Central Bank Act , 1989

(2) Every payment to which this section relates shall be charged on the deposit protection account in the general fund.

58 Vesting in liquidator of deposited amount.

58.—(1) Where a holder of a licence or a former holder of a licence is unable to pay his debts and is being wound up, either voluntarily or by the Court, the Court may, on the application of the liquidator concerned, order that the amount standing deposited by the holder or former holder in the deposit protection account shall, together with any interest accrued and interest that may accrue and subject to the other provisions of this Chapter, vest in the liquidator by his official name.

(2) Where, after payment of all eligible deposits, any balance of the amount vested in the liquidator by virtue of subsection (1) remains, it shall be treated for the purposes of the Companies Acts, 1963 to 1986, as an asset of the holder or former holder of the licence (as the case may be) vesting in the liquidator by his official name.

59 Statement of affairs and calculation of payments from deposit protection account, etc. on insolvency.

59.—(1) This section applies to the holder or former holder of a licence which is unable to pay its debts and is being wound up either voluntarily or by the Court.

(2) The liquidator shall deliver to the Bank within one month of the date of his appointment, or such extended period as the Court may order—

(a) a copy of the statement of the affairs of the holder or former holder made out and filed in accordance with section 224 of the Companies Act, 1963, or, where the holder is being wound up voluntarily, a statement which would be so filed if the holder or former holder were being wound up by the Court,

(b) an estimate of the amount (excluding any amount in the deposit protection account) likely to be available for the payment of amounts due to persons maintaining deposits, and

(c) a statement of when he expects to be in a position to make those payments.

(3) (a) The amount payable out of the amount vesting in the liquidator in accordance with section 58 to each person maintaining eligible deposits with the holder or former holder concerned shall, subject to paragraph (b), be calculated in accordance with the formula—

where—

A is any amount of eligible deposits up to £5,000,

B is any excess of eligible deposits over £5,000 but not over £10,000,

C is any excess of eligible deposits over £10,000 but not over £15,000, and

D is the amount paid or to be paid to that person in respect of eligible deposits maintained by that person otherwise than out of funds so vesting.

(b) Where the aggregate amount so payable would be greater than the amount vesting in the liquidator in accordance with section 58 then the amount payable to each person concerned shall be calculated in accordance with the formula—

X ___ Y	(	4 ___ 5	A	7 ___ 10	B	1 ___ 2	C	)		X ___ Y	D

where A, B, C and D have respectively the same meanings as they have in paragraph (a) and—

X is the amount so vesting, and

Y is the said aggregate amount.

(c) Reference in this subsection or in section 60 to the amount vesting in the liquidator in accordance with section 58 shall be construed as the amount so vesting after the deduction for any remuneration or expenses permitted, by virtue of section 70 (2), to be paid out of the amount so vesting in the liquidator.

(4) Where the Bank has made a recommendation to the Minister in accordance with section 56 in respect of the monetary amounts represented by the letters A, B and C in subsection (3), the Minister may, where he is of the opinion that it would be in the interest of the orderly and proper regulation of banking or the provision of financial services generally, by order amend that subsection by altering those monetary amounts, whether or not previously amended by virtue of this subsection:

Provided that no such amendment shall have any effect in relation to a holder or former holder of a licence which, at the time the relevant provision in the order under this subsection comes into operation, is unable to pay its debts and is being wound up.

60 Payment out of deposit protection account on winding up.

60.—(1) There shall be paid, out of the amount vesting in a liquidator under section 58 (1), to each person maintaining an eligible deposit with the holder or former holder of the licence concerned—

(a) the amount calculated in accordance with section 59 (3) (a), or

(b) if the amount so vesting is insufficient for such purpose, a proportion of that person's eligible deposits which is calculated in accordance with section 59 (3) (b).

(2) Where the provisions of subsection (1) apply, every person with eligible deposits concerned may, subject to section 61, claim as an ordinary creditor of the holder or former holder of the licence in respect of so much of those deposits as remains unpaid.

(3) Where it appears to the Bank that the amount available, or likely to become available, to the liquidator concerned (including the amount vesting in the liquidator in accordance with section 58) will be insufficient to enable each person maintaining eligible deposits with the holder or former holder to be paid in respect of such deposits—

(a) the amount calculated in accordance with section 59 (3) (a), or

(b) within such period of time as the Bank considers reasonable in the circumstances, the amount so calculated,

then, there shall be provided by the Bank out of the deposit protection account a sum sufficient to pay in respect of each such person—

(i) where paragraph (a) of this subsection applies, the difference between the amounts calculated in accordance with paragraphs (a) and (b) of section 59 (3),

(ii) where paragraph (b) of this subsection applies, the difference between the amount calculated in accordance with paragraph (a) of section 59 (3) and the amount paid or payable by the liquidator within that period of time.

(4) The manner and mode of making payments for the purposes of subsection (1) from the moneys vesting in the liquidator concerned by virtue of section 58 shall be as agreed to between the liquidator and the Bank or, in the event of a disagreement, as the Court shall order on an application by either or both the liquidator and the Bank.

(5) For the purposes of subsections (3) and (4), the Bank shall take all reasonable steps to ensure that payments to which this section relates are paid as expeditiously and with the least expense to the Bank as is possible consistently with the orderly winding up.

(6) Where moneys have been provided by the Bank for the payment of persons maintaining eligible deposits, proof of those payments shall be given to the Bank by the person to whom the moneys were so provided.

(7) Every payment to which this section relates shall be charged on the deposit protection account in the general fund.

61 Effect of payment by Bank under section 60.

61.—(1) Where the Bank has made or becomes liable to make a payment under section 60 to persons maintaining eligible deposits, then as regards the amount of the payment in respect of each such person that amount shall be admitted by the Court (or, in the case of a voluntary winding up, by the liquidator) as a proved debt due to the Bank and the Bank shall have the same priority as would be enjoyed by the person were no such amount paid or payable.

(2) In distributing any relevant assets, the liquidator concerned shall pay to the Bank any dividend which would have been payable to a person to whom subsection (1) relates and, accordingly, the person concerned shall not be entitled to such a dividend or any part thereof until the Bank has been paid by the liquidator the full amount paid to that person by the Bank and to which subsection (1) relates.

62 Eligible deposits.

62.—(1) In this Chapter “eligible deposits”, in relation to every person maintaining deposits (including deposits on current accounts) with the holder or former holder of a licence which is being wound up, means the amount of the total liability of the holder or former holder remaining due to every such person in respect of—

(a) deposits denominated in Irish pounds, and

(b) any deposits denominated otherwise than in Irish pounds as may be specified (either generally or in particular) by regulations under section 72 (2),

at offices in the State of the holder or former holder, together with any interest or other premium accrued thereon up to and including the day of the commencement of the winding up but does not include—

(i) any amount to which subsection (2) relates,

(ii) any deposit maintained by an excluded depositor,

(iii) any deposit which relates to moneys due to the Bank,

(iv) interbank deposits,

(v) deposits represented by negotiable certificates of deposit,

(vi) any deposit which relates to moneys due to any body or category of persons to whom section 7(4) (as amended by this Part) of the Act of 1971 applies, other than a credit union or a friendly society, and

(vii) any deposit to which paragraph (b) relates where the relevant provisions of the regulations concerned came into operation after the commencement of the winding up.

(2) In calculating the amount of an eligible deposit—

(a) there shall be deducted from the total liability of the holder or former holder to the person maintaining a deposit to which subsection (1) relates, the amount of any liability of that person to that holder or former holder in respect of which a right of set-off against the said deposit existed immediately before the commencement of winding up or in respect of which such a right would have existed had—

(i) the said deposit been repayable on demand, and

(ii) such liability fallen due,

immediately before such winding up, and

(b) no account shall be taken of any debt—

(i) of the holder or former holder of the licence concerned unless it has been proved in accordance with sections 283 and 284 of the Companies Act, 1963, and

(ii) where the holder's licence has been revoked, for any sum deposited by a person with that former holder after such revocation where the Bank is satisfied that, at the time the deposit was made, the person knew or could reasonably be expected to have known that the licence had been revoked.

(3) In this section “commencement of winding up” shall, where appropriate in the circumstances, be construed in accordance with section 220 or 253 of the Companies Act, 1963.

