|
|
1. This Ordinance may be cited as the Ceylon Savings Bank Ordinance
|
|
|
2. In this Ordinance, unless the context otherwise requires-
|
|
” approved society ” means any thrift, benefit, benevolent, provident or charitable society, association or institution which is approved by the board of directors under section 16 ;
|
|
” the bank ” shall mean the Ceylon Savings Bank.
|
|
|
3. The bank shall be under the management of a board of three directors, who shall not directly or indirectly receive any salary, allowance, profit, or benefit whatsoever therefrom:
|
|
Provided, however, that nothing in this section shall prevent any member of the board (or any officer of the bank) from becoming depositors therein on the
same terms as others.
|
Incorporation of the board of directors.
|
4. The board of directors shall be a body corporate with perpetual succession and a common seal and may sue and be sued in its name and style and shall be capable of acquiring, holding and alienating property, whether movable or immovable.
|
Nomination of directors and appointment of president.
|
5. The Minister of Finance1 shall from time to time nominate the three members of the board of directors and also appoint one of them president of the board.
|
|
|
6. The president shall appoint the times for the meetings of the board of directors for the transaction of business. At such meetings two directors shall be sufficient to form a quorum.
|
Financial year of the bank and estimates of income and expenditure.
|
|
(1) The financial year of the bank shall be the calendar year.
|
|
(2) The manager shall on a date to be determined by the board of directors in each year, submit to the board an estimate of the available income of the bank and details of the proposed expenditure for the ensuing financial year.
|
|
Board of directors.
[ 4, 6 of 1955.]
|
[ [ 4, 6 of 1955.]
|
|
8. The board of directors may, with the approval of the Minister,[1] pay out of the funds of the bank such sums of money as to them shall seem fit, for the purposes of the business and of the carrying on of the bank, including the payment of salaries, pensions, fees, or other allowances to the officers and servants of the bank.
|
|
|
9. A general meeting of the depositors of the said bank shell be held once a year, on or before the thirtieth day of June, at which meeting the board of, directors shall submit a statement of the affairs of the said bank for the preceding year.
|
|
|
10. The board of directors may call special general meetings when they think proper ; and, on the requisition of any two directors delivered in writing to the manager, it shall be obligatory on him to call a special general meeting within fifteen days from the date of the delivery of such requisition.
|
Notice of general meetings.
|
11. Seven days’ notice of every general meeting shall be published in all the local newspapers.
|
Board of directors to make rules and regulations.
|
12. The board of directors may from time to time make rules and regulations touching the business of the said bank, which said rules and regulations shall not come into operation until they shall have been approved of by the Minister.[1]
|
|
|
Every rule or regulation made by the board of directors, and approved by the Minister, under this section, shall be published in the Gazette, and in English, Sinhalese and Tamil in one or more newspapers published in Ceylon.
|
Regulations when valid to be kept in a book.
|
13. Such rules and regulations shall be entered in a book to be kept at the office of the said bank, which book shall be open at all reasonable hours to the inspection of the depositors.
|
Regulations on whom binding.
|
14. The said rules and regulations so made as aforesaid shall be binding on the board of directors and officers of, and all depositors in, and all borrowers and other persons having dealings with, the bank, and their respective heirs, executors, administrators, assigns, and agents, without further notice thereof.
|
Printed
copies of regulations to be furnished.
|
15. The board of directors, and all officers, depositors, borrowers, and other persons having dealings with the bank, and their respective heirs, executors, administrators, assigns, and agents, shall, on demand, be entitled to be furnished by the manager of the said bank with one printed copy of the said rules and regulations, as often as the same are altered and amended, free of expense, and any additional copies on a reasonable payment for the same.
|
Depositors.
[ 3, 3 of 1944.]
|
[ [ 6, 6 Of 1955.]
|
[
[ 6, 6 Of 1955.]
|
|
16.
|
(1) Without the prior approval of the board of directors, no person and no thrift, benefit, benevolent, provident or charitable society, association or institution shall be permitted to become a depositor in the bank; and the board may, in its discretion, refuse to grant such approval in the case of any person or any such society, association or institution.
|
|
|
(2) The bank may, upon the instructions of the board of directors, at any time refuse to receive a deposit from any person or any approved society, and may give thirty days’ notice in writing to such person, or to the treasurer, trustees, or officers of any such society, to withdraw from the bank all or any part of the money standing to the credit of such person or society, and from and after the expiration of such thirty days no further interest shall be payable on the sum of money to which such notice relates.
|
|
|
Moneys in name of married
woman.
