THE BANK ACT
THE REVISED STATUTES OF CANADA, 19C6
CHAPTER 29
V/iTH THE üQMPtlMENTS QF
>T* "l^í* "Z-p]•
I NORTHWESTERN UNIVERSITY |
I LIBRARY T
„ ■>
T. "" T
I EVANSTON, ILLINOIS ~
it A
3
CHAPTER 29.
An Act respecting Banks and Banking.
r
. of
SHOET TITLE. up.
!• This Act may be cited as the Bank Act. 53 V., c. 31, s. 1. Short title.
INTERPRETATION.
2i In this Act, unless the context otherwise requires,— Definitions.
(d) ' bank ' means any bank to which this Act applies; 'Bank,'
fàj ' ^linistcr ' means the ^linister of Finance and Receiver 'Minister.'
General ; ^
fcj 'Association' means the Canadian Bankers' Associa- 'Associa- ia.
tion, incorporated by the Act passed in the session held in
the sixty-third and sixty-fourth years of Her late Majesty's
reign, chapter ninety-three, intituled An Act to incorporate
the Canadian Bankers' Association ;
(d) 'curator' means any person appointed under the •
authority of this Act by the Canadian Bankers' Association
to supervise the affairs of any bank which has suspended 'IppH-
payment in specie or Dominion notes of any of its lia¬
bilities as they accrue ;
(e) 'Circulation Fund' means the fund heretofore estab-'Circulation
lished and continued by the authority of this Act under ^und.'
the name of the Bank Circulation Redemption Fund;
(f) 'goods, wares and merchandise' includes, in addition to 'Goods,
the things usually understood thereby, timber, deals,
boards, staves, saw-logs and other lumber, petroleum, dise." ^
crude oil, and all agricultural produce and other article.«
of commerce;
(g) ' warehouse receipt ' 'Warehouse
(i) means any receipt given by any person for any goods,
wares or merchandise in his actual visible and con¬
tinued possession as bailee thereof in good faith and
not as of his own property, and
(ii) includes receipts, given by any person who is the
owner or keeper of a harbour, cove, pond, wharf, yard,
warehouse, shed, storehouse or other place for the stor- office
age of goods, wares or merchandise, for goods, wares 'Utreal.
and merchandise delivered to him as bailee, and actu¬
ally in the place or in one or more of the places owned
or kept by him, whethei- such person is engaged in other
business or not, and
327 (iii)
R.S., 1906. 1906.
2 Chap. 29.
Banks.
' Bill of
lading.'
' Manufac¬
turer.'
' President.'
Public
notice, how
given.
(iii) includes also receipts given by any person in charge
of logs or timber in transit from timber limits or other
lands to the place of destination of such logs or timber ;
(h) 'bill of lading' includes all receipts for goods, wares
or merchandise, accompanied by an undertaking to trans-
. port the same from the place where they were received to
some other place, by any mode of carriage whatever,
whether by land or water, or partly by land and partly by
water ;
(i) ' manufacturer ' includes manufacturers of logs, timber
or lumber, maltsters, distillers, brewers, refiners and pro¬
ducers of petroleum, tanners, curers, packers, canners of
meat, pork, fish, fruit or vegetables, and any person who
produces by hand, art, process or mechanical means any
goods, wares or merchandise ;
(jj ' president ' does not include an honorary president ;
2. ^Yhere by this Act any public notice is required to be
given the notice shall, unless otherwise specified, be given
by advertisement,—
(a) in one or more newspapers published at the place where
the head office of the bank is situate ; and,
(b) in the Canada Gazette. 53 V., c. 31. ss. 2, 54 and 102;
63-64 v., c. 26, ss. 3 and 24; 4-5 E. VII., c. 4, s. 4.
APPLICATION.
General.
To what 3. The provisions of this Act apply to the several banks
Act'ïppïies enumerated in schedule A to this Act, and to every bank in¬
corporated after the first day of January, one thousand nine
hundred and five, whether this Act is specially mentioned in
its Act of incorporation or not, but not to any other bank,
except as hereinafter specially provided. 53 V., c. 31, s. 3.
Bank 4. The charters or Acts of incorporation, and any Acts in
amendment thereof, of the several banks enumerated in schedule
July 1st, A to this Act are continued in force until the first day of July,
some par-*° thousand nine hundred and eleven, so far as regards, as to
ticulars. each of such banks,—
(a) the incorporation and corporate name ;
(h) the amount of the authorized capital stock ;
(c) the amount of each share of such stock; and,
(d) the chief place of business ;
subject to the right of each of such banks to increase or reduce
its authorized capital stock in the manner hereinafter provided.
As to other 2. As to all other particulars this Act shall form and be the
particulars, charter of each of the said banks until the first day of July, one
thousand nine hundred and eleven.
Forfeited or 3- Nothing in this section shall be deemed to continue in
void charters force any charter or Act of incorporation, if, or in so far as it
not con- QOfi
tinued.
R.S., 1906.
Banks.
Cliap. 29.
3
is, under the terms thereof, or under the terms of this Act or of
any other Act passed or to be passed, forfeited or. rendered void
by reason of the non-performance of the conditions of such
charter or Act of incorporation, or by reason of insolvency, or
for any other reason. 63-64 V., c. 26, s. 6.
Banks in course of winding-up.
5. The provisions of this Act shall continue to apply to the
banks named in schedule A to the Bank Act, passed in the fifty-
third year of Her late Majesty's reign, chapter thirty-one, and purpLeTof
not named in schedule A to this Act, but only in so far as may wmdina-up.
be necessary to wind up the business of the said banks respec¬
tively ; and the charters or Acts of 'incorporation of the said
banks, and any Acts in amendment thereof, or any Acts in rela¬
tion to the said banks now in force, shall respectively continue
in force for the purposes of winding-up, and for such purposes
only.
2. The sections of this Act enumerated in the next following Bank of
section shall continue to apply to the Bank of British Columbia,
but only in so far as may be necessary to wind up the business
of the bank. 63-64 V., c. 26, s. 5.
The Bank of British North America.
6. The sections of this Act whfch apply to the Bank of What pro-
British North America are sections,— cabl'e"^
one ;
two;
six;
seven ;
thirty-nine ;
forty-five ;
fifty-seven to sixty-one, both inclusive;
sixty-three to one hundred and twenty-four both inclusive;
one hundred and thirty ;
one hundred and thirty-two to one hundred and fifty-two,
both inclusive; and,
one hundred and fifty-four to one hundred and fifty-seven,
both inclusive.
2. The other sections of this Act do not apply to the Bank of
British North America. 53 V., c. 31, s. 6 ; 63-64 V., c. 26, s. 7.
7. Tor the purposes of the several sections of this Act made chief office
applicable to the Bank of British North America the chief at Montreal,
office of the Bank of British North America shall be the office
of the bank at Montreal in the province of Quebec. 53 V.,
c. 31, s. 7.
329 IXCOEPOEATIOIT
R.S., 1906.
4
Chap. 29.
Banks.
UNCORPORATION AND ORGANIZATION OF BANKS.
Particulars
of Act of
incorpora¬
tion.
Form
thereof.
Capital
Block and
shares.
Provisional
directors.
Tenure.
8. The capital stock of every bank hereafter incorporated,
the name of the bank, the place where its chief office is to be
situated, and the name of the provisional directors, shall be
declared in the Act of incorporation of every such bank respec¬
tively. 53 v., c. 31, s. 9.
9. An 7\.ct of incorporation of a bank in the form set forth
in schedule B-to this Act shall be construed to confer upon the
bank thereby incorporated all the powers, privileges and im¬
munities, and to subject it to all the liabilities and provisions
set forth in this Act. 53 V., c. 31, s. 9.
10. The capital stock of any bank hereafter incorporated
shall be not less than five hundred thousand dollars, and shall
be divided into shares of one hundred dollars each. 53 V.,
c. 31, s. 10.
11. The niunber of provisional directors shall be not less
than five.
2. The provisional directors shall hold office until directors
are elected by the subscribers to the stock, as hereinafter pro¬
vided. 53 v., c. 31, s. 11; 4-5 E. VII., c. 4, s. 1.
Opening of 12. For the purpose of organizing the bank, the provisional
directors may, after giving public notice thereof, cause stock
books to be opened, in which shall be recorded the subscriptions
of such persons as desire to become shareholders in the bank.
Where. 2. Such books shall be opened 'at the place whei-e the chief
office of tlio bank is to be situate, and elsewhere, in the discre¬
tion of the provisional directors.
How long. 3. Such stock books may be kept open for such time as the
provisional directors deem necessary. 53 V., c. 31, s. 12.
First meeting 13. So soon as a sum not less than five hundred thousand
dollars of the capital stock of the bank has been bona fide sub¬
scribed, and a sum not less than two hundred and fifty thousand
dollars thereof has been paid to the Minister, the provisional
directors may, by public notice, published for at least four
weeks, call a meeting of the subscribers to the said stock, to be
held in the place named in the Act of incorporation as the chief
place of business of the bank, at such time and at such place
therein as set forth in the said notice.
2. The subscribers shall at such meeting,—
(a) determine the day upon which the annual general meet¬
ing of the bank is to be held ; and,
(h) elect such number of directors, duly qualified under this
Act, not less than five, as they think necessary.
3. Such directors shall hold office until the annual general
meeting in the year next succeeding their election.
330 4.
B.S., 1906.
of sub¬
scribers.
Business
thereat.
Tenure of
directors.
Banks.
Chap. 29. 5
4. Upon the election of directors as aforesaid the functions Provkional
of the provisional directors shall cease. 53 V., c. 31, s. 13;
4-5 E. VIL, c. 4, s. 2.
14. The bank shall not issue notes or commence the busi- Permission
ness of banking until it has obtained from the Treasury Board a
certificate permitting it to do so. buTíness'^^
2. No application for such certificate shall be made until
directors have been elected by the subscribers to the stock
cate until
in the manner hereinbefore provided. 53 V., c. 31, s. 14. elected^^
15. No certificate shall be given by the Treasury Board
until it has been shown to the satisfaction of the Board, by be'graSS.
aifidavit or otherwise, that all the requirements of this Act
and of the special Act of incorporation of the bank, as to the
payment required to be made to the Minister, the election of
directors, deposit for security for note issue, or other prelimin¬
aries, have been complied with, and that the sum so paid is
then held by the Minister.
2. No such certificate shall be given except within one year within one
from the passing of the Act of incorporation of the bank apply-
ing for the said certificate. 53 V., c. 31, s. 15.
16. If the bank does not obtain a certificate from the Treas- if certificiu-.e
ury Board within'one year from the time of the passing of sranted.
its Act of incorporation, all the rights, powers and privileges
conferred on the bank by its Act of incorporation shall there- Powers to
upon cease and determine, and be of no force or effect what- cease,
ever. 53 V., c. 31, s. 16.
17. Upon the issue of the certificate in manner hereinbefore Deposit, how
provided, the Minister shall forthwith pay to the bank the disposed of if
amount of money so deposited with him as aforesaid, without granted.^
interest, after deducting therefrom the sum of five thousand
dollars required to be deposited under the provisions of this
Act for the securing of the notes issued by the bank.
2. In case no certificate is issued by the Treasury Board if certificate
within the time limited for the issue thereof, the amoimt so granted,
deposited shall be returned to the person depositing the same.
3. In no case shall the Minister be under any obligation Minister not
to see to the proper application in any way of the amount so
returned. 53 V.. c. 31, s. 17.
INTJJKXAL REGULATIONS.
18. The shareholders of the bank may regulate, by by-law. By-laws,
the following matters incident to the management and admin¬
istration of the affairs of the bank, that is to say:—
(a) The day upon which the annual general meeting of the
shareholders for the election of directors shall be held •
331 '(h)
E.S., 1906.
c
Chap. 29.
Banks.
Guarantee
and pension
funds.
Existing by¬
laws con¬
tinued.
Exception.
(h) The record to be kept of proxies, and the time, not
exceeding thirty days, within which proxies must be pro¬
duced and recorded prior to a meeting in order to entitle
the holder to vote thereon;
(c) The number of the directors, which shall be not less than
five, and the quorum thereof, which shall be not less than
three ;
(d) Subject to the provisions hereinafter contained, the
qraalifications of directors;
(e) The method of filling vacancies in the board of direc¬
tors, whenever the same occur during each year ;
(f) The time and proceedings for the election of directors,
in case of a failure of any election on the day appointed
for it;
(g) The remuneration of the president, vice-president and
other directors; and,
(h) The amount of discounts or loans which may be made to
directors, either jointly or severally, or to any one firm or
person, or to any shareholder, or to corporations.
2. The shareholders may authorize the directors to establish
guarantee and pension funds for the ofiicers and employees of
the bank and their families, and to contribute thereto out of the
funds of the bank.
3. Until it is otherwise prescribed by by-law under this
section, the by-laws of the bank on any matter which may be
regulated by by-law under this section shall remain in force,
except as to any provision fixing the qualification of directors
at an amount less than that prescribed by tliis Act. 53 V.,
c. 31, s. 18 ; 4-5 E. VII., c. 4, s. 3.
Board of
directors.
19. The stock, property, affairs and concerns of the bank
shall be managed by a board of directors, who shall be elected
annually in manner hereinafter provided, and shall be eligible
for re-election. 53 V., c. 31, s. 19.
Qualifica¬
tions.
Idem.
20. Each director shall,—
(a) when the paid-up capital stock of the bank is one million
dollars or less, hold stock of the bank on which not less
than three thousand dollars have been paid up ;
(h) when the paid-up capital stock of the bank is over one
million dollars and does not exceed three million dollars,
hold stock of the bank on which not less than four thousand
dollars have been paid up ; and,
(c) when the paid-up capital stock of the bank exceeds three
million dollars, hold stock of the bank on which not less
than five thousand dollars have been paid up.
2. No person shall be elected or continue to be a director
unless he holds stock paid up to the amount required by this
Act, or such greater amount as is required by any by-law in that
behalf.
332 3.
K.S., 1906.
Banks.
Chap. 29. 7
3. A majority of the directors shall be natural born or natur- Majority to
alized subjects of His Majesty. 53 V., c. 31, ss. 18 and 19. subject^"*^'^^
21. The directors shall be elected by the shareholders on Election of
such day in each year as is appointed by the charter or by any "lirectors.
by-law of the bank, and at such time of the day as the directors
appoint.
2. The election shall take place at the head office of the bank. head
3. Public notice of the election shall be given by the direc-
tors by publishing such notice, for at least four weeks previously
to the time of holding the election, in a newspaper published
at the place where the head office of the bank is situate. 53 V.,
c. 31, s. 19.
22. The persons, to the number authorized to be elected, who Who shall
have the greatest number of votes at any election, shall be directors,
directors. 53 V., c. 31, s. 19.
23. If it happens at any election that two or more persons Provision in
have an equal number of votes, and the election or non-election
of one or more of such persons as a director or directors depends votes,
on such equality, then the directors who have a greater number
of votes, or the majority of them, shall, in order to complete
the full number of directors, determine which of the said per¬
sons so having an equal number of votes shall be a director or
directors. 53 V., c. 31, s. 19.
24. The directors, as soon as may be after their election. Election of
shall proceed to elect, by ballot, two of their number to be pre- and^'^^ce-
sident and vice-president respectively. president.
2. The directors may also elect by ballot one of their number Honorary
to be honorary president. 53 V., c. 31, s. 19 ; 4-5 E. VII., c. 4, President,
s. 4.
25. If a vacancy occurs in the board of directors the Vacancies,
vacancy shall be filled in the manner provided by the by-laws :
Provided that, if the vacancy is not filled, the acts of a quorum Proviso,
of the remaining directors shall not ^ be thereby invalidated.
53 v., c. 31, s. 19.
26. If a vacancy occurs in the office of the president or vice- Vacancy of
president, the directors shall, from amone; themselves, elect a PF^^'dent or
• • viC0"pr0si*
president or vice-president, who shall continue in office for the dent,
remainder of the year. 53 V., c. 31, s. 19.
