CENTRAL BANK ACT, 1989

“21.—(1) Where the Bank is of the opinion that it is in the public interest to do so, or that the holder of a licence—

• (a) has become or is likely to become unable to meet his obligations to his creditors, or

• (b) is not maintaining or is unlikely to be in a position to maintain adequate capital resources having regard to the volume and nature of his business, or

• (c) has failed to comply with any condition imposed in relation to the licence in accordance with section 10 of this Act and the circumstances are such that the Bank is of the opinion that the stability and soundness of the holder are affected by such failure, or

• (d) is conducting business in such a manner as to jeopardise and prejudice the security of deposits taken by him or the rights and interests of persons who made those deposits, or

• (e) is under common control with one or more than one other enterprise (whether or not any such other enterprise is the holder of a licence) and the Bank is of the opinion that the common control is not in the interest of persons maintaining deposits with the first mentioned holder of a licence,

the Bank may give a direction in writing to that holder to suspend, for such period, not exceeding six months, as shall be specified in the direction, all or any of the following, that is to say—

- (i) the carrying on of banking business,

- (ii) the making of payments to which paragraph (i) of this subsection does not relate,

- (iii) the acquisition or disposal of other assets or liabilities,

  which have not been authorised by the Bank.

• (2) The Bank may revoke a direction given under subsection (1) of this section unless an order under subsection (4) of this section has been made in respect of the direction.

• (3) The holder of a licence to whom a direction is given under subsection (1) of this section may apply to the Court for, and the Court may grant, an order setting aside the direction.

• (4) The Bank may apply to the Court for, and the Court may grant, an order confirming a direction given under subsection (1) of this section or confirming the direction and subject to subsection (5) of this section extending the period of its operation for such time, not exceeding the period of twelve months from the date the direction commenced to have effect, as the Court may, having regard to all the circumstances, consider appropriate.

• (5) A direction to which subsection (4) of this section relates shall cease to have effect—

  • (a) where the direction was confirmed, upon the expiration of the period to which the direction relates,

  • (b) where the direction was confirmed and the period of its operation was extended, upon the expiration of that extended period,

  • (c) from such date as the Court by order determines on a subsequent application to it by the Bank,

  • (d) upon the making of a winding up order in respect of the holder of the licence concerned, or

  • (e) where the Court is of the opinion that the circumstances which gave rise to the direction have ceased to exist and that it would be unjust and inequitable not to make an order to that effect, from such date as the Court by order determines,

  whichever first occurs.

• (6) The Court may, in addition to or in lieu of making an order under subsection (3) or (4) of this section, make such other order in relation to the matter as may appear to it to be necessary, including an order directing any person who holds money or other assets for or on behalf of the person to whom the direction relates not to dispose of any of those assets except on such conditions and in such circumstances as are specified in the order.

• (7) Where a direction given under this section is a subsisting direction, then—

  • (a) winding up or bankruptcy proceedings shall not be initiated in relation to the holder of the licence to whom the direction was given,

  • (b) a receiver over the property of that holder shall not be appointed, and

  • (c) the property of that holder shall not be attached, sequestered or otherwise distrained,

  unless the prior approval of the Court has been obtained.

• (8)

  • (a) Where the Bank is of the opinion that, notwithstanding the fact that the holder of the licence to whom the direction was given under this section appears to it to be able to meet his obligations to his creditors, the circumstances which gave rise to the direction are unlikely to be rectified, it shall forthwith apply to the Court for, and the Court may grant, an order directing the holder to prepare, in consultation with the Bank, a scheme for the orderly termination of his banking business and the discharge of his liabilities to persons who have deposits maintained with him under the supervision of the Bank and to submit the scheme to the Court within two months for the Court's approval.

  • (b) The Court shall not approve the terms of the scheme without hearing the Bank and, in the event of any dispute concerning the terms of the scheme, either or both the Bank and the holder of the licence to whom the direction was given may apply to the Court to adjudicate on the matter.

  • (c) If the holder of the licence to whom the direction was given fails to comply with the order of the Court or fails to adhere to the scheme approved by the Court, the Bank may apply to the Court for and the Court may make such further order as it considers appropriate, including an order of commital or a winding up order on the ground that it is just and equitable that the holder should be wound up.

• (9) Where, in proceedings brought under this section against the holder of a licence to whom a direction was given under this section, a winding up order is made, the law relating to companies (including this Act) shall apply in the same way as if the order had been made on a winding up petition under that law and as if for any reference in that law to the presentation of the winding up petition there were substituted a reference to the making of the winding up order under this section.

