Currency Act, 1927

Issue of consolidated bank notes.

52.—(1) Subject to the limitations and conditions specified in this Act and to compliance with the provisions of this section, the Commission may issue to any Shareholding Bank such amount of consolidated bank notes in such denominations authorised by this Act as such Bank shall from time to time apply for.

(2) The total amount of the consolidated bank notes at any time outstanding (otherwise than on an extraordinary issue) with a Shareholding Bank shall not exceed the total amount of the liquid sound advances by such Bank to persons in Saorstát Eireann proved to the satisfaction of the Commission to exist at that time.

(3) Proof for the purposes of the foregoing sub-section of the existence of liquid sound advances by a Shareholding Bank to persons in Saorstát Eireann shall be given by such Bank to the Commission in such manner as the Commission shall direct or allow and for the purposes of such proof the Chairman or a permanent officer of the Commission specially authorised in that behalf in writing by the Chairman may inspect the relevant books and documents of such Bank.

(4) The Commission may require any Shareholding Bank to give to the Commission security to such amount as the Commission shall direct for consolidated bank notes theretofore or thereafter issued to such Bank by the transfer (by way of security only and not absolutely) to the Commission of assets of such Bank acceptable to the Commission or by such charge in favour of the Commission on such assets of such Bank as shall be acceptable to the Commission.

(5) The taking of security by the Commission from a Shareholding Bank under this section in respect of consolidated bank notes issued to such Bank shall not prejudice or affect the liability under this Act of such Bank in respect of such consolidated bank notes nor the rights under this Act of the Commission in respect of such consolidated bank notes nor of the holder of any such note.

(6) References in this Act to consolidated bank notes outstanding with a Shareholding Bank shall be construed as referring to and including all consolidated bank notes which at the time to which the reference relates have been issued by the Commission to that Shareholding Bank and have not been returned to the Commission for retirement.