|
17. Any deposit made in the name of a married woman, or in the name of a woman who shall marry after such deposit, shall be deemed to be the separate property of such woman, and shall be accounted for and paid to her as if she were an unmarried woman:
|
|
Provided that nothing herein contained shall, as against the creditors of a husband, give protection to any deposit made by him in fraud of such creditors, and that any moneys so deposited may be followed as if this section had not been passed.
|
|
|
18.
|
(1) The minimum amount which may be deposited in the bank at any one time by any depositor, the maximum amount which may be so deposited by any depositor in any one year, and the maximum amount which any depositor shall be allowed to have in the bank at any one time, shall be such as may, from time to time, be prescribed by regulations made under section 12.
|
|
(2) The power to make regulations in respect of the matters specified in subsection (1) shall be deemed to include power to make regulations prescribing different limits for different classes of depositors.
|
|
|
|
19. No interest shall be paid or allowed by the bank on any deposits standing to the credit of any depositor, which are in excess of the sum prescribed by regulations made under section 12 as the maximum sum which may be held by such depositor at any one time.
|
Discharge for
payments made to approved societies.
|
20. The receipt of any treasurer, trustees, or officers for the time being of any approved society, for money withdrawn by or paid to such society, shall be a sufficient discharge to the said bank in that behalf.
|
|
Deposits by or on behalf of
minors.
|
21. The said bank may receive deposits from or for the benefit of minors, subject to the same regulations as to deposits made by others, and it shall be lawful for the bank to pay to such minors the interest which may become due on such deposits. Any deposit made by or on behalf of any minor may be paid to him personally, or to his guardian for his use, if the deposit was made by any person other than the minor, together with the interest accrued thereon. The receipt of any minor or guardian for money paid to him under this section shall be a sufficient discharge therefor.
|
|
|
22. In case any dispute shall arise between the board of directors of the said bank, or any person or persons acting under them, and any individual depositor therein, or any trustee of a depositor, or any person claiming to be heir, executor, administrator, assign, or agent of such depositor, then and in every such case the matter so in dispute shall be referred to two arbitrators, one to be appointed by each party, which arbitrators shall in the first instance conjointly appoint an umpire, and the judgment of such arbitrators or umpire shall be conclusive :
|
|
Provided that neither party shall be entitled to institute any suit in reference to such dispute as aforesaid until after the same has been referred to arbitration in manner aforesaid, and then only in case of the arbitrators or umpire failing to make an award within the time specified in the order of reference, or, if no time is specified therein, within a reasonable time.
|
Investment
and deposit of moneys in the bank.
|
23.
|
(1) The board of directors may in their discretion determine the maximum amount which may out of the moneys in the bank be retained in the custody of the manager for the general purposes and expenses of the bank, and such amount may be deposited in current account in the name of the manager in any such bank or banks as may be approved by the board of directors in that behalf.
|
|
(2) The balance of the moneys in the bank remaining after the deduction of such amount as may be determined by the board of directors under subsection (1) may from time to time be invested in the name of the board of directors in any of the following securities : –
|
(a) on a first mortgage of immovable property
situated within any such area in Ceylon as may be approved by the board of directors, and having such title as is in the opinion of the board satisfactory ;
|
|
(b) in any stock, treasury bills or debentures of the
Government of Ceylon ;
|
|
(c) in any security issued by the Government of any
country other than Ceylon forming part of the British Commonwealth ;
|
|
(d) in any other stock or securities as may be
approved by the Minister.
|
|
|
(3) Every investment of moneys outside Ceylon under subsection (2) shall be made in accordance with such general instructions as may be issued in that behalf by the board of directors with the approval of
the Minister.
|
|
(4) The board of directors may at any time vary any investment held by the board under this section, and realize and reinvest any moneys so invested :
|
|
Provided that in the case of any investment held by the board outside Ceylon such investment may be varied, realized or reinvested in accordance with such general instructions as may be issued by the board with the approval of the Minister.
|
|
(5) The provisions of subsections (2) and (3) shall apply in the case of every variation of an investment and every reinvestment made under this section.
|
|
(6) Any moneys referred to in subsection (2) may be invested in the name of the board of directors in any bank or banks as may be approved by the board.
|
|
|
|
24. All mortgages, hypothecations, bonds, receipts, instruments, and securities for moneys invested or deposited as aforesaid shall be granted in favour of the board of directors.
|
Procedure on default of payment of any loan granted on the mortgage of land.
