MUNICIPAL SAVINGS BANKS REGULATIONS, 1916
Whereas savings banks established under the Municipal Savings Banks (War Loan Investment) Act, 1916 (hereinafter referred to as ‘the Act’) are to be carried on and the accounts thereof audited in accordance with such regulations as the Treasury, after consultation with the Local Government Board may prescribe:
Now, therefore, We, the Lords Commissioners of His Majesty’s Treasury, after consultation with the Local Government Board, under and by virtue of all powers and authorities vested in us in that behalf, do make the following regulations, that is to say:-
1 These regulations may be cited as the Municipal Savings Banks Regulations, 1916.
2 In these regulations, unless the context otherwise requires:-
The expression ‘the council’ means the council of any municipal borough in England establishing and maintaining a savings bank under the Act;
The expression ‘savings bank’ means a municipal savings bank established under the Act;
The expression ‘committee’ as applied to the estate of a lunatic so found by inquisition as any receiver or other person directed by the Judge in Lunacy to exercise, with respect the estate or property of a lunatic not so found, powers similar to those of a committee, and includes any person appointed by the judge of a county court to realise the prosperity of a lunatic.
3 (1) Subject to the provisions of the Act and of these regulations the council shall make rules as to the conduct of business at the savings bank, and the rules shall include provision with respect to-
(a) the offices or other places where savings bank business is to be transacted; and
(b) the days and hours for the transaction of savings bank business at such offices or places; and
(c) the manner of making deposits or withdrawals and the procedure thereon, including the keeping of depositors’ books.
(2) The rules shall provide that every application for withdrawals shall be made in a form therein prescribed by the council and not otherwise.
(3) The rules shall be open at all reasonable times for the inspection of depositors or persons desiring to make deposits, and copies shall be furnished on demand in return for a fee not exceeding threepence for each copy.
(4) The rules shall be submitted to the Chief Registrar of Friendly Societies for approval and the council shall not commence to carry on savings bank business until the rules are so approved.
4 The rules shall provide to the satisfaction of the Chief Registrar of Friendly Societies for the examination and audit of the accounts of the savings bank by a qualified accountant once at least in every year.
OFFICERS OF THE COUNCIL.
5 No officer of the council engaged in the receipt or payment of deposits or other work in connection with the savings bank and no member of the council shall disclose the name of any depositor, or the amount deposited or withdrawn by any depositor except to officers of the council appointed to assist in carrying the Act and these regulations into operation.
6 If an officer of the council, who has been entrusted with the keeping of the accounts of a savings bank, or has in his possession, by virtue of his office in the savings bank, any of the money deposited in the bank, dies or is adjudged bankrupt or makes a composition or arrangement with his creditors, or if any writ of execution or other process is issued against his property, any debt due from him to the council by virtue of his office in the savings bank, shall, notwithstanding anything in any enactment to the contrary, be paid in priority to all other debts, including the debt for which the process is issued.
7 If any officer of the council receives money from or on account of a depositor, or a person intending to be a depositor, and does not forthwith account for and pay over that money to the council, or otherwise as directed by the rules, he shall be guilty of a misdemeanour.
8 (1) The council shall, out of money deposited in the savings bank, pay the sums withdrawn, and shall pay the balance to the National Debt Commissioners for investment in accordance with the provisions of the Act, but may for the purpose of meeting current liabilities retain a sum not exceeding at any time twenty per centum of the amount deposited.
(2) The payment of any sum to the Commissioners under this regulation shall be accompanied by an order under the hand of the treasurer of the council, or an officer of the council duly appointed for the purpose.
9 (1) Subject to the provisions of the preceding regulation, the council may, if at any time the amount held by them for the purpose of meeting current liabilities has fallen below ten per centum of the amount deposited, by draft, withdraw any money held by the National Debt Commissioners to the credit of the savings bank.
(2) The officer of the National Debt Commissioners shall, within five days after the production of the draft, endorse thereon and sign an order for the payment of the sum mentioned in the draft.