27. If an election of directors is not made on the day Failure of
appointed for that purpose, such election may take place on any election,
other day, according to the by-laws made by the shareholders in
that behalf.
333 2.
R.S., 1906.
8
Chap. 29.
BanJcs.
Meetings of
directors.
Idem.
Voting.
2. The directors in office on the day appointed for the elec¬
tion of directors shall remain in office until a new election is
made. 53 V., c. 31, s. 20.
28. The president, or in his absence the vice-president, shall
preside at all meetings of the directors.
2. If at any meeting of the directors both president and vice-
president are absent, one of the directors present, chosen to act
pro tempore, shall preside.
3. The president, vice-president or president pro tempore, so
presiding, shall vote as a director, and shall, if there is an equal
division on any question, also have a casting vote. 53 V., c. 31,
s. 21.
General
powers of
directora.
Existing by¬
laws con¬
tinued.
Appoint¬
ment of
officers.
Branches.
Salaries.
Security.
Special
general
meeting.
29. The directors may make by-laws and regulations, not
repugnant to the provisions of this Act or to the laws of Canada,
with respect to,—
(a) the management and disposition of the stock, property,
affairs and concerns of the bank ;
(h) the duties and conduct of the officers, clerks and servants
employed therein; and,
(c) all such other matters as appertain to the business of a
bank.
2. All by-laws of the bank heretofore lawfully made and now
in force with regard to any matter respecting which the direc¬
tors may make by-laws under this section, including any by¬
laws for the establishing of guarantee and pension funds for
the employees of the bank, shall remain in force until they are
repealed or altered by other by-laws made under this Act. 53
v., c. 31, s. 22.
30. The directors may appoint as many officers, clerks and
servants as they consider necessary for the carrying on of the
business of the bank.
2. The directors may also appoint a director or directors for
any branch of the bank. '
3. Such officers, clerks and servants may be paid such salaries
and allowances as the directors consider necessary.
4. The directors shall, before permitting any cashier, officer,
clerk or servant of the bank to enter upon the duties of his office,
require him to give a bond, guarantee, or other security to the
satisfaction of the directors, for the due and faithful perform¬
ance of his duties. 53 V., c. 31, s. 23.
31. A special general meeting of the shareholders of the
bank may be called at any time by,—
(a) the directors of the bank or any four of them ; or,
(h) any number not less than twenty-five of the share¬
holders, acting by themselves or by their proxies, who are
together proprietors of at least one-tenth of the paid-up
capital stock of the bank.
334 2.
RS., 1906.
ßanka.
Chap. 29. O
2. Such directors or shareholders shall give six weeks' pre- Notice,
vious public notice, specifying therein the object of such meet¬
ing.
3. Such meeting shall be held at the usual place of meet- Place,
ing of the shareholders.
4. If the object of the special general meeting is to con-> Removal of
sider the proposed removal, for maladministration or other ^[ce-pr^V-
specitied and apparently just cause, of the president or vice-
president, or of a director of the bank, and if a majority of ° '
the votes of the shareholders at the meeting is given for such
removal, a director to replace him shall be elected or appointed Another to
in the manner provided by the by-laws of the bank, or, if there
are no by-laws providing therefor, by the shareholders at the
meeting.
5. If it is the president or vice-president who is removed, Choosing
his office shall be filled by the directors in the manner pro- qj.
vided in case of a vacancy occurring in the office of president vice-presi-
or vice-president. 53 V., c. 31, s. 24.
32. Every shareholder shall, on all occasions on which the One vote for
votes of the shareholders are taken, have one vote for each share,
share held by him for at least thirty days before the time of
meeting.
2. In all cases when the votes of the shareholders are taken. Ballot,
the voting shall be by ballot.
3. All questions proposed for the consideration of the share- Majority to
holders shall be determined by a majority of the votes of the determine,
shareholders present in person or represented by proxy.
4. The chairman elected to preside at any meeting of the Casting vote,
shareholders shall vote as a shareholder only, unless there is
a tie, in which case he shall, except as to the election of a
director, have a casting vote.
5. If two or more persons are joint holders of shares, any As to joint
one of the joint holders may be empowered, by letter of at- güijes®
torney from the other joint holder or holders, or a majority of
them, to represent the said shares, and to vote accordingly.
6. Shareholders may vote by proxy, but no person other than Proxies,
a shareholder eligible to vote shall be permitted to vote or act
as proxy.
7. No manager, cashier, clerk or other subordinate officer Officer not to
of the bank shall vote either in person or by proxy, or hold a
proxy for the purpose of voting.
8. No appointment of a proxy to vote at any meeting of Renewal of
the shareholders of the bank shall be valid for that purpose,
unless it has been made or renewed in writing within the two
years last preceding the time of such meeting.
9. No shareholder shall vote, either in person or by proxy. Calls must
on any question proposed for the consideration of the share-
holders of the bank at any meeting of the shareholders, or voting.
in any case in which the votes of the shareholders of the banlv
335 are
ŒI.S., 1906.
10
Chap. 29.
Banks.
are taken, unless he has paid all calls made by the directors
which are then due and payable. 53 V., c. 31, s. 25.
Increase
By-law.
Approval of
Treasury
Board.
Conditions
for approval.
Treasury
Board may
refuse.
Allotment.
To present
shareholders.
To the
public.
CAPITAL STOCK.
33. The capital stock of the bank may be increased, from
time to time, by such percentage, or by such amount, as is
determined upon by by-law passed by the shareholders, at the
annual general meeting, or at any special general meeting called
for the purpose.
. 2. No such by-law shall come into operation, or be of any
force or effect, unless and until a certificate approving thereof
has been issued by the Treasury Board.
3. No such certificate shall be issued by the Treasury Board
unless application therefor is made within three months from
the time of the passing of the by-law, nor unless it appears
to the satisfaction of the Treasury Board that a copy of the
by-law, together with notice of intention to apply for the certi¬
ficate, has been published for at least four weeks in the Canada
Gazette, and in one or more newspapers published in the place
where the chief office or place of business of the bank is situate.
4. Nothing herein contained shall be construed to prevent
the Treasury Board from refusing to issue such certificate if
it thinks best so to do. 53 V., c. Si, s. 26.
34. Any of the original unsubscribed capital stock, or of
the increased stock of the bank, shall, when the directors so
determine, be allotted to the then shareholders of the bank
pro rata, and at such rate as is fixed by the directors : Provided
that,—
(a) no fraction of a share shall be so allotted; and,
(h) in no case shall a rate be fixed by the directors, which
will make the premium, if any, paid or payable on the
stock so allotted, exceed the percentage which the reserve
fund of the bank then hears to the paid-up capital stock
thereof.
2. Any of such allotted stock which is not taken up by the
shareholder to whom the allotment has been made, within
six months from the time when notice of the allotment was
mailed to his address, or which he declines to accept, may
be offered for subscription to the public, in such manner and
on such terms as the directors prescribe. 53 V., c. 31, s. 27.
Reduction. 35. The capital stock of the bank may be reduced by by-law
passed by the shareholders at the annual general meeting, or at
a special general meeting called for the purpose.
2. No such by-law shall come into operation or be of force or
effect until a certificate approving thereof has been issued by
the Treasury Board.
3. No such certificate shall be issued by the Treasury Board
for approval, application therefor is made within three months from
336 the
E.S., 1906.
Approval of
Treasury
Board.
Conditions
Banks.
Chap. 29. 11
the time of the passing: of the by-law, nor unless it appears to
the satisfaction of the Board that,—
(a) the shareholders voting for the by-law represent a
majority in value of all the shares then issued by the bank;
and,
(h) a. copy of the by-law, together with notice of intention
td apply to the Treasury Board for the issue of a certificate
approving thereof, has been published for at least four
weeks in the Canada Gazette, and in one or more news¬
papers published in the place where the chief office or place
of business of the bank is situate.
4. Nothing herein contained shall be construed to prevent Treasury
the Treasury Board from refusing to issue the certificate if
it thinks best so to do.
5. In addition to evidence of the passing of the by-law, and
of the publication thereof in the manner in this section pro- mitted.
vided, statements showing,—
(a) the amount of stock issued ;
(b) the number of shareholders represented at the meeting
at which the by-law passed ;
(c) the amount of stock held by each such shareholder ;
(d) the number of shareholders who voted for the by-law ;
(e) the amount of stock held by each of such last mentioned
shareholders ;
(f) the assets and liabilities of the bank in full ; and,
(g) the reasons and causes why the reduction is sought ;
shall be laid before the Treasury Board at the time of the appli- To Treasury
cation for the issue of a certificate approving the by-law. Board.
6. The passing of the by-law, and any reduction of the Not to affect
capital stock of the bank thereunder, shall not in any way g^^^reholdws.
diminish or interfere with the liability of the shareholders of
the bank to the creditors thereof at the time of the issue of the
certificate approving the by-law.
7. If in any case legislation is sought to sanction any reduc- if legislation
tion of the capital stock of any bank, a copy of the by-law or i® asked to
resolution passed by the shareholders in regard thereto, together reduction,
with statements similar to those by this section required to be
laid before the Treasury Board, shall, at least one month prior
to the introduction into Parliament of the Bill relating to such
reduction, be filed with the Minister.
8. The capital shall not be I'educed below the amount of two Limit of
hundred and fifty thousand dollars of paid-up stock. 53 V., reduction,
c. 31, s. 28.
SHAKES AND CALES.
36. The shares of the capital stock of the bank shall be per- gjiares
SOnal property. personalty.
2. Books of subscription may be opened at the chief place of Books of
business of the bank, or at such of its branches, or at such place subscription.
22 337 or
E.S., 1906.
12
Chap. 39.
Banks.
Transfers.
Dividends.
Agents.
Payment of
shares.
Cancellation
for non-pay¬
ment.
Not to
relieve if,
bank insol¬
vent.
or places in the United Kingdom or in any of the British col¬
onies or possessions, as the directors prescribe.
3. The shares shall be assignable and transferable at any of
the places aforesaid, according to such forms and subject to such
rules and regulations as the directors prescribe.
4. The dividends accruing upon any shares of the capital
stock of the bank may be made payable at any of the- places
aforesaid.
5. The directors may appoint such agents in the United
Kingdom, or in any of the British colonies or possessions, for
the purposes of this section, as they deem necessary. 53 V.,
c. 31, s. 29.
ZU. The shares of the capital stock shall be paid in by such
instalments and at such times and places as the directors
appoint.
2. The directors may cancel any subscription for any share,
unless a sum equal to ten per centum at least on the amount
subscribed for is actually paid at or Avitbin thirty days after the
time of subscribing.
3. Such cancellation shall not, in the event of insolvency,
relieve the subscriber as. hereinafter provided, from his liability
to creditors. 53 V., c. 31, s. 30.
Calls on 38. The directors may make such calls of money from the
shares. several shareholders for the time being, upon the shares sub¬
scribed for by them respectively, as they find necessary.
Intervals for 2. Such calls shall be made at intervals of not less than thirty
days.
3. Kotice of any such call shall be given at least thirty days
prior to the day on tvhich the call is payable. ^
4. Ko such call shall exceed ten per'centum of each share
subscribed. 53 V., c. 31, s. 31.
calls.
Notice.
Limitation.
Capital lost
to be called
for.
Returns to
mention.
Recovery of
calls.
Forfeiture.
39. If any part of the paid-up capital is lost the directors
shall, if all the subscribed stock is not paid up, forthwith make
calls upon the shareholders to an amount equivalent to the
loss : Provided that all net profits shall be applied to make good
such loss.
2. Any such loss of Capital and the calls, if any made in re¬
spect thereof, shall be mentioned in the next return made by
the bank to the Minister. 53 V., c. 31, s. 48.
40. In case of the non-payment of any call, the directors
may, in the corporate name of the bank, sue for, recover, col¬
lect and get in any such call, or may cause and declare the
shares in respect of which any such call is made to be forfeited
to the bank. 53 V., c. 31, s. 32.
Fine for
failure to
pay call.
E.S., 1906.
41. If any shareholder refuses or neglects to pay any in¬
stalment upon his shares of the capital stock at the time appoint-
338 ed
Banks.
Chap. 29.
13
ed therefor, such shareholder shall incur a penalty, to the use
of the hank, of a sum of money equal to ten per centum of the
amount of such shares.
2. If the directors declare any shares tiPbe forfeited to the Sale of for-
hank they shall, within six months thereafter, without any ®
previous formality, other than thirty days' public notice of
their intention so to do, sell at public auction the said shares,
or so many of the said shares as shall, after deducting the
reasonable expenses of the sale, yield a sum of n^oney sufficient
to pay the unpaid instalments due on the remainder of the said
shares, and the amount of penalties incurred upon the whole.
3. The president or vice-president, manager or cashier of Transfer,
the hank shall execute the transfer to the purchaser of the executed,
shares so sold ; and such transfer shall be as valid and effectual
in law as if it had been executed by the original holder of the
shares thereby transferred.
4. The directors, or the shareholders at a general meeting, Remission
may, notwithstanding anything in this section contained, penaltj"^^
remit, either in whole or in part, and conditionally or uncon¬
ditionally, any forfeiture or penalty incurred by the non-pay¬
ment of instalments as aforesaid. 53 V., c. 31, s. 33.
42. In any action brought to recover any money due on Recovery by
any call, it shall not be necessary to set forth the special mat-
ter in the declaration or statement of claim, but it shall be
sufficient to allege that the defendant is the holder of one share
or more, as the case may be, in the capital stock of the bank, Allegations.
and that he is indebted to the bank for a call or calls upon such
share or shares, in the sum to which the call or calls amount,
as the case may be, stating the amount and number of the
calls.
2. It shall not be necessary, in any such action, to prove the Proof.
appointment of the directors. 53 V., c. 31, s. 34.
TRANSFER AND TRANSMISSION OF SHARES.
43. No assignment or transfer of the shares of the capital Conditions
stock of the bank shall be valid unless,— of'^sÎaivï^'^
(a) made, registered and accepted by the person to whom
the transfer is made in a book or books kept for that pur¬
pose ; and,
(b) the person making the assignment or transfer has, if
required by the bank, previously discharged all his debts
or liabilities to the bank which exceed in amount the
remaining stock, if any, belonging to such person, valued at
the then current rate.
2. No fractional part of a share, or less than a whole share. Fraction of
shall be assignable or transferable. 53 V., c. 31, s. 35. share not
' transierable.
44. A list of all transfers of shares registered each day in List of
the books of the bank, showing, in^each case, the parties to such transfers.
22J 339 transfers
U.S.. 190G.
11
Chap. 29.
Banks.
transfers and the number of shares transferred, shall be made
up at the end of each day.
For inspec- 2. Sucli lists shall be kept at the chief place of business
of the bank, for tbetfcispecfion of its shareholders. 53 V., c. 31,
s. 36.
Require¬
ments for
valid trans¬
fer.
Contract to
state num¬
ber.
Purchasers
without
Tiotice.
45. All sales or transfers of shares, and all contracts and
agreements in respect thereof, hereafter made or purporting to
be made, shall be null and void, unless the person making the
sale or transfer, or the person in whose name or behalf the
sale or transfer is made, at the time of the sale or transfer,—
(a) is the registered owner in the books of the bank of the
share or shares so sold or transferred, or intended or pur¬
porting to be so sold or transferred ; or,
(b) has the registered owner's assent to the sale.
2. The distinguishing number or numbers, if any, of such
share or shares" shall be designated in the contract of agreement
of sale or transfer.
3. Notwithstanding anything in this section contained, the
rights and remedies under any contract of sale, which doe i
not comply with the conditions and requirements in this section
mentioned, of any purchaser who has no knowledge of such
non-compliance, are hereby saved. 53 V., c. 31, s. 37.
Sale of
shares under
execution.
Transfer,
how
executed.
Validity.
46. ^^^len any share of the capital stock has been sold
under a writ of execution, the officer by wffiom the writ was
executed shall, within thirty days after the sale, leave with
the bank an attested copy of the writ, with the certificate of
such officer endorsed thereon, certifying to whom the sale has
been made.