|
|
(1) Whenever default is made in the payment of any sum due on any loan granted by the board of directors on the mortgage of land, whether that sum is due on account of principal or interest or of both, default shall be deemed to have been made in respect of the whole of the unpaid portion of that loan, and the interest due thereon up to date ; and the board may, by special resolution, authorize any person to sell the land mortgaged to the board as security by public auction on such date and at such time and place as the board may direct.
|
|
(2) Save as otherwise provided in subsection (3), the provisions of subsection (1) shall apply in the case of any default notwithstanding that the borrower may have died or that any right, title or interest whatsoever in the land mortgaged as security for the loan may have passed by voluntary conveyance or by operation of law to any other person.
|
|
(3) Where the borrower is dead and the probate of his will or letters of administration to his estate have not been issued, the District Court of Colombo or the District Court of the district in which the property mortgaged to the board of directors by that borrower is situate, may, upon application made in that behalf by the board and after service of notice of the application on such persons, if any, as the court may order, and if satisfied that the grant of probate or the issue of letters of administration is likely to be unduly delayed, appoint a person to represent the estate of the borrower for the purpose of this subsection ; and the Provisions of subsection (1) shall not apply in the case of any default made by such borrower unless and until a representative of his estate is appointed under this subsection.
|
|
(4) Notice of every resolution under subsection (1) authorizing the sale of any land shall be published in the Gazette and copies of such notice shall be served on the borrower, if he is alive, and on every person who has, in respect of that land, notified his address under subsection (5).
|
|
(5) Every person-
|
(a) to whom a loan is granted by the board of
directors; or
|
|
(b) who has obtained probate of the will or letters
of administration to the estate of a person to whom a loan has been granted by the board or who has under the provisions of subsection (3), been appointed to represent the estate of a deceased borrower ; or
|
|
(c) to whom any right, title or interest whatsoever
in any land mortgaged to the board as security on any such loan has passed, whether by voluntary conveyance or by operation of law,
|
shall notify in writing to the board an address to which all notices to him may be addressed.
|
|
(6) If the amount of the whole of the unpaid portion of the loan, together with all interest thereon according to the terms of the mortgage and of the moneys and the costs, if any, recoverable by the board of directors under subsection (7), is tendered to the board at any time before the date fixed for the sale, the land shall not be sold and no further steps shall be taken, in pursuance of the resolution under subsection (1) for the sale of that land.
|
|
(7) In addition to the amount due on any loan, the board of directors may recover from the borrower or any person acting on his behalf-
|
(a) all moneys expended by the board in accordance with the covenants contained in the mortgage bond executed by the person to whom the loan was granted, in the payment of premiums and other charges in respect of any policy of insurance effected on the land mortgaged to the board, and in the payment of all other costs and charges authorized to be incurred by the board under the covenants contained in such mortgage bond ; and
|
|
(b) the costs of advertising the sale and of selling the land.
|
|
|
(8) The board of directors may fix an upset price below which the land shall not be sold to any person other than the board.
|
|
(9) Nothing in this section shall be deemed to preclude the board of directors from recovering the amount due on any mortgage bond in accordance with the provisions of any other written law.
|
|
Cancellation of sale and
resale by board of directors.
|
26.
|
(1) Where any land sold under the provisions of section 25 has been purchased on behalf of the board of directors, the board may, at any time before it resells that land, cancel the sale by an endorsement to that effect on a certified copy of the certificate of sale, upon the debtor or any person on his behalf paying the amount due in respect of the loan for which the land was sold (including the costs of sale) and interest on the aggregate amount at a rate not exceeding five per centum per annum. The endorsement shall, upon registration in the office of the Registrar of Lands, revest the land in the debtor as though the sale under this Ordinance had never been made.
|
|
(2) If the land so sold has been purchased on behalf of the board of directors and the sale is not cancelled under subsection (1), the board may, at any time, resell the land and transfer to the purchaser by endorsement on a certified copy of the certificate of sale all the right, title and interest which would have been acquired by the purchaser at the original sale. the endorsement shall be liable to the same stamp duty and charges as a certificate to a purchaser at the original sale and shall, when it is registered in the office of the Registrar of Lands, vest such right, title and interest as aforesaid in the purchaser.
|
|
Bank officers to give security and to contribute to Widows’ and Orphans’ Pension Fund.
|
27. The manager, the accountant, and other officers of the bank receiving salaries from the funds of the bank are hereby declared to be public officers in the employment of the Government of Ceylon, and may be required to give security for the due performance of the duties of their respective offices under the provisions of the Public Officers (Security) Ordinance. And all such officers in the receipt of salaries of not less than two hundred and fifty rupees per annum shall be liable to contribute to the Widows’ and Orphans’ Pension Fund under the provisions of the Widows’ and Orphans’ Pension Fund Ordinance.
|
Letters of administration when to be dispensed with.
