| |
| CO-OPERATIVE FEDERAL BANK (FINANCIAL AID) |
| |
|
AN ORDINANCE TO PROVIDE FOR THE GRANT OF FINANCIAL AID BY WAY OF LOAN TO THE PROPOSED CO-OPERATIVE FEDERAL BANK OF CEYLON, LIMITED.
|
|
|
| |
Preamble.
|
Whereas a co-operative society to be called and known as the Co-operative Federal Bank of Ceylon, Limited, is to be formed for the purpose of providing a central source of credit for the Co-operative Movement in Ceylon, of facilitating the investment of funds to be employed by the bank in the furtherance of that movement, and of acting as a balancing medium for the surplus funds of member societies :
|
|
And whereas it is expedient that the Government should make a loan to be utilized by the bank for the furtherance of its objects :
|
|
Now therefore be it en-acted by the Governor of Ceylon, with the advice and consent of the State Council thereof, as follows :-
|
|
| Ordinance Nos, |
| 39 of 1947 |
|
|
[2nd July
, 1947 ]
|
|
|
1. This Ordinance may be cited as the Co-operative Federal Bank of Ceylon, Limited, (Financial Aid) Ordinance.
|
Financial aid to Co-operative Federal Bank.
|
2.
|
(1) As soon as may be after the Co-operative Federal Bank of Ceylon, Limited, (hereinafter referred to as ” the Bank “) is registered as a society under section 6 of the Co-operative Societies Ordinance, and the certificate of registration signed by the Registrar of Co-operative Societies is issued in respect of that society, the Government shall deposit with the bank a sum of two million rupees.
|
|
(2) Whenever a resolution is passed in that behalf
by the House of Representatives,1 the Government shall deposit with the bank such further sum or sums as may be specified in the resolution.
|
|
Nomination of chairman of the bank.
|
3.
|
(1) The Minister1 shall nominate a person, by name or by office, to be the first chairman of the bank and of the governing body thereof ; and so long as any sum remains deposited with the bank under this Ordinance such person, or such other person as may from time to time be nominated in that behalf by the Minister, shall be the chairman of the bank and of the governing body thereof.
|
|
(2) All the powers (including the right to vote), duties and functions conferred or imposed upon or assigned to the chairman by the Co-operative Societies Ordinance or the by-laws of the bank shall be exercised, performed and discharged by the person nominated under subsection (1), but save as herein before provided such person shall not be deemed for any purpose to be a member of the bank.
|
|
(3) In the absence of the person nominated under subsection (1) from any meeting of the bank or the governing body thereof, such other person as may be authorized by him in writing in that behalf shall act as chairman of such meeting and may exercise all the powers and functions of the nominated chairman.
|
|
|
|
4.
|
(1) The sum deposited under subsection (1) of section 2 shall be repayable at the end of ten years from the date of deposit:
|
|
Provided, however, that the House of Representatives [1] may by resolution extend the time herein before fixed for repayment.
|
|
(2) No interest shall be payable upon the sum deposited under subsection (1) of section 2, in respect of the first five years immediately succeeding the date of the deposit; but interest upon such sum at the rate of one and a half per centum per annum shall be payable in respect of each succeeding year until the date of repayment :
|
|
Provided, however, that the House of Representatives [1] may by resolution reduce the rate of interest so payable or declare that interest shall not be payable in respect of any specified period.
|
|
(3) The House of Representatives [1] may, in any resolution under subsection (2) of section 2, include conditions specifying the date on which any sum deposited in accordance with that resolution shall be repayable by the bank, and the rate of interest, if any, to be paid during the whole or any specified part of the period commencing on the date of the deposit and ending on the date of repayment:
|
|
Provided, however, that the House of Representatives [1] may, by subsequent resolution, extend the time fixed for repayment or reduce the rate of interest so fixed or declare that interest shall not be payable in respect of any specified period.
|
|
(4) Where any sum is deposited with the bank in accordance with any resolution under subsection (2) of section 2, such sum shall be repayable by the bank, and interest, if any, shall be payable by the bank, in accordance with the conditions in that behalf contained in that resolution or in any subsequent resolution under subsection (3) of this section.
|
|
Deposits to be made out of Consolidated Fund.
|
5. The Secretary to the Treasury [1] is hereby authorized and empowered to make or cause to be made out of the Consolidated Fund,[1] all deposits required by or under this Ordinance to be made with the bank.
|
Obligation of bank to carry
percentage of deposit to reserve fund.
|
6. So long as interest is not payable on any sum deposited with the bank under the provisions of this Ordinance, an amount representing one and one-half per centum of such sum shall be carried annually to the reserve fund maintained by the bank as required by section 41 of the Co-operative Societies Ordinance, in addition to the amount required by that section to be carried to such fund.
|
Repayment of deposits to be charged on assets of bank.
|
7. So long as any sum remains deposited with the bank under this Ordinance, the repayment of such sum and the payment of any interest due thereon shall be a first charge on all property movable or immovable constituting the assets of the bank for the time being.
|
Saving as to time for
repayment.
|
8. Nothing in the preceding provisions of this Ordinance shall be deemed to prevent the bank from repaying any sum deposited with the bank on any date earlier than the date on which such sum is declared by or under such preceding provisions to be repayable.
|
|
|
| Chapter 403, Volume No. 12 Page No.194. |