2. The president, vice-president, manager or cashier of
the bank shall execute the transfer of the share so sold to the
purchaser, but not until after all debts and liabilities to the
bank of the holder of the share, and all liens in favour of the
bank existing thereon, have been discharged as by this Act
provided.
3. Such transfer shall be to all intents and purposes as valid
and effectual in law as if it had been executed by the holder of
the said share. 53 V., c. 31, s. 38.
Transmis- 47. If the interest in any share in the capital stock of any
sh^es^ bank is transmitted by or in consequence of,—
(a) the deatb, bankruptcy, or insolvency of any shareholder;
or,
(h) the marriage of a female shareholder ; or,
(c) any lawful means, other than a transfer according to
the provisions of this Act ;
How authen- the transmission shall be authenticated by a declaration in
ticated. writing, as hereinafter mentioned, or in such other manner as.
the directors of the bank require.
*340 2.
K.S., 1906.
Banks.
Chap. 29.
15
2. Every such declaration shall distinctly state the maimer Declaration,
in which and the person to whom the share has been trans¬
mitted, and shall be made and signed by such person.
3. The person making and signing the declaration shall Acknowledg-
acknowledge the same before a judge of a court of record, or
before the mayor, provost or chief magistrate of a city, town,
borough or other place, or before a notary public, where the
same is made and signed.
4. Every declaration so signed and acknowledged shall be left
with the cashier, manager, or other officer or agent of the bank,
who shall thereupon enter the name of the person entitled under
the transmission in the register of shareholders.
5. Until the transmission has been so authenticated, no per- Exercise of
son claiming by virtue thereof shall be entitled to participate in
the profits of the bank, or to vote in respect of any such share
of the capital stock. 53 V., c. 31, s. 39.
48. If the transmission of any share of the capital stock has Transmission
taken place by virtue of the marriage of a female shareholder, f™naïè^^^
the declaration shall be accompanied by a copy of the register shareholder,
of such marriage, or other particulars of the celebration thereof,
and shall declare the identity of the wife with the holder of such Declaration,
share, and shall be made and signed by such female shareholder
and her husband.
2. The declaration may include a statement to the effect If separate
that the share transmitted is the separate property and under
the sole control of the wife, and that she may, without requir¬
ing the consent or authority of her husband, i-eceive and gTant
receipts for the dividends and profits accruing in respect there¬
of, and dispose of and transfer the share itself.
3. The declaration shall be binding upon the bank and per- Revocation,
sons making the same, until the said persons see fit to revoke it
by a written notice to the bank to that effect.
4. The omission of a statement in any such declaration that Omission not
the wife making the declaration is duly authorized by her *^0 invalidate,
husband to make the same shall not invalidate the declaration.
53 v., c. 31, s. 40.
49. Every such declaration and instrument as are by the Authentica-
last two preceding sections required to perfect the transmission jar"ti°n'^et'c
of a share in the bank shall, if made in any country other than in certain
Canada, the United Kingdom or a British colony,— cases.
(a) be further authenticated by the clerk of a court of record
under the seal of the court, or by the British consul or
vice-consul, or other accredited representative of His
Majesty's Government in the country where the declara¬
tion or instrument is made ; or,
(b) be made directly before such British consul, vice-consul
or other accredited representative.
341 ■ 2.
RS., 1906.
IG
Chap. 29.
Banks.
2. The directors, cashier or other officer or agent of the bank
may require corroborative evidence of any fact alleged in any
such declaration. 53 V., c. 31, s. 39.
50. If the transmission has taken place by virtue of any
testamentary instrument, or by intestacy, the probate of the
will, or the letters of administration, or act of curatorship or
tutorship, or an official extract therefrom, shall, together with
the declaration, be produced and left with the cashier or other
officer or agent of the bank.
2. The cashier or other officer or agent shall thereupon enter
in the register of shareholders the name of the person entitled
under the transmission. 53 V., c. 31, s. 41.
by^de^ïe.°° transmission of any share of the capital stock has
taken place by virtue of the decease of any shareholder, the pro¬
duction to the directors and the deposit with them of,—
(a) any authenticated copy of the probate of the will of the
deceased shareholder, or of letters of administration of his
estate, or of letters of ^•erification of heirship, or of the
act of curatorship or tutorship, granted by any court in
Canada having power to grant the same, or by any court
or authority in England, Wales, Ireland, or any British
colony, or of any testament, testamentary or testament
dative expede in Scotland; or,
(h) an authentic notarial copy of the will of the deceased
shareholder, if such will is in notarial form according to
the law of the province of Quebec; or,
(c) if the deceased shareholder died out of His Majesty's
dominions, any authenticated copy of the probate of his
will or letters of administration of his property, or other
document of like import, granted by any court or authority
having the requisite power in such matters ;
shall be sufficient justification and authority to the directors for
paying any dividend, or for transferring or authorizing the
transfer of any share, in pursuance of and in conformity to the
probate, letters of administration, or other such document as
aforesaid. 53 V., c. 31, s. 42.
Further
evidence.
Tmnsmis-
sion by will
or intestacy.
Entry.
SHAKES SUBJECT TO TRUSTS.
Bank not 52. The bank shall not be bound to see to the execution of
to"tTOsts trust, whether expressed, implied or constructive, to which
any share of its stock is subject.
Receipt. 2. The receipt of the person in whose name any such share
stands in the books of the bank, or, if it stands in the names of
more persons than one, the receipt of one of such persons, shall
be a sufficient discharge to the bank for any dividend or any
other sum of money payable in respect of such share, unless,
previously to such payment, express notice to the contrary has
been given to the bank.
342 3.
R.S., 190G.
Banks.
Clia[). 29.
17
3. The bank shall not be bonnd to see to the application Bank not
of the money paid upon such receipt, whether given by one l^ound.
of such persons or all of them. 53 V., c. 31, s. 43.
53. Xo person holding stock in the bank as executor, admin- Executor,
istrator, guardian, trustee, tutor or curator of or for any estate, personaOy
trust or person named in the hooks of the hank as being so liable as
represented by him, shall be personally subject to any liability
as a shareholder; but the estate and funds in his hands shall
be liable in like manner and to the same extent as the testator,
intestate, ward or person interested in such estate and funds
would be, if living and competent to hold the stock in his own
name.
2.' If the trust is for a living person, such person shall also Ce/itui n>ie
himself be liable as a shareholder. liable.
3. If the estate, trust or person so represented is not so Executor,
named in the books of the bank, the executor, administrator, f/trus^not
guardian, trustee, tutor or curator shall be personally liable named.
in respect of the stock, as if he held it in his own name as
owner thereof. 63-64 V., c. 26, s. 8.
ANNUAL STATEMENT AND INSPECTION.
54. At every annual meeting of the shareholders í<jt the Statement to
election of directors, the out-going directors shall submit a before
clear and full statement of the affairs of the bank, exhibiting, annual
on the one hand, the liabilities of or the debts due by the bank,
and, on the other hand, the assets and resources thereof.
2. The statement shall show, on the one part,— Liabilities.
(a) the amount of the capital stock paid in ;
(b) the amount of the notes of the bank in circulation ;
(c) the ijet profits made ;
(d) the balances due to other banks ; and,
(e) the cash deposited in the bank, distinguishing deposits
bearing interest from those not bearing interest.
3. The statement shall show, on the other part,— Assets.
(a) the amount of the current coin, the gold and silver bul¬
lion and the Dominion notes held by the bank ;
(h) the balances due to the bank from other banks ;
(c) the value of the real and other property of the bank;
and,
(d) the amount of debts owing to the bank, including and
particularizing the amounts so owing upon bills of ex¬
change, discounted notes, mortgages and other securities.
4. The statement shall also exhibit,— Other
(a) the rate and amount of the last dividend declared by particulars.
the directors ;
(h) the amount of reserved profits at the date of such state¬
ment ; and,
343 (c)
R.S., 1900.
18
Chp.p. r9»
r>nnJi-s.
Further
statements
as required
by by-law.
When to be
submitted.
Inspection of
books.
Customer's
accounts.
(cj the amount of debts dtfe to the bank, overdue and not
paid, with an estimate of the loss which will probably
accrue thereon. 53 V., c. 31, s. 45.
55t The directors shall also submit to the shareholders such
further statements of the affairs of the bank, other than state¬
ments with reference to the account of any person dealing with
the bank, as the shareholders require by by-law passed at the
annual general meeting, or at any special general meeting of
the shareholders called for the purpose.
2. The statements so required shall be submitted at the
annual general meeting, or at any special general meeting called
for the purpose, or at such time and in such manner as is set
forth in the by-law of the shareholders requiring such state¬
ments. 63-64 v., c. 26, s. 9.
56. The books, correspondence and funds of the bank shall,
at all times, be subject to the inspection of the directors.
2. No person, who is not a director, shall be allowed to in¬
spect the account of any person dealing with the bank. 53 V.,
c. 31, s. 46.
DIVIDENDS.
Quarterly or
half yearly.
Notice.
Books
closed.
57. The directors of the bank shall, subject to the provi¬
sions of this Act, declare quarterly or half yearly dividends
of so much of the profits of the bank as to the majority of them
seems advisable.
2. The directors shall give at least thirty days' public notice
of the payment of such dividends previously to the date fixed
for such payment.
3. The directors may close the transfer books during a cer¬
tain time, not exceeding fifteen days, before the 'payment of
each dividend. 53 V., c. 31, s. 47.
Dividend not 58. No dividend or bonus shall ever be declared so as to
impair the paid-up capital of the bank.
2. The directors who knowingly and wilfully concur in
the declaration or making payable of any dividend or bonus,
whereby the paid-up capital of the bank is impaired, shall be
jointly and severally liable for the amount of such dividend
or bonus, as a debt due by them to the bank. 53 V., c. 31, s. 48.
to impair
capital.
Directors
liable for
such divi¬
dend.
Dividend
limited
unless there
is a certain
reserve.
59. No division of profits, either by way of dividends or
bonus, or both combined, or in any other way, exceeding the
rate of eight per centum per annum, shall be made by the bank,
unless, after making the same, the bank has a rest or reserve
fund, equal to at least thirty per centum of its paid-up capital
after deducting all bad and doubtful debts. 53 V., c. 31, s. 49.
344
CASH
K.S., 1906.
Banks.
Chap. 29.
19
CASH RESERVES.
60. The bank shall hold not less than forty per centum of its Fortv per
cash reserves in Dominion notes. Dominion
2. The Minister shall make such arrangements as are neces- notes,
sary for ensuring the delivery of Dominion notes to any bank,
in exchange for an equivalent amount of specie, at the several notes,
offices at which Dominion notes are redeemable, in the cities of
Toronto, Montreal, Halifax, St. John, Winnipeg, Victoria and
Charlottetown, respectively.
3. Such notes shall be redeemable at the office for redemption Redemption,
of Dominion notes in the place where the specie is given in
exchange. 53 V., c. 31, s. 50.
THE ISSUE AND CIRCULATION OF NOTES.
61. The bank may issue and fe-issue notes paya^jle to bearer Authority
on demand and intended for circulation : Provided that,— Proviso.
(a) the bank shall not, during any period of suspension of
payment of its liabilities, issue or re-issue any such notes;
and,
(h) if, after any such suspension, the bank resumes business
■ without the consent in writing of the curator, hereinafter
provided for, it shall not issue or re-issue any of such notes
until authorized by the Treasury Board so to do.
2. No such note shall be for a sum less than five dollars, or $5, or multi-
for any sum which is not a multiple of five dollars. P'®® thereof.
3. The total amount of such notes, in circulation at any time, Amount
shall not exceed the amount of the unimpaired paid-up capital
of the bank.
4. Notwithstanding anything in this section contained the Bank of
total amount of such notes of the Bank of British North
America in circulation at any time shall not exceed seventy-five America,
per centum of the unimpaired paid-up capital of the Bank:
Provided that,—
(a) the Bank may issue such notes in excess of the said
seventy-five per centum upon depositing with the Minister,
in respect of the excess, in cash or bonds of the Dominion
of Canada, an amount equal to the excess; and the cash
or bonds so deposited shall, in the event of the suspension
of the Bank, be available by the Minister for the redemp¬
tion of the notes issued in excess as aforesaid ; and,
(h) the total amount of such notes of the Bank in circulation
at any time shall in no case exceed its unimpaired paid-up
capital.
5. All notes heretofore issued or re-issued by any bank, and ^„jg^
now in circulation, which are for a sum less than five dollars, or
for a sum which is not a multiple of five dollars, shall be called
in and cancelled as soon as practicable. 53 V., c. 31, s. 51 ; called in.
63-64 v., c. 26, s. 10.
345 62.
H.S., IDOG.
20
Chap. 29.
Banks.
Xcte issue
aI agency in
British pos¬
session other
than Canada.
Governor in
Council to
fix rate for
circulation.
Redemption.
Redemption
if agency is
abolished.
Total
amount of
circulation.
No re-issue
in Canada.
Section
limited.
62. Notwithstanding the provisions of the last preceding
section any bank may issue and re-issue, at any office or agency
of the bank in any British colony or possession other than Can¬
ada, notes of the bank payable to bearer on demand and in¬
tended for circulation in such colony or possession, for the sum
of one pound sterling each, or for any multiple of such sum, or
for the sum of five dollars each, or for any multiple of such
sum, of the dollars in commercial use in such colony or posses¬
sion, if the issue or re-issue of such notes is not forbidden by
the laws of such colony or possession.
2. No issue of notes of the denomination of five such dollars,
or any multiple thereof, shall be made in any such British
colony or possession unless nor until the Governor in Council,
on the report of the Treasury Board, determines the rate, in
Canadian currency, at which such notes shall be circulated as
forming part of the total amount of the notes in circulation
within the meaning of the last preceding section.
3. The notes so issued shall be redeemable at par at any office
or agency of the bank in the colony or possession in which they
are issued for circulation, and not elsewhere, except as in this
section specially provided ; and the place of redemption of such
notes shall be legibly printed or stamped across the face of each
note so issued.
4. In the event of the bank ceasing to have an office or agency
in any such British colony or possession, all notes issued in such
colony or possession under the provisions of this section shall
become payable and redeemable at the rate of four dollars and
eighty-six and two-thirds cents per pound sterling, or, in the
case of the issue of notes, of the denomination of five dollars, or
any multiple thereof, of the dollars in commercial use in such
colony or possession, at the rate established by the Governor in
Council as required by this section, in the same manner as notes '
of the bank issued in Canada áre payable and redeemable.
5. The amount of the notes at any time in circulation in any
such colony or possession, issued under the provisions of this
section, shall, at the rate mentioned in the last preceding sub¬
section, form part of the total amount of the notes in circula¬
tion within the meaning of the last preceding section, and,
except as herein otherwise specially provided, shall be subject
to all the prévisions of this Act.
6. No notes issued for circulation in a British colony or pos¬
session other than Canada shall be re-issued in Canada.
7. Nothing in this section contained shall be construed to
authorize any bank,—
(a) to increase the total amount of its notes in circulation
in Canada and elsewhere beyond the limit fixed by the last
preceding section; or,
(b) to issue or re-issue in Canada notes payable to bearer
on demand, and intended for circulation, for a sum loss
than five dollars, or for a sum which is not a multiple of
five dollars. 4 E. VII., c. 3, ss. 1, 2, 3 and 4.
346 63.
R.S., 1906.
Banks.
Chap. 29. 21
63. The bank shall not pledge, assign, or hypothecate its
notes; and no advance or loan made on the security of the prohibited,
notes of a bank shall be recoverable from the hank or its assets.
53 v., c. 31, s. 52.
64. The moneys heretofore paid to and now deposited
with the Minister by the banks to which this Act applies, con- tion fund
stituting the fund known as the Bank Circulation Redemption continued.
Fund, shall continue to be held by the Minister for the purposes
and subject to the provisions in this section "mentioned and con¬
tained.
2. The Minister shall, upon the issue of a certificate under S5,ooo to be
this Act authorizing a bank to issue notes and commence the upon" issue
business of banking, retain, out of any moneys of such bank of certificate,
then in his possession, the sum of five thousand dollars, which
sum shall be held for the purposes of this section, until the
annual adjustment hereinafter proyided for takes place in the
year then next following.
