Banks Act, 1990 (Act No. 94 of 1990)Chapter III : Authorisation to Establish, and Registration and Cancellation of Registration of, Banks32. Repayment of deposits upon lapse of registration |
| (1) | Whenever an institution which is registered as a bank ceases to be registered as such, the Authority may in writing order that institution— |
[Words preceding section 32(1)(a) substituted by section 25 of Act No. 26 of 1994, with effect from 1 June 1996]
| (a) | to repay, in accordance with such directions and within such period as may be specified in the order, all money due by it to members of the public in respect of deposits accepted by it while registered as a bank, including any interest or any other amounts owing by it in respect of such money; and |
| (b) | to change its name and its memorandum of incorporation within the period and in the manner required by the Authority. |
[Section 32(1)(b) substituted by section 17 of Act No. 22 of 2013]
| (2) | Different directions and periods may under subsection (1) be determined in respect of different kinds of deposits: Provided that in determining such directions and periods no preference shall be given to any such member of the public which such person does not in law enjoy. |
[Section 32(2) substituted by section 23 of Act No. 19 of 2003]
| (3) | An institution which by virtue of the provisions of subsection (1) repays a deposit before the due date agreed for the repayment thereof, shall not be bound to pay any interest or any other amounts which would have been payable in respect of such deposit for the period from the date of such repayment up to such due date. |
| (4) | Any institution which fails to comply with an order under subsection (1) shall— |
| (a) | be guilty of an offence; and |
| (b) | for the purposes of sections 344 and 345 of the Companies Act be deemed not to be able to pay its debts. |