The Rank Notes Security Act 1889 (SA)

ANNO QUINQUAGESIMO SECUNDO ET QUINQUA-

GESIMO TERTIO

VICTOKIIB REGINE.

A. D. 1889.

No. 468.

An Act to give greater security to Holders of Bank

Notes, and for other purposes.

E it Enacted by the Governor of the Province of South Preamble.

B Australia, with the advice and consent of the Legislative	Council and House of Assembly, in this present Parliament
assembled, as follows:

1, This Act may be cited for all purposes as " The Rank Notes sh,* title.

Security Act, 1889."

2. I n the interpretation of this Act the following terms shall Interpretation.

have the followj ng meanings :-

;' Bank" shall mean all companies and corporations carrying on the business of banking in South Australia, either alone or jointly with any other business:

Bank Note" or Note" shall mean all notes issued by any

Bank, and payable on demand in South Australia:

" General A ~ s t e t shall mean the funds available in South Am+

tralia for payment of the general creditors, as well as the

noteholdcrs of any Baiik.

3, In the event of any Bank being wound up, the payment of a11 N O ~ ~ S a fir& chmge

notes issued by such Bank shall be a first charge upon the general 0na8mts*

assets of such Bank.

4. If any banking company, firm, or individual banker, or any penalty on

person on behalf of such company, firm, or banker, otherwise than	fraudulent issue of
ip the ordinary course of business, issue or deal with, or authorise

466 O r

52O & 53@ VICTORIfi, No. 468.

The Bank Notes Secz~rity Act.-1 889.

or cause to be issued and dealt with, any notes of such companv, firm, or banker, which if issued and dealt with in the ordinaiy cciurse of business would have any priority under the provisions of this Act, with a view to give any priority in the event of such company being wound up or such firm or banker being insolvent or bankrupt, or to secure any debt or liability incurred or to be incurred by such company, firm, or banker, cvery person so issuing, dealing with, authorising or causing to be issued or dealt with, such notes, shall ho guilty of a misdemeanor, and on convictioii thereof shall be liable to be imprisoned for any time not exceeding two years, with or without hard labor; and any such notes so issued or dealt with, not being in the hands of a bond f ide holder thereof for

value, without notice that the same were so issued or dealt with,

shall be void.

Penalty on bank 5. If any banking company publishes by advertisement any

advertbernenta of its

pub'8KngmY'eading statement of the amount of its capital which is misleading, or in

capital. which the amount of nominal or authorised capital is stated without the words nominal," or '' authorised," or words to the like effect, so as to show that the amount of capital stated is only nominal or authorised, or in which the amount of nominal, or authorised, or subscribed capital is stated, but the amount of the paid-up capital is not stated, every such company, for every such offence, shall be liable to a penalty of not more than Five Hundred Pounds, to be recoverable, with full costs of suit, by any person who may sue for the same.

In the name and on behalf of Hcr Majesty, T hereby assent to

this Bill.

KINTORE, Governor.

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Adelaide : Bv authorityx. F. LRADBR, Government Printer, North-terrace.