Banking Act 1979

• (b) if such an appeal is brought within that period, it is determined on that appeal that the decision should be confirmed and that determination comes into operation.

• (3) Where the Bank gives notice under this paragraph of its decision to take action under paragraph (b) of subsection (1) of the principal section, the notice shall have the effect of revoking the recognition or licence of the institution concerned and granting it a. conditional licence subject to such conditions as may be specified in the notice.

• (4) Where the Bank gives notice under this paragraph of its intention to take action under subsection (2) of the principal section the notice shall have the effect of revoking the recognition of the institution concerned and granting it a full licence.

• (5) Where the Bank has given to an institution notice of intention to act but has not given a notice under this paragraph within the period of twenty-eight days referred to in sub-paragraph (1) above, the Bank shall be treated for the purposes of this Act as having given to that institution, immediately before the expiry of that period, notice of a decision under paragraph 1 above to take no further action.

PART II — Procedure Where Immediate Revocation Notice is Given

3

An immediate revocation notice given to an institution shall specify the reasons why the Bank has acted.

4

• (1) If representations are made by or on behalf of the institution concerned within the period of fourteen days beginning with the date on which the immediate revocation notice was given, the Bank shall review its decision in the light of those representations and may decide—

• (a) to confirm its original decision; or

• (b) to rescind its original decision ; or

• (c) in the case of a recognised bank, to revoke the institution's recognition and grant it a full licence.

• (2) If, after taking account of representations in accordance with sub-paragraph (1) above, the Bank decides to confirm the revocation of the recognition or licence of an institution but to grant to it a conditional licence subject to conditions which are different from those stated in the immediate revocation notice, the Bank shall be treated for the purposes of this Act as having decided to confirm its original decision.

5

• (1) The Bank shall give the institution concerned notice in writing of its decision under paragraph 4 above within the period of twenty-eight days beginning with the date on which the immediate revocation notice was given and, except where the decision is to rescind the original decision, the Bank shall set out in the notice under this paragraph the reasons for its decision.

• (2) Where the Bank gives notice under this paragraph of its decision to confirm its original decision and sub-paragraph (2) of paragraph 4 above applies, the notice under this paragraph shall have me effect of varying the terms of the conditional licence previously granted with effect from the date, and in accordance with the terms, of the notice.

• (3) Where the Bank gives notice under this paragraph of its decision to rescind its original decision, the recognition or licence in question shall be deemed never to have been revoked.

• (4) Where the Bank gives notice of a decision under paragraph 4(1)(c) above,—

• (a) the institution's recognition shall be deemed not to have been revoked by the immediate revocation notice; and

• (b) the notice under this paragraph shall have the effect of revoking that recognition and granting a full licence to the institution with effect from the date of the notice under this paragraph.

SCHEDULE 5

Constitution

1

• (1) The Board shall consist of three ex officio* members, namely,—

• (a) the Governor of the Bank for the time being, who shall be the chairman of the Board,

• (b) the Deputy Governor of the Bank for the time being, and

• (c) the Chief Cashier of the Bank for the time being,

and such ordinary members as shall from time to time be appointed under sub-paragraph (2) below.

• (2) The Governor of the Bank shall appoint as ordinary members of the Board—

• (a) three persons who are directors, controllers or managers of contributory institutions ; and

• (b) persons who are officers or employees of the Bank.

• (3) Each ex officio member of the Board may appoint an alternate member, being an officer or employee of the Bank, to perform his duties as a member in his absence.

• (4) Each ordinary member of the Board may appoint an appropriately qualified person as an alternate member to perform his duties as a member in his absence; and for this purpose a person is appropriately qualified for appointment as an alternate—

• (a) by a member appointed under paragraph (a) of sub-paragraph (2) above, if he is a director, controller or manager of a contributory institution; and

• (b) by a member appointed under paragraph (b) of that subparagraph, if he is either an officer or employee of the Bank.

• (5) Ordinary and alternate members of the Board shall hold and vacate office in accordance with the terms of their appointment

Proceedings

2

• (1) The Board shall determine their own procedure, including the quorum necessary for their meetings.

• (2) The validity of any proceedings of the Board shall not be affected by any vacancy among the ex officio members of the Board or by any defect in the appointment of any ordinary or alternate member.

3

• (1) The fixing of the common seal of the Board shall be authenticated by the signature of the chairman of the Board or some other person authorised by the Board to act for that purpose.

• (2) A document purporting to be duly executed under the seal of the Board shall be received in evidence and deemed to be so executed unless the contrary is proved.

Accounts, audit and annual report

4

• (1) The Board may determine their own financial year.

• (2) It shall be the duty of the Board—

• (a) to keep proper accounts and proper records in relation to the accounts; and

• (b) to prepare in respect of any period beginning with the appointed day and ending with the beginning of the Board's first financial year and in respect of each of their financial years, a statement of accounts showing the state of affairs and income and expenditure of the Board.

