AI Summary of 35. Restrictions on amount of consolidated bank notes outstanding.
This legislation establishes specific limitations on the consolidated bank notes that can be issued to the Associated Banks listed in Schedule 4. The maximum amounts are categorised by triennial periods, culminating in a complete cessation of issuance post-31 December 1953. Furthermore, Associated Banks are prohibited from redeeming these notes beyond this date, with penalties outlined for non-compliance.
Additionally, the regulatory framework allows for adjustments to the stipulated amounts should any significant organisational changes occur among the eight identified banks, subject to ministerial consent. The Commission and the Bank are tasked with ensuring adherence to these provisions through effective restriction of issuance.
35. Restrictions on amount of consolidated bank notes outstanding.
(1) The maximum amount of consolidated bank notes which may be outstanding with any particular Associated Bank mentioned in the second column of Schedule 4 -
(a) on any day during the period commencing on the day after the date of the passing of this Act and ending on the 31st day of December, 1944, shall not exceed the amount stated in the third column of Schedule 4 opposite the name of such Associated Bank in the second column of that Schedule;
(b) on any day during the triennial period ending on the 31st day of December, 1947, shall not exceed the amount stated in the fourth column of Schedule 4 opposite the name of such Associated Bank in the second column of that Schedule;
(c) on any day during the triennial period ending on the 31st day of December, 1950, shall not exceed the amount stated in the fifth column of Schedule 4 opposite the name of such Associated Bank in the second column of that Schedule;
(d) on any day during the triennial period ending on the 31st day of December, 1953, shall not exceed the amount stated in the sixth column of Schedule 4 opposite the name of such Associated Bank in the second column of that Schedule.