63 Certain additional persons to be excluded depositors.

63.—Where the Bank is satisfied that a person maintaining deposits (including deposits, if any, on current accounts) with the holder or former holder of a licence which has become insolvent and is being wound up has directly or indirectly any responsibility for the circumstances giving rise to, or has profited or attempted to profit from, the insolvency, the person shall, unless an excluded depositor by virtue of any other provision of this Chapter, be an excluded depositor by virtue of this section.

64 Provisions applicable to excluded depositors, etc.

64.—(1) Where the Bank is of the opinion that a person is an excluded depositor by virtue of—

(a) being a connected person to whom paragraph (c) or (d) of the definition of “excluded depositor” in section 53 applies, or

(b) being a trustee of a trust for the benefit of a connected person to whom paragraph (e) of the definition of “excluded depositor” in section 53 applies, or

(c) section 63,

or that a person is a person to whom section 62 (2) relates, then the Bank shall, except where subsection (2) (b) of this section applies, give notice in writing to the person of that opinion, the reasons therefor and the steps that may be taken by that person under subsection (2).

(2) (a) A person to whom a notice under subsection (1) has been given in accordance with this section may, within 21 days of being so given, apply to the Court to have the relevant exclusion or deduction to which the notice relates set aside.

(b) Where the Bank is of the opinion that a person is an excluded depositor by virtue of paragraph (a) or (b) of subsection (1) but is satisfied that, in the circumstances, it would be just and equitable to have his exclusion as an eligible depositor set aside, the Bank may apply to the Court to have the exclusion set aside.

(c) Where, on an application under paragraph (a) or (b), the Court is satisfied that, in the circumstances, it would be just and equitable to do so, it shall set aside the exclusion or deduction, as the case may be, but only for the purposes of any relevant deposit maintained by that person.

(3) Notice of any application to the Court under subsection (2) (a) shall be given to the Bank and to the liquidator concerned by the person making the application and notice of any application to the Court under subsection (2) (b) shall be given by the Bank to both the liquidator and the person concerned.

(4) For the purposes of this section, notice shall be duly given by the Bank if the notice is—

(a) sent by prepaid post to the last known address of the person concerned as ascertained by the Bank directly from that person or from the liquidator, or

(b) otherwise given in accordance with any direction of the Court upon application being made to it by the Bank for the purposes of this subsection.

65 Calculation of certain payments relating to trustee deposits and joint accounts.

65.—(1) Where—

(a) a person maintaining deposits (including, if any, deposits on current accounts) with the holder or former holder of a licence which has become insolvent and is being wound up does so as trustee, and

(b) any beneficiary of the trust concerned is beneficially entitled against the trustees to any identifiable part of that amount, either absolutely or jointly with a fixed number of other beneficiaries,

then, the amount the beneficiary is so entitled to shall be treated, but only for the purpose of ascertaining an appropriate calculation—

(i) where the beneficiary is entitled absolutely, as if it were deposited in a separate account maintained by the beneficiary and legal ownership had passed to the beneficiary,

(ii) where the beneficiary is entitled jointly with a fixed number of other beneficiaries, as if it were deposited in a separate account in the nature of a joint account maintained by the beneficiaries and legal and joint ownership had passed to the beneficiaries concerned.

(2) Where persons (being persons other than trustees or persons to whom subsection (3) applies) maintaining, or treated by virtue of subsection (1) as maintaining, deposits in a joint account (whether a joint deposit account or otherwise with the holder or former holder of a licence which has become insolvent and is being wound up) are entitled to the deposit by virtue of their joint ownership of the moneys on deposit, then they shall each be treated, but only for the purpose of ascertaining an appropriate calculation, as having a separate deposit equal to the amount that would be produced by dividing the moneys concerned by the number of persons to whom the joint account relates.

(3) A deposit to which two or more persons are entitled as members of a partnership (whether or not in equal shares) shall be treated as a single deposit.

(4) The Bank and, where necessary for the purposes of ascertaining an appropriate calculation, the liquidator concerned may require any person maintaining a deposit to which this section may relate to supply sufficient information to enable a determination to be made as to whether the provisions of this section apply to such a deposit.

(5) Where, in a case to which subsection (1) or (2) applies, there are other eligible deposits in relation to the person concerned, those other deposits shall, for the purpose of ascertaining the appropriate calculation, be aggregated with any amount treated as deposits maintained by that person for the purpose of either or both subsection (1) and (2) and the amount so ascertained shall be divided and duly paid to the person concerned and either or both (as the circumstances may require) the trustees concerned and the said person jointly with others, in the same proportion or proportions as the amounts so aggregated bear to each other.

(6) In this section “appropriate calculation” means a calculation for the purposes of subsection (1) or (3) of section 60.

66 Treatment of certain payments out of general fund.

66.—(1) Subject to subsection (2) and whether or not payments have been made to which section 60 relates, the Bank may, at its discretion and to such extent as it may deem proper from time to time charge on the deposit protection account any other payment out of the general fund which, in the opinion of the Bank, was applied—

(a) to protect the interests of persons or any class of persons maintaining deposits with one or more holders or former holders of licences, or

(b) to promote the orderly and proper regulation of banking.

(2) The Bank shall, from time to time, keep the Minister and every holder of a licence informed of the general principles which guide the Bank in respect of the exercise of its discretion and shall consider any representations which may be made on those principles by any holder of a licence.

67 Reconstitution of deposit protection account.

67.—(1) Subject to section 68, the Bank shall from time to time apportion among the holders of licences, in proportion to the amounts of their respective deposits required to be maintained at the time of such apportionment in the deposit protection account, any payments charged on that account (other than any repayment or any part thereof for the purposes of this Chapter) in accordance with section 60 or section 66 together with any moneys due but not paid to the holders in accordance with section 69 and the amount so ascertained in respect of each holder shall, subject to subsection (2) be debited against, or credited to, as the case may be, that holder's deposit in the said account.

(2) (a) The aggregate of the amounts debited by virtue of subsection (1) in any period (being a period between a calculation or recalculation under section 55 and the first or subsequent recalculation, respectively, thereunder) in respect of a holder of a licence shall not exceed the amount of the holder's deposit maintained in accordance with this Chapter in the deposit protection account during that period.

(b) Where amounts which, but for paragraph (a), would have been debited against the holders of licences in the deposit protection account are not so debited because of that paragraph, then the total of the amounts not so debited shall be aggregated and apportioned in the next following year or, where necessary, the succeeding years in accordance with subsection (1) in proportion to the amounts of the relevant deposits at the time it is so apportioned.

(3) Each holder of a licence shall lodge with the Bank for the purpose of maintaining his calculated deposit, or where recalculated as last recalculated, in the deposit protection account, an amount to maintain that deposit and that holder shall comply with such requirement within 7 days or such longer period as the Bank may agree to in writing.

68 Exclusion from reconstitution.

68.—Where the Bank is satisfied that a reconstitution of the deposit protection account by apportionment solely in accordance with section 67 would have a material and detrimental effect on the financial position or viability of a holder of a licence, the Bank may, in its discretion but only to such extent or for such period and subject to such conditions as it considers appropriate, exclude the holder from such a reconstitution in which case the amount involved may be apportioned among the other holders of licences.

69 Crediting of moneys to deposit protection account, distributions, etc.

69.—(1) In addition to amounts representing deposits maintained under section 55 (including amounts duly lodged for the purpose of section 67 (3)) there shall be credited to the deposit protection account any sum paid to the Bank,

(a) by a liquidator for the purposes of section 61, or

(b) in respect of the repayment of the principal of any moneys provided by virtue of section 66 or of any interest thereon,

or

(c) which, in its opinion, ought to be lodged to that account.

(2) Where any sum has been credited to the deposit protection account in accordance with subsection (1) it shall—

(a) in the first instance be applied towards repayment of any liability to the Bank charged or chargeable to that account, and

(b) subject to subsection (3), thereafter be distributed (whether by way of payment or by reducing the amount to be lodged on a reconstitution of that account under section 67) among the holders of licences in proportion to the amounts by which each of their deposits were affected by the liability to which the said sum so relates.

(3) Where any sum distributable under subsection (2) relates to a deposit (at any time) in the deposit protection account by a former holder of a licence which has been wound up, then such sum shall—

(a) accrue to the Bank unless, upon ceasing to carry on that business, that former holder's banking business was amalgamated with or transferred to another holder of a licence, in which case it shall accrue to that other holder, or

(b) where the provisions of this subsection also primarily apply to that other holder (being also a former holder at the time of the relevant distribution), be traced through that other former holder and any other former holders until it accrues to either the Bank or a holder of a licence at that said time.