• (3) A statement of accounts prepared in accordance with subparagraph (2)(b) above shall be audited by auditors appointed by the Board and the auditors shall report to the Board stating whether in their opinion the provisions of paragraph 4(2) above have been complied with.

• (4) A person shall not be qualified to be appointed as auditor by the Board under sub-paragraph (3) above unless—

• (a) he is a member of, or a Scottish firm in which all the partners are members of, one or more bodies of accountants established in the United Kingdom and for the time being recognised for the purposes of section 161(1)(a) of the Companies Act 1948 by the Secretary of State ; or

• (b) he is for the time being authorised to be appointed as auditor of a company under section 161(1)(b) of that Act as having similar qualifications obtained outside the United Kingdom.

• (5) It shall be the duty of the Board, as soon as possible after the end of any such period as is mentioned in sub-paragraph (2)(b) above and of each of their financial years, to prepare a report on the performance of their functions during that period or, as the case may be, during that financial year.

• (6) It shall be the duty of the Board to publish, in such manner as they think appropriate, every statement of account prepared in accordance with sub-paragraph (2)(b) above and every report prepared in accordance with sub-paragraph (5) above.

SCHEDULE 6

Part I — Enactments Amended

The Bankers' Books EvidenceAct 1879 (c.11)

1

For section 9 of the Bankers’ Books Evidence Act 1879 (meaning of “bank”, “banker”, and “bankers’ books” for the purposes of that Act) there shall be substituted the following section:—

(9) (1) In this Act the expressions “bank” and “banker” mean— (a) a recognised bank, licensed institution or municipal bank, within the meaning of the Banking Act 1979; (b) a trustee savings bank within the meaning of section 3 of the Trustee Savings Banks Act 1969; (c) the National Savings Bank; (d) the Post Office, in the exercise of its power to provide banking services. (2) Expressions in this Act relating to “bankers’ books” include ledgers, day books, cash books, account books and other records used in the ordinary business of the bank, whether those records are in written form or are kept on microfilm, magnetic tape or any other form of mechanical or electronic data retreival mechanism.

The Agricultural Credits Act 1928 (c.43)

2

In subsection (7) of section 5 of the Agricultural Credits Act 1928 (agricultural charges on farming stock and assets) for the definition of “Bank” there shall be substituted the following definition:—

“Bank” means the Bank of England, a recognised bank or licensed institution within the meaning of the Banking Act 1979, a trustee savings bank within the meaning of section 3 of the Trustee Savings Banks Act 1969 or the Post Office, in the exercise of its powers to provide banking services

.

The Agricultural Credits {Scotland) Act 1929 (c.13)

3

In subsection (2) of section 9 of the Agricultural Credits (Scotland) Act 1929 (interpretation), for the definition of “Bank” there shall be substituted the following definition:—

“Bank” means the Bank of England, a recognised bank or licensed institution within the meaning of the Banking Act 1979, a trustee savings bank within the meaning of section 3 of the Trustee Savings Banks Act 1969 or the Post Office, in the exercise of its powers to provide banking services

.

The Prevention of Fraud (Investments) Act (Northern Ireland) 1940 (c.9) (N.I.)

4

• (1) Subsection (1) of section 12 of the Prevention of Fraud (Investments) Act (Northern Ireland) 1940 (penalty for fraudulently inducing persons to invest money) shall be amended as follows: —

• (a) after the words " the reckless making " there shall be inserted the words " (dishonestly or otherwise) "; and

• (b) for paragraph (b) there shall be substituted the following paragraph: —

(b) to take part or offer to take part in any arrangements with respect to property other than securities, being arrangements the purpose or effect, or pretended purpose or effect, of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of the property or otherwise) to participate in or receive profits or income alleged to arise or to be likely to arise from the acquisition, holding, management or disposal of such property, or sums to be paid or alleged to be likely to be paid out of such profits or income.

• (2) In the proviso to subsection (3) of section 13 of the said Act of 1940, for the words from " any arrangements " to the end there shall be substituted the words " any such arrangements as are mentioned in paragraph (b) of subsection (1) of the last preceding section ".

The Prevention of Fraud (Investments) Act 1958 (c.45)

5

• (1) Subsection (1) of section 13 of the Prevention of Fraud (Investments) Act 1958 (penalty for fraudulently inducing persons to invest money) shall be amended as follows: —

• (a) after the words " the reckless making " there shall be inserted the words " (dishonestly or otherwise) ";

• (b) for paragraph (b) there shall be substituted the following paragraph: —

(b) to take part or offer to take part in any arrangements with respect to property other than securities, being arrangements the purpose or effect, or pretended purpose or effect, of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of the property or otherwise) to participate in or receive profits or income alleged to arise or to be likely to arise from the acquisition, holding, management or disposal of such property, or sums to be paid or alleged to be likely to be paid out of such profits or income.

• (2) In the proviso to subsection (3) of section 14 of the said Act of 1958, for the words from "any arrangements" to the end there shall be substituted the words " any such arrangements as are mentioned in paragraph (b) of subsection (1) of the last preceding section ".