3. The amount at the credit of such bank shall, at such next Adjustment,
annual adjustment, be adjusted by'payment to or by the bank
of such sum as is necessary to make the amount of money at
the credit of the bank equal to five per centum of the average Five per
amount of its notes in circulation from the time it commenced c®ntum of
average cir-
business to the time of such adjustment and such sum shall culation.
thereafter be adjusted annually as hereinafter provided.
4. The amounts heretofore and from time to time hereafter Circulation
paid, to be retained and held by the Minister as by this section
provided, shall continue to form and shall form the Circulation
Fund.
5. The Circulation Fund shall continue to be held as here- Its purposes,
tofore for the sole purpose of payment, in the event of the
suspension by a bank of payment in specie or Dominion notes
of any of its liabilities as they accrue, of the notes then issued
or re-issued by such bank, intended for circulation, and then
in circulation, and interest thereon.
6. The Circulation Fund shall bear interest at the rate of Fund to bear
three per centum per annum. interest.
7. The Circulation Fund shall be adjusted, as soon as pos- Adjustment
sible after the thirtieth day of June in each year, in such a annually,
way as to make the amount at the credit of each bank contri¬
buting thereto, unless herein otherwise specially provided,
equal to five per centum of the average note circulation of such
bank during the then last preceding twelve months.
8. The average note circulation of a bank during any period Average note
shall be determined from the average of the amount of its notes hw"
in circulation, as shown by the monthly returns for such period mined,
made by the bank to the Minister; and where, in any return,
the greatest amount of notes in circulation at any time during
the month is given, such amount shall, for the purposes of this
section, be taken to be the amount of the notes of the bank in
circulation during the month to which such return relates.
347 9.
R.S., 1906.
22
Chap. 29,
Banks.
Rights of
Minister.
Proviso.
Notes of
bank sus¬
pending pay¬
ment to bear
interest.
Notice of
time for
pa3rment.
As to notes
not then
presented.
Notes not re¬
deemed to
be paid out
of Circula¬
tion Fund.
Interest to
cease.
Government
not liable.
9. The Minister shall with respect to all notes paid out
of the Circulation Fund have the same rights as any other
holder of the notes of the bank: Provided that all such notes,
and all interest thereon, so paid by the Minister, after the
amount at the credit of such bank in the Circulation Fund, and
all interest due or accruing due thereon, has been exhausted,
shall bear interest, at the rate of three per centum per annum,
from the time such notes and interest are paid until such notes
and interest are repaid to the Minister by or out of the assets
of such bank. 53 V., c. 31, s. 54; 63-64 V., c. 26, s. 13.
65. In the event of the suspension by a bank of payment
in specie or Dominion notes of any of its liabilities as they
accrue, the notes of the bank, issued or re-issued, intended for
circulation, and then in circulation, shall bear interest at the
rate of five per centum per annum, from the day of the sus¬
pension to such day as is named by the directors, or by the
liquidator, receiver, assignee or other proper official, for the
payment thereof.
2. Notice of such day shall be given by advertising for at
least three days in a newspaper published in the place in which
the head office of the bank is situate. ~
3. If any notes presented for payment on or after any day
named for payment thereof are not paid, all notes then \mpaid
and in circulation shall continue to bear interest until such
further day as is named for payment thereof, of which day
notice shall be given in manner hereinbefore provided.
4. If the directors of the bank or the liquidator, receiver,
assignee or other proper official fails to make arrangements,
within two months from the day of the suspension of payment
by the bank, for the payment of all of its notes and interest
thereon, the Minister may make arrangements for the payment,
out of the Circulation Fund, of the notes remaining unpaid and
all interest thereon, and the Minister shall give such notice of
the payment as he thinks expedient.
5. Notwithstanding anything herein contained all interest
upon such notes shall cease upon and from the date named
by the Minister for such payment.
6. Nothing herein contained shall be construed to impose
any liability upon the Government of Canada, or upon the
Minister, beyond the amount available from time to time out
of the Circulation Fund. 53 V., c. 31, s. 54; 63-64 V., c. 26,
s. 11.
66. All payments made from the Circulation Fund shall be
without regard to the amount contributed thereto by the bank
in respect of whose notes the payments are made.
2. if the payments from the Circulation Fund exceed the
amount contributed to the Circulation Fund by the bank so sus¬
pending payment, and all interest due or accruing due to such
'bank thereon, the other banks to which this Act applies shall, on
348 demand,
R.S., 1906.
Payments
from Fund.
If Fund
exceeded.
Banks.
Chap. 29.
23
demand, make good to the Circulation Fund the amount of the
excess, proportionately to the amount which each such other
bank had or should have contributed to the Circulation Fund,
at the time of the suspension of the bank in respect of whose
notes the payments are made: Provided that,— Proviso.
(a) each of such other banks shall only be called upon to
make good to the Circulation Fund its share of the excess
in payments not exceeding, in any one year, one per centum
of the average amount of its notes in circulation ;
(b) such circulation shall be ascertained in such manner as
the Minister decides ; and,
(c) the Minister's decision shall be final.
3. All amounts recovered and received by the Minister from Amounts
the hank on account of which such payments were made shall,
after the amount of such excess has been made good as afore- buted.
said, be distributed among the banks contributing to make good
such excess, proportionately to the amount contributed by each.
53 v., c. 31, s. 54; 63-64 V., c. 26, s. 12.
67. In the event of the winding-up of the business of a bank Refund of
by reason of insolvency or otherwise, the Treasury Board may, bank^\*s
on the application of the directors, or of the liquidator, receiver, wound-up.
assignee or other proper official, and on being satisfied that
proper arrangements have been made for the payment of the
notes of the bank and any interest thereon, pay over to the
directors, liquidator, receiver, assignee or other proper official,
the amount of the Circulation Fund at the credit of the bank, or
such portion thereof as it thinks expedient. 53 V., c. 31, s. 54.
68. The Treasury Board may make all such rules and regu- Treasury
lations as it thinks expedient with reference to,— Board rules.
(a) the payment of any moneys out of the Circulation Fund,
and the manner, place and time of such payments ;
(b) the collection of all amounts due to the Circulation
Fund;
(c) all accounts to be kept in connection therewith ; and,
(d) generally the management of the Circulation Fund and
all matters relating thereto. 53 V., c. 31, s. 54.
69. The 'i\[inister may, in his official name, by action in the Minister
Exchequer Court of Canada, enforce payment, with costs of enforce
action, of any sum due and payable by any bank which should
form part of the Circulation Fund. 53 V., c. 31, s. 54.
70. The bank shall make such arrangements as are necessary Arrange-
to ensure the circulation at par, in any and every part of
Canada, of all r )tes issued or re-issued by it and intended for circulation
circulation ; and towards this purpose the bank shall establish P"-
agencies for the redemption and payment of its notes at the
cities of Toronto, Montreal, Halifax, St. John, Winnipeg, Vic-
349 toria
R.S., 1906.
24 Chap. 29.
Banks.
toria and Charlottetown, and at such other places as are, from
time to time, designated by the Treasury Board. 53 V., c. 31,
s. 55.
Bank must 71. The bank shall always receive in payment its own notes
take its own , , n ii
notes. fit par at any oi its omces, and whether they are made payable
there or not.
2. The chief place of business of the bank shall always be
one of the places at which its notes are made payable. 53 V.,
c. 31, s. 56.
At head
office.
Payment in
Dominion
notes.
No torn or
defaced
notes.
Bonds,
obligations,
etc.
Assignable
by endorse¬
ment.
Bills or notes
binding.
Though not
sealed.
Directors
may depute
officer to
sign.
Bills may be
signed by
machinery.
72. The hank, when making any payment, shall, on the re¬
quest of the person to whom the payment is to be made, pay the
same, or such part thereof, not exceeding one hundred dollars,
as such person requests, in Dominion notes for one, two, or four
dollars each, at the option of such person.
2. No payment, whether in Dominion notes or bank notes,
shall be made in bills that are torn or partially defaced by ex¬
cessive handling. 53 V., c. 31, s. 57.
73. The bonds, obligations and hills, obligatory or of credit,
of the bank under its corporate seal, signed by the president or
vice-president, and countersigned by a cashier or assistant
cashier, which are made payable to any person, shall be assign¬
able by endorsement thereon.
2. The bills or notes of the bank signed by the president,
vice-president, cashier or other officer appointed by the directors
of the bank to sign Uie same, promising the payment of money
to any person, or to his order, or to the bearer, though not under
the corporate seal of the bank, shall be binding and obligatory
on the bank, in like manner and with the like force and effect as
they would be upon any private person, if issued by him in his
private or natural capacity, and shall be assignable in like man¬
ner as if they were so issued by a private person in his natural
capacity.
3. The directors of the bank may, from time to time, author¬
ize or depute any cashier, assistant cashier or officer of the bank,
or any director other than the president or vice-president, or
any cashier, manager or local director of any branch or office of
discount and deposit of the bank, to sign the notes of the hank
intended for circulation. 53 V., c. 31, s. 58.
74. All hank notes and bills whereon the name of any
person entrusted or authorized to sign such notes or bills
on behalf of the bank is impressed by machinery provided
for that purpose, by or with the authority of the bank, shall be
good and valid to all intents and purposes, as if such notes and
bills had been subscribed in the proper handwriting of the
person entrusted or authorized by the bank to sign the same
respectively, and shall be bank notes and bills within the mean¬
ing of all laws and statutes whatever, and may he described as
350 bank
E.S., 1906.
BanTíS.
Chap. 29.
25
bank notes or bills in all indictments and civil or criminal pro¬
ceedings whatever: Provided that at least one signature to each
note or bill must be in the actual handwriting of a person
hand-writ-
authorized to sign such note or hill. 53 V., c. 31, s. 59. ten.
"ÎS. Every officer charged with the receipt or disbursement
of public moneys, and every officer of any bank, and every „otes
person acting as or employed by any banker, shall stamp or
write in plain letters, upon every counterfeit or fraudulent
note issued in the form of a Dominion or bank note, and in¬
tended to circulate as money, which is presented to him at his
place of business, the word Counterfeit, Altered or Worthless.
2. If such officer or person wrongfully stamps any genuine if wrong-
note he shall, upon presentation, redeem it at the face value g^^mped.
thereof. 58 V., c. 81, s. C2.
THE BUSINESS AND POWEKS OF A BANK.
76. The bank may,—
(a) open branches, agencies and offices ;
(h) engage in and carry on business as a dealer in gold and Generally,
silver coin and bullion ;
(c) deal in, discount and lend money and make^ advances
upon the security of, and take as collateral security for
any loan made by it, bills of exchange, promissory notes
and other negotiable securities, or the stock, bonds, deben¬
tures and obligations of municipal and other corporations,
whether secured by mortgage or otherwise, or Dominion,
provincial, British, foreign and other public securities;
and,
(d) engage in and carry on such business generally as ap¬
pertains to the business of banking.
2. Except as authorized by this Act, the hank shall not, either Exceptions,
directly or indirectly,—
(a) deal in the buying or selling, or bartering of goods,
wares and merchandise, or engage or be engaged in any
trade or business whatsoever;
(h) purchase, or deal in, or lend money, or make advances
upon the security or pledge of any share of its own capital
stock, or of the capital stock of any bank ; or,
(c) lend money or make advances upon the security, mort¬
gage or hypothecation of any lands, tenements or immov¬
able property, or of any ships or other vessels, or upon the
security of any goods, wares and merchandise. 58 V., c. 81,
s. 64.
77. The bank shall have a privileged lien, for any debt Bank to
or liability for any debt to the bank, on the shares of its own
capital stock, and on any unpaid dividends of the debtor or per- ^
351 son
R.S., 1906
26
Chap. 29.
Banks.
stock of its
debtors.
Sale of
sh.ares.
Notice.
Transfer.
Effect of
transfer.
son liable, and may decline to allow any transfer of the shares
of such debtor or person until the debt is paid.
2. The bank shall, within twelve months after the debt
has accrued and become payable, sell such shares: Provided
that notice shall he given to the holder of the shares of the
intention of the bank to sell the same, by mailing the notice,
in the post oihce, post paid, to the last known address of the
holder, at least thirty days prior to the sale.
3. Upon the sale being made the president, vice-president,
manager or cashier shall execute a transfer of the shares to the
purchaser thereof in the usual transfer book of the bank.
4. Such transfer shall vest in the purchaser all the rights
in or to the said shares which were possessed by the holder
thereof, with the same obligation of warranty on his part as if
he were the vendor thereof, but without any warranty from the
bank or by the officer of the bank executing the transfer. 53 V.,
c. 31, s. 65.
Collateral
securities
may be sold.
Right of
sale may be
waived.
78. The stock, bonds, debentures or securities, acquired and
held by the bank as collateral security, may, in case of default
in the payment of the debt, for the securing of which they were
so acquired and held, be dealt with, sold and conveyed, either
in like manner and subject to the same restrictions as are here¬
in providdcl in respect of stock of the bank on which it has
acquired a lien under this Act, or in like manner qs and subject
to the restrictions under which a private individual might in
like circumstances deal with, sell and convey the same: Pro¬
vided that the bank shall not be obliged to sell within twelve
months. 1
2. The right so to deal with and dispose of such stock, bonds,
debentures or securities in manner aforesaid may be waived or
varied by any agreement between the bank and the owner of
the stock, bonds, debentures or securities, made at the time at
which such debt was incurred, or, if the time of payment of the
debt has been extended, then by an agreement made at the time
of the extension. 53 V., c. 31, s. 66.
Acquisition
of real
estate.
79. The bank may acquire and hold real and immovable pro¬
perty for its actual use and occupation and the management of
its business, and may sell or dispose of the same, and acquire
other property in its stead for the same purpose. 53 V., c. 31,
s. 67.
Mortgages
and hypo¬
thèques
of realty.
As to per¬
sonalty.
80. The bank may take, hold and dispose of mortgages and
hypothèques upon real or personal, immovable or movable pro¬
perty, by way of additional security for debts contracted to the
bank in the course of its business.
2. The rights, powers and privileges which the bank is by
this Act declared to have, or to have had, in respect of real or
immovable property mortgaged to it, shall be held and possessed
352 • by
R.S., 1906.
Banks.
Chap. 29. 27
by it in respect of any personal or movable property which is
mortgaged or hypothecated to the bank. 53 V., c. 31, s. 68.
81. The bank may purchase any lands or real or immovable Purchases
property offered for sale,— °
(a) under execution, or in insolvency, or under the order or
decree of a court, as belonging to any debtor to the bank ;
...
(h) by a mortgagee or other encumbrancer, having priority
over a mortgage or other encumbrance held by the bank;
(c) by the bank under a power of sale given to it for that
purpose ;
in cases in which, under similar circumstances, an individual
could so purchase, without any restriction as to the value of the
property which it may so purchase, and may acquire a titlel
thereto as any individual, purchasing at sheriff's sale, or under
a power of sale, in like circumstances could do, and may take,
have, hold and dispose of the same at pleasure. 53 V., c. 31,
s. 69.
82. The bank may acquire and hold an absolute title in or Bank may
to real or immovable property mortgaged to it as security for a 'tUlíto'
debt due or owing to it, either by tlie obtaining of a release of mortgaged
the equity of redemption in the mortgaged property, or by pro-
curing a foreclosure, or by other means whereby, as between
individuals, an equity of redemption can, by law, be barred,
and may purchase and acquire any prior mortgage or charge on
such property.
2. Nothing in any charter. Act or law shall be construed as ^ct or
ever having been intended to prevent or as preventing the bank to pre-
from acquiring and holding an absolute title to and in any such
mortgaged real or immovable property, whatever the value
thereof, or from exercising or acting upon any power of sale
contained in any mortgage given to or held by the bank, author¬
izing or enabling it to sell or convey away any property so mort¬
gaged. 53 v., c. 31, s. 71; 63-64 V., c. 26, s. 14.
