Currency Act, 1927

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Issue of legal tender notes.

47.—(1) When and so soon as the Commission is in a position to issue legal tender notes the Commission shall by notice in writing sent to every Shareholding Bank and published in the Iris Oifigiúil appoint a day (in this section referred to as the appointed day) not less than fourteen days after the sending and publication of such notice on which it will commence the issue of legal tender notes in accordance with this Act.

(2) If and whenever any person on or after the appointed day applies to the Commission at the place in Dublin appointed for the purpose by the Commission for legal tender notes and delivers to the Commission at such place and in accordance with the regulations in that behalf made by the Commission not less at any one time than one hundred ounces of gold bullion as defined by this Act or gold coins (in this section called Saorstát gold coins) which are for the time being legal tender under this Act in Saorstát Eireann for unlimited amounts or money (in this section called British money) in any form which is for the time being legal tender in Great Britain for unlimited amounts, the Commission shall issue to such person legal tender notes of an amount equal (as the case may be) to the value under this section of the gold bullion or to the nominal amount of the Saorstát gold coins or to the nominal amount of the British money so delivered by such person to the Commission.

(3) Until section 5 (which relates to coining from gold bullion on request) of this Act has come into operation it shall be lawful for the Commission if it thinks fit so to do to refuse to accept delivery of any gold bullion tendered to it under this section.

(4) The Commission may, whenever on or after the appointed day it thinks fit so to do, issue in Dublin to the general fund or the note reserve fund legal tender notes in exchange for any equal nominal amount of Saorstát gold coins or of British money.

(5) The Commission may, whenever on or after the appointed day it thinks fit so to do, issue in Dublin to any Shareholding Bank or to the general fund or the note reserve fund legal tender notes against—

(a) a bank draft payable at sight in London, approved by the Commission, and of a nominal amount equal to the amount of the legal tender notes so issued, or

(b) the transfer to the Commission for the account of the legal tender note fund of such amount of British Government securities approved by the Commission as in the opinion of the Commission is equal in value at the current market prices to the amount of legal tender notes so issued.

(6) The Commission may, whenever on or after the appointed day it thinks fit so to do, issue at the London Agency to any person or to the general fund or the note reserve fund legal tender notes in exchange for an equal nominal amount of British money.

(7) The Commission may at any time after the appointed day issue to any person in accordance with regulations made by it legal tender notes in exchange for an equal amount of legal tender notes previously issued under this Act.

(8) Gold bullion delivered to the Commission under this section which is of the standard fineness shall be valued for the purposes of this section at the rate of 123.27447 grains of such bullion to the Saorstát pound, and gold bullion so delivered which is of a fineness superior or inferior to the standard fineness shall be so valued at such higher or lower (as the case may be) rate as is proportionate to such superiority or inferiority of fineness.

(9) The Commission may refuse to accept delivery for the purpose of this section of any gold bullion tendered to it for such delivery which is of such fineness that in the opinion of the Commission or of the Minister it cannot be brought to the standard fineness without refining some portion of it and if the Commission so accepts any such bullion it may impose such charge as it thinks proper to meet the expense of refining such bullion.

(10) Whenever after the coming into operation of section 5 (which relates to the coining of gold bullion on request) of this Act the Commission issues under this section legal tender notes otherwise than in exchange for Saorstát gold coins or legal tender notes previously issued, the Commission may require the person to whom or fund to which such legal tender notes are so issued to pay therefor to the Commission such charge corresponding to the charge for coining for the time being made by the Minister under the said section 5 f as the Commission shall think proper.

(11) Every amount of legal tender notes issued by the Commission under this section shall be so issued in such denominations authorised by this Act as shall be specified by the person to whom such notes are so issued.