Currency Act, 1927

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Limit on issue of consolidated bank notes to particular banks.

56.—(1) In the case of a Shareholding Bank which under the law of any place outside Saorstát Eireann is entitled to issue bank notes in that place, the Commission shall, notwithstanding anything contained in this Act, take such steps as it thinks proper to ensure that the amount of consolidated bank notes outstanding with such Bank (otherwise than by virtue of an extraordinary issue) at any one time together with the amount of the bank notes of such Bank issued in such place outside Saorstát Eireann which are estimated by the Commission to be in circulation at that time on a fiduciary basis shall not form an excessive proportion in the opinion of the Commission of the total amount of the advances made (whether in or outside Saorstát Eireann) at that time by such Bank to its customers.

(2) Any abatement under this section during the course of the initial or triennial period of the amount of consolidated bank notes which may be outstanding with such Bank (otherwise than by virtue of an extraordinary issue) shall be effected only by unanimous vote of the Commission but no ordinary Commissioner shall vote on or otherwise take part in proceedings under this section in relation to a Bank of which he is a director or by which he is employed.