Currency Act, 1927
Allotment of consolidated bank notes amongst Shareholding Banks.
54.—(1) The Commission shall take such steps as it thinks proper to ensure that the amount of consolidated bank notes outstanding with any particular Shareholding Bank at any one time otherwise than on an extraordinary issue does not exceed the quota or proportion of the maximum limit at that time assigned to such Bank under this section.
(2) If and so long as no Bank other than the Banks named in the Third Schedule to this Act is a Shareholding Bank and whether all or some only of such Banks are Shareholding Banks the quota of each Shareholding Bank shall, unless and until otherwise provided under this section, be the proportion which the sum set out in the said Third Schedule opposite to the name of such Bank bears to the sum of six million pounds.
(3) At or within one month before the expiration of the initial period and the expiration of every period of three years thereafter the Commission shall consider the quotas of the several Shareholding Banks and may vary the amounts of all or any of such quotas (including the fixing of the quota of a Bank which has become a Shareholding Bank during the then expiring initial or triennial period and the distribution of the quota formerly belonging to a Bank which has during such initial or triennial period ceased to be a Shareholding Bank) in such manner as the Commission may think proper having regard to the relative volume of the liquid sound advances of each Shareholding Bank and to any amalgamation, partition, transfer, or other change which may have occurred amongst the Shareholding Banks, and such other matters as it considers relevant, and the quota which is on any such occasion fixed by the Commission for any Shareholding Bank shall be the quota of such Bank during the ensuing triennial period and if on any such occasion the quota of any Shareholding Bank is not varied by the Commission, the quota of such Bank during the ensuing triennial period shall be the same as its quota during the preceding initial or triennial period.
(4) Whenever after the establishment of the Commission a Bank becomes a Shareholding Bank no consolidated bank notes shall be issued to such Bank during the residue of the initial or triennial period then current.
(5) Whenever any amalgamation, partition, transfer, or other change occurs amongst the Shareholding Banks the Commission shall make such (if any) adjustment of the quotas of the Banks concerned in or affected by such change as in the opinion of the Commission the circumstances require.