• (10) 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.

• (11) The Court may by order revoke or amend an order made by it under this section.

• (12) For the purpose of subsection (1) (e) of this section, the holder of a licence and one or more than one other enterprise shall be deemed to be under common control if the decision as to how or by whom each shall be managed can be made by the same person or is made by the same group of persons acting in concert.”.

39 Amendment of section 22 of Act of 1971.

39.—Section 22 of the Act of 1971 is hereby amended:

• (a) by the substitution of the following subsections for subsection (2):

• “(2) The Bank may give a direction to a holder of a licence to refrain from—

  • (a) publishing or continuing to publish, or

  • (b) causing to be published or to be continued to be published,

  during such period as shall be specified in the direction an advertisement inviting deposits from the public.

• (2A) The Bank may give a direction to a holder of a licence to refrain from—

  • (a) publishing or continuing to publish, or

  • (b) causing to be published or to be continued to be published,

  an advertisement containing information in respect of any service provided or to be provided to the public or any charge, term or condition upon which a service is so provided (or to be so provided) which, in the opinion of the Bank is false, misleading or calculated to deceive.”;

• (b) by the addition of the following subsection after subsection (3):

• “(4) In this section:

‘advertisement’ includes every form of recommendation of any matter to which this section relates including, in particular, the display or publication of any such matter by way of notice, leaflet, circular, pamphlet, brochure, photograph, film, video, sound broadcasting, television, electronic communication or personal canvassing;

‘deposits’ includes any funds taken from the public and payable on demand or on notice or at a fixed or determinable future date.”.

40 Amendment of section 23 of Act of 1971.

40.—Section 23 of the Act of 1971 is hereby amended by the substitution of the following subsection for subsection (4):

• “(4) In this section—

‘liabilities’ include such contingent liabilities as may be specified by the Bank from time to time for the purposes of this section;

‘specified’ means specified by the Bank in a requisition under this section.”.

41 Composition of assets and liabilities.

41.—The Act of 1971 is hereby amended by the insertion of the following section after section 23:

“23A. The Bank may, from time to time, specify as respects a holder of a licence requirements as to the composition of its assets and requirements as to the composition of its liabilities.”.

42 Amendment of section 26 of Act of 1971.

42.—Section 26 of the Act of 1971 is hereby amended by the addition of the following subsection—

• “(7) The Minister may, after consultation with the Bank and where he is of the opinion that it would not be against the orderly and proper regulation of banking, by order—

  • (a) in the case of either or both subsections (2) and (3) of this section, apply those subsections or restrict their application to any person or class of persons, and

  • (b) in the case of subsection (6) of this section, amend that subsection by the addition thereto or deletion therefrom, of any instrument specified in that subsection,

  and, in the case of each subsection, whether or not previously affected by virtue of this subsection.”.

43 Amendment of section 27 of Act of 1971.

43.—Section 27 of the Act of 1971 is hereby amended:

• (a) by the insertion of the following subsection after subsection (2):

• “(2A) If an advertisement or other solicitation for deposits 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 twelve months after any publication of the advertisement, request the publisher to supply the name and address of that person to the Bank and the publisher shall forthwith comply with that request.”;

• (b) by the substitution of the following subsection for subsection (3):

• “(3)

  • (a) In this section ‘deposits’ does not include deposits with a trader by persons employed by him in his trading business or by his customers in the normal course of his trading business or deposits in respect of the letting or selling of goods under a hire-purchase agreement or a credit-sale agreement.

  • (b) Reference in this section or section 58 (3) of this Act (as amended by section 9 of the Central Bank Act, 1989) to the solicitation of deposits, however expressed, includes every form of solicitation for deposits including, in particular, the display or publication of any such matter by way of notice, leaflet, circular, pamphlet, brochure, photograph, film, video, sound broadcasting, television, electronic communication or personal canvassing.”.

44 Power of Court to prohibit certain contraventions of, or failure to comply with, Act of 1971.

44.—The Act of 1971 is hereby amended by the insertion of the following section after section 28:

“28A. (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) a contravention of section 17 or 18 of this Act, or

• (b) a failure to comply with a condition imposed in relation to a licence by virtue of section 10, or with a direction under section 22, of this Act,

the Court may, by order, prohibit the continuance of the contravention or failure by the person or persons 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.”.