[ 10, 6 of 1955.]
|
[
[ 10, 6 of 1955.]
|
[ [ 10, 6 of 1955.]
|
|
28. In case of the death of any depositor whose deposits, including interest thereon, shall not amount to rupees two thousand five hundred, and where the board of directors or the manager authorized in that behalf by the board shall be satisfied by affidavit that the depositor died intestate, and that no letters of administration are required by law to be taken out, the board of directors or the manager authorized in that behalf by the board shall be at liberty to pay the amount of such deposits to any person or persons appearing to the board or the manager, as the case may be, to be entitled thereto as heir or heirs-at-law of the deceased depositor ; and such payment shall be a full discharge from all further liability in respect of the money so paid.
|
|
|
29.
|
(1) In any case where-
|
(a) for a period of ten years a depositor does not make any deposit or withdraw any amount out of the sum standing to his credit, and the sum of money standing to the credit of that depositor at the end of such period does not exceed five rupees, or
|
|
(b) upon the death of any depositor, there is a sum of money lying to his credit in the bank and no claim has been made to that sum for a period of ten years by any person entitled thereto,
|
then that sum of money shall be credited to the
reserve fund of the bank.
|
|
(2) Where a claim is made by any person to any sum of money which has been credited to the reserve fund of the bank under the provisions of subsection (1), the board of directors may, if it is satisfied that such person is entitled to that sum of money, pay that sum of money to such person.
|
|
|
|
30.
|
(1) It shall be lawful for any depositor other than an approved society to nominate the person or
persons to whom the moneys lying to the credit of that depositor are to be paid on the death of that depositor.
|
|
(2) No payment shall be made by the board of directors to any person nominated by a depositor unless such person-
|
(a) submits an affidavit stating that he is the person who was nominated by the depositor, and
|
|
(b) produces a certificate as to his identity from such other person as the board may determine.
|
|
|
(3) A payment made in accordance with the provisions of subsection (2) to any person nominated by a depositor shall be and shall operate for all purposes as a complete discharge of the obligations of the board of directors in respect of the moneys so paid.
|
|
Accounts of the board of directors.
|
31. The accounts of the board of directors shall be audited each year by the Auditor-General.
|
Report of
acts of board and officers to be tabled at annual meeting of depositors.
|
32. The board of directors shall cause a report containing particulars of all acts done each year in relation to the bank by the board and other officers of the bank in compliance with the general or special instructions of the Minister to be tabled at the next annual meeting of the depositors.
|
Effects of bank in whom vested.
|
33. All moneys, goods, chattels, and effects whatsoever, and all securities for money or other obligatory instruments and evidences or muniments of title, and all other effects whatsoever, and all rights or claims, belonging to or held by the said bank, shall vest in the Government of Ceylon for the use and benefit of the said bank and the respective depositors therein, their heirs, executors, administrators, or assigns respectively, according to their respective claims and interest, and also shall, for all purposes of action or suit, as well criminal as civil, in anywise touching or concerning the same, be deemed and taken to be, and shall in every such proceeding (where necessary) be stated to be the property of ” the Crown” without further description.
|
Exemption from stamp duty.
|
34. No power, warrant, or letter of attorney granted or to be granted by the board of directors, nor any power, warrant, or letter of attorney given by any depositor in the said bank to any other person, authorizing him to make any deposit of any sum of money in the said bank on behalf of the said depositor, or to sign any document or instrument required by the rules or regulations of the said bank to be signed on making such deposit, or to receive back any sum of money deposited in the said bank, or the dividends or interest arising therefrom, nor any receipt nor any entry in any book of receipts for money deposited in the said bank, nor for any money received by any depositor, his executors, or administrators, assigns, attorneys, or agents, from the funds thereof, nor any draft or order, nor any appointment of any agent, nor any certificate or other instrument for the revocation of such appointment, nor any bond or other instrument or document whatsoever required or authorized to be given, issued, signed, made, or produced in pursuance of this Ordinance or of the rules and regulations of the said bank, shall be subject to or be charged with any stamp duty or duties whatsoever.
|
Substitution of the word ” manager ” for ” secretary “.
|
35. The word “manager” shall be substituted for the word ” secretary ” wherever that word occurs in any rule or regulation or document made or issued under this Ordinance.
|
|
