(Cap. 65),
Maintenance of reserve.
Minimum paid up capital.
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(7) The Governor in Council may, from time to time, in excep- tional circumstances, by order reduce for such period as he may think necessary and to such percentages as he may think fit the minimum percentages specified in subsection (2) or subsection (3) of specified liquid assets in the case of any particular bank or all banks.
(8) The Financial Secretary may, from time to time, in excep- tional circumstances, by order reduce for a period not exceeding three mooths the minimum percentage specified in subsection (2) of specified liquid assets to not less than fifteen per centum and the minimum per- centage specified in subsection (3) of specified liquid assets to not less than seven and a half per centum, in the case of any particular bank or all banks.
(9) Liabilities in respect of notes issued and assets held as cover for notes issued shall, in the case of a bank which is a note-issuing bank under the Bank Notes Issue Ordinance, be disregarded for the purposes of this section.
19. (1) Subject to the provisions of subsection (2), every bank shall-
(4) maintain a published reserve, and
(b) before any dividend is declared, transfer to the published re- serve out of the published profits of each year, after due provision has been made for taxation,
(i) a sum equal to not less than twenty-five per cent of such published profits; or
(ii) such other lesser sum as may be necessary to increase the published reserve to one hundred per cent of the paid up capital.
(2) The Financial Secretary may, if he is satisfied that the aggre- gate published reserve, wherever situated, of a bank which is incor- porated outside the Colony is adequate for its business, by order in writing exempt such bank from the provisions of subsection (1) and may at any time by order in writing revoke such exemption.
20. (1) Subject to the provisions of subsection (3), a bank sball not transact banking business in the Colony unless-
(a) its capital issued and paid up is not less than five million dollars (or the equivalent amount in the case of a company incorporated outside the Colony) deduction having been made in respect of a debit balance appearing in the profit and loss account of the company:
(b) its assets within the Colony, after due provision has been made for all known bad and doubtful debts, exceed its deposit
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liabilities within the Colony, as defined by subsection (5) of section 18, by not less than five million dollars.
(2) For the purposes of paragraph (b) of subsection (1)— (a) "assets within the Colony" shall include, but shall not be
limited to, specified liquid assets:
(b) in the case of a bank operating in the Colony and also else- where, the offices and branches situated in the Colony shall be deemed collectively to be a separate bank carrying on business in the Colony.
(3) The Financial Secretary may from time to time by order in writing exempt any bank from the requirements of subsection (1) and may at any time by order in writing revoke such exemption.
21. A bank which is incorporated in the Colony shall not pay any Restriction dividend on its shares or distribute acy capital profits unless-
oa payment of dividends.
(a) all items of expenditure not represented by tangible assets
have been completely written off; and
(b) in the case of a distribution of capital profits, ils published reserve amounts to one hundred per cent of its paid up capital and will not be reduced to less than one hundred per cent of its paid up capital by virtue of such distribution.
12. A bank shall not grant any advance, loan or credit facility Advanos against the security of its own shares.
is
agadosc security of own shares.
Limitation a total of
advances to one person,
23. A bank shall not grant or permit to be outstanding to any one person, firm, corporation or company, or to any group of com- panies or persons which such person, firm, corporation or company able to control or influence, any advances or credit facilities or give firm etc. any financial guarantees or incur any other liabilities on their behalf to an aggregate amount of such advances, facilities, guarantees or liabili- ties in excess of twenty-five per cent of the paid up capital and reserves of the bank:
Provided that the provisions of this section shall not apply to- (4) transactions between banks or between the branches of a
bank:
(b) the purchase of telegraphic transfers;
(c) the purchase of bills of exchange or documents of title to goods where the holder of such bills or documents is entitled to pay- ment outside the Colony for exports from the Colony; or
(d) advances made against telegraphic transfers or against such
bills or documents.
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