(4) Whenever any sum accrues to the Bank by virtue of subsection (3), the Bank may, if it thinks proper so to do, waive, in whole or in part and in favour of such person and upon such terms as it thinks proper having regard to all the circumstances of the case, the right of the Bank to such sum or such part thereof.

70 Expenses and remuneration of liquidator under this Chapter.

70.—(1) Subject to subsection (2), no deduction shall be made from assets vesting in the liquidator by virtue of section 58 for expenses incurred or remuneration claimed by the liquidator in respect of matters to which this Chapter relates and, accordingly, such expenses and remuneration shall be dealt with as if they related to the winding up of the holder or former holder of the licence under the Companies Acts, 1963 to 1986.

(2) Where, on the application of a liquidator to whom this Chapter relates, the Bank is satisfied that there are insufficient assets out of which expenses and remuneration can be paid in accordance with subsection (1), then the Bank may permit all reasonable expenses properly incurred and such remuneration to the liquidator as the Bank considers appropriate to be paid out of the amount vesting in the liquidator under section 58, or otherwise out of the deposit protection account, but only to the extent of that insufficiency.

71 Limitation of time.

71.—Where any amounts payable by the Bank and to which section 60 relates have not been paid and such non-payment is not due to any wilful neglect or default of the Bank to make those payments then, upon the completion of the winding up of the holder or former holder of the licence concerned, the Bank shall be under no obligation to make any payments in respect of those amounts.

72 Regulations (Chapter V).

72.—(1) The Minister may, after consultation with the Bank, make regulations for the purpose of specifying persons for the purpose of paragraph (h) of the definition of “interbank deposits” in section 53.

(2) The Minister may, to such extent as he sees fit, make regulations for the purpose of giving effect to any recommendations made to him by the Bank in accordance with section 56 for the purposes of section 55 (2) or 62 (1) (b).

(3) Regulations under subsection (2) may contain such incidental, transitional, consequential and supplementary provisions as are considered necessary by the Minister after consultation with the Bank.

73 Extension of application of Chapter V.

73.—(1) Where, after consulting with the Bank and with such Ministers of the Government (if any) as he considers it appropriate to consult with in the circumstances, the Minister is of the opinion that—

(a) a class of business which involves or includes the maintaining of deposits or savings by persons with a member of the class who is not required to be the holder of a licence granted under section 9 of the Act of 1971, but whose business (in so far as it relates to deposits or savings maintained by persons with him) is similar to the business of such a holder or a building society duly incorporated in the State, and

(b) a system of deposit or savings protection, similar to the deposit protection provided by this Chapter in respect of persons maintaining deposits with the holders of licences so granted, would be in the public interest to be provided in respect of the class,

then the Minister may by regulation require the Bank to establish and maintain in the general fund an account for that purpose and, accordingly, the provisions of section 53, subsections (2) to (7) of section 55 and sections 56 to 72 shall apply with such modifications as the Minister by regulation considers necessary to give effect to each such account so established.

(2) Notwithstanding section 7 (4) of the Act of 1971 (as amended by this Act) and without prejudice to subsection (1) where, after consulting with the Bank and with such Ministers of the Government (if any) as he considers it appropriate to consult with in the circumstances, the Minister is of the opinion that it is in the public interest so to do, he may by regulation require any institution to which section 7 (4) (a) (ii) of the Act of 1971 relates to maintain a deposit in the deposit protection account established under section 54 and for that purpose the provisions of section 53, subsections (2) to (7) of section 55 and sections 56 to 72 shall apply with such modifications as are necessary to give effect to the regulation.

Chapter VI Acquiring Transactions

74 Interpretation (Chapter VI).

74.—In this Chapter,

“acquiring transactions” shall be construed in accordance with section 75;

“prescribed percentage” means 10 per cent. of the total shares or of the total voting rights attaching to shares.

75 Application (Chapter VI).

75.—(1) This Chapter applies to the following transactions (in this Part referred to as “acquiring transactions”):

(a) any acquisition by a person or more than one person acting in concert of shares or other interest in a holder of a licence but does not apply to an acquisition where—

(i) if after the proposed acquisition the proportion of shares would not exceed the prescribed percentage, and

(ii) if the holder of the licence concerned is a body incorporated in the State, the acquisition, together with any other interest already held or controlled (either directly or indirectly) by the acquiring person or persons, would not confer a right to appoint or remove some or all of the board of directors or committee of management of the holder of that licence;

(b) any acquisition by the holder of a licence of shares or other interest in any other undertaking or business (whether or not the undertaking or business is controlled by another holder of a licence) but does not apply to an acquisition where either—

(i) the acquisition relates to an undertaking or business outside the State and is made by a holder of a licence which is incorporated outside the State, or

(ii) after such acquisition, the proportion of shares in the undertaking or business concerned would not exceed the prescribed percentage and the acquisition, together with any other interest already held or controlled (either directly or indirectly) by the holder of the licence so acquiring, would not confer a right to appoint or remove some or all of the board of directors or committee of management of that undertaking or business.

(2) The Bank may, subject to such conditions as it sees fit, exempt an acquiring transaction, or any class of acquiring transaction, from the requirements of this Chapter where it is satisfied that—

(a) the acquiring transaction is being, or has been entered into, by a holder of a licence as part of the bona fide underwriting of a share issue, or

(b) the interest in shares is not being beneficially acquired by a holder of a licence or is being acquired only in the course of its normal business to secure the issue of a loan to be made by the holder to the undertaking or business concerned.

76 Limitation on validity of acquiring transactions.

76.—An acquiring transaction shall only be valid where it is entered into within 12 months after—

(a) the Bank has given its approval in writing to the transaction, or

(b) the relevant period within the meaning of section 83 has elapsed without the Bank refusing its approval to the transaction,

and, accordingly, any purported acquiring transaction which does not comply with either paragraph (a) or (b) shall be invalid and—

(i) title to any shares or other interest concerned shall not pass, and

(ii) any consequential purported exercise of powers shall be void.

77 Consent of Minister to certain acquiring transactions required.

77.—(1) Where—

(a) the holder of a licence proposes to participate in an acquiring transaction and that holder controls, or would control as a consequence of the proposed transaction, whether alone or with any subsidiary or associated company, not less than 20 per cent. of the total assets in the State of all holders of licences, or

(b) a person proposes to participate in an acquiring transaction which involves the acquisition of shares or other interest in a holder of a licence which controls, whether alone or with any subsidiary or associated company, not less than 20 per cent. of the total assets in the State of all holders of licences,

then the Bank shall neither give nor refuse to give its approval without the prior consent of the Minister.

(2) The Minister shall not give his consent under subsection (1) unless—

(a) he is satisfied that the Bank's proposal to give or refuse to give its approval, as the case may be, would be in the interests of the orderly and proper regulation of banking, and

(b) where the proposed acquiring transaction is of such a nature that the provisions of the Mergers, Take-overs and Monopolies (Control) Act, 1978, apply, he has consulted with—

(i) the Minister for Industry and Commerce, and

(ii) such other Minister of the Government appearing to the Minister to be concerned,

and he shall refuse to give his consent where he considers that the exigencies of the common good so warrant.

(3) A consent by the Minister to a proposal of the Bank to approve a proposed acquiring transaction shall be subject to the imposition by the Bank of conditions (being such conditions, if any, which in the opinion of the Minister are necessary for the orderly and proper regulation of banking) as the Minister may specify in the consent.

78 Requirement on Bank before refusal to approve acquiring transaction.

78.—(1) Subject to subsection (2), the Bank shall not refuse its approval to a proposed acquiring transaction unless it is satisfied that the transaction would not be in the interests of the orderly and proper regulation of banking.

(2) In the case of a proposed acquiring transaction to which section 77 relates, the Bank shall refuse its approval—

(a) where the proposal of the Bank is to refuse to give its approval and the Minister consents to that proposal, or

(b) where the proposal of the Bank is to give its approval and the Minister refuses to consent to that proposal.

79 Alteration of prescribed percentage.

79.—(1) The Minister may, where he is satisfied after consultation with the Bank that it would be in the interest of the orderly and proper regulation of banking, by order amend the definition of “prescribed percentage” in section 74 by altering the percentage amount therein specified including an amount for the time being so specified by virtue of this section.

