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Provisions as to special investments.
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10. The power of a trustee savings bank to make investments (herein-after referred to as special investments) in pursuance of section sixteen of the Trustee Savings Banks Act, 1863, shall be subject to the following restrictions, namely:—
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(a) An investment shall not be made . . . . . on behalf of any person unless he is at the time of making the investment a depositor in the bank to the extent of not less than fifty pounds: Provided that nothing in this subsection shall prevent the continuance of special investments in behalf of any person who is before the passing of this Act a depositor under section sixteen of the Trustee Savings Banks Act, 1863;
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(b) The total amount to be invested . . . . . . on behalf of any one depositor shall not exceed five hundred pounds in the aggregate;
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(c) The money received for investment . . . . . . shall not be invested in any manner not for the time being authorised by law in the case of investment by trustees, and shall not be invested on mortgage of land or any interest in land;
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(d) The accounts of the bank shall be kept so as to distinguish between the receipts and expenditure on account of special investments and the receipts and expenditure on account of the general business of the bank;
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(e) The assets of the bank in respect of ordinary deposits shall not be chargeable with any part of the expenditure on account of special investments and shall not be liable for any loss or deficiency in respect of special investments;
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(f) The security required by section eight of the Trustee Savings Banks Act, 1863, as amended by this Act, shall comprise separate security in respect of the amount received on account of special investments;
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(g) The annual statement required by section fifty-five of the the Trustee Savings Banks Act, 1863, shall contain, or be accompanied by, such particulars with respect to the special investments of the bank as the National Debt Commissioners direct;
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(h) The rules of the bank shall provide to the satisfaction of the inspection committee for the audit, examination, and publication of the investment accounts, for the safe custody of the securities held by the bank on account of special investments, and the security to be given by officers of the bank in respect of the amount received on such account;
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(i) The power to make special investments shall not be exercised by any bank unless the bank has exercised the power before the first day of June one thousand eight hundred and ninety-one.[1]
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[1 Any trustee savings bank may make special investments if authorised by the National Debt Commissioners; and certain provisions apply when it does so; see 4 Edw. 7. c. 8. s. 6.] |