83. No bank shall hold any real or immovable property. Property to
howsoever acquired, except such as is required for its own use,
for any period exceeding seven years from the date of the acqui- irinTim""
sition thereof, or any extension of such period as in this section
provided, and such property shall be absolutely sold or disposed
of, within such period or extended period, as the case may be,
so that the bank shall no longer retain any interest therein
unless by way of security.
2. The Treasury Board may direct that the time for the sale Extension of
or disposal of any such real or immovable property shall be
extended for a further period or periods, not to exceed five
years.
353 3.
E.S., 1906.
Chap. 29.
Banhs.
Proviso.
whole period during which the bank may so hold such
property under the foregoing provisions of this section shall not
exceed twelve years from the date of the acquisition thereof.
soW^lfable""*^ immovable property, not required by the bank
to forfeiture, for its own use, held by the bank for a longer period tlian au¬
thorized by the foregoing provisions of this section shall be
liable to be forfeited to His Majesty for the use of the Domin¬
ion of Canada: Provided that,—
(a) no such forfeiture shall take effect until the expiration
of at least six calendar months after notice in writing to
the bank bv the Minister of the intention of His Majesty
to claim the forfeiture ; and,
(h) the bank may, notwithstanding such notice, before the
forfeiture is effected sell or dispose of the property free
from liability to forfeiture.
5. The provisions of this section shall apply to any real or
immovable property heretofore acquired by the bank and held
by it at the time of the coming into force of this Act. 63-64 V.,
c. 26, s. 14.
Provisions
apply to
realty now
held.
Loans on
standing
timber.
As to
advances for
building
ships.
Rights and
obligations.
Warehouse
receipts and
bills of
lading.
Effect of
taking.
84. The bank may lend money upon the security of standing
timber, and the rights or licenses held by persons to cut or re¬
move such timber. 63-64 V., c. 26, s. 16.
85. Every bank advancing money in aid of the building of
any ship or vessel shall have the same right of acquiring and
holding-security upon such ship or vessel, while building and
when completed, either by way of mortgage, hypothèque, hypo¬
thecation, privilege or lien thereon, or purchase or transfer
thereof, as individuals have in the province wherein the ship
or vessel is being built.
2. The bank may, for the purpose of obtaining and enforcing
such security, avail itself of all such rights and means, and shall
be subject to all such obligations, limitations and conditions, as
are, by the law of such province, conferred or imposed upon in¬
dividuals making such advances. 53 V., c. 31, s. 72.
86.. The bank may acquire and hold any warehouse receipt
or bill of lading as collateral security for the payment of any
debt incurred in its favour, or as security for any liability in¬
curred by it for any person, in the course of its banking busi¬
ness.
2. Any warehouse receipt or bill of lading so acquired shall
vest in the bank, from the date of the acquisition thereof,— •
(a) all the right and title to such warehouse receipt or bill
of lading and to the goods covered thereby of the previous
holder or owner thereof ; or,
(h) all the right and title to the goods, wares and merchan¬
dise mentioned therein of the person from whom the same
were received or acquired by the bank, if the warehouse
receipt or bill of lading is made directly in favour of the
354 bank,
E.S., 1906.
Banks.
Chap. 29.
29
bank, instead of to the previous holder or owner of such
goods, wares and merchandise. 53 V., c. 31, s. 73; 63-64
v., c. 26, s. 15.
87. If the previous holder of such warehouse receipt or bill When
/•IT. previous
Oí lading IS any person,— holder is an
(a) entrusted with the possession of the goods, wares and agent,
merchandise mentioned therein, by or by the authority of
the owner thereof; or,
(h) io whom such goods, wares and merchandise are, by or
by the authority of the owner thereof, consigned ; or,
(c) who, by or by the authority of the owner of such goods,
wares and merchandise, is possessed of any bill of lading,
receipt, order or other document covering the same, such as
is used in the course of business as proof of the possession
or control of goods, wares and merchandise, or as authoriz¬
ing or purporting to authorize, either by endorsement or by
delivery, the possessor of such a document to transfer or
receive the goods, wares and merchandise thereby repre¬
sented ;
the bank shall be, upon the acquisition of such warehouse
receipt or bill of lading, vested with all the right and title of
the owner of such goods, wares and merchandise, subject to
the right of the owner to have the same retransferred to him
if the debt or liability, as security for which such warehouse
receipt or bill of lading is held by the bank, is paid.
2. Any person shall be deemed to be the possessor of such Presumption
goods, wares and merchandise, bill of lading, receipt, order or possession,
other document as aforesaid,—
(a) who is in actual possession thereof ; or,
(h) for whom, or subject to whose control, the same are held
by any person. 53 V., c. 31, s. 73 ; 63-64 V., c. 26, s. 15,
88. The bank may lend money to any wholesale purchaser Loans to
or shipper of or dealer in products of agriculture, the forest,
^ , 1 ' shippers or
quarry and mine, or tne sea, lakes and rivers, or to any whole- dealers.
sale purchaser or shipper of or dealer in live stock or dead
stock and the products thereof, upon the security of such pro- Upon
ducts, or of such live stock or dead stock and the products there- security.
of.
2. The bank may allow the goods, wares and merchandise Removal of
covered by such security to be removed and other goods, wares seeds-
and merchandise, such as mentioned in the last preceding sub¬
section, to be substituted therefor, if the goods, wares and mer¬
chandise so substituted are of substantially the same character. Substitution,
and of substantially the same value as, or of less value than,
those for which they have been so substituted; and the goods,
wares and merchandise so substituted shall be covered by such
security as if originally covered thereby.
3. The bank may lend monev to any person engaged in Loans to
business as a wholesale manufacturer of any goods, wares and
355 merchandise, turers.
■R.S.. 1906.
30
Chap. 29.
Bariks.
Security.
Owner may
give the
security.
Form of
security.
Same rights
as upon
warehouse
receipts.
merchandise, upon the security of the goods, wares and mer¬
chandise manufactured by him, or procured for such manu¬
facture.
4. Any such security, as mentioned in the foregoing provi¬
sions of this section, may be given by the owner of said goods,
wares and merchandise, stock or products.
5. The security may be taken in the form set forth in
schedule C to this Act, or to the like effect.
6. The banlc shall, by virtue of such security, acquire the
same rights and powers in respect to the goods, wares and
merchandise, stock or products covered thereby, as if it had
acquired the same by virtue of a warehouse receipt. 53 V.,
c. 31, s. Y4; 63-64 c. 26, s. 17.
As to goods
manufac¬
tured from
articles
pledged.
Prior claim
of bank over
unpaid
vendor.
Proviso.
Sale of goods
on non-pay¬
ment of debt.
Proviso.
Notice.
89. If goods, wares and merchandise are manufactured or
produced from the goods, wares and merchandise, or any of
them, included in or covered by any warehouse receipt, or
included in or covered by any security given under the last
preceding section, while so covered, the bank holding such
warehouse receipt or security shall hold or continue to hold
such goods, wares and merchandise, during the process and
after the completion of such manufacture or production, with
the same right and title, and for the same purposes and upon
the same conditions, as it held or could have held the original
goods, wares and merchandise.
2. All advances made on the security of any bill of lading
or warehouse receipt, or of any security given under the last
preceding section, shall give to the hank making the advances
a claim for the repayment of the advances on the goods, wares
and merchandise therein mentioned, or into which they have
been converted, prior to and by preference over the claim of
any unpaid vendor: Provided that such preference shall not
he given over the claim of any unpaid vendor who had a lien
upon the goods, wares and merchandise at the time of the
acquisition by the bank of such warehouse receipt, bill of lading,
or security, unless the same was acquired without knowledge on
the part of the bank of such lien.
3. In the event of the non-payment at maturity of any debt
or liability secured by a warehouse receipt or bill of lading, or
secured by any security given under the last preceding section,
the bank may sell the goods, wares and merchandise mentioned
therein, or so much thereof, as will suffice to pay such debt or
liability with interest and expenses, returning the surplus, if
any, to the person from whom the warehouse receipt, bill of
lading, or security, or the goods, wares and merchandise men¬
tioned therein, as the case may be, were acquired: Provided
that such power of sale shall be exercised subject to the following
provisions, namely:—
(a) No sale, without the consent in writing of the owner of
any timber, boards, deals, staves, saw-logs or other lumber,
356 shall
R.S., 1906.
Banks.
Chap. 29. 31
shall be made under this ^Vct until notice of the time and
place of such sale has been given by a registered letter,
mailed in the post office, post paid, to the last known
address of the pledger thereof, at least thirty days prior to
the sale thereof;
(h) No goods, wares and merchandise, other than timber. Idem,
boards, deals, staves, saw-logs or other lumber, shall be sold
by the hank under this Act without the consent of the
owner, until notice of the time and place of sale has been
given by a registered letter, mailed in the post office, post
paid, to the last known address of the pledger thereof, at
least ten days prior to the sale thereof ;
(c) Every sale, under such power of sale, without the con- Sale by
sent of the owner, shall be made by public auction, after ¡»"ction.
notice thereof by advertisement, in at least two newspapers
published in or nearest to the place where the sale is to be
made, stating the time and place thereof; and, if the sale
is in the province of Qiiebec, then at least one of such news¬
papers shall be a newspaper published in the English lan¬
guage, and one other such newspaper shall be a newspaper
published in the French language. 53 V., c. 3D, ss. 76, 77
and 78; 63-64: V., c. 26, s. 19.
90. The bank shall not acquire or hold any warehouse re- Conditions
ceipt or bill of lading, or any such security as aforesaid, to
secure the payment of any bill, note, debt, or liability, unless take
such bill, note, debt or liability is negotiated or contracted,— security.
(a) at the time of the acquisition thereof by the bank ; or,
(b) upon the written promise or agreement that such ware¬
house receipt or bill of lading or security would be given
to the bank:
Provided that such bill, note, debt, or liability may be renewed. Proviso,
or the time for the payment thereof extended, without affecting
any such security.
2. The bank may,—
(a) on shipment of any goods, wares and merchandise for Exchanging
which it holds a warehouse receipt, or any such security warehouse
. r6C6ipt lor
as aforesaid, surrender such receipt or security and receii e bill of lading
a bill of lading in exchange therefor ; or,
(h) on the receipt of any goods, wares and merchandise for
which it holds a bill of lading, or any such security as
aforesaid, surrender such bill of lading or security, store
the goods, wares and merchandise, and take a warehouse
receipt therefor, or ship the goods, wares and merchandise,
or part of them, and take another bill of lading therefor.
53'V., c. 31, s. 75 ; 63-64 V., c. 26, s. 18.
91. The bank may stipulate for, take, reserve or exact any Interest at
rate of interest or discount, not exceeding seven per centum per
annum, and may receive and take in advance, any such rate, charged.
357 but
R.S.. 1906 •
Chap. 29.
Banks.
Any rate
may be
allowed.
Percentage
chargeable
for collec¬
tion.
Agency
charges.
but no higher rate of interest ehall be recoverable by the bank.
53 v., c. 31, s. 80.
92. The bank may allow any rate of interest whatever upon
money deposited with it. 53 V., c. 31, s. 80.
93. WTien any note, hill, or other negotiable security or
paper, payable at any of the hank's places or seats of business,
branches, agencies or oiEces of discount and deposit in Canada,
is discounted at any other of the hank's places or seats of busi¬
ness, branches, agencies or offices of discount and deposit, the
bank may, in order to defray the expenses attending the collec¬
tion thereof, receive or retain, in addition to the discount there¬
on, a percentage calculated upon the amount of such note, bill,
or other negotiable security or paper, not exceeding, if the note,
bill, or other negotiable security or paper is to run,—
(a) for less than thirty days, one-eighth of one per centum ;
(h) for thirty days or over hut less than sixty days, one-
fourth of one per centum ;
(c) for sixty days or over but less than ninety days, three-
• eighths of one per centum ; and,
(d) for ninety days or over, one-half of one per centum.
53 v., c. 31, s. 82.
94. The bank may, in discounting any note, bill or other
negotiable security or paper, bona fide payable at any place in
Canada, other than that at which it is discounted, and other
than one of its own places or seats of business, branches, agen¬
cies or offices of discount and deposit in Canada, receive and
retain, in addition to the discount thereon, a sum not exceeding
one-half of one per centum on the amount thereof, to defray the
expenses of agency and charges in collecting the same. 53 V.,
c. 31, s. 83.
Deposits may 95. The hank may, subject to the provisions of this section,
fromf'persoiis without the authority, aid, assistance or intervention of any
unable to other person or official being required,—
(a) receive deposits from any person whomsoever, whatever
his age, status or condition in life, and whether such per¬
son is qualified by law to enter into ordinary contracts or
not; and,
(b) from time to time repay any or all of the principal
thereof, and pay the whole or any part of the interest there¬
on to such person, unless before such repayment the money
so deposited in the bank is lawfully claimed as the pro¬
perty of some other person.
2. In the case of any such lawful claim the money so de¬
posited may be paid to the depositor with the consent of the
claimant, or to the claimant with the consent of the depositor.
3. If the person making any such deposit could not, imder
the law of the province where the deposit is made, deposit and
358 withdraw
contract.
Payments
by consent.
Deposit
limited.
K.S., 1906.
Banks,
Chap. 29. 33
withdraw money in and from a bank without this section, the
total amount to be received from such person on deposit shall
not, at any time, exceed the sum of five hundred dollars. 53 V., $500.
c. 31, s. bl.
96. The bank shall not be bound to see to the execution Bank not
of any trust, whether expressed, implied or constructive, to to"trusts in^
which any deposit made under the authority of this Act is deposits,
subject.
2. Except only in the case of a lawful claim, by some other
person before repayment, the receipt of the person in whose Receipt of
name any such deposit stands, or, if it stands in the names of
two persons, the receipt of one, or, if it stands in the names of posit9rs
more than two persons, the receipt^ of a majority of such per-
sons, shall, notwithstanding any trust to which such deposit Or of a
is then subject, and whether or not the bank sought to be charged majority,
with such trust, and with which the deposit has been made, had
notice thereof, be a sufficient discharge to all concerned for
the payment of any money payable in respect of such deposit.
3. The bank shall not be bound to see to the application of Application,
the money paid upon such receipt. 53 V., c. 31, s, 84.
97. If a person dies, having a deposit with the bank not If depositor
exceeding the sum of five hundred dollars, the production to
the bank and deposit with it of,— ing $500, how
(a) any authenticated copy of the probate of the will of the
deceased depositor, or of letters of administration of his
estate, or of letters of verification of heirship, or of the act
of curatorship or tutorship, granted by any court in Canada
having power to grant the same, or by any court or
authority in England, Wales, Ireland, or any British
colony, or of any testament, testamentary or testament
dative expede in Scotlând; or,
(b) an authentic notarial copy of the will of the deceased
depositor, if such will is in notarial form, according to the
law of the province of Quebec ; or,
(c) if the deceased depositor died out of His Majesty's
dominions, any authenticated copy of the probate of his
will, or letters of administration of his property, or other
document of like import, granted by any court or authority
having the requisite power in such matters ;
shall be sufficient justification and authority to the directors
for paying such deposit, in pursuance ■ of and in conformity
to such probate, letters of administration, or other document as
aforesaid. 63-64 V., c. 26, s. 20.
DOMINION GOVERNMENT CHEQUES.
98. The bank shall not charge any discount or commission To be paid
for the cashing of any official cheque of the Government of at par.
Canada or of any department thereof, whether drawn on the
359 bank
R.S., 1906.
Chap. 29. Batiks,
bank cashing the cheque or on any other bank. 53 V., c. 31,
s. 103.
THE PURCHASE OP THE ASSETS OF A BANK.
SirasTe^ts to bank may sell the whole or any portion of its
another • assets to any other bank which may purchase such assets; and
bank. selling and purchasing banks may, for such purposes, enter
into an agreement of sale and purchase, which agreement shall
contain all the terms and conditions connected with the sale and
purchase of such assets. 03-64 V., c. 26, s. 33.
C onsider-
ation.
If in shares
of capital
stock.
Not con¬
sidered
issued until
sold or dis¬
tributed.