10 (1) The rate of interest payable on deposits shall not in any case be reduced by the council except after three months’ notice to the depositors, and subject to the consent of the Treasury as provided by the Act.
(2) The interest shall be computed yearly up to the last day of the savings bank year or half-yearly up to the last day of each savings bank half-year, and shall be placed to the credit of the depositor.
(3) The interest so credited shall become part of the principal, and shall carry interest in like manner as a deposit.
11 Whenever the sum standing to the account of one depositor exceeds two hundred pounds, interest shall not be allowed on any sum in excess of two hundred pounds, but the excess shall (subject to the following regulation) be paid over to the depositor.
12 (1) A person who is a depositor in a savings bank shall not have a second account in that bank.
(2) If a person at any time has deposits standing to the credit of more than one account in the same savings bank, he shall be liable to forfeit any amount illegally deposited, either as to the whole thereof or to such extent as the National Debt Commissioners may think just in the circumstances of the case; and any sum so forfeited shall be paid to the National Debt Commissioners and applied to the reduction of the national debt.
13 The fund to be charged under the Act for the purpose of guaranteeing the payment of interest on and the repayment of deposits shall be the borough fund.
14 On demand of the depositor or party legally authorised to claim on account of a depositor, made in such form as may be prescribed by the rules for withdrawal of any deposit, the depositor or party so legally authorised shall be absolutely entitled to the repayment of any sums that may be due to the depositor within seven days at farthest after the demand shall have been made.
15 (1) An application for the withdrawal of money deposited by, or in the name of, an infant may be made by the infant.
(2) Upon such application payment may be made to such an infant, and his receipt shall be a good discharge on the council for the amount paid to him.
16 (1) An application for the withdrawal of money deposited in the name of a person of unsound mind shall be made by the committee of the estate of such person.
(2) Upon such application payment shall be made to such committee, and his receipt shall be a good discharge to the council for the amount paid to him.
(3) Where a depositor is insane, and no committee of his estate has been appointed, the council may, when it is proved to their satisfaction that it is just and expedient so to do, pay the deposits standing in the name of the depositor, or any part thereof, to any person whom they shall judge proper to receive the same, and the receipt of such person shall be a good discharge to the council for the sum so paid.
17 Subject to the provisions of these regulations, a depositor of the age of sixteen years or upwards may nominate any person to receive any sum due to such depositor at his decease.
18 (1) Every such nomination shall be in writing, or in a form which may be provided by the council, and shall be signed by the depositor in the presence of a witness, and shall be sent by post or otherwise to the Council during the lifetime of the depositor.
(2) The receipt of every such nomination shall be acknowledged by the council.
19 Every such nomination shall be registered by the council in a book to be kept for the purpose.
20 (1) Any such nomination may be revoked by the depositor by writing under his hand signed in the presence of a witness.
(2) Any such revocation shall be sent by post, or otherwise, to the council during the lifetime of the depositor, and shall be registered by the council in a book to be kept for that purpose in like manner as in the case of a nomination.
(3) The receipt of every such revocation shall be acknowledged by the council.
21 A nomination shall relate to the whole of the deposits standing in the name of a depositor, or to part only of such deposits.
22 A nomination may be in favour of one person or of several persons, and, in the latter case, may direct that specific sums shall be paid to one or more of the persons named in the nomination, or that the persons named in such a nomination may take the deposits in specified shares, or may give directions to both effects.
23 No person who witnesses the signature of a depositor to a nomination shall take any benefit under such nomination.
24 (1) Where the sums due by the council on the decease of a depositor do not exceed in the whole of the sum of one hundred pounds, and the council have no notice of the claim of any creditor of the depositor, the council shall, subject to the provisions of these regulations as to duty, pay the persons named in any nomination made by such depositor, and in force at the time of his death, according to the directions of such nomination, and the receipt of any person so named shall be a good discharge to the council for the sum so paid, notwithstanding such person has not attained the age of twenty-one years, if such a person has attained the age of sixteen years.
