An Act respecting Banks
Contents
[edit]- Preamble.
- 1. Banks may have branches in any part of Canada.
- 2. Banks in Nova Scotia and New Brunswick to pay duty on their circulation as in Quebec and Ontario.
- 3. Banks may hold and dispose of mortgages as collateral security.
- 4. May purchase and hold lands mortgaged.
- 5. May acquire an absolute title therein.
- 6. May act on power of sale, &c.
- 7. Banks and others may advance monies on Bills of lading, specifications, warehouse receipts &c.
- 8. Period of holding the same in pledge limited.
- 9. Case of the warehouseman &c., being also the owner of the goods provided for.
- 10. Advances on such security to give a prior lien.
- 11. Advance on receipts of Cove-keepers, &c., for timber.
- 12. If the Cove-keeper, &c., be himself the owner of the lumber.
- 13. Period of holding the lumber in pledge limited.
- 14. Advances on such security to give priority of lien.
- 15. Punishment of persons giving false receipts, &c., under this Act.
- 16. If the offence be committed in the name of a firm.
- 17. Banks exempted from penalty for usury.
- 18. Rates of premium on notes discounted elsewhere than where payable, but payable at any branch of the Bank discounting.
- 19. The same when payable elsewhere than at a branch of the Bank discounting.
- 20. Duration of this Act.
31 Victoria, c. 11 (Canada)
An Act respecting Banks
[Assented to 21st December, 1867.]
HER Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows :
1. Any Act or Charter incorporating any Bank or Banking Institution, in the late Province of Canada, or in the Province of Nova Scotia or New Brunswick, shall until the first day of January, in the year of our Lord one thousand eight hundred and seventy, and thence until the end of the then next session of the Parliament of Canada, apply and have effect throughout the whole Dominion of Canada, and the Directors of such Bank may open and establish Branches, or Offices of discount and deposit, in any part of Canada.
and shall, at the time of delivering such statement, pay to the Receiver General a duty at the rate of one per centum per annum, on the average amount by which the Bank Notes therein mentioned as in circulation during the period for which statement is made, have exceeded the average amount of the gold and silver coin or bullion which such Bank has had on hand during the same period,—in the manner and under the provisions in and under which the Banks in the Provinces of Ontario and Quebec are by the said Act bound to pay a like duty.
3. Every Bank incorporated under any Act of the Legislature of the late Province of Canada or of Nova Scotia or New Brunswick, or of the Parliament of Canada, or by Royal charter, may take, hold and dispose of mortgages and hypothèques upon. personal as well as real property, by way of additional security for debts contracted to such Bank in the course of its business ; and the rights, powers and privileges which any such Bank has or is hereby declared to have or to have had in respect of real estate mortgaged to it, shall be held and possessed by it, in respect of any personal estate which may be mortgaged to it.
4. Every such Bank may purchase any lands or real estate offered for sale under execution at the suit of the Bank so purchasing, or exposed to sale by the Bank under a power of sale given to it for that purpose, in cases where, under similar circumstances, an individual could so purchase, without any restriction as to the value of the lands which it may so purchase, and may acquire a title thereto as any individual purchasing at Sheriff's sale or under a power of sale, in like circumstances, could do, and may take, have, hold and dispose of the same at pleasure.
5. Every such Bank may under its existing Charter, acquire and hold an absolute title in or to land mortgaged to it in security for a debt due or owing to it, either by obtaining a release of the equity of redemption in the mortgaged property, or by procuring a foreclosure in any Court of Chancery or of Equity, or by other means whereby, as between individuals, an equity of redemption can by law be barred.
6. Nothing in any charter, Act or law shall be construed as ever having prevented or as preventing any such Bank from acquiring and holding an absolute title to and in any such mortgaged lands, whatever the value thereof may he, or from exercising or acting upon any power of sale contained in any mortgage given to it or held by it, authorizing or enabling it to sell or convey away any lands so mortgaged.
And in the event of the non-payment of such bill or note or debt when due, such Bank or private person may sell the said cereal grains, goods, wares or merchandize, and retain the proceeds or so much thereof as will be equal to the amount due to the Bank or private person upon such bill or note or debt, with any interest or costs, returning the overplus, if any, to such indorser.
and further, no sale of any cereal grains, goods, wares or merchandize, shall take place under this Act until or unless ten days' notice of the time and place of such sale has been given by registered letter transmitted through the Post Office, to the owner of such cereal grains, goods, wares or merchandize prior to the sale thereof.
and the wilfully making any false statement in any such receipt, acknowledgment or certificate, or the wilfully alienating or parting with, or not delivering to the holder or indorsee any cereal grains, goods, wares or merchandize mentioned in such receipt, acknowledgment or certificate, contrary to the undertaking therein expressed or implied,—shall be a misdemeanor, punishable in like manner as any misdemeanor mentioned in section fifteen of this Act.