100. The consideration for any such sale and purchase
may be as agreed upon between the selling and purchasing
banks.
2. If the consideration, or any portion thereof, is shares
of the capital stock of the purchasing bank, the agreement shall
provide for the amount of the shares of the purchasing bank
to be paid to the selling bank.
3. Until such shares so paid to the selling bank have been
sold by such bank, or have been distributed among and accepted
by the shareholders of such bank, they shall not he considered
issued shares of the purchasing bank for the purposes of its
note circulation, 63-64 V., c. 26, s. 34.
Agreement 101. The agreement of sale and purchase shaU be sub-
submUted^to ™ilted to the shareholders of the selling bank, either at the
selling share- annual general meeting of such bank or at a special general
meeting meeting thereof called for the purpose.
Copy to tach ^ copj of the agreement shall be mailed, postpaid, to
each shareholder of such bank to his last known address, at
least four weeks previously to the date of the meeting at which
the agreement is to be submitted, together with a notice of
the time and place of the holding of such meeting. 63-64 V.,
c. 26, s. 35.
shareholder
by mail.
Agreement 102. If at such meeting the agreement is approved by
^ted'If^they I'esolution carried by the votes of shareholders, present in person
approve. 01' represented by proxy, representing not less than two-thirds
of the amount of the subscribed capital stock of the bank, the
agreement may be executed under the seals of the banks, parties
thereto, and application may be made to the Governor in Coun¬
cil, through the Minister, for approval thereof.
Approval of 2. Until the agreement is approved by the Governor in
Councü°' Council it shall not be of any force or effect. 63-64 V., c. 26,
s. 36.
Approval of 103. If the agreement provides for the pavment of the
of ^pun:°hasfng consideration for such sale and purchase, in whole or in part,
bank. in shares of the capital stock of the purchasing bank, and for
such purpose it is necessary to increase the capital stock of such
360 bank
R.S.,1906.
Banks.
Chap. 29. 35
bank, the agreement shall not be executed on behalf of the
purchasing bank, unless nor until it is approved by the share¬
holders thereof at the annual general meeting, or at a special
general meeting of such shareholders. 63-64 V., c. 26, s. 37.
104. The Governor in Council may, nn the application for Necess^y in-
his approval of the agreement, approve of the increase of the ^^y be
capital stock of the purchasing hank, which is necessary to pro- approved,
vide for the payment of the shares of such bank to the selling
bank, as provided in the said agreement. 63-64 V., c. 26, s. 38.
105. The provisions of this Act with regard to,— Ordinary
.V _ ,.111111 provisions
(a) the increase of the capital stock of the bank by by-law for increase
of the shareholders approved by the Treasury Board ; and, to apply.
(b) the allotment and sale of such increased stock ;
shall not apply to any increase of stock made or provided for
under the authority of the last two preceding sections. 63-64
c. 26, s. 38.
106. The approval of the Governor in Council shall not be Conditions
given to the agreement, unless,— Govlrnor in
(a) the approval thereof is recommended by the Treasury Council may
Tînnrd • " approve
xiudi u, ^ ^ ^ agreement.
(b) the application for approval thereof is made, by or on
behalf of the bank executing it, within three months from
the date of execution of the agreement; and,
(c) it appears to the satisfaction of the Governor in Council
that all the requirements of this Act in connection with
the approval of the agreement by the shareholders of the
selling and purchasing banks have been complied with,
and that notice of the intention of the banks to apply to
the Governor in Council for the approval of the agree¬
ment has been published for at least four weeks in the
Canada Gazette, and in one or more newspapers published
in places where the chief offices or places of business of
the banks are situate.
2. Such banks shall afford all information that the Minister infons»-
requires. tion.
3. Nothing herein contained shall be construed to prevent Approval
the Governor in Council or the Treasury Board from refusing
to approve of the agreement or to recommend its approval.
63-64 v., c. 26, s. 39.
107. The agreement shall not be approved of unless it Further
appears that,— conditions.
(a) proper provisions have been made for the payment of the
liabilities of the selling bank; ;
(b ) the agreement provides for the assumption and payment
by the purchasing bank of the notes of the selling bank
issued and intended for circulation, outstanding and in
circulation; and,
361 (c)
E.S., 1906.
Chap. 29.
Banks.
(c) the amounts of the notes of both the purchasing and
selling banks, issued for circulation, outstanding and in
circulation, as shown by the then last monthly returns of
the banks, do not together exceed the then paid-up capital
of the purchasing bank; or, if the amount of such notes
does exceed such paid-up capital, an amount in cash, equal
to the excess of such notes over such paid-up capital, has
been deposited by the purchasing bank with the Minister.
Deposit. 2. The amount so deposited as aforesaid shall be held by the
Minister as security for the redemption of the said excess of
notes ; and, when such excess, or any portion thereof, has been
redeemed and cancelled, the amount so deposited, or an amount
equal to the aniount of excess so redeemed and cancelled, shall,
from time to time, be repaid bv tbe Minister to the purchasing
bank, but without interest, on the application of such bank, and
on the production of such evidence as the Minister may require
to show that the notes in regard to which such repayment is
asked have been redeemed and cancelled. 63-64 V., c. 27, s. 1.
Notes of
selling bank
to become
notes of
purchasing
bank.
Circulation
Fund.
Notes to be
called in.
108. The notes of the selling bank so assumed and to be
paid by the purchasing bank shall, on the approval of the agree¬
ment, be deemed to be, for all intents and purposes, notes of the
purchasing bank issued for circulation ; and the purchasing
bank shall be liable in the same manner and to the same extent
as if it had issued them for circulation.
2. The amount at the credit of the selling bank in the Circu¬
lation Fund shall, on the approval of the agreement, be trans¬
ferred to the credit of the purchasing bank.
3. The notes of the selling bank shall not be re-issued, but
shall be called in, redeemed and cancelled as quickly as
possible. 63-64 V., c. 26, s. 41.
Evidence of
approval by
Governor in
Council.
Order in
council con¬
clusive.
109. The approval by the Governor in Council of the agree¬
ment shall be evidenced by a certilied copy of the order in
council approving thereof.
2. Such certified copy shall be conclusive evidence of the
approval of the agreement therein referred to, and of the regu¬
larity of all proceedings in connection therewith. 63-64 V.,
c. 26, s. 42.
On approval
of Governor
in Council
the assets
pass.
Further
assurance.
110. On the agreement being approved of by the Governor
in Council, the assets tlierein referred to as sold and purchased
shall, in accordance with and subject to the terms thereof, and
without any further conveyance, become vested in the pur¬
chasing bank.
2. The selling, bank shall, from time to time, subject to the
terms of the agreement, execute such formal and separate con¬
veyances, assignments and assurances, for registration purposes
or otherwise, as are reasonably required to confirm'or evidence
the vesting in the purchasing bank of the full title or ownershij)
362 of
JÎ.S., 1906.
Banks.
Chap. 29. 37
of the assets referred to in the agreement. 63-64 V., c. 26,
s. 43.
111. As soon as the agreement is approved of by the
Governor in Council, the selling bank shall cease to issue or be
re-issue notes for circulation, and shall cease to transact any wound up.
business, except such as is necessary to enable it to carry out
the agreement, to realize upon any assets not included in the
agreement, to pay and discharge its liabilities, and generally to
wind up its business; and the charter or Act of incorporation
of such bank, and any Acts in amendment thereof then in force,
shall continue in force only ioi the purposes in this section
specified. 63-64 V., c. 26, s. 44.
EETUEÏTS.
112. Monthly returns shall be made by the bank to the Monthly,
kl inister in the form set forth in schedule D to this Act.
2. Such returns shall be made up and sent in within the first
fifteen days of each month, and shall exhibit the condition of
the bank on the last juridical day of the month la^t preceding.
3. Such returns shall be signed by the chief accountant and How signed,
by the president, or vice-president, or the director then acting
as president, and by the manager, cashier or other principal
officer of the bank at its chief place of business. 53 V., c. 31,
s. 85.
113. The Minister may also call fot special returns from Special
any bank, whenever, in his judgment, they are necessary to
afford a full and complete knowledge of its condition.
2. Such special returns shall be made and signed in the How made,
manner and by the persons specified in the last preceding-
section.
3. Such special returns shall be made and sent in within Within 30
thirty days from the date of the demand therefor by the Min- demand!'"
ister: Provided that the Minister may extend the time for
sending in such special returns for such further period, not
exceeding thirty days, as he thinks expedient. 53 V., c. 31,
s. 86.
114. The bank shall, within twenty days after the close Annual,
of each calendar year, transmit or deliver to the Minister a
return,—
(a) of all dividends which have remained unpaid for more
than five years ; and,
(b) of all amounts or balances in respect of which no trans¬
actions have taken place, or upon which no interest has
been paid, during the five years prior to the date of such
return :
Provided that, in the case of moneys deposited for a fixed
period, the said term of five years shall be reckoned from the
date of the termination of such fixed period.
363 2.
R.S., 1906.
38
Chap. 29.
Banks.
Further
annual
return.
Particulars.
What return 2. The return mentioned in the last preceding: subsection
shall show. r. m , r °
shall set forth,—
(a) the name of each shareholder or creditor to whom such
dividends, amounts or balances are, according to the books
of the bank, payable ;
(b) the last known address of each such shareholder or
creditor ;
(c) the amount due to each such shareholder or creditor ;
(d) the agency of the bank at which the last transaction
took place ;
(e) the date of such last transaction ; and,
(f) if such shareholder or creditor is known to the bank
to be dead, the names and addresses of his legal representa¬
tives, so far as known to the bank.
3. The bank shall likewise, within twenty days after the
close of each calendar year, transmit or deliver to the Minister
a return of all drafts or bills of exchange, issued by the bank
to any person, and remaining unpaid for more than five years,
prior to the date of such return, setting forth so far as knoivn,—
(a) the names of the persons to whom, or at whose request
such drafts or bills of exchange were issued ;
(b) the addresses of such persons;
(c) the names of the payees of such drafts or bills of ex¬
change ;
(d) the amounts and dates of such drafts or bills of ex¬
change;
(e) the names of the places where such drafts or bills of
exchange were payable ; and,
(f) the agencies of the bank respectively from which such
drafts or bills of exchange were .issued.
4. The returns required by the foregoing provisions of this
section shall be signed by the chief accountant, and by the
president or vice-president or the director then acting as presi¬
dent, and by the manager, cashier or other principal officer
of the bank, at its chief place of business.
Annual list. 5. The bank shall also, within twenty days after the close
of each calendar year, transmit or deliver to the Minister a
certified list showing,—
(a) the names of the shareholders of the bank on the last
day of such calendar year, with their additions and resi¬
dences ;
(b) the number of shares then held by them respectively ;
and,
(c) the value at par of such shares.
6. The Minister shall lay such returns and lists before Par¬
liament at the next session thereof. 53 V., c. 31, ss. and
8S; 63-64 V., c. 26, s. 21.
364 PAYMENTS
How annual
returns
signed.
To Parlia¬
ment.
E.S.. 1906.
Banks.
Chap. 29.
PAYMENTS TO THE MINISTEE UPON WINDING UP.
115. If, in the event of the winding-up of the business of Unclaimed
the bank in insolvency, or under any general winding-up Act,
or otherwise, any moneys payable by the liquidator, either to
shareholders or depositors, remain unclaimed,—
(a) for the period of three years from the date of suspension
of payment by the bank ; or,
(i) for a like period from the commencement of the winding-
up of such business ; or,
(c) until the final winding-up of such business, if the busi¬
ness is finally wound up before the expiration of the said
three years;
such moneys and all interest thereon shall, notwithstanding any With
statute of limitations or other Act relating to prescription, be '»Merest,
paid to thé Minister, to be held by him subject to all rightful
claims on behalf of any person other than the bank.
2. If a claim to any moneys so paid is thereafter established Governor in
to the satisfaction of the Treasury Board, the Governor in order'^pa™^^
Council shall, on the report of the Treasury Board, direct pay- ment to per-
ment thereof to be made to the person entitled thereto, together ®
with interest on the principal sum thereof, at the rate of three
per centum per annum, for a period not exceeding six years interest,
from the date of payment thereof to the Minister as aforesaid :
Provided that no such' interest shall be paid or payable on such
principal sum, unless interest thereon was payable by the bank
paying the same to the Minister.
3. Upon payment to the Minister as herein provided, the Bank dis-
bank and its assets shall be held to be discharged from further
liability for the amounts so paid. 53 V., c. 31, s. 88.
116. Upon the winding-up of a bank in insolvency or under Circulation
any general winding-up Act, or otherwise, the assignees, liqui- at*^distribu-
dators, directors, or other officials in charge of such winding-up, tion of
shall, before the final distribution of the assets, or within three
years from the commencement of the suspension of payment by
the bank, whichever shall first happen, pay over to the Minister
a sum, out of the assets of the bank, equal to the amount then
outstanding of the notes intended for circulation issued by the
bank.
2. Upon such payment being made, the bank and its assets Bank
shall be relieved from all further liability in respect of such relieved,
outstanding notes.
3. The sum so paid shall be held by the Minister and applied Minister t«
for the purpose of redeeming, whenever presented, such out-
standing notes, without interest. 53 V., c. 31, s. 88.
THE CUKATOE.
117. The Association, shall, if a bank suspends payment in AssociiHon
specie or Dominion notes of any of its liabilities as they accrue, apjj»int.
365 forthwith
R.S., W<)fi
40
Chap. 29.
Banks.
forthwith appoint a curator to supervise the affairs of such
bank.
Removal. 2. The Association may at any time remove the curator,
and may appoint another person to act in his stead. 63-64 V.,
c. 26, s. 24.
Appoint- 118. The appointment of the curator shall be made in the
underprovided for in the by-law of the Association made in
"f^^ssocia- that behalf as hereinafter provided.
If no by- there is no such by-law the appointment shall be made
law. in writing by the president of the Association, or by the person
acting as president. 63-64 V., c. 26, s. 25.
dutTeïof^"*^ 119. The curator shall assume supervision of the affairs of
curator. the bank, and of all necessary arrangements for the payment of
the notes of the bank issued for circulation, and, at the time of
his appointment, outstanding and in circulation.
Idem. 2. The curator shall generally have all powers and shall take
all steps and do all things necessary or expedient to protect the
rights and interests of the creditors and shareholders of the
bank, and to conserve and ensure the proper disposition, accord¬
ing to law, of the assets of the bank ; and, for the purposes of
this section, he shall have free and full access to all books,
accounts, documents and papers of the bank,
'dem. 3. The curator shall continue to supervise the affairs of the
bank until he is removed from office, or until the bank resumes
business, or until a liquidator is duly appointed to wind up the
business of the bank 63-64 V., c. 26, s. 26.
^jfficersand 120. The president, vice-president, directors, general man-
iist curator, ager, managers, clerks and officers of the bank shall give and
afford to the curator all such information and assistance as he
requires in the discharge of his duties. 63-64 V., c. 26, s. 27.
Ko act of 121. No by-law, regulation, resolution or act, touching the
vaM^°unless affairs Or management of the bank, passed, made or done by the
approved by directors during the time the curator is in charge of the bank,
curator. shall be of any force or effect until approved in writing by the
curator. 63-64 V., c. 26, s. 27.
Curator to 122. The curator shall make all returns and reports, and
trnms shall give all information to the Minister, touching the affairs
required by of the bank, that the Minister requires of him. 63-64 V., c. 26,
Minister.
Remunera- 123. The remuneration of the curator for his services, and
c'uratoL expenses and disbursements in connection with the dis¬
charge of his duties, shall be fixed and determined by the Asso¬
ciation, and shall be paid out of the assets of the bank, and, in
case of the winding-up of the bank, shall rank on the estate
366 equally
R.S., 1906.
Banks.
Chap. 29. 41
equally with the rémunération of the liquidator. 63-64 V.,
c. 26, s. 29.
BY-LAWS OF THE CAX^UJIAN BAUKEES' ASSOCIATIOX.
