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EVOLUTION OF THE BANK'S
RULES & REGULATIONS
(continued)
 
Regulations
 
Legislation
The draft rules were headed "RULES OF The BIRMINGHAM MUNICIPAL BANK MADE BY THE COUNCIL OF THE CITY OF BIRMINGHAM."

 

The adopted Rules were headed:

 

"Rules of the Birmingham Municipal Bank, made by the Lord Mayor, Aldermen and Citizens of the City of Birmingham acting by the Council."

 

This heading was then followed by a PRELIMINARY Section (Rules 1 to 3) not included in the draft rules, covering the "Name of the Bank"; "Interpretation"; and "Inspection of Rules and Supply of Copies".

 

The draft rules commenced with "OBJECTS OF THE BANK" as reproduced below with deletions and additions as shown compared with the adopted Rules:

 

OBJECTS OF THE BANK

 

The objects of the Bank are:

(a) to receive for safe custody and increase at compound interest, the savings of such persons as may desire to avail themselves of its advantages, and likewise the funds of Friendly or other Society or Institution, Trades Union, Penny Bank, or Schools Savings Bank, or any sums by direction of the Registrar of a County Court of the Public Trustee deposits and to guarantee the payment of interest on and the repayment of such deposits.

(b) to advance money to any Depositors desiring to purchase or acquire a dwellinghouse or dwellinghouses within in the City of Birmingham, or any interest therein.

(c) To utilise and invest the funds of the Bank in accordance with the Act and the regulations made thereunder, or such other regulations as may be made as therein provided.

 

GENERAL RULES

Rules binding on all parties.

 

The Bank shall be so conducted and governed in conformity with the provisions of the Birmingham Corporation Act 1919, and the following these Rules, which Rules shall be binding on the Council Corporation, the Committee of Management, the Officers of the Bank, and the Depositors therein and their representatives.

 

Management.

 

The Management of the Bank shall be vested in a Committee of Management (appointed annually by the Birmingham City Council) Corporation, acting by the Council of the City of Birmingham, consisting of not more than 15 members, with the Lord Mayor ex-officio, of whom ten at least shall be members of the Council of the City of Birmingham. One third of the Committee shall retire each year but shall be eligible for re-election.

 

Powers and Duties of the Committee of Management.

 

The Committee of Management shall have power to appoint and dismiss as they may think fit all officers and servants of the Bank, and to pay them such salaries or other allowances for their services as they may think proper, subject to the approval of the Salaries, Wages, and Labour Committee, as provided for in Clause 1 of the General Instructions to Committees of the Council.

 

The Committee of Management shall provide for the safe custody of all moneys, mortgage deeds, and all other securities and property belonging to the Bank. The Committee of Management shall make an annual Report of the transactions and state of the funds of the Bank to the Council of the City of Birmingham, but otherwise shall perform and exercise and shall have all such the powers and perform all such duties which are conferred upon the Corporation under or by virtue of the Act or any subsequent amending Act and the Statute or Statutory Regulations or Rules for the time being in force relating to the Bank (except for borrowing money and making a rate).

 

Manager's Powers.

 

The Committee of Management shall appoint a The Manager who shall superintendent and manage the Bank in conformity with the Act, Birmingham Municipal Bank Regulations and these Rules and such other directions as the Committee of Management may give from time to time.

 

Seal

 

The seal of the Corporation shall be the seal used on all documents of the Bank requiring a seal to be affixed, and shall only be affixed by order of the Committee of Management or the Corporation acting by the Council of the City of Birmingham.

 

Branch Offices. Offices and Branches.

 

The Head Office of the Bank shall be at the Council House, Birmingham, or such other place as the Committee of Management may deem fit. The Committee of Management may from time to time open and maintain Branch Offices for transacting the business of the Bank elsewhere than at the Head Office, and for that purpose may acquire the tenancy of any premises, or with the consent of the Councilof the City of Birmingham, may purchase or erect any premises. The Committee of Management may close any Branch Office in case they shall think it desirable to do so, and may re-sell any premises so purchased or erected as aforesaid.

 

Hours and Days of Business.

 

The Offices of the Bank shall be open for the transaction of business with Depositors upon such days and during such hours as the Committeeof Management may from time to time appoint, but such offices shall not be open on any Sunday, Bank Holiday or Public Holiday. The days and hours of opening shall be posted in a conspicuous place at each office.

 

Declaration of Secrecy.

 

Every Officer or person employed in the Bank, or otherwise concerned in carrying on its business, shall make a declaration of secrecy before taking office. No officer of the Corporation and no member of the Corporation or the Committee of Management, or any person engaged in the work of the Bank, shall disclose any information relating to the account or accounts of any depositor or house purchaser.

 

Security from Officers.

 

Every treasurer, manager, or cashier, and every person receiving any allowance for his services (excepting supernumerary assistants employed at the periods of balancing the accounts) shall give good and sufficient security for the just and faithful execution of his office or trust. Such security shall be approved by the Corporation, and may be given by bond of a guarantee society.

 

Audit of Accounts.

 

The Committee of Management shall appoint annually one or more Chartered or Incorporated Accountants, as Auditor or Auditors, but not out of their own body, as auditor or auditors, to audit and examine once at least in every half year the books,securities, and vouchers of the Bank, to certify as to the correct amount of the assets and liabilities of the Bank, and to report in writing to the Committee of Management the result of such audit as and when directed by the Committee of Management.