45 Amendment of section 31 of Act of 1971.

45.—Section 31 of the Act of 1971 is hereby amended by the substitution of the following subsection for subsection (1):

• “(1) Where a holder of a licence ceases to carry on banking business in circumstances to which section 57 of the Central Bank Act, 1989, applies, he shall, as soon as may be, notify all persons having deposits (including deposits on current accounts) with him of such cesser and he shall, if any such person so demands, pay to that person forthwith the amount of his deposit together with the amount of any interest accrued thereon.”.

46 Appointment of auditor.

46.—(1) The Bank may, in writing require any holder of a licence—

• (a) to notify the Bank at least 15 days—

• (i) before notices are sent to the shareholders concerning the proposed appointment or reappointment of a person to the office of auditor of the holder for the purposes of the Companies Acts, 1963 to 1986, or

• (ii) before the directors of the holder fill any casual vacancy in the office of auditor by virtue of section 160 (7) of the Companies Act, 1963,

of the name of the person to be so proposed, to be reappointed or to fill that vacancy,

• (b) to supply, within such period of time as the Bank shall state, such information as it may request concerning the person named for the purpose of paragraph (a).

• (2) Where the Bank is of the opinion that it would not be in the interest of persons maintaining deposits with the holder of a licence or of the orderly and proper regulation of banking, it may direct, as the circumstances require, that holder not to appoint or not to reappoint to the office of auditor, or the directors not to fill a casual vacancy in that office with, a named person and the direction shall be complied with.

• (3) Any person who contravenes subsection (1) or (2) 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.

47 Duties of auditor.

47.—(1) If the auditor of a holder of a licence—

• (a) has reason to believe that there exist circumstances which are likely to affect materially the holder's ability to fulfil his obligations to persons maintaining deposits with him or meet any of his financial obligations under the Central Bank Acts, 1942 to 1989, or

• (b) has reason to believe that there are material defects in the financial systems and controls or accounting records of the holder, or

• (c) has reason to believe that there are material inaccuracies in or omissions from any returns of a financial nature made by the holder to the Bank, or

• (d) proposes to qualify any certificate which he is to provide in relation to financial statements or returns of the holder under the Companies Acts, 1963 to 1986, or the Central Bank Acts, 1942 to 1989, or

• (e) decides to resign or not seek re-election as auditor,

he shall report the matter to the Bank in writing without delay.

• (2) The auditor of the holder of a licence shall, if requested by the Bank, furnish to the Bank a report stating whether in his opinion and to the best of his knowledge the holder has or has not complied with a specified obligation of a financial nature under the Central Bank Acts, 1942 to 1989.

• (3) Where the auditor of a holder of a licence so requests, the Bank shall provide to the auditor in writing details of such returns of a financial nature to the Bank by the holder as the auditor requests for the purpose of enabling him to comply with subsection (1) (c) or (2).

• (4) The auditor of a holder of a licence shall send to the holder a copy of any report made by him to the Bank under subsection (1) or (2).

• (5)
• (a) Whenever the Bank is of the opinion that the exercise of its functions under the Central Bank Acts, 1942 to 1989, or the protection of the interests of depositors so requires, it may require the auditor of a holder of a licence to supply it with such information as it may specify in relation to the audit of the business of the holder and the auditor shall comply with the requirement.

• (b) The Bank may require that, in supplying information for the purposes of this subsection, the auditor shall act independently of the holder of the licence.

• (6) No duty to which the auditor of a holder of a licence may be subject shall be regarded as contravened, and no liability to the holder, or to its shareholders, creditors or other interested parties, shall attach to the auditor, by reason of his compliance with any obligation imposed on him by or under this section.

Chapter IV General Provisions Relating to Winding Up

48 Grounds for winding up on application of Bank.

48.—(1) Notwithstanding section 215 of the Companies Act, 1963, the Bank may, by presenting a petition, apply to the Court to have the holder of a licence wound up on any of the following grounds:

• (a) that the holder is or, in the opinion of the Bank, may be unable to meet its obligations to its creditors;

• (b) that the holder has failed to comply with a direction of the Bank under section 21 of the Act of 1971 and the Court has not set aside the direction;

• (c) that the licence has been revoked and the holder has ceased to carry on the business of banking;

• (d) that the Bank considers that it is in the interest of persons having deposits (including deposits on current accounts) with the holder that the holder be wound up.

