Norfolk Island Penny Savings Bank Act 1935 (NI)

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Legislation au C2015Q00197 In force Continued Law

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NORFOLK  ISLAND

 

 

NORFOLK ISLAND PENNY SAVINGS BANK ACT 1935

 

[Consolidated as at 8 March 2013

on the authority of the Administrator

and in accordance with

the Enactments Reprinting Act 1980]

________

TABLE OF PROVISIONS

 

 1. Short title

 2. Definitions

 3. Investments

 4. Unlawful investments

 5. Restriction on loans

 6. Moneys not to be lent to certain persons

 7. Existing investments

 8. Audit

 9. Regulations

 

 

 

NORFOLK  ISLAND

 

 

Norfolk Island Penny Savings Bank Act 1935

____________________________________________________________

 

An Act relating to the Penny Savings Bank of Norfolk Island.

 

Short title

 1. This Act may be cited as the Norfolk Island Penny Savings Bank Act 1935.

Definitions

 2. In this Act, unless the contrary intention appears — “the Bank” means the association of persons carrying on, at the commencement of this Act, the business of banking under the name of “The Norfolk Island Penny Savings Bank”, and includes any association of persons carrying on that business whether under that name or any other name.

Investments

 3. The Bank shall, as nearly as may be invest and maintain its funds as follows  —

(a) A sum not exceeding twenty per centum of those funds shall be deposited or kept in other banks approved by the Administrator or retained in cash;

(b) A portion not exceeding three-tenths of the balance of those funds may be invested in loans upon security by way of mortgage of any lands and hereditaments held in fee simple in Norfolk Island or in property acquired by foreclosure or in bank premises; and

(c) A portion being as nearly as possible seven-tenths of the balance specified in paragraph 3(b) of this section shall be invested in securities of the Commonwealth or of a State or prescribed securities. 

Unlawful investments

 4. If the Bank invests any of its funds otherwise than in accordance with the provisions of the last preceding section, every member of the Bank, and every officer or employee of the Bank directly or indirectly knowingly concerned in, or party to, that investment shall be guilty of an offence.

Penalty:  Imprisonment for 12 months.

Restriction on loans

 5. Notwithstanding anything contained in section 3 of this Act, the Bank shall not lend upon security of mortgage of any lands or hereditaments held in fee simple more than two-thirds of the value of those lands and hereditaments.

Moneys not to be lent to certain persons

 6. (1) The Bank shall not lend money to  —

(a) any member of the Bank

(b) any officer or employee of the Bank;

(c) any company or society in or of which any member of the Bank is a director or member of the committee of management; or

(d) any firm of which any member of the Bank or any such officer or employee is a member.

  (2) A member or an officer or employee of the Bank shall not directly or indirectly borrow any of the funds of the Bank.

  (3) Every member, officer or employee of the Bank knowingly contravening any provision of this section, or being directly or indirectly knowingly concerned in, or party to, any such contravention, shall be guilty of an offence.

Penalty: Imprisonment for 12 months.

  (4) Nothing in this section shall prevent the Bank from depositing money in any bank which is approved by the Administrator.

Existing investments

 7. All funds of the Bank invested at the commencement of this Act shall, as soon as may be, be invested in accordance with the provisions of section 3 of this Act.

Audit

 8. (1) The Administrator shall appoint an officer to audit the books of the Bank.

  (2) The officer so appointed shall conduct the audit at least once in every year.

  (3) The directors and officers of the Bank shall make available for inspection by the officer appointed to audit the books of the Bank, all books, documents, securities and moneys of, or relating to, the Bank.

Penalty: $100.

Regulations

 9. The Commonwealth Minister may make Regulations, not inconsistent with this Act, prescribing all matters which are required or permitted to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act.

 

NOTES

The Norfolk Island Penny Savings Bank Act 1935 as shown in this consolidation comprises Act No. 5 of 1935 and amendments as indicated in the Tables below.

