporation
of Bank.
6. The
Bank shall be a body corporate with perpetual succession and a common seal, and
may hold land, and may sue and be sued in its corporate name.
General
powers of Bank.
7.The Bank shall, in addition to any other powers conferred by this Act,
have power—
(a) to carry on the general business of banking;
(b) to acquire and hold land on any tenure;
(c) to receive money on deposit, either for a fixed term or on
current account:
(d) to make advances by way of loan, overdraft, or otherwise;
(e) to discount bills and drafts;
(f) to issue bills and drafts, and grant letters of credit;
(g)to deal in exchanges, specie, bullion, gold-dust,
assayed gold, and precious metals;
(h) to borrow money: and
(i) to do anything incidental to any of its powers.
The
Bank not issue Bank notes.
8. The
Bank shall not issue bills or notes of the Bank for the payment of money
payable to bearer on demand and intended for circulation.
Capital.
9.—(1.) The
capital of the Bank shall be One million pounds, and shall be raised by the
sale and issue of debentures in pursuance of this Act.
(2.) The capital of the Bank shall be available for all the purposes of the
Bank.
Advance
to Bank by Treasurer.
10.—(1.) The
Treasurer may, out of the Consolidated Revenue Fund, which is hereby
appropriated accordingly, make advances to the Bank for the purpose of enabling
it to defray any of the expenses incidental to the establishment of the Bank,
the opening of offices thereof for business, and the raising of sufficient
capital for carrying on business.
(2.) Any
moneys advanced in pursuance of this section shall be repaid to the Treasurer
by the Bank, together with interest at the rate of three and a half per centum
per annum.
PART
III.—MANAGEMENT OF THE BANK.
Management.
11. The
Bank shall be managed by the Governor of the Bank.
Appointment
of Governor and Deputy Governor.
12. The
Governor and a Deputy Governor of the Bank shall be appointed by the
Governor-General, and shall hold office during good behaviour for a period of
seven years, and shall be eligible for re-appointment.
Salaries.
13.—(1.) The
Governor and the Deputy Governor shall be paid such salaries and travelling
expenses as are fixed by the Governor-General.
(2.) The salary of the Governor, or of the Deputy Governors shall not be
reduced during his continuance in office.
Powers
and duties of Governor and Deputy Governor.
14. The Governor and the Deputy
Governor shall respectively have such powers and perform such duties as are
prescribed by this Act or the regulations.
Deputy
Governor to exercise powers of Governor in his absence.
15. If the
Governor is absent from the Commonwealth, or is absent from duty on leave, or
is unable by reason of illness or other cause to perform his duty, or if any
vacancy exists in the office of Governor, the Deputy Governor shall have and
exercise the powers and functions of the Governor during his absence, or while
the inability continues or the vacancy exists.
Appointment
of officers.
16. The
Governor may appoint such other officers and servants of the Bank as he thinks
necessary for efficiently conducting the business of the Bank.
Officers
not to borrow from Bank.
17. Officers
of the Bank shall not borrow money from the Bank.
Returns
to Treasurer.
18. The
Governor shall furnish to the Treasurer, in accordance with the prescribed
forms, quarterly statements of the assets and liabilities of the Bank and of
the business of the Bank, which statements shall be published in the Gazette,
and also such other periodical statements as are prescribed.
Audit.
19.—(1.) The
affairs of the Bank shall be subject to inspection and audit by the
Auditor-General for the Commonwealth.
(2.) The inspection and audit shall be conducted not less often than
half-yearly, and the Auditor-General shall report to the Treasurer the result
of each inspection and audit.
Half-yearly
balance-sheet.
20. The
Governor, at least twice in each year, shall prepare a balance-sheet in
accordance with the prescribed form and submit it to the Auditor-General for
report as to its correctness or otherwise, and transmit it with the report of
the Auditor-General to
the
Treasurer, and shall also transmit a true copy of the balance-sheet and report
to the President of the Senate and to the Speaker of the House of
Representatives to be laid before the Senate and the House of Representatives
respectively.
PART
IV.—GENERAL PROVISIONS.
Head
office.
21. The
Head Office of the Bank shall be situated in such place within the Commonwealth
as the Governor thinks fit to appoint.
Establishment
of branches and agencies.