(2) If upon the decease of a depositor the sums due to him or his estate exceed one hundred pounds, any nomination made by such depositor shall take effect, subject to the provisions of these regulations as to duty, as regards any sum or sums to which the same relates, not exceeding one hundred pounds, in like manner as if it were a will of the deceased depositor duly executed, but shall not take effect in any other manner, and a nomination shall not in such case be deemed void because the depositor was a minor at the time such nomination was made.
(3) In any such case as last aforesaid, the council may, if they have no notice of the claim of any creditor of the depositor, and subject to the provisions of this regulation, pay any sum or sums to which a nomination relates, not exceeding in the aggregate one hundred pounds, according to the directions of such nomination, notwithstanding the production of probate of the will of a deceased depositor, or letters of administration to his estate.
25 Where on the death of a depositor who has made a nomination the council have notice of a claim of any creditor against the estate of such depositor, and such estate, apart from the amount nominated, is not sufficient to satisfy such claim; but, subject as aforesaid, any payment made by the council to the nominee, whether the amount due to the depositor at his death does or does or not exceed one hundred pounds, shall be a valid payment, and the receipt of the nominee shall be a good discharge to the council for the sum so paid.
26 Where any person nominated to receive any sum on the death of a depositor is the child or other issue of the depositor, and such person dies in the lifetime of the depositor leaving issue, and any such issue of such person is living at the time of the death of the depositor, the nomination shall take effect as if the death of the person nominated had happened immediately after the death of the depositor, unless a contrary intention appears by the nomination; but in every other case the death of the person nominated in the lifetime of the depositor making the nomination shall operate as a revocation of the nomination in favour of such person.
27 (1) Subject to the provisions of these regulations, the marriage of a depositor contracted after the date when these regulations come into operation shall operate as a revocation of any nomination made such by depositor before such marriage.
(2) Where the council have paid money to a nominee in ignorance of the fact that the person making the nomination has married subsequently to the nomination, the receipt of the nominee shall be a valid discharge to the council.
PAYMENT OF DEPOSITS OF DECEASED DEPOSITORS.
28 The Council may require proof to their satisfaction of the decease of a depositor.
29 (1) Where the whole amount due by the council to a depositor at the time of his decease does not exceed one hundred pounds exclusive of interest, and probate of the will of such depositor, or letters of administration of his personal estate, is not or are not produced to the council within such time as they may think reasonable, if such depositor has made no nomination and so far as any nomination does not extend, the council may, subject to the provisions of these regulations as to duty, without requiring probate of the will or letters of administration, pay or distribute the amount as due aforesaid to or among any of the persons hereinafter described or indicated, that is to say:-
(a) any person who has paid the funeral expenses of the depositor;
(b) creditors of the depositor;
(c) the widow or widower of the depositor;
(d) the persons entitled to the personal estate of the depositor;
(e) any person undertaking to maintain the children of the depositor;
(f) the solicitor to the Treasurer, if the depositor, being illegitimate, dies intestate, leaving no widow, widower, or issue;
(g) the solicitor to the Duchy of Lancaster, if the estate of the depositor has devolved upon that Duchy;
(h) the solicitor to the Duchy of Cornwall, if the estate of the depositor has
devolved upon that Duchy.
(2) The receipt of any of the persons mentioned in this regulation shall be a good discharge to the council for the sums paid, and any such receipt may be signed by any widow, widower, or next-of-kin above the age of sixteen years, notwithstanding that she or he has not attained the age of twenty-one years.
PROVISIONS AS TO DUTY.
30 (1) If the total property of any deceased depositor exceeds one hundred pounds, after deduction of debts and funeral expenses, any sum which may, under these regulations, be paid otherwise than to the legal personal representative of the depositor, shall, notwithstanding such payment, be for the purposes of estate duty treated as passing under the will or intestacy of the deceased depositor.
(2) The council shall, before making any payment in respect of deposits standing to the credit of a deceased depositor to anyone but the legal personal representative of such deceased depositor, require a declaration (in the form of schedule hereunto annexed) by the claimant, or one of the claimants, that the total estate of the deceased depositor, including the amount of such deposits, does not after deduction of debts and funeral expenses exceed the value of one hundred pounds.