124. The Association may, at any meeting thereof, with How made,
the approval of two-thirds in number of the banks represented
at such meeting, if the banks so approving have at least two-
thirds in par value of the paid-up capital of the banks so repre¬
sented, make by-laws, rules and regulations respecting,—
(a) all matters relating to the appointment or removal of As to what
the curator, and his powers and duties ; subjects.
(h ) the supervision of the making of the notes of the banks
which are intended for circulation, and the delivery thereof
to the banks ;
(c) the inspection of the disposition made by the banks of
such notes;
(d) the destruction of notes of the banks ; and,
(e) the imposition of penalties for the breach or non-ob¬
servance of any by-law, rule or regulation made by virtue
of this section.
2. No such by-law, rule or regulation, and no amendment Approval of
or repeal thereof, shall be of any force or efiFect until approved
by the Treasury Board.
3. Before any such by-law, rule or regulation, or any Notice to
amendment or repeal thereof is so approved, the Treasury other banks.
Board shall submit it to every bank which is not a member
of the Association, and give to each such bank an opportunity
of being heard before the Treasury Board with respect thereto.
4. The Association shall have all powers necessary to carry Enforcement
out, or to enforce the carrying out, of any by-law, rule or regu- of by-laws,
lation, or any amendment thereof, so approved by the Treasury
Board. 63-64 V., c. 26, ss. 30 and 31.
INSOLVENCY.
125. In the event of the property and assets of the bank Double
being insufEcient to pay its debts and liabilities, each share-
holder of the hank shall be liable for the deficiency, to an ^ °
amount equal to the par value of the shares held by him, in
addition to any amount not paid up on such shares. 53 V.,
c. 31, s. 89.
128. The liability of the bank, under any law, custom or Liability
agreement to repay moneys deposited with it and interest,
if any, and to pay dividends declared and payable on its capital
stock, shall continue, notwithstanding any statute of limita¬
tions, or any enactment or law relating to prescription. Ho prescrip-
2. This section applies to moneys heretofore or hereafter
deposited, and to dividends heretofore or hereafter declared.
53 v., c. 31, s. 90.
367 127.
II.S., 1906.
42 Chap. 29.
Banks.
for9o"davs ^27. Any suspension by the bank of payment of any of
to constitute its liabilities as they accrue, in specie or Dominion notes, shall,
insolvency, if it continues for ninety days consecutively, or at intervals
. within twelve consecutive months, constitute the bank insolvent,
and work a forfeiture of its charter or Act of incorporation,
so far as regards all further banking operations.
Charter to 2. The charter or Act of incorporation of the bank shall, in
force only for such case, remain in force only for the purpose of enabling the
winding up. directors, or other lawful authority, to make and enforce the
calls mentioned in the next following section of this Act, and
to wind up the business of the bank. 53 V., c. 31, s. 91.
If no pro¬
ceedings
within 3
months
thereafter
directors to
make calls.
Intervals.
Notice.
Number.
Amount.
Payment.
First call.
Procedure.
Forfeiture
for non-pay¬
ment.
Proviso.
128. If any suspension of payment in full, in specie or
Dominion notes, of all or any of the notes or other liabilities
of the bank, continues for three months after the expiration
of the time which, under the last preceding section, would
constitute the bank insolvent, and if no proceedings are taken
under any Act for the winding-up of the bank, the directors
shall make calls on the shareholders thereof, to the amount they
deem necessary to pay all the debts and liabilities of the bank,
without waiting for the collection of any debts due to the bank
or the sale of any of its assets or property.
2. Such calls shall be made at intervals of thirty days.
3. Such calls shall be made upon notice to be given at least
thirty days prior to the day on which any such call shall be
payable.
4. Any number of such calls may be made by one resolution.
5. No such call shall exceed twenty per centum on each share.
6. Payment of such calls may be enforced in like manner
as payment of calls on unpaid stock may be enforced.
7. The first of such calls may be made within ten days after
the expiration of the said three months.
8. In the event of proceedings being taken, under any Act,
for the winding-up of the bank in consequence of the insol¬
vency of the bank, the said calls shall be made in the manner
prescribed for the making of such calls in such Act.
9. Any failure on the part of any shareholder liable to any
such call to pay the same when due, shall work a forfeiture by
such shareholder of all claim in or to any part of the assets of
the bank: Provided that such call, and any further call there¬
after, shall nevertheless be recoverable from him as if no such
forfeiture had been incurred. 53 V., c. 31, ss. 92, 93 and 94.
Liability of 129. Nothing contained in the four sections last preceding
dimfnSied!"^ shall be construed to alter or diminish the additional liabilities
of the directors as herein mentioned and declared. 53 V.,
c. 31, s. 95.
Liabilitv of 130. (a) Persons who, having been shareholders of the
who^ha^ebank, have only transferred their shares, or any of them, to
368 others,
U.S., 1906.
Banks.
Chap. 29.
43
others, or registered the transfer thereof, within sixty days
before the commencement of the suspension of payment by
the bank ; and,
(h) Persons whose subscriptions to the stock of the bank gub^riptiong
have been cancelled, in manner hereinbefore provided, have been
within the said period of sixty days before the commence-
ment of the suspension of payment by the bank ;
shall be liable to all calls on the shares held or subscribed for
by them, as if they held such shares at the time of such suspen¬
sion of payment, saving their recourse against those by whom
such shares were then actually held. 53 V., c. 31, s. 96.
131. In the case of the insolvency of any bank,— Order of
OnQI'STCS
(a) the payment of the notes issued or re-issued by such '
bank, intended for circulation, and then in circulation,
together with any interest paid or payable thereon as here¬
inbefore provided, shall be the first charge upon the assets
of the bank ;
(h) the pa;^ent of any amount due to the Government of
Canada, in trust or otherwise, shall be the second charge
upon such assets;
(c) the payment of any amount due to the government of Provincial
any of the provinces, in trust or otherwise, shall be the
third charge upon such assets; and,
(d) the amount of any penalties for which the bank is liable Penalties,
shall not form a charge upon the assets of the bank, until
all other liabilities are paid. 53 V., c. 31, s. 53.
OFFENCES AND PENAETIES.
The Commencement of Business.
132. Every director or provisional director of any bank and Commenc-
every other person, who, before .the obtaining of the certificate
from the Treasury Board, by this Act required, permitting the certificate.
bank to issue notes or commence business, issues or authorizes
the issue of any note of such bank, or transacts or authorizes
the transaction of any business in connection wfth such bank,
except such as is by this A,ct authorized to be transacted before
the obtaining of such certificate, is gmilty of an offence against offence.
this Act. 53 v., c. 31, s. 14.
The Sale and Transfer of Shares.
133. Any person, whether principal, broker or agent, who if contrary
wilfully sells or transfers or attempts to sell or transfer,— to require-
• iii0nts
(a) any share or shares of the capital stock of any bank by
a false number ; or,
(h) any share or shares of which the person making such
sale or transfer, or in whose name or on whose behalf the
same is made, is not at the time of such sale, or attempted
sale, the registered owner ; or,
369 (c)
E.S., 1906.
4-1
Chap. 29.
Banks.
Offence.
Holding less
than forty
n. c. in
Dominion
notes.
Excess of
circulation.
Penalty.
Idem.
Idem.
Idem,
Idem.
Unauthor¬
ized issue of
notes for
circulation.
Penalty.
How re¬
coverable.
Appropria¬
tion.
Intention
presumed.
Exceptions.
(c) any share or shares, without the assent to such sale of
the registered owner thereof ;
is guilty of an offence against this Act. 53 V., c. 31, s. 37.
The Cash Reserves.
134. Every bank which at any time holds less than forty
per çentum of its cash reserves in Dominion notes shall incur
a penalty of five hundred dollars for each such offence. 53 V.,
c. 31, s. 50.
The Issue and Circulation of Notes.
135. If the total amount of the notes of the bank in circula¬
tion at any time exceeds the amount authorized by this Act the
bank shall,—
(a) if the amount of such excess is not over one thousand
dollars, incur a penalty equal to the amount of such excess ;
or,
(b) if the amount of such excess is over one thousand dol¬
lars, and not over twenty thousand dollars, incur a penalty
of one thousand dollars; or,
(c) if the amount of such excess is over twenty thousand
dollars, and not over 6ne hundred thousand dollars, incur
a penalty of ten thousand dollars; or,
(d) if the amount of such excess is over one hundred thou¬
sand dollars, and not over two hundred thousand dollars,
incur a penalty of fifty thousand dollars ; or,
(e) if the amount of such excess is over two hundred thou¬
sand dollars, incur a penalty of one hundred thousand
dollars. 53 V., c. 31, s. 51.
136. Every person, except a bank to which this Act applies,
who issues or re-issues, makes, draws, or endorses any bill,
bond, note, cheque or other instrument, intended to circulate
as money, or to be used as a substitute for money, for any
amount whatsoever, shall incur a penalty of four hundred dol¬
lars.
2. Such penalty shall be recoverable with costs, in any court
of competent jurisdiction, by any person who sues for the same.
3. A moiety of such penalty shall belong to the person suing
for the same, and the other moiety to His Majesty for the
public uses of-Canada.
4. If any such instrument is made for the payment of a less
an m than twenty dollars, and is payable either in form or in
fact to the bearer thereof, or at sight, or on demand, or at less
than thirty days thereafter, or is overdue, or is in any way
calculated or designed for circulation, or as a substitute for
money, the intention to pass the same as money shall be pre¬
sumed, unless such instrument is,—
(a) a cheque on some chartered bank paid by the maker
directly to his immediate creditor ; or,
370 (bl
R.S., 1906.
Banks.
Chap. 29. 45
(h) a. promif-sDry note, bill of exchange, bond or other under¬
taking for the payment of money made or delivered by the
maker thereof to his immediate creditor; and,
(c) not designed to circulate as money or as a substitute for
money. 53 V., c. 31, s. 60.
137. Every person who in any way defaces any Dominion Defacement
or provincial note, or bank note, whether by writing, printing, ° ""»tes.
drawing or stamping thereon, or by attaching or affixing thereto,
anything in the nature or form of an advertisement, shall be
liable to a penalty not exceeding twenty dollars. 53 V., c. 31, Penalty,
s. 61.
138. (a) Every person who, being president, vice-president. Issuing notes
director, general manager, manager, clerk or other officer period of
of the bank, issues or re-issues, during any period of sus- suspension,
pension of payment by the bank of its liabilities, any notes
of the bank payable to bearer on demand, and intended for
circulation, or authorizes or is concerned in any such issue
or re-issue; and,
(h) If, after any such suspension, the bank resumes business Or without
without the consent in writing of the curator, hereinbefore Treasury
provided for, every person who being president, vice- Board,
president, director, general manager, manager, clerk or
other officer of the bank issues or re-issues, or authorizes or
is concerned in 'the issue or re-issue of any such notes
before being thereunto authorized by the Treasury Board ;
and,
(c) Every person who accepts, receives or takes, or author- And accept-
izes or is concerned in, the acceptance, receipt or taking of
any such notes, knowing the same to have been so issued
or re-issued, from the bank, or from such president, vice-
president, director, general manager, manager, clerk or
other officer of the bank, in payment or part payment, or as
security for the payment of any amount due or owing to
such person by the bank;
is guilty of an indictable offence, and liable to imprisonment Penalty,
for a term not exceeding seven years, or to a fine not exceeding
two thousand dollars, or to both. 63-64 V., c. 26, s. 10.
139. (a) Every person who, being the president, vice-of
president, director, general manager, manager, cashier, or
other officer of the bank, pledges, assigns, or hypothecates,
or authorizes, or is concerned in the pledge, assignment or
hypothecation of the notes of the bank ; and,
(b) Every person who accepts, receives or takes, or author- Accepting,
izes or is concerned in the acceptance or receipt or taking
of such notes as a pledge, assignment or hypothecation ;
shall be liable to a fine of not less than four hundred dollars and Penalty,
not more than two thousand dollars, or to imprisonment for not
more than two years, or to both. 53 V., c. 31, s. 52.
371 140.
RS., 1906.
46
Chap. 29.
BanJcs.
Issiiine notes 140. (a) Every person who, being the president, vice-
rau u en y. president, director, general manager, manager, cashier or
other officer of a bank, with intent to defraud, issues or
delivers, or authorizes or is concerned in the issue or deliv¬
ery of notes of the bank intended for circulation and not
then in circulation; and.
Knowingly /J, \ Every person who, with knowledge of such intent,
accepting. j. • ,.i • j-
accepts, receives or takes, or authorizes or is concerned in
the acceptance, receipt or taking of such notes ;
Penalty. shall be guilty of an indictable ofíence, and liable to imprison¬
ment for a term not exceeding seven years, or to a fine not
exceeding two thousand dollars, or to both. 53 V., c. 31, s. 52.
Warehouse Receipts, Bills of Lading and other Securities.
141. If any bank, to secure the payment of any bill, note,
warehouse Or liability, acquires or holds,—
bilTof^ladin warehouse receipt ^or bill of lading ; or,
' ° ' (h) any instrument such as is by this Act authorized to be
taken by the bank to secure money lent,—
(i) to any wholesale purchaser, or shipper of or dealer
in products of agriculture, the forest, quarry and
mine, or the sea, lakes and rivers, or to any wholesale
purchaser or shipper of or dealer in live or dead stock,
and the products thereof, upon the security of such
products, or of such live or dead stock, or the products
thereof; or,
(ii) to any person engaged in business as a wholesale
manufacturer of any goods, wares and merchandise,
upon the security of the goods, wares and merchan¬
dise manufactured by such person, or procured for
such manufacture;
such bank shall, unless,—
Except in (a) such bill, note, debt or liability is negotiated or con-
certam cases. tracted at the time of the acquisition by the bank of such
warehouse receipt, bill of lading or security; or,
(h) such bill, note, debt or liability is negotiated or con¬
tracted upon the written promise or agreement that such
warehouse receipt, bill of lading or security would be given
to the bank ; or,
(c) the acquisition or holding by the bank of such ware¬
house receipt, biU of lading or security is otherwise author¬
ized by this Act;
Penalty. incur a penalty not exceeding five hundred dollars. 53 V.,
c. 31, s. 79.
Non-compli- 142. If any debt or liability to the bank is secured by,—
requirlraents (O') ^ny warehouse receipt, or bill of lading; or,
for sale. (b) any other security such as is mentioned in the last pre¬
ceding section ;
372 and
K.S., 1906,
BanJcs.
Chap. 29. 47
and is not paid at maturity, such bank shall, if it sells the goods,
wares and merchandise or products, covered by such warehouse
receipt, bill of lading or security, under the power of sale con¬
ferred upon it by this Act, without complying with the provi¬
sions to which the exercise of such power of sale is, by this Act,
made subject, incur a penalty not exceeding five hundred dol- Penalty,
lars. 53 V., c. 31, s. 79 ; 63-64 V., c. 26, s. 18.
143. Every person is guilty of an indictable offence and Maldne false
liable to imprisonment for a term not exceeding two years who
wilfully makes any false statement,—
(a) in any warehouse receipt or bill of lading given under in ware-
the authority of this Act to any bank; or, or"bfll'^or'^^
(b) in any instrument given to any bank under the authority lading,
of this Act, as security for any loan of money made by
the bank to any wholesale purchaser or shipper of or dealer In security
in products of agriculture, the forest, quarry and mine,
or the sea, lakes and rivers, or to any wholesale purchaser,
or shipper of or dealer in live or dead stock and the pro¬
ducts thereof, whereby any such products or stock is as¬
signed or transferred to the bank as security for the pay¬
ment of such loan; or,
(c) in any instrument given to any bank under the authority in security
of this Act, as security for any loan of money made by manu-
' V V Jo lacturôs.
the bank to any person engaged in business as a wholesale
manufacturer of any goods, wares and merchandise, where¬
by any of the goods, wares and merchandise manufac¬
tured by him, or procured for such manufacture, are
transferred or assigned to the bank as security for the
payment of such loan. 53 V., c. 31, s. 75.