(2) Whenever an order is proposed to be made under subsection (1) a draft of the order shall be laid before each House of the Oireachtas and the order shall not be made until a resolution approving of the draft has been passed by each such House.

80 Conditions on approval of proposed acquiring transaction.

80.—(1) An approval given by the Bank to a proposed acquiring transaction shall be subject to such conditions, if any, as the Bank—

(a) may impose (being conditions which in the opinion of the Bank are necessary for the orderly and proper regulation of banking), and

(b) shall impose (being conditions specified by the Minister under section 77).

(2) The Bank may, at any time, amend or revoke a condition with, in the case of a condition to which subsection (1) (b) relates, the consent of the Minister.

81 Right of purported vendor to damages.

81.—Where a purported acquiring transaction is rendered invalid under section 76, the purported vendor of shares shall be entitled, in any court of competent jurisdiction, to recover from the purported purchaser any damages the purported vendor suffers by reason only of the invalidity, unless the purported purchaser satisfies such court that before the purported transaction he had notified the purported vendor of circumstances relating to the purported transaction which gave rise to the possibility of such an invalidity.

82 Notification of proposed acquiring transactions to Bank.

82.—(1) Where an acquiring transaction is proposed, each of the undertakings involved and having knowledge of the existence of the proposal shall notify the Bank in writing of the proposal as soon as may be.

(2) Where, having received a notification under this section from any of the undertakings involved, the Bank is of opinion that in order to consider for the purposes of this Chapter a proposed acquiring transaction it requires further information it may, within one month of the date of receipt by it of a notification, request such further information in writing from any one or more of the undertakings concerned.

(3) (a) Where there is a contravention of subsection (1) the person in control of an undertaking failing to notify the Bank shall be guilty of an offence and shall be liable—

(i) on summary conviction, to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or

(ii) on conviction on indictment, to a fine not exceeding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both.

(b) For the purposes of this subsection the person in control of the undertaking shall, in the case of an incorporated body or an unincorporated body, be any officer of the body concerned who knowingly and willingly authorises or permits the contravention.

83 Relevant period for purpose of sections 76, 86 and 88.

83.—For the purpose of sections 76, 86 and 88, the relevant period in relation to a particular acquiring transaction shall, subject to section 86 (2), be—

(a) where the Minister's consent is required by virtue of section 77 to a proposal of the Bank to approve or not to approve the transaction, the period of 6 months, and

(b) in every other case, the period of 3 months,

such period beginning on the date on which the Bank first receives a notification under section 82 or, where the Bank requests further information from an undertaking concerned under section 82, the date of receipt by the Bank of such information.

84 Inquiries by Bank.

84.—(1) The Bank may carry out such inquiries and obtain such information as it considers necessary to enable it to consider the proposed acquiring transaction.

(2) Where the provisions of section 77 apply, the Minister may require the Bank to carry out such inquiries and provide him with such information as he considers necessary to enable him to decide to give or not to give his consent for the purposes of that section.

(3) Any person who wilfully and knowingly impedes the Bank's inquiries under this section or provides false or misleading information shall be guilty of an offence and shall be liable—

(a) on summary conviction, to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or

(b) on conviction on indictment, to a fine not exceeding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both.

85 Communication of Bank's approval or refusal to approve.

85.—(1) Where the Bank approves or approves subject to conditions or refuses to approve a proposed acquiring transaction, it shall communicate the approval and conditions (if any) or the refusal, as the case may be, to the undertakings concerned which had notified the Bank of the proposal under section 82 and, where such a communication is not in writing, the Bank shall confirm in writing the approval or refusal to approve, as the case may be, as soon as possible thereafter.

(2) Where the Bank refuses to approve the proposed acquiring transaction, it shall state its reasons in writing and, subject to section 16, shall send them to the persons concerned as soon as possible thereafter.

86 Appeal to High Court against refusal, etc., of Bank.

86.—(1) Where the Bank communicates with an undertaking concerned in accordance with section 85 that it—

(a) refuses to give its approval, or

(b) gives its approval subject to conditions,

an appeal on a point of law may be made by the undertaking to the Court against the refusal or approval, as the case may be, within one month of that refusal or approval being so communicated.

(2) Where the Court allows the appeal it shall direct the Bank to make a new decision in accordance with the Court's determination and the Bank shall make its decision within the relevant period beginning on the date of the Court's determination and, in a case to which section 77 relates, consult with the Minister before making its decision.

(3) Where on an appeal under this section the Minister requests to be made a party to the proceedings, the Court shall order that he shall be added as a party.

(4) Where any costs are incurred by the Minister in connection with an appeal under this section, the Court may make such order as it considers just as to the payment of those costs by other parties to the proceedings.

(5) Where the Court is satisfied, because of the nature or the circumstances of the case or otherwise in the interests of justice, that it is desirable, the whole or any part of proceedings under this section may be heard otherwise than in public.

(6) An appeal against a decision of the Court under this section shall not lie to the Supreme Court.

(7) In this section “the Court” means the High Court.

87 Contravention of approval, etc.

87.—(1) Where an acquiring transaction is entered into subsequent to approval being given by the Bank, any person who contravenes (whether by act or omission) the approval or any condition of the approval shall be guilty of an offence and shall be liable—

(a) on summary conviction, to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or

(b) on conviction on indictment, to a fine not exceeding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both.

(2) Where a person is convicted of an offence under this section by reason of his failure, neglect or refusal to comply with a condition of the approval requiring him to perform a specified act within a specified period or before a specified date, and the act remains, after the date of the conviction, unperformed by him, the person shall be guilty of contravening this section on every day on which the contravention continues after that conviction and for each such offence he shall be liable on summary conviction to a fine not exceeding £100 or on conviction on indictment to a fine not exceeding £5,000.

(3) Notwithstanding the paragraph numbered 4 of section 10 of the Petty Sessions (Ireland) Act, 1851, summary proceedings for an offence under this section may be instituted within 12 months from—

(a) in the case of an offence to which subsection (1) (a) relates, the latest day on which the offence was committed, and

(b) in the case of an offence to which subsection (2) relates, the day on which the offence was committed.

88 Application of certain other enactments.

88.—(1) Nothing in any other enactment shall be construed as relieving a holder of a licence or other person of any obligation of his to comply with section 82.

(2) An order under section 201 or 203 of the Companies Act, 1963, in respect of a proposed amalgamation or under section 33 of the Act of 1971 in respect of a proposed transfer of business of a holder of a licence (being in each case an acquiring transaction) shall not be made until the Bank has given its approval to the acquiring transaction or the relevant period referred to in section 83 has elapsed without the Bank having given or refused to give such approval.

Chapter VII Supervision of Certain Financial Institutions for the purposes of an International Financial Services Centre

89 Definitions (Chapter VII).

89.—In this Chapter—

“the Area” means the Customs House Docks Area, as defined in section 41 of the Finance Act, 1986;

“enactment” includes any act of the European Communities which has the force of law in the State;

“financial institution” has the meaning assigned to it by section 90;

“self-regulatory body” has the meaning assigned to it in section 94 (1).

90 Application (Chapter VII).

90.—This Chapter shall apply to every company to which a certificate has been given by the Minister under section 39B (inserted by the Finance Act, 1987) of the Finance Act, 1980 (in this Chapter referred to as a “financial institution”) other than every financial institution which is the holder of a licence under section 9 of the Act of 1971 or a moneybroker for the purposes of Chapter IX or is subject to supervision or is capable of being inspected by virtue of—

(a) the Building Societies Act, 1976, and every other Act which is to be construed together with that Act as one Act,

(b) the Friendly Societies Act, 1896, and every other Act which is to be construed together with that Act as one Act,

(c) the Assurance Companies Act, 1909, and every other Act which is to be construed together with that Act as one Act, or

(d) any other enactment which for the time being stands specified by order under section 91.

91 Orders (Chapter VII).

91.—(1) Where the Minister is of the opinion, after consulting the Bank and such other Ministers (if any) as he considers it appropriate to consult with, that there are adequate supervisory and inspection provisions contained in any enactment relating to a financial institution or a class or type of institution to which, but for an order under this section for the purposes of section 90 (d), the provisions of this Chapter would apply, then the Minister may by order specify the enactment concerned and, where necessary in the context of that enactment, the institution or class or type of institution to which the order relates and, accordingly, those provisions shall not apply to an institution to which the order relates.

(2) The Minister may, after consulting the Bank and such other Ministers (if any) as he considers it appropriate to consult with, by order revoke an order under subsection (1).