• (2) Where a petition for the winding up of the holder of a licence is presented by a person other than the Bank, a copy of the petition shall be served on the Bank which shall be entitled to be heard on the petition.

• (3) Where the holder of a licence is being wound up voluntarily and the Bank has reason to believe that any of the grounds set out in subsection (1) apply, then the Bank may apply to the Court to have the licence holder wound up by the Court.

49 Notices, documents to be sent to Bank relating to winding up.

49.—Where the holder of a licence or former holder of a licence is being wound up and the Bank is not a creditor, any notice or document, by whatever name called, which is required to be sent to a creditor of the holder or former holder shall be sent also to the Bank.

50 Right of Bank to be represented at meetings, etc.

50.—(1) An officer of the Bank, or any other person, duly authorised in writing in that behalf by the Governor of the Bank may attend any meeting of creditors of a holder or former holder of a licence.

• (2)
• (a) The Governor of the Bank may appoint in writing an officer of the Bank or any other person to be a member of any committee of inspection appointed under section 233 or 268 of the Companies Act, 1963, in respect of the holder or former holder of a licence.

• (b) A person duly appointed under paragraph (a) shall neither be counted in computing the minimum or maximum numbers of members of such a committee prescribed under the Companies Acts, 1963 to 1986, nor be removed from membership of the committee without the consent of the Bank.

51 Construing of references to winding up, etc.

51.—Where the context so admits and the circumstances may so require, references in the Central Bank Acts, 1942 to 1989, to the winding up of a holder or former holder of a licence or to any provision of the Companies Acts, 1963 to 1986, which relates to winding up shall, where a holder or former holder of a licence is a company incorporated outside the State or is an institution to which section 9(1A) (as amended by this Part) of the Act of 1971 relates, be construed as references to the corresponding provisions in the law of the foreign jurisdiction concerned and, accordingly, the provisions of the Central Bank Acts, 1942 to 1989, shall apply to the winding up or dissolution concerned and, where necessary, with such modifications as the Court may order.

52 Rules of Court.

52.—The rules of court relating to the winding up of companies shall, pending the making of rules of court for the purposes of this Part, apply for such purposes with such adaptations as may be necessary.

Chapter V Deposit Protection

53 Interpretation (Chapter V).

53.—In this Chapter—

“child” includes a person of full age;

“connected person” in relation to another person, means 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 and where the person is—

• (a) the spouse of that other person,

• (b) the child or grandchild of that other person or the child or grandchild of the spouse of that other person,

• (c) the parent or grandparent of that other person,

• (d) the brother, sister, stepbrother or stepsister of that other person,

• (e) a partner of that other person to whom, together, the Partnership Act, 1890, applies (whether or not with any other persons),

• (f) the spouse of a connected person to whom paragraph (b), (d) or (e) applies and in relation to the appropriate other person to whom the relevant paragraph relates,

• (g) a body corporate and that other person is a chief officer, secretary or member of any board or other committee of management, by whatever name called, of the body corporate,

• (h) a body corporate and that other person is a relevant beneficial owner of the body corporate, or

• (i) a body corporate and that person is, together with any person to whom paragraph (a), (b), (c), (d), (e), (f) or (g) applies, a relevant beneficial owner of the body corporate;

“deposit protection account” means the account established and maintained by virtue of section 54;

“eligible deposits” has the meaning assigned to it by section 62;

“excluded depositor” means 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 and, in relation to that holder or former holder of the licence where the person is—

• (a) a chief officer, secretary or member of any board or other committee of management, by whatever name called,

• (b) a relevant beneficial owner of that holder or former holder of the licence,

• (c) together with connected persons, a relevant beneficial owner of that holder or former holder of the licence,

• (d) subject to section 64, a connected person to a person specified in paragraph (a), (b) or (c),

• (e) subject to section 64, a trustee of a trust for the benefit of a person specified in paragraph (a), (b), (c) or (d),

• (f) a holding company, a subsidiary company, another subsidiary company of the same holding company or a company (not being a subsidiary company) in respect of which the holder or former holder is a relevant beneficial owner, or

• (g) a person excluded by virtue of section 63;

“interbank deposits” means deposits with a holder of a licence by any of the following, that is to say—

• (a) another holder of a licence;

• (b) any person, not being the holder of a licence, established outside the State who, in the opinion of the Bank, is duly authorised outside the State to carry on the business of banking;

• (c) the Bank;