144. Every person who, having posssession or control of Wilfully dis-
any goods, wares and merchandise covered by any tyarehouse or^^thhold-
receipt or bill of lading, or by any such security as in the last ing goods
]n-eceding section mentioned, and having knowledge of such secur^Tty.^'^
recciipt, bill of lading or security, without the consent of the
bank in writing, and before the advance, bill, note, debt or lia¬
bility thereby secured has been fully paid,—
(a) wilfully alienates or parts with any such goods, wares'
or merchandise; or,
(h) wilfully withholds from the bank possession of any such
goods, wares and merchandise, upon demand, after default
in payment of such advance, bill, note, debt or liability;
is guilty of an indictable offence, and liable to imprisonment Penalty,
for a term not exceeding two years. 53 V., c. 31, s. 75; 63-64
v., c. 26, s. 18.
145. (a) If any bank having, by virtue of the provisions Bank not
of this Act, a privileged lien for any debt or liability for 'pubi>ct^t"^
any debt to the bank, on the shares of its own capital privileged
stock of the debtor or person ' liable, neglects to sell such
373 shares
R.S., 1906.
43 Chap. 29. Banks.
shares within twelve months after such debt or liability
has accrued and become payable ; or,
(h) If any such bank sells any such shares without giving
notice to the holder thereof of the intention of the bank
to sell the same, by mailing such notice in the post office,
post paid, to the last known address of such holder, at
least thirty days prior to such sale;
such bank shall incur, for each such offence, a penalty not ex¬
ceeding five hundred dollars. 53 V., c. 31, s. 79.
/
Prohibited Business.
146. If any bank, except as authorized by this Act, either
directly or indirectly,—
(a) deals in the buying or selling or bartering of goods,
wares and merchandise, or engages or is engaged in any
trade or business whatsoever; or,
(h) purchases, deals in, or lends money or makes advances
upon the security or pledge of any share of its own capital
stock, or of the capital stock of any bank; or,
(c) lends money or makes advances upon the security, mort¬
gage or hypothecation of any lands, tenements or immov¬
able property, or of any ships or other vessels, or upon the
security of any goods, wares and merchandise ;
such bank shall incur a penalty not exceeding five hundred
dollars. 53 V., c. 31, s. 79.
Returns.
147. Every bank which neglects to make up and send to
the Minister, within the first fifteen days of any month, any
monthly return by this Act required to be made up and sent
in within the said fifteen days, exhibiting the condition of the
bank on the last juridical day of the month last preceding, and
signed in the manner and by the persons by tliis Act required,
shall incur a penalty of fifty dollars for each and every day,
after the expiration of such time, during which the bank
neglects to make and send in such return. 53 V., c. 31, s. 85.
Not making 148. Every bank which neglects to makfe and send to the
retur^d Minister, within thirty days from the date of the demand
MimsTer. therefor by the Minister, or, if such time is extended by the
Minister, within such extended time, not exceeding thirty days,
as the Minister may allow, any special return, signed in the
manner and by the persons by this Act required, which, under
the provisions of this Act, the Minister may, for the purpose of
affording a full and complete knowledge of the condition of
Penalty. the bank, call for, shall incur a penalty of five hundred dollars
for each and every day during which such neglect continues.
53 v., c. 31, s. 86.
374 149.
Oy selling
without
notice.
l'cnalty.
Bank doing.
Penalty.
Bank not
making
monthly
returns.
Penalty.
E.S., 1906.
Banks.
Chap. 20. 40
149. Every bank vbich neglects to transmit or deliver to
tbe Minister, within twenty days after the close of any calendar annual re-
year, a return, signed in the manner and hy the persons and
setting forth the particulars hy this Act required in that behalf,
of all drafts or hills of exchange issued hy the hank to any
person and remaining unpaid for more than five years prior to
the date of such return, shall incur a penalty of fifty dollars Penalty,
for each and every day during which such neglect continues.
63-64 v., c. 26, s. 21.
150. Every hank which neglects to transmit or deliver to Not retum-
the Minister, within twenty days after the close of any calendar j,"t
year, a certified list, as hy this Act required, showing,—
(a) the names of the shareholders of the hank on the last
day of such calendar year, with their additions and resi¬
dences ;
(h) the number of shares then held hy such shareholders
respectively; and,
(c) the value at par of such shares ;
shall incur a penalty of fifty dollars for each and every day Penalty,
during which such neglect continues. 53 V., c. 31, s, 87.
151. Every hank which neglects to transmit or deliver to Not making
the Minister, within twenty days after the close of any calendar turnToi divl-
year, a return, signed in the manner and hy the persons hy this dends and
Act required, of all dividends which have remained unpaid for
more than five years, and also of all amounts or balances in
respect of which no transactions have taken place, or upon
which no interest has been paid, during the five years prior to
the date of such return, and setting forth such further particu¬
lars as are hy this Act required in that behalf, shall incur a
penalty of fifty dollars for each and every day during which Penalty,
such neglect continues.
2. The said term of five years shall, in case of moneys de- Period of
posited for a fixed period, he reckoned from the date of the ®
termination of such fixed period. 53 V., c. 31, s. 88.
152. If any return or list, mentioned in either of the last Date of post-
five preceding sections, is transmitted hy post, the date appear-
ing, hy the post office stamp or mark upon the envelope or wrap¬
per inclosing the return or list received hy the Minister, as the
date of deposit in the post office of the place at which the chief
office of the hank was situated, shall he taken prima facie, for
the purpose of any of the said sections, to be the day upon
which such return or list was transmitted to the Minister. 53
v., c. 31, ss. 85 and 86 ; 63-64 V., c. 26, s. 22.
153. The making of any wilfully false or deceptive state-Making false
ment in any account, statement, return, report or other docu-
ment respecting the affairs of the hank is an indictable offence return, etc.
punishable, unless a greater punishment is in any case hy law
375 prescribed
R.S., 1900.
50
Chap. 29.
Banks.
Penalty.
Liability of
officers.
Offence.
Damages.
prescribed therefor, by imprisonment for a term not exceeding
five years.
2. Every president, vice-president, director, auditor, mana¬
ger, cashier or other officer of the bank, who,—
(a) prepares, signs, approves or concurs in any such account,
statement, return, report or document containing such false
or deceptive statement j or,
(h) uses the same with intent to deceive or mislead any
person ;
shall be held to have wilfully made such false or deceptive
statement, and shall further be responsible for all damages sus¬
tained by any person in consequence thereof. 53 V., c. 31,
s. 99.
Director
refusing to
make.
Calls in the Case of Suspension of Payment.
154. (a) If any suspension of payment in full, in specie or
Dominion notes, of all or any of the notes or other liabili¬
ties of the bank continues for three months after the
expiration of the time which, under the provisions of this
Act, would constitute the bank insolvent; and,
(h) if no proceedings are taken under any Act for the wind¬
ing-up of the bank; and,
(c) if any director of the bank refuses to make or enforce,
or to concur in the making or enforcing of any call on the
shareholders of the bank, to any amount which the direc¬
tors deem necessary to pay all the debts and liabilities of
the bank;
such director shall be guilty of an indictable offence, and
liable,—
(a) to imprisonment for any term not exceeding two years;
and,
(b) personally for any damages suffered by any such default.
53 v., c. 31, s. 92.
Undue Preference to the Bank's Creditors.
President," 155. Every person who, being the president, vice-presi-
undúíprefer director, manager, cashier or other officer of the bank,
ence to any wilfully gives or concurs in giving to any creditor of the bank
creditor. fraudulent, undue or unfair preference over other creditors,
by giving security to such creditor, or by changing the nature
of his claim, or otherwise howsoever, is guilty of an indictable
offence, and liable,—
(a) to imprisonment for a term not exceeding two years ;
and,
(h) for all damages sustained by any person in consequence
of such preference. 53 V., c. 31, s. 97.
Penalty.
Penalty.
Damages.
Unauthor¬
ized use of
title.
11.S., 1906.
The Using of the Title ' Bank/ etc.
156. Every person assuming or using the title of 'bank,'
' banking company,' ' banking house,' ' banking association ' or
376 'bankinc
¡ianliS.
Chap. 29.
51
banking institution,' -without being authorized so to do by this Penalty.
Act, or by some other Act in force in that behalf, is guilty of
an offence against this Act. 53 V., c. 31, s. 100.
Penalty for Offence against this Act.
157. Every person committing an offence, declared to.be an Offence
offéhce against this Act, shall be liable to a fine not exceeding
one thousand dollars, or to imprisonment for a term not ex- Penalty,
ceeding five years, or to both, in the discretion of the court
before which the con-viction is had. 53 V., c. 31, s. 101.
PROCEDURE.
158. The amount of all penalties imposed upon a bank for Penalties
any violation of this Act shall be recoverable and enforceable, of'^
with costs, at the suit of His Majesty instituted by the Attorney Attorney
General of Canada, or hy the Minister. SnSa'
2. Such penalties shall belong to the Crown for the public Appropria-
uses of Canada : Provided that the Governor in Council, on the- tien,
report of the Treasury Board, may direct that any portion of Proviso,
any penalty be remitted, or paid to any person, or applied in
any manner deemed best adapted to attain the objects of this
Act, and to secure the due administration thereof. 53 V., c. 31,
s. 98.
SCHEDULE A.,
1. The Bank of Montreal.
2. The Bank of Hew Brunswick.
3. The Quebec Bank.
4. The Bank of Hova Scotia.
5. The St. Stephen's Bank.
6. The Bank of Toronto.
7. The Molsons Bank.
8. The Eastern Townships Bank.
9. The Union Bank of Halifax.
10. The Ontario Bank.
11. La Banque Nationale.
12. The Merchants Bank of Canada.
13. La Banque Provinciale du Canada.
14.. The People's Bank of Hew Brunswick.
15. The Union Bank of Canada.
16. The Canadian Bank of Commerce.
17. The Boyal Bank of Canada.
18. The Dominion Bank.
377 19.
R.S., 1906.
52
Chap. 29.
Banks.
19. The Bank of Hamilton.
20. The Standard Bank of Canada.
21. La Banque de St. Jean.
22. La Banque d'lloehelaga.
23. La Banque de St. Hyacinthe.
24. The Bank of Ottawa.
25. The Imperial Bank of Canada.
26. The Western Bank of Canada.
27. The Traders' Bank of Canada.
28. The Sovereign Bank of Canada.
29. The Metropolitan Bank.
30. The Crown Bank of Canada.
31. The Home Bank of Canada.
32. The Northern Bank.
33. The Sterling Bank of Canada.
34. The United Empire Bank of Canada.
63-64 v., c. 26, s. 4, and sch. A.
SCHEDULE B.
An Act to incorporate the Bank.
Whereas the persons hereinafter named have, by their peti¬
tion, pra\ cd that an Act be passed for the purpose of establish¬
ing a bank in , and it is expedient to grant the
prayer of the said petition:
Therefore His Majesty, by and with the advice and consent
of the Senate and House of Commons of Canada, enacts as
foUows :—
1. The persons hereinafter named, together A\ ith such others
as become shareholders in the corporation by this .Vet created,
are hereby constituted a corporation by the name of
hereinafter called the Bank.
2. The capital stock of the Bank shall be dollars.
3. The chief office of the Bank shall be at
4.
shall be the provisional
directors of the Bank.
5. This Act shall, subject to the provisions of section six¬
teen of the Bank Act, remain iû force until the first day of
July, in the year one thousand nine hundred and eleven.
53 v., c. 31, sch. B. ; 63-64 V., c. 26, s. 45.
378 SCHEDULE
R.S., 1906.
Banks.
Chap. 29.
53
SCHEDULE C.
In consideration of an advance of dollars
made by the Bank to A. E., for which the
said Bank holds the following bills or notes: {describe the bills
or notes J if any), [or, in consideration of the discounting of
the following bills or notes by the Bank for
A. B. : {describe the bills or notes),) the goods, wares and mer¬
chandise mentioned below are hereby assigned to the said Bank
as security for the payment on or before the
day of of the said advance, together with
interest thereon at the rate of. . . .per centum per annum from
the day of (or, of the said bills or notes,
or renewals thei-eof, or substitutions therefor, and interest
■thereon, or as the case may be).
This security is given under the provisions of section eighty-
eight of the Bank Act, and is subject to the provisions of the
said Act.
The said goods, wares and merchandise, are now owned
by , and are now in the possession of ,
and are free from any mortgage, lien or charge thereon (or
as the case may be), and are in {place or places where the goods
are), and are the following {description of goods assigned).
Dated, etc.
(N.B.—2'he bills or notes and the goods, etc., may be set out
in schedules annexed.)
63-64 v., c. 26, s. 46 and sch. C.
SCHEDULE D.
Beturn of the liabilities and assets of the bank on
the day of , A.D.
Capital authorized. . . $
Capital subscribed
Capital paid up
Amount of rest or reserve fund
Rate per cent of last dividend declared.. . . per cent.
LIABILITIES.
1. Notes in circulation $
2. Balance due to Dominion Government, after
deducting advances for credits, pay-lists,
etc
3. Balances due to provincial governments.. ...
379 4.
R.S., 1906.
54
Chap. 29.
BanJcs.
4. Deposits by the public, payable on demand,
in Canada ; . $
5. Deposits by the public, payable after notice
or on a fixed day, in Canada
G. Deposits elsewhere than in Canada
7. Loans from other banks in Canada, secured,
including bills rediscounted
8. Deposits made by and balances due to other
banks in Canada
9. Balances due to agencies of the bank, or to
other banks or agencies, in the United
Kingdom
10. Balances due to agencies of the bank, or to
other banks or agencies, elsewhere than in
Canada and the United Kingdom
11. Liabilities not included under foregoing
beads
ASSETS'.
1. Specie If
2. Dominion notes
3. Deposits with Dominion Government for
security of note circulation
4. Notes of and cheques on other banks
5. Loans to other banks in Canada, secured, in¬
cluding bills rediscounted
6. Deposits made with and balances due from
other banks in Canada
7. Balances due from agencies of the bank, or
from other banks or agencies, in the United
Kingdom
8. Balances due .from agencies of the bank, or
from other banks or agencies, elsewhere
than in Canada and the United Kingdom.
9. Dominion Government and provincial govern¬
ment securities
10. Canadian municipal securities, and British,
or foreign, or colonial public securities,
other than Canadian
11. Railway and other bonds, debentures and
stocks
12. Call and short loans on stocks and bonds in
Canada
13. Call and short loans elsewhere than in
Canada
14. Current loans in Canada
15. Current loans elsewhere than in Canada..
380 16.
R.S., 1906.
BanJcs.
Chap. 29. 55
16. Loans to the Government of Canada $
17. Loans to provincial governments
18. Overdue debts'
19. Real estate other than bank premises
•20. Mortgages on real estate sold by the bank.. .
21. Bank premises
22. Other assets not included under the foregoing
heads
$
Aggregate amount of loans to directors, and firms of which
they are partners, $
Average amount of specie held during the month, $
Average amount of Dominion notes held during the month,
$
Greatest amount of notes in circulation at any time during
the month, $
I declare that the above return has been prepared under my
directions and is correct according to the books of the bank.
E. F.,
Chief Accountant.
We declare that the foregoing return is made up from the
books of the bank, and that to the best of our knowledge and
belief it is correct, .and shows truly and clearly the financial
position of the bank; and we further declare that the bank has
never, at any time during the period to which the said return
relates, held less than forty per centum of its cash reserves in
Dominion notes.
{Place') this day of
A. B., President.
C. D., General Manager.
63-64 v., c. 26, s. 47 and sch. D.
OTTAWA: Printed by Samuel Edwabd Dawson, Law Printer to the Kina's
most Excellent Majesty.
381
R.S., 1906.
332.1
.971
C211
y>':':, 'l:
;iit;',iivi,'i.-!-.'i' :i:/.'.'':j,'i.■' '', /'.'^'vvVW.S^^ViVAví ■ 'V'■•'f;'' ,V.'-.; ii ': ■
^.■^■ .^^.;V:^V^■;■■W■Í/Í■:^•íl^■.'l;;■;■^■:; ,•; ¡rjiVlv! .'i ■■ . •■
h
-f- -:r - ^