Mutual Banks Act, 1993 (Act No. 124 of 1993)Chapter V : Prudential requirements52. Failure or inability to comply with prudential requirements |
| (1) | If a mutual bank fails to comply with a provision of section 48 or 50, or is unable to comply with any such provision, it shall forthwith in writing report its failure or inability to the Registrar, stating the reasons for such failure or inability. |
| (2) | The Registrar may summarily take action under this Act against a mutual bank referred to in subsection (1) or, if in the circumstances he deems it fit to do so, condone the failure or inability and afford the mutual bank an opportunity subject to such conditions as the Registrar may determine, to comply with the relevant provision within a specified period. |
| (3) | Irrespective of whether criminal proceedings in terms of this Act have been or may be instituted against a mutual bank in respect of any failure or inability referred to in subsection (1), the Registrar may, subject to any condonation granted under subsection (2), by way of a written notice impose upon that mutual bank, in respect of such failure or inability, a fine— |
| (a) | in the case of any failure or inability to comply with the provisions of section 48, not exceeding one-tenth of one per cent of the amount of the shortfall for each day on which such failure or inability continues; or |
| (b) | in the case of any failure or inability to comply with the provisions of section 50, not exceeding three per cent of the amount of the shortfall. |
| (4) | A fine imposed under subsection (3) shall be paid to the Registrar within such period as may be specified in the relevant notice, and if the mutual bank concerned fails to pay the fine within the specified period the Registrar may by way of civil action in a competent court recover from that mutual bank the amount of the fine or any portion thereof which he may in the circumstances consider justified. |