CO129-390 - Acting Governor Claud Severn - 1912 [5-6] — Page 108

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OP Y.

No. 1.

Hon. Colonial Secretary,

C. O.

103

FCR

No. 66 of 1911.

Section 4 of the Mercantile Bank of India Ordinance,

contemplates the holders of notes ranking with other creditors

in the case of insolvency of the Bank.

But by Section 251 of the English Companies Act, S. 229

of our Ordinance, the liability of a Bank of issue to the note-

-hodders is unlimited.

It seems to me that s. 4 requires some modification;

but it is too late for revision as it may involve some correspund-

-ence with the Bank.

10th. April, 1912.

(Sd.) F.

Piggott.