92 Supervision, etc. of financial institutions by Bank.

92.—(1) Every financial institution to which this Chapter applies shall comply with such supervisory and reporting requirements or conditions relating to its business which the Bank considers prudent to impose on it from time to time for the purposes and in the interest of the proper and orderly regulation of the institution or a group of institutions (including the institution) or for the purpose of the development of the Area as an International Financial Services Centre.

(2) The imposition of prudential, supervisory and reporting requirements and conditions by the Central Bank shall not constitute a warranty as to the solvency of entities covered by this section or entities forming part of groups covered by this section and the Bank shall not be liable in respect of any loss incurred through the insolvency or default of any of those parties.

93 Application of sections 17 and 18 of Act of 1971.

93.—Without prejudice to the provisions of section 92, the provisions of section 17 (which relates to books and records of holders of licences) and section 18 (which relates to furnishing of information to the Bank) of the Act of 1971 (as amended by this Part) shall apply to every financial institution to which this Chapter relates and to every associated enterprise (within the meaning of those sections) of such an institution as if each such institution were the holder of a licence for the purposes of the Central Bank Acts, 1942 to 1989.

94 Establishment of self-regulatory bodies.

94.—(1) The Bank may, in writing and after consulting the Minister, direct any group of financial institutions to which this Chapter applies and which are specified in the direction to establish a body (in this Chapter referred to as “a self-regulatory body”) of such legal character as the Bank may specify to regulate the business conduct, or any aspect of the business conduct as may be specified, of the financial institutions to which the direction relates.

(2) The rules (including management and future membership) of a self-regulatory body shall be submitted jointly by the financial institutions concerned to the Bank for its approval.

(3) The approval of the rules of a self-regulatory body under this section is without prejudice to the power of the Bank to impose requirements or conditions by virtue of section 92, or further direction under subsection (1), on any of the financial institutions concerned.

(4) Where a self-regulatory body has been established for the purposes of this section, the provisions of sections 92, 93, 95, and 96 shall apply to the body as if it were, and in the same manner as they apply to, a financial institution to which this Chapter applies.

(5) Nothing in this section shall be construed as preventing any financial institution from being a member of any organisation which supervises or controls business conduct otherwise than by virtue of this section.

95 Power of Court to prohibit failure to comply with requirement or condition under Chapter VII.

95.—(1) Where, on an application made in a summary manner by the Bank, the Court is of the opinion that there has occurred or is occurring a failure by a financial institution or institutions to comply with a requirement or condition imposed by virtue of section 92 or with a direction under section 94, the Court may, by order, prohibit the continuance of the failure by the institution or institutions concerned.

(2) The Court when considering the matter may make such interim or interlocutory order as it considers appropriate.

(3) Where the Court is satisfied, because of the nature or the circumstances of the case or otherwise in the interests of justice, that it is desirable, the whole or any part of proceedings under this section may be heard otherwise than in public.

(4) In this section “the Court” means the High Court.

96 Report of non-compliance to Minister.

96.—Where the Bank—

(a) is satisfied that a financial institution to which this Chapter applies is not complying with any obligation imposed on it by or under this Chapter (including any rule of a self-regulatory body of which the institution is a member), and

(b) is of the opinion that the nature of the non-compliance is such that it requires notification to the Minister,

then the Bank shall notify the Minister of that non-compliance.

Chapter VIII Supervision of Financial Futures and Options Exchanges

97 Definitions (Chapter VIII).

97.—In this Chapter—

“an exchange” means a financial futures and options exchange and, where the context so permits or requires, includes an existing exchange or a proposed exchange;

“an existing exchange” has the meaning assigned to it by section 100;

“financial futures and options exchange” means a market of a financial nature where, in an organised manner and under agreed rules, members of that market trade, by way of electronic, written, oral or any other form of communication—

(a) in rights under contract for the sale or purchase of a financial product, commodity or property of any other description under which delivery is to be made, or measures equivalent to delivery are to be implemented, at a future date at a price agreed or determinable when the contract is made, or

(b) by way of option on a contract to which paragraph (a) relates or on a financial product, commodity or property of any other description, including an option to buy, sell or vary the price or quantity concerned;

“a proposed exchange” has the meaning assigned to it by section 99;

“rules” in relation to an existing exchange or a proposed exchange, means, respectively, the rules governing or proposed to govern the membership and operation of the exchange.

98 Gaming and Lotteries Acts.

98.—For the avoidance of doubt it is hereby declared that no contract or option to which this Chapter relates shall be void or unenforceable by reason of the Gaming and Lotteries Acts, 1956 to 1986.

99 Establishment of exchanges.

99.—After the passing of this Act, no financial futures and options exchange shall be established unless the persons who propose to establish the exchange (in this Chapter referred to as “a proposed exchange”) have submitted the rules for such a proposed exchange to the Bank for approval and the Bank has approved those rules.

100 Existing exchanges.

100.—(1) Within 3 months of the passing of this Act every exchange which was established before such passing (in this Chapter referred to as “an existing exchange”) shall—

(a) submit its rules to the Bank for approval, or

(b) disestablish itself.

(2) Pending a decision by the Bank to approve or not to approve of the rules of an existing exchange submitted to it under subsection (1) (a), the Bank may—

(a) subject, where appropriate, to the other provisions of this section, impose on the exchange such conditions or requirements as it considers appropriate to impose, or

(b) issue a direction under section 105 as if the existing exchange were an exchange whose rules had been approved by the Bank.

(3) Where dealings concerning securities created by the Minister could be carried on on an existing exchange to which subsection (2) relates, the Minister may direct the Bank to impose under paragraph (a) of that subsection, and the Bank shall so impose, conditions or requirements specified in his direction (being conditions or requirements which relate to such dealings and which the Minister is satisfied, after consultation with the Bank, do not constrain the prudent regulation of the exchange).

(4) The Bank shall not impose on an existing exchange by virtue of this section a condition or requirement which relates to dealings concerning securities created by the Minister unless either—

(a) subsection (3) applies to the condition or requirement, or

(b) the Bank has notified the Minister of its intention to impose the condition or requirement on the exchange.

101 Approval of rules by Bank, conditions, etc.

101.—(1) (a) Where the Bank approves the rules of an existing exchange or for a proposed exchange, it may—

(i) make its approval subject to conditions or requirements, and

(ii) at any time after approval, impose conditions or requirements on the exchange or amend or revoke any condition or requirement to which this subsection relates, whether or not previously amended by virtue of this subparagraph.

(b) Every condition or requirement imposed to which this subsection relates and every amendment thereto or revocation thereof shall be as the Bank sees fit to impose, amend or revoke in the interest of the prudent regulation of the exchange concerned and every such condition or requirement may be imposed on either or both—

(i) that exchange, and

(ii) the members of that exchange (either collectively or individually).

(c) In respect of any condition or requirement to which paragraph (a) (ii) relates, a condition or requirement shall not be imposed, amended or revoked until—

(i) the Bank has notified the exchange concerned of its intention to so impose, amend or revoke, and

(ii) the Bank has heard any representations made by that exchange or any member thereof within such time limit as the Bank may specify when notifying the exchange.

(d) Where dealings concerning securities created by the Minister could be carried on on an exchange, any condition or requirement which relates to such dealings shall not be imposed by virtue of this subsection unless the Bank has notified the Minister of its intention to so impose.

(2) (a) Where—

(i) the Bank intends to approve the rules of an existing exchange or for a proposed exchange, and

(ii) dealings concerning securities created by the Minister could be carried on on the exchange,

the Minister may direct the Bank to make its approval subject to the imposition by it of conditions or requirements specified in his direction (being conditions or requirements which relate to such dealings and which the Minister is satisfied, after consultation with the Bank, do not constrain the prudent regulation of the exchange) and, accordingly, the Bank shall make its approval subject to every condition or requirement so specified.

(b) At any time after the approval of the rules of an existing exchange or for a proposed exchange, the Minister may, in respect of dealings concerning securities created by him, direct the Bank to impose conditions or requirements on the exchange (being conditions or requirements which relate to such dealings and which the Minister is satisfied, after consultation with the Bank, do not constrain the prudent regulation of the exchange) or amend or revoke any condition or requirement to which this subsection relates, whether or not previously amended by virtue of this paragraph and, accordingly, the Bank shall so impose, amend or revoke the condition or requirement.