22. The
Governor may establish branches or appoint agencies of the Bank in any part of
the Commonwealth or of any Territory under the Commonwealth.
London
branch.
23. The
Governor may, with the consent of the Treasurer, establish a branch in London
in the United Kingdom, and may with the like consent establish branches in any
other places beyond the Commonwealth.
Power
to appoint attorney.
24. The
Bank may, with the approval of the Treasurer, by instrument under its common
seal, appoint any person (whether in the Commonwealth or in any place beyond
the Commonwealth) to be the Attorney of the Bank, and any person so appointed
may, subject to the instrument, do any act or execute any power or function
which he is authorized by the instrument to door execute.
Agents.
25. The
Governor may arrange with any bank carrying on business in any place to act as
the agent of the Bank in any place whether in or outside the Commonwealth.
Bank
may act as agent.
26. The
Bank may act as the agent in Australia of any Bank carrying on business in or
outside Australia.
Power
to improve property and carry on any business.
27. Where
the Bank holds any property (whether real or personal) or business as security
for any advance, and the property or business falls into the hands of the Bank,
the Bank may maintain repair or improve the property and carry on the business
until, in the discretion of the Governor, the Bank can dispose of the property
in the best interests of the Bank.
Custody
of seal.
28. The
common seal of the Bank shall be kept in the custody of the Governor or Deputy
Governor of the Bank.
Affixing
of seal.
29. The
common seal shall not be affixed to any document without the authority of the
Governor.
Disposal
of profits.
30.—(1.) The
net profits derived by the Bank shall be dealt with as follows:—
(a) one half shall be placed to the credit of a fund to be called the Bank Reserve
Fund, and
(b) the other half shall be placed to the credit of a fund to be
called the Redemption Fund.
(2.) The Bank Reserve Fund shall be available for the payment of any
liabilities of the Bank.
(3.) The Redemption Fund may be used in repayment of any money advanced
to the Bank by the Treasurer, or in the redemption of the debentures or stock
issued by the Bank, but if the Fund exceeds the amount of debentures and stock
in circulation the excess may be used for the purposes of the redemption of any
Commonwealth debts or State debts taken over by the Commonwealth.
Execution
of contracts by or on behalf of the Bank.
31. Contracts
on behalf of the Bank may be made varied or discharged as follows:—
(a)Any contract which, if made
between private persons, would be by law required to be in writing under seal,
may be made varied or discharged, in the name and on behalf of the Bank, in
writing under the common seal of the Bank:
(b) Any contract which, if made between
private persons, would be by law required to be in writing and signed by the parties
to be charged therewith, may be made varied or discharged, in the name and on
behalf of the Bank, in writing signed by any person acting under the express or
implied authority of the Bank:
(c) Any contract which, if made between
private persons, would by law be valid although made by parol only and not
reduced into writing, may be made varied or discharged by parol, in the name
and on behalf of the Bank, by any person acting under the express or implied
authority of the Bank:
And all contracts made according to the provisions contained in this
section shall be effectual in law, and shall be binding upon the Bank and on
all other parties thereto, their heirs, executors or administrators as the case
may be:
Provided that nothing in this section shall invalidate any contract
executed on behalf of the Bank by any duly appointed attorney of the Bank, if
the contract would be valid if executed by the attorney on his own behalf.
Rules
of the Bank.
32. The
Governor may, with the consent of the Treasurer, make rules, not inconsistent
with this Act or the regulations made by the Governor-General thereunder, for
any of the following purposes:—
(a) the good government of the Bank,
(b) the classification of the officers of
the Bank,
(c) to provide a superannuation fund, and
(d) any matter necessary or convenient to be
provided for carrying on the business of the Bank.
Responsibility
of Commonwealth for Bank.
33. The
Commonwealth shall be responsible for the payment of all moneys due by the
Bank.
Provided that nothing in this section shall authorize any creditor or
other person claiming against the Bank to sue the Commonwealth in respect of
his debt or claim.
Investment
of Funds.
34.—(1.) The
Bank may invest any moneys held by it—
(a)in any Government security
approved by the Treasurer, or
(b)on loan on the security of land,
or
(c) in any other prescribed manner.
(2.) Nothing in this section shall prevent the Bank, in carrying on the
business of banking, from making advances to a customer on any security which
the Governor thinks sufficient.