• (d) the Agricultural Credit Corporation public limited company;

• (e) the company formed and registered by virtue of section 2 of the Industrial Credit Act, 1933;

• (f) a trustee savings bank certified under the Trustee Savings Banks Acts, 1863 to 1979;

• (g) a building society;

• (h) such other persons as may be specified by regulations under section 72;

and deposits with the holder of a licence by any of its offices outside the State shall be deemed to be interbank deposits;

“relevant beneficial owner”, in relation to a body corporate, means a person who is beneficially entitled (either directly or indirectly) to 20 per cent. or more in nominal value of either the allotted share capital or the shares carrying voting rights (other than voting rights which arise only in specified circumstances) in the body corporate.

54 Deposit protection account.

54.—The Bank shall establish and maintain in the general fund an account to be known as the deposit protection account.

55 Deposits by holders of licences.

55.—(1) Upon the establishment of the deposit protection account, the deposit standing maintained with the Bank immediately before the coming into operation of this section by each holder of a licence and calculated in accordance with section 13 of the Act of 1971 shall be transferred to that account in respect of that holder and, accordingly, that section shall cease to have effect upon such coming into operation.

• (2) The amount of a deposit maintained by a holder of a licence in the Bank pursuant to section 7 of the Act of 1971 (in this section referred to as the deposit) shall, subject to subsection (5), be 0.2 per cent., or such other proportion as may be specified by regulations under section 72 (2), of the total—

• (a) Irish pound deposits (including deposits on current accounts but, subject to paragraph (b), excluding interbank deposits and deposits represented by negotiable certificates of deposit), and

• (b) such other deposits as may be specified by regulations under section 72 (2) in respect of all or any class or category of holders of licences,

at offices in the State of the holder, but shall not be less than £20,000 and, accordingly, the reference in the said section 7 to section 13 of the Act of 1971 shall be construed as a reference to this section.

• (3) The amount of the deposit shall be calculated by the Bank as soon as is practicable after the coming into operation of this section (in this section referred to as “the relevant date”) or at the time of the issue of the licence as may be appropriate and shall be recalculated in respect of every holder of a licence every 12 months (or as close thereto as is reasonably practicable) after the relevant date by reference to returns made by each holder to the Bank under section 18 of the Act of 1971.

• (4) The amount of the deposit shall, where necessary, be increased to the appropriate amount recalculated under subsection (3) by the holder of the licence concerned not later than 7 days, or such longer period as the Bank may agree to in writing, after the date of the receipt by him of notification from the Bank of the amount required to effect the increase.

• (5) The Bank may settle the amount of the deposit at the nearest round figure in hundreds of pounds and by rounding up to such a figure where the amount calculated under subsection (2) is divisible in pounds by £50.

• (6) The deposit shall carry interest at such a rate or rates and payable in such manner and at such times as may be determined by the Bank from time to time.

• (7) Any charge purported to be created on the deposit other than by the Bank shall be void.

• (8) The deposit shall not be subject to any form of execution in satisfaction of any claim of, or any judgement, order or decree of any court in the State in favour of, any creditor, otherwise than under and in accordance with the provisions of the Central Bank Acts, 1942 to 1989.

• (9)
• (a) Except with the prior written consent of the Bank, a holder of a licence shall not advertise, cause to be advertised or otherwise represent or cause to be represented the fact (however expressed) that deposits or funds placed with the holder are protected by or through the deposit protection account.

• (b) Any person who contravenes paragraph (a) 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.

56 Review of operation of deposit protection account.

56.—The Bank shall keep the operation of the deposit protection account under review and may, if it considers it expedient to do so after having regard to such factors as it considers relevant, from time to time make recommendations to the Minister in relation to all or any of the following, that is to say:

• (a) the making of regulations under section 72 (2) for the purposes of section 55 (2);

• (b) the making of regulations under section 72 (2) for the purposes of section 62 (1) (b);

• (c) the making of an order under section 59 (4) for the purposes set out therein.

57 Deposit protection account and cesser of banking business where solvent.

57.—(1) Where the holder of a licence or a former holder of a licence ceases to carry on banking business in circumstances other than those provided for by section 58 (1), the Bank may retain the full amount, or such lesser amount as the Bank considers appropriate, of the holder's deposit in the deposit protection account until it is satisfied that all liability of that holder in respect of every person maintaining deposits with him have been or will be discharged in full.

• (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—

[image omitted]

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.