(3) The approval by the Bank of the rules of or for an exchange shall not constitute a warranty as to the solvency of the exchange or of any member of the exchange and the Bank shall not be liable in respect of any losses incurred through the insolvency or default of the exchange or any of its members.

(4) An application for approval of the rules of an existing exchange or for a proposed exchange shall be in such form and contain such particulars as the Bank may from time to time determine.

102 Refusal of Bank to approve rules.

102.—(1) The Bank shall not refuse to approve the rules of an existing exchange or for a proposed exchange without the consent of the Minister and unless it is satisfied that the approval would not be in the interest of the orderly and proper regulation of such an exchange, and the Minister shall not consent to the refusal unless he is satisfied that the approval would not be in the interest of the orderly and proper regulation of such an exchange.

(2) Whenever the Bank proposes to refuse to approve the rules of an existing exchange or for a proposed exchange—

(a) it shall notify the exchange or (in the case of a proposed exchange) the promoter of the exchange in writing that it intends to seek the consent of the Minister to the refusal and of its reasons for the refusal and that the person 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 refusal,

(b) the exchange or the promoter may make such representations in writing to the Minister within the time aforesaid, and

(c) the Minister shall, before deciding to give or withhold his consent, consider any representations duly made to him under this subsection in relation to the proposed refusal.

103 Application of section 17 of Act of 1971.

103.—Without prejudice to the provisions of section 101 the provisions of section 17 (which relate to books and records of holders of licences) of the Act of 1971 (as amended by this Part) shall apply as if every exchange to which this Chapter applies and every member of that exchange were the holder of a licence for the purpose of the Central Bank Acts, 1942 to 1989.

104 Restriction on advertising.

104.—(1) Subject to subsection (2), a person shall not advertise or cause to be advertised the services of an exchange or make any other solicitation in respect of those services unless the Bank has approved the rules of the exchange.

(2) Subsection (1) shall not apply—

(a) subject to any condition or requirement to the contrary imposed by the Bank under section 100 (2), to an existing exchange, or to any person acting on behalf of the exchange, during the period commencing with the submission of its rules to the Bank for approval and ending with approval or refusal to approve, or

(b) to any prospectus or other document published by or on behalf of persons who propose to establish such an exchange, where such prospectus or other document is published solely for the purpose of such a proposal.

(3) If an advertisement or other solicitation to which this section relates is published and it does not include the name and address of the person who arranged with the publisher for the advertisement or solicitation, then the Bank may, at any time within the period of 12 months after any publication of the advertisement or solicitation, request the publisher to supply the name and address of that person to the Bank and the publisher shall forthwith comply with that request.

105 Directions by Bank to suspend trading, dealing.

105.—(1) Where the Bank is satisfied that an exchange or any member thereof has failed or is failing to comply with a condition or requirement under section 100 (2) (a) or 101 the Bank may give a direction to either or both—

(a) the exchange to suspend trading, and

(b) any or all of the members of the exchange to suspend trading or dealing thereon,

for a specified period or until further notice by the Bank.

(2) (a) The exchange or member or members thereof to whom the direction was given under subsection (1) may apply in a summary manner to the Court for, and the Court may grant, an order setting aside the direction.

(b) The Bank may apply in a summary manner to the Court to have a direction by it under this section confirmed by the Court.

(3) The Court when considering the matter may make such interim or interlocutory order as it considers appropriate.

(4) Where the Court is satisfied, because of the nature or the circumstances of the case or otherwise in the interests of justice, that it is desirable, the whole or any part of proceedings under this section may be heard otherwise than in public.

(5) In this section “the Court” means the High Court.

106 Revocation of approval of rules.

106.—(1) The Bank may—

(a) revoke an approval of the rules of an exchange if the exchange to whom it was granted so requests,

(b) with the consent of the Minister, revoke an approval of the rules of an exchange if—

(i) the exchange—

(I) has not commenced to operate within 12 months of the date on which the approval was granted, or

(II) has ceased operating and no trading or dealing has been carried on on the exchange during a period of more than 6 months immediately following the cesser,

(ii) being a company, the exchange is being wound up,

(iii) the exchange (being an existing exchange) or the promoter of a proposed exchange has obtained the approval of the Bank through false statements or any other irregular means,

(iv) the exchange becomes unable to meet its obligations to creditors or suspends payment lawfully due by the exchange or by any member thereof,

(c) with the consent of the Minister revoke the approval if, since the grant of the approval, the circumstances relevant to the grant have changed and are such that, if an application for an approval were made in the changed circumstances, it would be refused.

(2) Whenever the Bank proposes to revoke an approval (other than in pursuance of a request by the exchange to whom it was granted to do so)—

(a) it shall notify the exchange concerned that it intends to seek the consent of the Minister to the revocation and of the reasons for the revocation and that the exchange 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 exchange may make such representations in writing to the Minister within the time aforesaid, and

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

(3) Where an approval of the rules of an exchange is revoked and the exchange is not a company which is being wound up—

(a) the exchange and the members thereof shall continue to be subject to the duties and obligations imposed by or under this Chapter or section 18 of the Act of 1971 until all liabilities of the exchange and its members have been discharged to the satisfaction of the Bank,

(b) the exchange shall, as soon as possible after the approval is revoked, notify the Bank and such other persons (if any) as the Bank indicates are to be notified of the measures being taken or proposed to be taken to discharge in full and without undue delay the liabilities of the exchange and the members thereof,

(c) in the case where—

(i) that exchange has notified the Bank in accordance with paragraph (b) and the Bank is of the opinion that the measures being taken or proposed to be taken for the purposes of that paragraph are not satisfactory, or

(ii) that exchange has not so notified the Bank and the Bank is of the opinion that the exchange has failed to so notify as soon as possible after the approval is revoked, or

(iii) the Bank is of the opinion that that exchange has failed to take all reasonable steps to notify persons which the Bank has indicated, under paragraph (b), are to be notified,

then the Bank may give a direction in writing to that exchange or to any of its members thereof for such period, not exceeding 6 months, as may be specified therein, prohibiting the exchange or the members thereof so directed from—

(I) dealing with or disposing of any assets or specified assets of the exchange or of its members in any manner, or

(II) engaging in any transaction or class of transaction or specified transaction, or

(III) making payments,

without the prior authorisation of the Bank, and the Bank may require that exchange or any of its members to prepare and submit to it for its approval within two months of the direction, a scheme for the orderly discharge in full of the liabilities concerned.

(4) (a) Where the approval of the rules of an exchange is revoked and the exchange is a company which is being wound up, the liquidator of the company shall, in addition to his duties and obligations in respect of the winding up, be subject to the duties and obligations to which the exchange would be subject were it an exchange to which subsection (3) relates and that subsection shall, for the purpose of this subsection, be construed accordingly.

(b) Notwithstanding paragraph (a), the Bank may, where it revokes an approval and considers it appropriate in the circumstances, remove in writing the duty and obligation imposed on the liquidator concerned to comply with paragraph (b) (as construed by this subsection) of subsection (3) and may impose in writing on that liquidator such further or other duty and obligation which corresponds to that set out in the said paragraph (b).

(c) Nothing in this subsection shall be construed as affecting any duty or obligation under this Chapter of the members of the exchange concerned.

(5) The Bank shall as soon as may be after the revocation of an approval of the rules of an exchange publish a notice of the revocation in such manner as it thinks fit.

107 Offences and penalties (Chapter VIII).

107.—(1) Any person who contravenes section 99, 100 or 104 and an exchange or a member thereof who—

(a) commits by act or omission a breach of a condition or requirement duly imposed and which relates to the approval given by the Bank to the rules of the exchange, or

(b) fails to comply with a direction under section 105 or 106,

shall be guilty of an offence and shall be liable—

(i) on summary conviction, to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or

(ii) on conviction on indictment, to a fine not exceeding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both,

and, if the contravention, breach or failure in respect of which he was convicted is continued after conviction, he shall be guilty of an offence on every day on which the contravention, breach or failure continues after conviction in respect of the original contravention, breach or failure and for each such offence he shall be liable on summary conviction to a fine not exceeding £100 or on conviction on indictment to a fine not exceeding £5,000.

(2) In any proceedings for an offence under this section which relates to section 104, it shall be a good defence for the accused to prove that he was, at the relevant time, a person whose business it was to publish or arrange for the publication on behalf of some other person of advertisements or other solicitations and that the relevant advertisement or other solicitation was received for publication in the ordinary course of that business and that he did not know and had no reason to suspect that to use it to advertise, or otherwise solicit could be an offence.