The Building Societies Act 1962 (c.37)

6

In subsection (5) of section 59 of the Building Societies Act 1962 (institutions which may be authorised to hold surplus funds of building societies) for the words " a body corporate or partnership carrying on the business of banking " there shall be substituted the words " a recognised bank within the meaning of the Banking Act 1979 ".

The Building Societies Act (Northern Ireland) 1967 (c.31) (N.I.)

7

In subsection (5) of section 59 of the Building Societies Act (Northern Ireland) 1967 (institutions which may be authorised to hold surplus funds of building societies) for the words " a body corporate or partnership carrying on the business of banking" there shall be substituted the words " a recognised bank within the meaning of the Banking Act 1979 ".

The Industrial and Provident Societies Act (Northern Ireland) 1969 (c.24) (N.I.)

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Solicitors Act 1974 (c.47)

9

In subsection (1) of section 87 of the Solicitors Act 1974 (interpretation of expressions used in that Act), in the definition of “bank”—

• (a) in paragraph (a) after the word “England” there shall be inserted the words “the Post Office, in the exercise of its powers to provide banking services, or a recognised bank within the meaning of the Banking Act 1979”; and

• (b) in paragraph (b) for the words “a company as to which the Secretary of State is satisfied” there shall be substituted the words “ any othercompany as to which, immediately before the repeal of the Protection of Depositors Act 1963, the Secretary of State was satisfied ”;

and the expression “bank” in any instrument made under the said Act of 1974 which is in force immediately before the appointed day shall be construed accordingly.

The Solicitors (Scotland) Act 1976 (c.6)

10

In subsection (1) of section 5 of the Solicitors (Scotland) Act 1976 (extension of power of Council to make rules regarding certain accounts)—

• (a) after the words “National Savings Bank” there shall be inserted the words “ the Post Office, in the exercise of its powers to provide banking services, a recognised bank within the meaning of the Banking Act 1979 ”; and

• (b) for the words “company as to which the Secretary of State is satisfied” there shall be substituted the words “ other company as to which, immediately before the repeal of the Protection of Depositors Act 1963, the Secretary of State was satisfied ”;

and the expression “bank” in any instrument made under the said Act of 1976 or under the Solicitors (Scotland) Act 1949 which is in force immediately before the appointed day shall be construed accordingly.

The Home Purchase Assistance and Housing Corporation Guarantee Act 1978 (c.27)

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Home Purchase Assistance {Northern Ireland) Order 1978 (1978/1043) (N.I. 13)

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II — Savings

The Bankers' Books Evidence Act 1879 (c.11)

13

Nothing in paragraph 1 above shall affect the operation of the Bankers’ Books Evidence Act 1879 in relation to any entry in any banker’s book made, or relating to a transaction carried out,—

• (a) before the day appointed for the purposes of that paragraph; or

• (b) at a time when the bank or banker in question was permitted to accept deposits by virtue of subsection (4) of section 2 of this Act.

The Agricultural Credits Act 1928 (c.43)

14

Nothing in paragraph 2 above shall affect the validity of, or the rights and obligations of the parties to, an agricultural charge within the meaning of the Agricultural Credits Act 1928 made before the day appointed for the purposes of that paragraph.

The Agricultural Credits (Scotland) Act 1929 (c.13)

15

Nothing in paragraph 3 above shall affect the validity of, or the rights and obligations of the parties to, an agricultural charge within the meaning of the Agricultural Credits (Scotland) Act 1929 made before the day appointed for the purposes of that paragraph.

The Building Societies Act 1962 (c.37)

16

Nothing in paragraph 6 above shall affect the authority of any body corporate or partnership which immediately before the day appointed for the purposes of that paragraph was designated by order of the Chief Registrar under section 59 of the Building Societies Act 1962 or the power of the Chief Registrar to remove the authority of such a body or partnership by a subsequent order made on or after that day.

The Building Societies Act (Northern Ireland) 1967 (c.31) (N.I.)

17

Nothing in paragraph 7 above shall affect the authority of any body corporate or partnership which immediately before the day appointed for the purposes of that paragraph was designated by order of the registrar under section 59 of the Building Societies Act (Northern Ireland) 1967 or the power of the registrar to remove the authority of such a body or partnership by a subsequent order made on or after that day.

The Industrial and Provident Societies Act (Northern Ireland) 1969 (c.24) (N.I.)

18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19

The savings contained in this Part of this Schedule are without prejudice to section 16 of the Interpretion Act 1978 (general savings).

SCHEDULE 7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39

48

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Bankers’ Books Evidence Act 1879 (c. 11)

The Agricultural Credits Act 1928 (c. 43)

The Agricultural Credits (Scotland) Act 1929 (c. 13)

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Solicitors Act 1974 (c. 47)

The Solicitors (Scotland) Act 1976 (c. 6)

The Bankers’ Books Evidence Act 1879 (c. 11)

The Agricultural Credits Act 1928 (c. 43)

The Agricultural Credits (Scotland) Act 1929 (c. 13)

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Editorial notes