PART
V.—SAVINGS BANK BUSINESS.
Establishment
of Savings Bank.
35.—(1.) The
Governor may establish at the head office of the Bank, and at such other places
as he thinks fit, a department, branch, or agency for the receipt and repayment
of deposits and the transaction generally of the business of a Savings Bank.
(2.) Branches or agencies for Savings Bank business may be established at any
place notwithstanding that the Bank has no branch or agency for general banking
business at that place.
(3.) Separate accounts shall be
kept by the Bank in respect of the Savings Bank business of the Bank, and for
that purpose any receipts or expenditure of the Bank referable to both ordinary
business and Savings Bank business shall be allotted in such proportions as the
Governor thinks fit.
Receipt
of deposits.
36. The
Bank may, at any place where Savings Bank business is carried on, receive from
any person, by way of Savings Bank deposit, any sum or sums of money not being
less than One shilling, and shall cause the amount of the money so received to
be placed to the credit of the depositor or such other person as he appoints.
Deposits
to be made at office.
37. No
depositor shall have any claim on the Bank in respect of any Savings Bank
deposit, unless the deposit has been made at the head office, or some branch or
agency of the Bank open for Savings Bank business, and during the hours in
which the office, branch, or agency was open for the receipt of deposits.
Interest
on deposits.
38. Subject
to the Rules of the Bank, the Bank may allow interest on any sum to the credit
of a depositor, not being less than One pound, at such rate as the Governor
from time to time declares.
Calculation
of interest.
39.—(1.) Interest
on Savings Bank deposits shall be calculated once in each year up to the
thirtieth day of June, and shall be carried to the credit of the account of the
depositor, and shall thereupon become principal and shall, subject to any
limitation in the amount on which interest may be allowed, carry interest in
all respects as other principal money deposited in the Bank.
(2.) No fractional part of any month shall be taken into account in the
calculation of interest, nor shall any interest less than One penny be added to
any account.
Notice
of withdrawal by depositors.
40. A
depositor shall only be entitled to withdraw moneys, standing to his credit in
connexion with the Savings Bank business of the Bank, after notice of
withdrawal has been given by him in accordance with the Rules of the Bank.
Infant
may make deposits.
41. The
Bank may receive Savings Bank deposits from or for the use or benefit of any
person under the age of twenty-one years; and the Bank may pay to an infant,
when and after he has attained the age of twelve years, or appears to the
officer making the payment to have attained that age, any moneys standing to
his credit in the Bank, in the manner and upon the conditions appointed in the
case of other Savings Bank depositors, and the receipt of the money by the
infant shall be a sufficient discharge to the Bank.
Married
women’s deposits.
Cf. W.A. 1906, No. 9, s.
13.
42. Every
Savings Bank deposit in the name of a woman, whether made before or after her
marriage, shall, as against her husband and persons claiming through or under
him, be deemed to be her separate property and to belong to her in her own
right as if she were a femme sole.
Deposits
by trustees.
Cf. W.A. 1906, No. 9, s.
14.
43. Deposits
by way of Savings Bank deposits may be received from any person (in this
section called the trustee) who declares himself willing to act as trustee for
any other person, whether that person is under a disability or not, and the
receipt of the trustee shall, in relation to the deposit and the interest
thereon, be a discharge to the Bank, but the Governor may, if he thinks fit,
require the signature of both the trustee and the cestui que trust
before any repayment is made.
Payment
out of deposits not exceeding £100 in case of death of depositor.
Cf. W.A. 1906, No. 9, s.
19.
44.—(1.) Where
a person dies leaving any money deposited with the Bank by way of Savings Bank
deposit to an amount not exceeding One hundred pounds and probate of his will
or letters of administration of his estate are not produced to the Bank, or
notice in writing of the existence of a will and of intention to prove it or to
take out letters of administration is not given to the Bank, within two months
after the death of the depositor, the Bank may, if the Governor thinks fit,
apply the money—
(a)in payment of the funeral
expenses of the deceased, and
(b) in paying the balance to the widow or
some relation of the deceased.
(2.) No person shall have any claim against the Bank in respect of any
payment made in pursuance of this section, but nothing in this section shall
relieve the person receiving the money from any liability to account for or
apply the money in accordance with law.