Chapter IX Supervision of Moneybrokers

108 Interpretation (Chapter IX).

108.—In this Chapter—

“authorisation” means an authorisation granted to a person by the Bank under this Chapter to carry on the business of moneybroking;

“financial institution” has the same meaning that it has in Chapter VII;

“moneybroker” means a person carrying on a moneybroking business;

“moneybroking business” means any business which consists of the business of arranging all or any of the following, that is to say:

(a) loans or borrowings of money,

(b) purchases or sales of foreign exchange,

(c) transactions of a type which for the time being stand prescribed by order under section 109, and

(d) other transactions which are similar in effect to any of those to which paragraph (a), (b) or (c) relate,

between any two or more persons being a holder of a licence under section 9 of the Act of 1971, a building society, or a financial institution, and “moneybroking” shall be construed accordingly.

109 Orders (Chapter IX).

109.—(1) Where both the Minister and the Bank are of the opinion that it is necessary in the context of developments in the financial markets or the orderly and proper regulation of moneybroking business that certain types of transactions be prescribed for the purpose of the definition of “moneybroking business”, then the Minister may, at the request of the Bank, by order so prescribe.

(2) The Minister may, at the request of the Bank, by order revoke an order under subsection (1).

110 Authorisation to carry on moneybroking business.

110.—(1) A person shall not carry on moneybroking business at any time after this section has been in operation for 3 months unless the person has been granted an authorisation for the purposes of this section and the authorisation has not been revoked.

(2) Subject to the provisions of this section, the Bank may grant or refuse to grant to any person applying to it an authorisation to carry on moneybroking business.

(3) Notwithstanding subsection (2), a person shall not, at the same time, be the holder of a licence under section 9 of the Act of 1971 and a person to whom a subsisting authorisation under this section relates.

(4) The Bank shall not refuse an authorisation without the consent of the Minister and unless it is satisfied that the authorisation would not be in the interest of the orderly and proper regulation of moneybroking or banking, and the Minister shall not grant his consent to the refusal unless he is satisfied that the authorisation would not be in the interest of the orderly and proper regulation of moneybroking or banking.

(5) Whenever the Bank proposes to refuse an authorisation to a person—

(a) it shall notify the person in writing that it intends to seek the consent of the Minister to the refusal and of its reasons for the refusal and that the person 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 refusal,

(b) the person may make such representations in writing to the Minister within the time aforesaid, and

(c) the Minister shall, before deciding to give or withhold his consent, consider any representations duly made to him under this subsection in relation to the proposed refusal.

(6) An application for an authorisation shall be in such form and contain such particulars as the Bank may from time to time determine.

(7) The authorisation of a person under this section shall not constitute a warranty as to the solvency of the person to carry on a moneybroking business and the Bank shall not be liable in respect of any losses incurred through the insolvency or default of the person.

111 Supervision, etc. of moneybrokers by Bank.

111.—Every person carrying on moneybroking business shall each comply with such supervisory and reporting requirements or conditions relating to his business which the Bank considers prudent to impose on him from time to time for the purposes and in the interest of the proper and orderly regulation of moneybroking.

112 Application of section 17 of Act of 1971.

112.—Without prejudice to the provisions of section 111, the provisions of section 17 (which relates to books and records of holders of licences) of the Act of 1971 (as amended by this Part) shall apply as if every person authorised by the Bank to carry on moneybroking business were the holder of a licence for the purposes of the Central Bank Acts, 1942 to 1989.

113 Power of Court to prohibit failure to comply with requirement or condition under Chapter IX.

113.—(1) Where, on an application made in a summary manner by the Bank, the Court is of the opinion that there has occurred or is occurring a failure by a moneybroker to comply with a requirement or condition imposed by virtue of section 111, the Court may, by order, prohibit the continuance of the failure by the moneybroker concerned.

(2) The Court when considering the matter may make such interim or interlocutory order as it considers appropriate.

(3) Where the Court is satisfied, because of the nature or the circumstances of the case or otherwise in the interests of justice, that it is desirable, the whole or any part of proceedings under this section may be heard otherwise than in public.

(4) In this section “the Court” means the High Court.

114 Revocation of authorisations.

114.—(1) The Bank may—

(a) revoke an authorisation if the person to whom it was granted so requests,

(b) with the consent of the Minister, revoke an authorisation if the person to whom it was granted—

(i) (I) has not commenced to carry on moneybroking business within 12 months of the date on which the authorisation was granted, or

(II) has ceased to carry on moneybroking business and has not carried it on during a period of more than 6 months immediately following the cesser,

(ii) is adjudicated bankrupt,

(iii) being a partnership, the partnership is dissolved by death or bankruptcy of any partner, or otherwise under the law of partnership,

(iv) being a company, is being wound up,

(v) has obtained the authorisation through false statements or any other irregular means,

(vi) becomes unable to meet his obligations to his creditors or suspends payments lawfully due by him or can no longer be relied upon to fulfil his obligations towards his creditors and in particular no longer provides security for the assets entrusted to him,

(vii) is convicted on indictment of an offence under any provision of the Central Bank Acts, 1942 to 1989, or an offence involving fraud, dishonesty or breach of trust,

(viii) has his head office in another state that is a member of the European Communities and the authority in that state that exercises in that state functions corresponding to those of the Bank under this Chapter has withdrawn authorisation from the institution of which the holder is a branch,

(c) with the consent of the Minister, revoke the authorisation if, since the grant of the authorisation, the circumstances relevant to the grant have changed and are such that, if an application for an authorisation were made in the changed circumstances, it would be refused.

(2) Whenever the Bank proposes to revoke an authorisation (other than in circumstances to which paragraph (a) or (b) (viii) of subsection (1) relate)—

(a) the person to whom it was granted shall be notified in writing that the Bank intends to seek the consent of the Minister to the revocation and of the reasons for the revocation and that the person 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 said person may make such representations in writing to the Minister within the time aforesaid, and

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

115 Publication of names of moneybrokers and notices of revocation of authorisations.

115.—(1) The Bank shall publish from time to time, but not less frequently than once a year, in such manner as it thinks fit the names of persons authorised to carry on moneybroking business.

(2) The Bank shall as soon as may be after the revocation of an authorisation publish a notice of the revocation in such manner as it thinks fit.

116 Offences and penalties (Chapter IX).

116.—A person who contravenes subsection (1) or (2) of section 110 or a moneybroker who fails by act or omission to comply with a requirement or condition imposed on him under section 111 shall be guilty of an offence and shall be liable—

(a) on summary conviction, to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or

(b) on conviction on indictment, to a fine not exceeding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both,

and, if the contravention or breach in respect of which he was convicted is continued after conviction, he shall be guilty of an offence on every day on which the contravention or breach continues after conviction in respect of the original contravention or breach and for each such offence he shall be liable on summary conviction to a fine not exceeding £100 or on conviction on indictment to a fine not exceeding £5,000.

Chapter X Codes of Practice

117 Codes of practice.

117.—(1) The Bank may, after consultation with the Minister, from time to time draw up, amend or revoke, in relation to any class or classes of licence holders or other persons supervised by the Bank under this or any other enactment, one or more than one code of practice concerning dealings with any class or classes of persons and every such code shall be observed by the licence holders, or other persons so supervised, to whom they relate.

(2) In drawing up codes of practice the Bank shall have regard to—

(a) the interest of customers and the general public, and

(b) the promotion of fair competition in financial markets in the State.

(3) The Bank may—

(a) require any licence holder or other person supervised by it to provide all relevant information to the Bank to enable the Bank to satisfy itself as to compliance with the code by such licence holder or other person,

(b) issue a direction in writing to such licence holder or other person to comply with practices specified in the direction where this is necessary, in the opinion of the Bank, to secure observance of the code.

(4) (a) Any licence holder or other person supervised by the Bank who fails to provide information in accordance with subsection (3) (a) or to comply with a direction under subsection (3) (b) shall be guilty of an offence and shall be liable—

(i) on summary conviction to a fine not exceeding £1,000, or

(ii) on conviction on indictment to a fine not exceeding £25,000.

(b) Where a person has been convicted of an offence by virtue of paragraph (a) of this subsection and, after the conviction, the failure to provide information or to comply with the direction, as the case may be, continues, the person shall be guilty of contravening this section on every day on which the contravention continues after that conviction and for each such offence he shall be liable—

(i) on summary conviction to a fine not exceeding £100, or

(ii) on conviction on indictment to a fine not exceeding £2,500.