10. All advances made on the security of any bill of lading, specification, receipt, acknowledgment or certificate shall give and be held to give to the person, Bank or other body corporate making such advances, a claim for the re-payment of such advances on the grain, goods, wares or merchandize therein mentioned prior to and by preference over the claim of any unpaid vendor ; any law, usage or custom to the contrary notwithstanding.
and in the event of the non-payment of such bill or note or debt when due, such bank or private person may sell the said timber, boards, deals, staves or other lumber, and retain the proceeds, or so much thereof as will be equal to the amount due to the bank or private person upon such bill or note or debt, with any interest or costs, returning the overplus, if any, to such indorser.
12. When any person engaged in the calling of Cove-keeper, or of keeper of any wharf, yard, harbour or other place, or of master of a vessel or carrier, by whom a receipt or bill of lading may be given in such his capacity, as hereinbefore mentioned, for timber, boards, deals, staves or other lumber, is at the same time the owner of or entitled himself (otherwise than in his capacity of Cove-keeper, or of keeper of a wharf, yard, harbour or other place, or of master of a vessel or carrier) to receive such timber, boards, deals, staves or other lumber, any such receipt or bill of lading, or any acknowledgment or certificate intended to answer the purpose of such receipt or bill of lading, given and indorsed by such person, shall be as valid and effectual for the purpose of this Act, as if the person giving such receipt or bill of lading, acknowledgment or certificate, and indorsing the same, were not one and the same person.
and further, no sale of any timber, boards, deals, staves or other lumber, shall be made under this Act, until nor unless thirty day's notice of the time and place of such sale shall have been given by registered letter transmitted through the Post Office, to the owner of such timber, boards, deals, staves, or other lumber, prior to the sale thereof; and every such sale shall be made by public auction after notice thereof by advertisement, stating the time and place thereof, for at least eight days consecutively, in at least two daily newspapers published in or nearest to the place where such sale is to be made ; and if such place be in the Province of Quebec, then at least one of such newspapers shall be a newspaper published in the English language, and at least one other of such newspapers shall be a newspaper published in the French language ; and in all cases a daily newspaper shall be deemed to be published nearest to a place if no other daily newspaper be published in the same language in or nearer to such place, if in the Province of Quebec, transfer of such or if no two other daily newspapers are published in or nearer to such place if in any other Province in Canada ; and if in any place where any such sale by auction is to be made, there be not any newspaper published daily in either language, but some newspaper or newspapers be published there in such language less often than daily, then such advertisement shall also be published in every issue of such local newspaper, or of at least one of such local newspapers, during the time in which it would otherwise be published in daily newspapers.
14. All advances made on the security of any such cove receipt or bill of lading, or receipt, acknowledgment or certificate as aforesaid, shall give and be held to give to the person, bank or other body corporate making such advances, a claim for the repayment of such advances on the timber, boards, deals, staves or other lumber therein mentioned, prior to and by preference over the claim of any unpaid vendor or other creditor, save and except claims for wages of labor performed in making and transporting such timber, boards, deals, staves, or other lumber, any law, usage or custom to the contrary notwithstanding.
the person giving and the person accepting, transmitting or using such false receipt, acknowledgment or writing shall severally be guilty of a misdemeanor, and shall on conviction be liable to be imprisoned in the Penitentiary for the Province where the offence is committed for any term not exceeding three years nor less than two years, or to be imprisoned in any other gaol or place of confinement for any term less than two years but not less than one year, in the discretion of the Court before which the conviction shall be had.
16. If any offence in the next preceding section mentioned be committed by the doing of any thing in the name of any firm, company or copartnership of persons, the person by whom such thing is actually done, or who connives at the doing thereof, shall be deemed guilty of the offence and not any other person.
any rate of interest whatever may be allowed by any Bank upon money deposited with it.
18. Any Bank or Banking Institution carrying on business as such in Canada, may, in discounting at any of its places of business, branches, agencies or offices of discount or deposit, any note, bill, or other negotiable security or paper payable at any other of its own places or seats of business, branches, agen- cies or offices of discount and deposit in Canada, receive or retain in addition to the discount any amount not exceeding the following rates per centum, according to the time it has to run, on the amount of such note, bill or other negotiable secu- rity or paper, to defray the expenses attending the collection thereof; that is to say : under thirty days, one eighth of one per cent,—thirty days or over, but under sixty clays, one fourth of one per cent,—sixty days and over, but under ninety days, three eighths of one per cent,—ninety days and over, one half of one per cent.
19. Any Bank or Banking Institution carrying on business as such in Canada, may in discounting any note, bill or other negotiable security or paper, bond fide payable at any place in Canada different from that at which it is discounted, and other than one of its own places or seats of business, branches, agen- cies or offices of discount and deposit in Canada, receive and retain in addition to the discount thereon, a sum not exceeding one half of one per centum on the amount thereof, to defray the expenses of agency and charges in collecting the same.
20. This Act shall be in force until the first day of January, in the year of our Lord one thousand eight hundred and seventy, and thence until the end of the then next session of Parliament.
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