CAP. 71]
[s. 3 cont.]
Deposit of securities as funds exclusively available for redemption of note issue and in the event of insolvency.
4 of 1951, Schedule.
Mercantile Bank Note Issue.
any period of the average amount of such notes in circulation or to test the truth of any such account, shall be open for the inspection and examination at all reasonable times of any person authorized in that behalf in writing signed by the Financial Secretary. Every such authorized person shall be at liberty to take copies or extracts from any such book, account, minute or memorandum. If the company or any person in its employ keeping any such book, account, minute or memorandum, or having the custody or possession thereof or power to produce the same, on demand made by any such authorized person showing if demanded his authority in that behalf, refuses to produce any such book, account, minute or memorandum to him for his inspection and examination or to permit him to inspect and examine the same or to take copies thereof or extracts therefrom, the company and such person in its employ shall each upon summary conviction be liable to a fine of five hundred dollars: Provided that the Financial Secretary shall not exercise or cause to be exercised the powers aforesaid without the consent of the Governor.
4. (1) The Company shall deposit and at all times keep deposited with the Crown Agents securities to be approved by the Secretary of State to an amount equal in value to the face value of the notes in circulation with the addition of five per cent of such value. Such securities shall be under the control of the Financial Secretary and shall be held by the Crown Agents as special funds exclusively available for the redemption of such issue of notes, and in the event of the company being wound up such securities shall be sold and the proceeds of sale shall be applied so far as necessary towards the redemption of the notes outstanding. Nothing in the foregoing shall prejudice the rights of the holders of notes in the event of such proceeds of sale proving to be less than the face value of the notes outstanding, but if such proceeds amount to more than such face value the difference shall be paid over to the company.
(2) Notwithstanding the provisions of subsection (1), further notes of the company may be issued and be in actual circulation other than those against the issue of which securities have been deposited under such subsection, if
474
CAP. 71]
[s. 3 cont.]
Deposit of securities as funds exclusively available for redemption of note issue and in the event of insolvency.
4 of 1951, Schedule.
Mercantile Bank Note Issue.
any period of the average amount of such notes in circulation or to test the truth of any such account, shall be open for the inspection and examination at all reasonable times of any person authorized in that behalf in writing signed by the Financial Secretary. Every such authorized person shall be at liberty to take copies or extracts from any such book, account, minute or memorandum. If the company or any person in its employ keeping any such book, account, minute or memorandum, or having the custody or possession thereof or power to produce the same, on demand made by any such authorized person showing if demanded his authority in that behalf, refuses to produce any such book, account, minute or memorandum to him for his inspection and examination or to permit him to inspect and examine the same or to take copies thereof or extracts therefrom, the company and such person in its employ shall each upon summary conviction be liable to a fine of five hundred dollars: Provided that the Financial Secretary shall not exercise or cause to be exercised the powers aforesaid without the consent of the Governor.
4. (1) The Company shall deposit and at all times keep deposited with the Crown Agents securities to be approved by the Secretary of State to an amount equal in value to the face value of the notes in circulation with the addition of five per cent of such value. Such securities shall be under the control of the Financial Secretary and shall be held by the Crown Agents as special funds exclusively available for the redemption of such issue of notes, and in the event of the company being wound up such securities shall be sold and the proceeds of sale shall be applied so far as necessary towards the redemption of the notes outstanding. Nothing in the foregoing shall prejudice the rights of the holders of notes in the event of such proceeds of sale proving to be less than the face value of the notes outstanding, but if such proceeds amount to more than such face value the difference shall be paid over to the company.
(2) Notwithstanding the provisions of subsection (1), further notes of the company may be issued and be in actual circulation other than those against the issue of which securities have been deposited under such subsection, if
474
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