(5) In this section “practices” includes procedures.

Chapter XI Legal Tender Notes

118 Provision of legal tender notes.

118.—(1) It shall be lawful for the Bank to provide and issue in accordance with this Part notes to be known and in this Part referred to as legal tender notes for the following denominations, namely, £1, £5, £10, £20, £50, £100 and any other monetary denominations in respect of which the Minister has made an order under subsection (4) and such notes shall be current in the State and shall be legal tender in the State for the payment of any amount.

(2) Every legal tender note shall be of such form, size and design and printed in such a manner and on such paper and numbered and authenticated in such manner as stood prescribed before the commencement of this section or as may be prescribed thereafter from time to time for the purpose of this section.

(3) Any legal tender note of any denomination provided and issued at any time under the Currency Act, 1927, or any subsequent Act shall continue to be current in the State and shall continue to be legal tender in the State for the payment of any amount.

(4) The Minister may, from time to time, by order specify for the purposes of subsection (1) any monetary denomination which is not already specified either in that subsection or by virtue of this subsection.

(5) In this section—

“paper” includes any material capable of being printed upon;

“prescribed” means prescribed by the Bank with the sanction of the Minister.

119 Application of certain enactments.

119.—Legal tender notes issued under this Act or under the Currency and Central Bank Acts, 1927 to 1971, or any of those Acts shall be deemed to be bank notes within the meaning of the Forgery Act, 1913, and any other enactment relating to offences in respect of bank notes which is for the time being in force in the State and to be valuable securities within the meaning of the Larceny Act, 1916, and any other law relating to stealing which is for the time being in force in the State and to be current coin of the State for the purpose of the Acts relating to payment of wages in cash and any other like enactment.

120 Issue of legal tender notes by Bank.

120.—(1) The Act of 1971 is hereby amended by the substitution of the following section for section 44:

“44. It shall be lawful for the Bank to issue legal tender notes—

(a) to itself or any other person against—

(i) gold bullion, or

(ii) any currency, security or other form of asset which may be held by the Bank, which, in the case of such other person, is delivered to the Bank in such manner and subject to such conditions as it may prescribe, or

(b) to such other person against an authorisation to charge that person's account with the Bank.”.

(2) This section shall come into operation with effect from the date the legal tender note fund is wound up under section 22.

121 Redemption of legal tender notes.

121.—(1) The holder of a legal tender note of any denomination shall be entitled, on demand made by him during office hours at the principal office of the Bank in Dublin, to receive in exchange for the note—

(a) either or both one or more legal tender notes and coins which would be legal tender, or

(b) where the Bank has determined that payment by any other means is appropriate and the holder of the legal tender note so requests or consents, payment by that means, or

(c) (i) either or both one or more legal tender notes and coins which would be legal tender, and

(ii) part-payment in accordance with paragraph (b),

to the same total value.

(2) The Bank may refuse to exchange in accordance with subsection (1) any legal tender note which is so worn or damaged that it is in the opinion of the Bank not identifiable as a particular legal tender note or that the portion of such note forthcoming is not sufficient in the opinion of the Bank to exclude the possibility of the residue of such note being so exchanged on another occasion.

(3) The Bank may make such arrangements as it thinks proper for the cancellation and destruction by it or on its behalf of such legal tender notes exchanged in accordance with subsection (1) as it does not think proper to preserve for re-issue.

122 Calling in of legal tender notes.

122.—The Bank may, subject to such conditions as to time, place, manner and order of presentation as it thinks fit, call in any legal tender notes issued under this Act, or under the Currency and Central Bank Acts, 1927 to 1971, or any of those Acts, on the terms of paying for such notes on presentation in the same manner as if they were being redeemed under section 121.

123 Defacement, etc., of legal tender notes and consolidated bank notes.

123.—(1) It shall not be lawful for any person to do any of the following things, that is to say—

(a) to cut, tear, or otherwise mutilate, or to interfere with any security device on or contained in, a legal tender note or a consolidated bank note, or

(b) to write, print, draw, stamp, emboss, or in any other way impress on a legal tender note or a consolidated bank note any letter, figure, design, or other mark, or

(c) to perforate a legal tender note or a consolidated bank note, whether the perforations do or do not form or represent any letter, figure, or other design, or

(d) to attach or affix to a legal tender note or a consolidated bank note any memorandum, advertisement or other writing.

(2) Every person who commits any act in relation to a legal tender note or a consolidated bank note which is a contravention of this section shall be guilty of an offence under this section and shall be liable on summary conviction, to a fine not exceeding £1,000.

(3) The fact that a legal tender note has been the subject of an act which is a contravention of this section shall not prejudice or affect any obligation imposed or power conferred on the Bank by sections 121 and 122 of this Act to pay or exchange such note nor prejudice or affect any power so conferred on the Bank to refuse to exchange such note.

(4) The fact that a consolidated bank note has been the subject of an act which is a contravention of this section shall not prejudice or affect the obligation imposed on the Bank by section 36 (3) of the Principal Act in respect of payment on presentation of the note at its principal office in Dublin.

(5) This section shall not apply to anything done by or on behalf of the Bank for the purpose of the cancellation of a legal tender note or the retirement or cancellation of a consolidated bank note.

PART III Coinage

124 Definition (Part III).

124.—In this Part “the Act of 1969” means the Decimal Currency Act, 1969.

125 Amendment of section 3 of Act of 1969.

125.—(1) Section 3 of the Act of 1969 is hereby amended—

(a) by the insertion of the following subsection after subsection (3):

“(3A) The Minister may, in respect of any cupronickel or bronze coins of a particular denomination provided under this section, by order amend the said First Schedule by substituting, for the standard weight and remedy allowance relating to that weight which are specified therein in respect of those coins, such other standard weight and remedy allowance relating to that weight as he thinks fit and specifies in the order and the said First Schedule shall have effect accordingly.”;

(b) in subsection (5), by the substitution of the following paragraph for paragraph (c):

“(c) Whenever an order is proposed to be made under this subsection, other than only for the purpose of amending—

(i) the standard weight and standard composition of any coins and the remedy (or variation from the standard weight and standard composition) to be allowed in respect thereof, or

(ii) any such weight or composition or remedy (or variation from either such weight or composition),

a draft of the order shall be laid before each House of the Oireachtas and the order shall not be made until a resolution approving the draft has been passed by each such House.”.

(2) Any order made in whole or in part under section 3 (5) of the Act of 1969 and in force immediately before the commencement of this section shall continue in force as if it had been made to the like extent under and in accordance with the said section 3(5) as amended by subsection (1) (b).

126 Amendment of section 4 of Act of 1969.

126.—(1) Section 4 of the Act of 1969 is hereby amended—

(a) by the deletion of subsection (1), and

(b) in subsection (2)—

(i) by the substitution of the following paragraph for paragraph (a):

“(a) The Minister may, whenever and so often as he thinks fit, by order (in this section referred to as a new coinage order) declare that it is expedient to provide coins of a specified metal or a specified mixture of metals, other than as provided for by or under section 3 of this Act, of any specified denomination of coin which the Minister is authorised by or under the said section 3 to provide.”,

and

(ii) by the substitution of the following paragraph for paragraph (d):

“(d) Whenever an order is proposed to be made under this subsection, a draft of the order shall be laid before each House of the Oireachtas and the order shall not be made until a resolution approving the draft has been passed by each such House.”.

(2) Any order made in whole or in part under section 4(2) of the Act of 1969 and in force immediately before the commencement of this section shall continue in force as if it had been made to the like extent under and in accordance with the said section 4 (2) as amended by subsection (1).

127 Legal tender (coinage).

127.—The Act of 1969 is hereby amended by the substitution of the following section for section 8:

“8. (1) A tender of money if made in coins which are issued or deemed to be issued under any provision of the Decimal Currency Acts, 1969 to 1989, shall, in respect of each denomination tendered, be legal tender for the payment of an amount not exceeding twenty times their face value but for no greater amount.

(2) Subsection (1) of this section shall not apply to coins called in under section 12 of this Act from the relevant operative date for the purposes of subsection (2) of that section.”.

128 Alteration of penalties under Act of 1969.

128.—The Act of 1969 is hereby amended—

(a) in section 14, by the substitution of the following subsection for subsection (3):