Mutual Banks Act, 1993 (Act No. 124 of 1993) > Chapter III : Authorization to Establish, and Registration and Cancellation of Registration of, Mutual Banks > 14. Granting or refusal of application for registration

(1)	Subject to the provisions of subsection (2), the Registrar shall, after considering all information and documents furnished to him in terms of section 13 for the purposes of an application under that section, grant such application if he or she is satisfied—

(a)	that, according to its articles, the institution will be a mutual bank;

(b)	that the methods of conducting the business of the proposed mutual bank, as laid down in its articles, are not undesirable; and

(c)	that the articles of the institution are consistent with this Act and not undesirable for any reason.

(2)	Notwithstanding the provisions of subsection (1), the Registrar may refuse an application for the registration of an institution as a mutual bank if he or she is of the opinion—

(a)	that any of the requirements specified in section 11(2) is no longer being complied with by or in respect of the institution concerned;

(b)	that the institution concerned, when registered as a mutual bank, will probably not be able to comply with a provision of this Act, or is likely to pursue a practice contrary to a provision of this Act;

(c)	that an interest which any person has in the institution concerned is inconsistent with a provision of this Act;

(d)	that the interests of potential depositors with or borrowers from the institution concerned will be detrimentally affected by the manner in which the institution proposes to conduct its business, or for any other reason;

(e)	that the name of the institution concerned—

(i)	is identical with a name under which an existing mutual bank, or bank has already been registered;

(ii)	so closely resembles the name of an existing mutual bank, or bank that the one is likely to be mistaken for the other;

(iii)

is identical with, or closely resembles, the name under which any mutual bank or bank or any institution that was registered under any law repealed by this Act was previously registered and that there is reasonable ground for objection against the use of that name by the institution concerned; or

(iv)	is likely to mislead the public; or

(f)	that the application does not comply with a requirement of this Act.

(3)	When the Registrar in terms of this section grants or refuses an application for registration, the Registrar shall give written notice of that fact to the applicant concerned.

(4)

If the Registrar in terms of this section grants an application for registration he or she shall, subject to the provisions of section 15, and on payment by the applicant of the prescribed registration fee, register the institution concerned as a mutual bank and issue to the institution, on the prescribed form, a certificate of registration as a mutual bank.

(5)	An institution that is for the first time registered as a mutual bank shall not commence doing business in that capacity until it has furnished proof to the Registrar that it complies with the provisions of section 48.

(6)	An institution that contravenes the provisions of subsection (5) shall be guilty of an offence.