Payments
under probates or letters of administration.
Cf. W.A. 1906, No. 9, s.
21.
45. Payment
of any money deposited with the Bank by way of Savings Bank deposit and
standing in the name of a deceased depositor to any person having probate of
the will of the depositor or letters of administration of his estate appearing
to be in force shall be a good discharge to the Bank, but nothing in this
section shall relieve the person receiving the money from any liability to
account for or apply the money in accordance with law.
Payment
on death of illegitimate depositor.
Cf. W.A. 1906 No. 9, s. 22.
46. Where
a person, being illegitimate, dies intestate leaving any money deposited with
the Bank by way of Savings Bank deposit, the Bank may pay the money to such
natural relative of the deceased as in the opinion of the Governor has the best
claim thereto.
Insanity
or incapacity of depositor.
Cf. W.A. 1906, No. 9, s.
23.
47. Where
a person, having any money deposited with the Bank by way of Savings Bank
deposit, becomes insane or otherwise incapacitated to act, and his insanity or
incapacity is proved to the satisfaction of the Governor, and the Governor is
satisfied of the urgency of the case, the Governor may authorize the payment of
the money to the credit of the depositor to any person he thinks proper, and
the receipt of that person shall be a good discharge to the Bank.
Deposits
by Societies.
Cf. S.A. 1903, No. 824, s.
15.
48. Subject
to the rules of the Bank, deposits by way of Savings Bank deposit may be
received by the Bank from any local authority, friendly society, co-operative
society, or any society or club (not being an incorporated or unincorporated
company or other body engaged in or formed for the purpose of trading or of
acquiring pecuniary profit or other gain) and the receipt of the treasurer of
the local authority, society, or club, or of an officer of the local authority,
society, or club authorized in that behalf, shall, in relation to the deposit
and any interest thereon, be a discharge to the Bank.
Trading
companies not to make deposits.
Cf. S.A. 1903, No. 824, s.
12.
49. An
incorporated or unincorporated company or other body engaged in or formed for
the purpose of trading or of acquiring pecuniary profit or other gain shall not
be entitled to make any deposit with the Bank by way of Savings Bank deposit or
to receive any interest on any deposit of that nature.
Deposit
books to be produced for inspection.
Cf. Vic. 1890, No. 1138, s.
43.
50.—(1.) Each
depositor shall once in each year produce his Savings Bank deposit book to the
Bank for examination and verification with the books of the Bank at such times
and places as the Board from time to time appoints.
(2.) Notice of the times and places at which depositors’ deposit books are to
be produced shall be given in accordance with the rules of the Bank.
Unclaimed
deposits.
Cf. W.A. 1906, No. 9, ss.
32, 33.
51.—(1.) All
moneys to the credit of a depositor’s Savings Bank account (not being a deposit
on behalf of a minor) which has not been operated upon, either by addition or
withdrawal, for a period of seven years and upwards shall be carried to an
account to be called the Depositors’ Unclaimed Fund, and shall cease to bear
interest.
(2.) The Governor may, on proof to his satisfaction that any person is
entitled to any money which has been carried to the credit of the Depositors’
Unclaimed Fund, direct payment thereof to him, and his receipt shall be a good
discharge to the Bank.
(3.) A list of the amounts carried
to the Depositors’ Unclaimed Fund and not claimed shall be published annually
in the Gazette.
(4.) All moneys in respect of which a claim is not established within ten
years after having been included in any published list shall cease to be
claimable, and shall become the absolute property of the Bank, but the Governor
may, with the consent of the Treasurer, allow any claim after that period has
expired, if he is satisfied that special reasons exist for the allowance of the
claim.
Commonwealth
officers may act as agents.
52.—(1.) The
Governor may arrange with the Minister administering any Department of the
Commonwealth for any officer of the Department to act as agent of the Bank for
the transaction of Savings Bank business.
(2.) Any officer acting as agent of the Bank in pursuance of this section
shall be deemed to be an officer of the Bank.
PART
VI.—ISSUE OF DEBENTURES BY THE BANK.
Issue
of debentures.
53. The
Bank may from time to time issue debentures to such amount as it thinks
necessary, but so that the total amount thereof current at any one time shall
not exceed One million pounds.