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Banking Ordinance 1960

LAWS OF WESTERN SAMOA

BANKING

ANALYSIS

Title
1. Short title
2. Interpretation
3. Defacing bank notes
4. Mode of proof of entries in bank books
5. When banker, etc., not compellable to produce books
6. Court or Judge may order inspection, etc.
7. Power of Audit officer to inspect private accounts
8. Destruction of cheques, etc., by bankers

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THE BANKING ORDINANCE 1960

1960 No. 6

An Ordinance to make certain provisions relating to banking

[10 June 1960]

1. Short title - This Ordinance may be cited as the Banking Ordinance 1960.

As to the licensing of banks and financial institutions, see Part VII of the Monetary Board of Western Samoa Act 1974.

2. Interpretation - In this Ordinance, if not inconsistent with the context,-

"Bank" means the Bank of Western Samoa, and includes any person, partnership, corporation, or company lawfully carrying on in Western Samoa the business of banking;

"Bank note" or "note" means the instrument commonly known as a bank note, that is to say: a promissory note (in whatever form or by whomsoever drawn or made) issued by a bank and entitling or purporting to entitle the bearer or holder thereof, without endorsement, or without any further or other endorsement than may be thereon at the time of the issuing thereof, to the payment on demand of the sum named therein, not exceeding the sum for which the bank may lawfully issue any such note;

"Court" means the [Supreme Court of Western Samoa] and includes any arbitrator, or other person before whom a legal proceeding is held or taken;

"Judge" means a judge of the Court;

"Legal proceeding" means any civil or criminal proceeding or inquiry in which evidence is or may be given, and includes an arbitration;

"Officer" of a bank includes the manager, accountant, and other responsible officer of the bank.

"Court": The reference to the Supreme Court of Western Samoa was substituted for a reference to the High Court of Western Samoa by s. 4(3)(a) of the Existing Law Adjustment Ordinance 1961.

See the Bank of Western Samoa Ordinance 1959, and the notes to s. 1 thereof.

As to payments to banks without awaiting the grant of administration, see ss. 34 to 36 of the Administration Act 1975.

The number of capital shares that the Public Trustee may hold in any bank, in his corporate capacity, is without limit; see s. 116(6) of the Public Trust Office Act 1975.

As to levies payable by banks to the Commissioner of Inland Revenue on sale of foreign currency, see title Foreign Exchange Levy Act 1977.

As to consent to the use of the word "bank", see the Samoa Companies Order Amendment Act 1977 reprinted in title Companies.

3. Defacing bank notes - (1) Every person commits an offence and is liable to a fine not exceeding [$10]-

(a) Without lawful authority, defaces any bank note, whether by means of any writing, printing, stamp, mark, or erasure, or otherwise howsoever; or

(b) Being party or privy to any such defacement of a bank note, pays away, parts with, puts in circulation, demands payment of, or deposits or offers to deposit in any bank any bank note so defaced.

(2) The endorsement of any bank note for the purpose of identification or for any other lawful purpose is not an offence within the meaning of this section.

As to counterfeits, see s. 49 of the Customs Act 1977.

4. Mode of proof of entries in bank books - (1) Subject to the provisions of this section, a copy of any entry in the books of a bank shall in all legal proceedings be received as prima facie evidence of such entry, and of the matters, transactions, and accounts therein recorded.

(2) Such copy shall not be received in evidence under this Ordinance unless it is first proved-

(a) That the book was at the time of the making of the entry one of the ordinary books of the bank, and that the entry was made in the usual and ordinary course of business, and that the book is in the custody or control of the bank; which proof may be given either orally or by affidavit by a partner or officer of the bank; and

(b) That the copy has been examined with the original entry and is correct; which proof shall be given either orally or by affidavit by some person who has examined the copy with the original entry.

(3) Any affidavit for the purpose of this section may be sworn before any person authorised to take affidavits.

5. When banker, etc., not compellable to produce books, etc. - An officer of a bank shall not, in any legal proceedings to which the bank is not a party, be compellable either to produce any book of the bank the contents of which can be proved as aforesaid, or to appear as a witness to prove the matters, transactions, and accounts therein recorded, unless by order of a judge made for special cause.

This section is to be made subject to the provisions of the Monetary Board of Western Samoa Act 1974; see s. 32(2)(b) of that Act.

See also ss. 10-12 of the Income Tax Administration Act 1974.

6. Court or judge may order inspection, etc. - (1) On the application of any party to a legal proceeding a Court or Judge may, on summons, order that such party be at liberty to inspect and take copies of any entries in the books of a bank for any of the purposes of such proceeding.

(2) An order under this section shall be served on the bank 3 clear days before the same is to be obeyed, unless the Court or Judge directs otherwise.

(3) Sunday, and any bank holiday, shall be excluded from the computation of time under this section.

(4) The costs of any application to a Court or Judge under or for the purpose of this section, and the costs of anything done or to be done under an order of a Court or Judge made under or for the purposes of this section, shall be in the discretion of the Court or Judge.

(5) Where any such costs have been occasioned by any default or delay on the part of the bank, the Court or Judge may order that the same or any part thereof be paid to any party by the bank.

(6) Any such order against a bank may be enforced as if the bank were a party to the proceeding.

7. Power of Audit officer to inspect private accounts - Nothing herein shall limit the power of the [Controller and Chief Auditor] or any person authorised by him, under the authority of any enactment for the time being in force relating to the public revenue of Western Samoa, to inspect the account of a private person in any bank if the [Controller and Chief Auditor] declares that he has reason to believe, and does believe, that money the property of the Government of Western Samoa, or of any public body whose accounts he is by law required to audit, have been fraudulently or wrongfully paid into the private account of such person.

The references to the Controller and Chief Auditor have been substituted for references to the Controller and Auditor-General pursuant to s. 3(d) of the Reprint of Statutes Act 1972, and s. 4 of the Audit Office Ordinance 1961.

See regulation 8 of the Audit Regulations 1976 (W.S.R. 1976/21) reprinted in the Audit Office.

8. Destruction of cheques, etc., by bankers - (1) All cheques and bank drafts in the possession of the bank on which they are drawn, and all bills of exchange or promissory notes in the possession of a bank and made payable at that bank, may be destroyed by such bank after the expiration of 7 years from the date thereof in the case of documents payable on demand, or from the due date thereof in the case of all other documents.

(2) This section shall apply to cheques, drafts, bills, and notes received by a bank either before or after the coming into operation of this Ordinance.

(3) No such document shall be destroyed under the authority of this section at any time after a demand for the delivery of such document has been made to the bank by the person entitled thereto.

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The Banking Ordinance 1960 is administered in the Treasury.