Mutual Banks Act, 1993 (Act No. 124 of 1993)Chapter III : Authorization to Establish, and Registration and Cancellation of Registration of, Mutual Banks29. Repayment of deposits upon lapse of registration |
| (1) | Whenever an institution that is registered as a mutual bank ceases to be registered as such, the Registrar may in writing order that institution— |
| (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 bank, including any interest or any other amounts owing by it in respect of such money; and |
| (b) | to change its name and its articles within the period and in the manner required by the Registrar. |
| (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 that he does not in law enjoy. |
| (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) | [Section 29(4)(b) deleted by section 13 of the Financial Sector Laws Amendment Act, 2021 (Act No. 23 of 2021), Notice No. 789, GG45825, dated 28 January 2022- effective 1 June 2023 per (b)(i) of Commencement Notice No. 3202, GG48294, dated 24 March 2023] |