(3) In every such case as aforesaid, where the total estate of the deceased depositor, including such deposits, but after deduction of debts and funeral expenses, exceeds one hundred pounds, the council shall, before making any payment to any person other than the legal personal representative of the deceased depositor, require production of a certificate from the Commissioners of Inland Revenue of the payment of the estate duty, and of a duly stamped receipt for the succession or legacy duty, payable in respect of such deposits, or of a certificate stating that no succession or legacy duty is payable.
31 If a depositor in a savings bank dies and the whole of his estate in respect of which probate or letters of administration is or are granted does not exceed the value of one hundred pounds legacy duty shall not be chargeable in respect thereof or of any part thereof, and where letters of administration are granted, stamp duties shall not be chargeable on any affidavit or other document connected with administration.
32. Stamp duty shall not be chargeable on any instrument or document made or given in pursuance of the Act or of these regulations.
33. The provisions of section thirty-six of the Finance Act, I894, and of section twenty-one of the Finance Act, 1915 (which relate to the relief from income tax in favour of savings banks), shall apply to savings banks established under the Act as they apply to the banks specified in the said sections.
34. For the purpose of winding up a savings bank the provisions of the Companies (Consolidation) Act, 1908, in regard to the winding up of unregistered companies, shall apply with the necessary modifications:
(a) paragraph (ii.) of section
two hundred and sixty-eight of that Act shall not apply;
(b) the Council shall be the liquidators; and
(c) any surplus funds, after satisfaction of the liabilities of the savings bank to the depositors and otherwise, including the repayment of any sums provided out of the borough fund to meet deficits, shall be divided among the persons who were depositors in the savings bank at the commencement of the winding up in accordance with a scheme to be approved by the Treasury.
SETTLEMENT OF DISPUTES
35 (1) If any dispute arises between the council and any depositor in a savings bank, or any person claiming to be entitled to any money deposited in a savings bank, the matter in dispute shall be referred in writing to the Chief Registrar of Friendly Societies.
(2) On any such reference being made the Chief Registrar may proceed ex parte on notice in writing sent by post to the council, and may inspect any books of the council which relate to the matter in dispute, and may administer oaths to any witnesses appearing before him, and his award on the matter in dispute shall be final and binding on all parties.
36. There shall be charged on any award made under the preceding regulation by the Chief Registrar the same fee as is payable in the like circumstances in the case of savings banks under the Treasury Warrant of March 29th, i879, and any fee so charged shall be paid into the Exchequer, and shall be paid by such persons and in such manner as is directed by the said warrant.
37 (1) A savings bank shall not be designated or described in any manner which imports that the government is responsible or liable to the depositors for money placed in the safe-keeping of the bank.
(2) If default is made in compliance with the requirements of this section, the consent of the Treasury to establish and maintain the savings bank may be withdrawn.
38 A savings bank is a bank within the meaning of the Bankers’ Books Evidence Act, 1879, and that Act shall apply accordingly.
39 When any payment is made or act done by the council in accordance with the Act or these regulations, or the rules of the saving bank, they shall be indemnified against all claims on the part of any person in respect of such payment or act, but any person may nevertheless recover any sum lawfully due to him from the person to whom the council have paid the same.
40 The National Debt Commissioners are hereby indemnified for anything done by them or any of their officers in pursuance of the Act or of these regulations.
41 The council shall from time to time make in such form as the Treasury may prescribe an abstract of the savings bank accounts as audited showing the financial position of the savings bank, and shall cause notice that the abstract has been prepared and is open to inspection by the depositors to be publicly given, and any depositor shall be entitled to inspect such abstract or a copy thereof without payment of any fee.
42 The council may delegate, with or without any restrictions or
conditions, to a committee of the council consisting either wholly or partly of members of the council, all or any of their powers
and duties under the Act or these regulations, provided that a majority of the members of the committee shall be members of the council.
Dated this 6th day of September, 1916.
WILLIAM C. BRIDGEMAN.
Two of the Lords Commissioners of His Majesty’s Treasury.