Trustee Savings Banks Act, 1989

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Revocation of licences.

13.—(1) The Central Bank may, with the consent of the Minister, revoke a licence—

(a) if the holders of the licence so request,

(b) if the institution concerned has not commenced to carry on the business authorised by the licence within 12 months of the date on which the licence was granted,

(c) if the trustee savings bank concerned is being wound up,

(d) if the trustee savings bank becomes unable to meet its obligations to its creditors or suspends payments lawfully due by it or, in the opinion of the Central Bank—

(i) no longer possesses funds that are sufficient for the purposes of the business aforesaid, or

(ii) can no longer be relied upon to fulfil its obligations to its creditors, including the repayment of deposits held by it and the payment of interest thereon,

(e) if the trustee savings bank is convicted on indictment of an offence under this Act or is convicted of an offence involving fraud or dishonesty,

(f) if, since the grant of the licence, the circumstances relevant to the grant have changed and are such that, if an application for the grant of a licence were made in the changed circumstances, the grant thereof would be refused,

(g) if the Central Bank is not satisfied that the circumstances of the trustee savings bank are such that the bank is capable of repaying deposits accepted by it and paying any interest due to the depositors thereon in accordance with the terms of the deposits,

(h) if the trustees or the trustee savings bank fail to comply with a direction of the Central Bank under this Act,

(i) if there is not compliance with this Act as respects the trustees or the trustee savings bank, or

(j) if the trustee savings bank has ceased to carry on the business authorised by the licence and has not carried it on during a period of more than 6 months immediately following the cesser.

(2) Whenever the Central Bank proposes to revoke a licence (other than in pursuance of a request by the holders thereof to do so)—

(a) it shall notify the holders in writing that it intends to seek the consent of the Minister to the revocation and of the reasons therefor and that the holders may, within 21 days after the date of the giving of the notification, make representations in writing to the Minister in relation to the proposed revocation,

(b) the holder may make such representations as aforesaid to the Minister within the time aforesaid, and

(c) the Minister shall, before deciding to grant or withhold his consent to the revocation, consider any representations duly made to him under this subsection.

(3) Where a licence is revoked and the trustee savings bank concerned is not wound up—

(a) the bank shall continue to be liable in respect of deposits accepted by it until any liabilities in respect of them have been discharged to the satisfaction of the Central Bank,

(b) upon the discharge of the liabilities aforesaid, the bank shall be closed in accordance with section 42 , and

(c) the trustees of the bank shall discharge all their liabilities to their depositors in full and without undue delay and shall notify the Central Bank and the depositors with the bank, in such manner and within such time as may be determined by the Central Bank, of the action they are taking to do so.

(4) Where a licence is revoked and the trustee savings bank concerned is being wound up, the liquidator of the bank may carry on the business of the bank to such extent as the Central Bank or, if the winding up is pursuant to an order of the Court, the Court may consider necessary to enable the liquidator to discharge his functions.

(5) A person who contravenes subsection (3) (c) shall be guilty of an offence.