Enactment

Number

and year

Date of

commencement

Application saving or transitional provision

Norfolk Island Penny Savings Bank Act 1935

5, 1935

24.4.35

 

 

 

 

 

Ordinances Revision (Decimal Currency) Act 1980

31, 1980

15.1.81

 

 

 

 

 

[Previously consolidated as at 17 July 2003]

 

 

 

 

Interpretation (Amendment) Act 2012

[to substitute throughout —Commonwealth Minister for Minister; and to substitute Minister for executive member]

14, 2012

28.12.12

 

 

 

 

 

 

Table of Amendments

ad = added or inserted

am = amended

rep = repealed

rs =  repealed and substituted

Provision affected

How affected

 

 

 

 

 

8

am

31, 1980

 

© Norfolk Island Government 2013

The Copyright Act 1968 of the Commonwealth of Australia permits certain reproduction and publication of this legislation. For reproduction or publication beyond that permitted by the Act, written permission must be sought from the Legislative Counsel, Administration of Norfolk Island, Norfolk Island, South Pacific 2899.

Overview

The Norfolk Island Penny Savings Bank Act 1935 was enacted by the Parliament of Norfolk Island to provide for the regulation and operation of the Norfolk Island Penny Savings Bank. The Act was introduced to establish clear guidelines for the investments and operations of the Bank to ensure financial stability and compliance with specified investment policies. It aimed to protect the Bank's assets by setting out permissible investment options and prohibiting certain types of loans and investments. The policy objective of the Act is to safeguard the Bank's funds through prudent investment practices and to prevent conflicts of interest among its members, officers, and employees. The Commonwealth Minister has the authority to make regulations under this Act to further implement and enforce its provisions.

Scope and Application

The Norfolk Island Penny Savings Bank Act 1935 governs the operations of the Norfolk Island Penny Savings Bank, a banking institution established under the Act. This Act applies to the Bank and its members, officers, and employees, as well as to any associations of persons carrying on the business of banking under the Bank's name or any other name. It regulates the investment strategies, loan practices, and borrowing restrictions of the Bank to ensure financial stability and compliance. Geographically, the Act applies specifically to Norfolk Island, with any subordinate regulations made by the Commonwealth Minister in accordance with the Act extending its provisions as necessary. The Act explicitly prohibits the Bank from making unlawful investments and imposes penalties, including imprisonment, for violations. It mandates that the Administrator appoint an auditor to oversee the Bank's financial records and compliance with the Act's stipulations. The Act's application extends to existing investments, requiring the Bank to realign them with its provisions as soon as practicable.

Key Provisions

The Norfolk Island Penny Savings Bank Act 1935 outlines the regulatory framework for the operations of the Norfolk Island Penny Savings Bank (Section 2). This Act mandates how the Bank must invest its funds. Specifically, up to 20% of the Bank's funds can be deposited in other approved banks or retained in cash (Section 3(a)). The remaining funds must be invested in loans secured by mortgages on Norfolk Island properties, with the maximum loan amount not exceeding two-thirds of the property's value (Section 3(b)) and in securities of the Commonwealth or a State, or prescribed securities (Section 3(c)). Any investment not in accordance with these provisions is deemed unlawful, with penalties including imprisonment for up to 12 months for any member, officer, or employee of the Bank involved in such investments (Section 4). The Act also imposes several obligations and restrictions on the Bank. For instance, the Bank is prohibited from lending to its own members, officers, or employees, or to companies or firms in which they have a direct interest (Section 6). Additionally, members, officers, or employees of the Bank are forbidden from borrowing funds from the Bank, directly or indirectly. Contravening these provisions carries a penalty of imprisonment for up to 12 months (Section 6). The Act further requires that all existing investments of the Bank be realigned to comply with the specified investment strategies within the Act as soon as practicable (Section 7). The Norfolk Island Penny Savings Bank Act 1935 mandates that the Administrator appoint an officer to audit the Bank's books at least once a year (Section 8(2)). The directors and officers of the Bank must ensure that all relevant books, documents, securities, and moneys are made available for inspection during the audit. Failure to comply with this audit requirement attracts a penalty of $100 (Section 8(3)). The Commonwealth Minister has the authority to make regulations necessary to implement the Act, provided they do not conflict with its provisions (Section 9).

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Banking Law
Financial Regulation
Instrument
Act
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Definitions & Interpretation
Reporting & Disclosure Obligations
Licensing & Registration
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.