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Disclosure of loans, etc., — amendment of exceptions applicable to directors of licensed banks and provisions as to offences and other matters.
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8.— (1) Section 41 of the Act of 1990 is amended—
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(a) by substituting the following subsection for subsection (6):
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“(6) Subsections (1) and (2) do not apply for the purposes of any accounts prepared by any company which is a licensed bank, or the holding company of a licensed bank, in relation to—
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(a) a transaction or arrangement of a kind described in section 31 entered into for a person who at any time during the relevant period was connected with a director of that company or that holding company; or
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(b) an agreement to enter into such a transaction or arrangement for a person so connected,
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to which the licensed bank is a party.”;
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and
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(b) by adding the following subsections after subsection (9):
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“(10) Nothing in this section or sections 42 to 45 prejudices the operation of any—
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(a) rule or other instrument; or
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(b) direction or requirement,
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made, issued, granted or otherwise created under the Central Bank Acts 1942 to 1998, the Central Bank and Financial Services Authority of Ireland Acts 2003 and 2004 or any other enactment requiring a licensed bank, or a holding company of a licensed bank, to disclose particulars, whether in accounts prepared by it or otherwise, of transactions, arrangements or agreements (whether of the kind described in section 31 or not) entered into by the licensed bank.
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(11) Where a company makes default in complying with this section, the company and every person who at the time of that default is a director of the company shall be guilty of an offence.
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(12) It shall be a defence in proceedings for an offence under subsection (11) for the defendant to prove that he took all reasonable steps for securing compliance with the requirements of this section.”.
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(2) Section 43 of the Act of 1990 is amended by substituting the following subsections for subsections (5) and (6):
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“(5) The following, namely—
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(a) the group accounts of a company which is, or is the holding company of, a licensed bank prepared in accordance with the requirements of section 150 of the Principal Act; and
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(b) the accounts of any other company which is a licensed bank prepared in accordance with the requirements of section 148 of the Principal Act,
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in respect of the relevant period shall contain a statement in relation to transactions, arrangements and agreements made by—
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(i) the company preparing the accounts, if it is a licensed bank; and
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(ii) in the case of a holding company, by any of its subsidiaries which is a licensed bank,
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for persons who at any time during the relevant period were connected with a director of the company of—
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(I) the aggregate amounts outstanding at the end of the relevant period under transactions, arrangements and agreements coming within any paragraph of subsection (1) (which transactions, arrangements and agreements, coming within any particular such paragraph, are referred to subsequently in this sectionas ‘relevant transactions, arrangements and agreements’);
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(II) the aggregate maximum amounts outstanding during the relevant period under relevant transactions, arrangements and agreements made for persons so connected;
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(III) the number of persons so connected for whom relevant transactions, arrangements and agreements that subsisted at the end of the relevant period were made; and
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(IV) the maximum number of persons so connected for whom relevant transactions, arrangements and agreements that subsisted at any time during the relevant period were made.
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(6) A transaction, arrangement or agreement to which subsection (5) applies need not be included in the statement referred to in that subsection if—
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(a) it is entered into by the company concerned in the ordinary course of its business, and
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(b) its value is not greater, and its terms no more favourable, in respect of the person for whom it is made, than that or those which—
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(i) the company ordinarily offers, or
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(ii) it is reasonable to expect the company to have offered,
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to or in respect of a person of the same financial standing but unconnected with the company.
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(6A) In reckoning the aggregate maximum amounts or the maximum number of persons referred to in subsection (5)(II) or (IV), as appropriate, there shall not be counted, as the case may be—
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(a) relevant transactions, arrangements and agreements made by the company, or a subsidiary of it, referred to in subsection (5) and which is a licensed bank for any person connected as mentioned in that subsection if the aggregate maximum amount outstanding during the relevant period under relevant transactions, arrangements and agreements made for that person does not exceed €3,174.35; or
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(b) a person so connected for whom the aggregate maximum amount outstanding as mentioned in paragraph (a) does not exceed the amount there mentioned.”.
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(3) Section 43 of the Act of 1990 is further amended—
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(a) in subsection (7), by substituting “subsection (2) or (5)” for “subsection (2), (5) or (6)”;
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(b) in subsection (8), by substituting “subsections (2) and (5)” for “subsections (2), (5) and (6)”;
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(c) by deleting subsection (9); and
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(d) by adding the following subsections after subsection (10):
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“(11) Where a company makes default in complying with this section, the company and every person who at the time of that default is a director of the company shall be guilty of an offence.
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(12) It shall be a defence in proceedings for an offence under subsection (11) for the defendant to prove that he took all reasonable steps for securing compliance with the requirements of this section.”.
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