Such Auditor or Auditors shall inter alia compare with the Ledgers the Pass Books of Depositors as presented to them, so that the number of comparisons made in the year be not less than 10 per cent. of the total number of books extant at the time, and shall examine an Extracted List of every Depositor's Balances made up every year. A book containing such extracted list of every depositors' balance, omitting the name, but giving the distinctive number and separate amount of each, and showing the aggregate number and amount of the whole, checked and certified by such Auditor or Auditors, shall be open at all times during the hours of business for the inspection of any Depositor,as respects respecting his own account, to examine his own Pass Book therewith, and the general results of the same. Such Auditor or Auditors shall, when required, render to the Committee of Management a list of work done in the course of audit. This rule shall apply to the books and accounts of the Housing Department as well as to the other books and accounts of the Bank. The Auditor or Auditorsshall examine and compare all securities and Title Deeds of Property mortgaged to the Bank with the register of securities and Title Deeds at least once in every year.

 

Annual Report and Statement of Account.

 

An Annual Report and Statement of Account shall be prepared in such manner as the Committee of Management may direct. Copies of the last Annual Report and Statement together with a list of the members of the Committee of Management and the Principal Officers of the Bank shall be exhibited in a conspicuous part of position at the Head Office and all Branch Offices for the information of Depositors, and every Depositor shall be entitled to receive a printed copy thereof.

 

Abstract of Accounts.

 

The Corporation shall from time to time make an abstract of the bank accounts as audited, showing the financial position of the Bank, and shall cause notice that the abstract has been prepared and is open to inspection by depositors to be publicly given, and any depositor shall be entitled to inspect such abstract or a copy thereof without payment of any fee.

 

Pass Books.

 

Every Depositor shall, on making his first deposit, receive a Pass Book, (for which he shall pay one penny) in which his deposit and all future deposits and repayments shall be regularly entered, together with a copy of these rules. which Such Pass Book must be produced at the Bank whenever any business is transacted, and exhibited once at least in every year, for the purpose of being examined and of having the interest credited. The Pass Book shall be the Depositor's receipt and voucher, and its production by the Depositor, or other person authorised by the Depositor, in the absence of any previous claim to the deposits entered therein made in writing, shall be at all times a sufficient authority for repayment of money.

Every Depositor, on being granted an advance in respect of house purchase, shall receive a separate Pass Book (for which he shall pay one penny) in which all repayments of the advance payments made by him shall be regularly entered, which such Pass Book must be produced at the Bank whenever any business is transacted and must be presented for examination by the Auditor or Auditors as and when required.

Each Pass Book shall be the Depositor's receipt and voucher, and its production by the Depositor, or other person authorised in writing by the Depositor, in the absence of any previous written claim to the any deposits entered therein made in writing, shall be at all times a sufficient authority for the repayment of money any such deposits.

Two or more officers of the Bank shall be parties to every transaction of the depositor, so as to form a double check on every transaction.

For every such pass book and copy of rules issued, the Committee of Management shall be entitled to charge and recover from a depositor such sum as the Committee of Management may direct, but not exceeding sixpence.

 

Lost Pass Books.

 

In the event of any Depositor, whether in the Savings Bank Department or the Housing Department, losing his Pass Book, he must give notice thereof forthwith to the office where his account is kept, as soon as possible, and within one month from that notice, should the original Pass Book not come to hand be recovered, a new Pass Book (for which he shall pay one penny) shall be issued to him (on payment of such sum as the Committee of Management may direct, not exceeding threepence),showing the Balance in his account at the time of issue of the new Pass Book.

 

Seal.

 

The Seal of the Birmingham City Council shall be the Seal used on all documents of the Bank requiring a Seal to be affixed, and shall only be affixed by order of the Committee, and in the presence of two Members of the Committee or one Member of the Committee and the Manager who shall sign their names as witnesses.

 

Interpretation of Rules.

 

Words and expressions which have been defined by the Interpretation Act 1889 shall have the same meaning in these Rules as is assigned to them by that statute.

 

Alteration of Rules.

 

The Council of the City of Birmingham may on the recommendation of the Committee from time to time alter or rescind all or any of the then existing Rules of the Bank or make any new Rules in conformity with the Statutes and Statutory Regulations for the time being relating to the Bank, but no alteration or recission of Rules or new Rules shall come into force until approved by the Chief Registrar of Friendly Societies.

 

Commencement of Rules.

 

These Rules and any alterations or amendments thereof shall come into force as they shall have been approved by the Chief Registrar of Friendly Societies.

 

Procedure on making first deposits.

 

All persons previous to their becoming Depositors in the Bank, must state their full names and addresses, and give, residence and such other information as the Committee of Management may direct. Every Depositor (except minors under the age of seven years) must furnish a specimen signature to the Bank on making the first deposit.

 

Minors under seven years of age.

 

In the case of minors under the age of seven years such information must be supplied to the Bank Manager as the Committee of Management may deem requisite, including the date upon which the minor will attain the age of seven years.

 

Incapacitated Persons.

 

In the case of persons a person of unsound mind, the Committee of Estates his estate shall furnish the Manager with such information relating to the person in respect of whose estate or property they he possess possesses powers, and the capacity of the person or persons acting in such matter.  his authority to act as Committee as the Committee of Management may direct. the capacity of the person or persons acting in such matter.

 

Joint Accounts.

 

In the case of Joint Accounts all parties to the account shall furnish give to the Bank Manager such information as the Committee of Management may deem necessary, including specimen signatures of all the parties so named.

 

Trustee Accounts.

 

In the case of accounts made out in the name of one person as trustee for another the full names and addresses of the Trustee and the person for whom he is acting shall be supplied to the Bank Manager.

 

Society etc Accounts.

 

(a) The Trustees or Treasurer of any Society, Institution or other Organisation authorised to make deposits shall supply the Manager  of the Bank with a copy of the Rules of the Society, Institution or other Organisation, or if there be no Rules, a statement of the objects of the Society, Institution or other Organisation, together with a signed statement specifying what officers or members are authorised to receive repayments of deposits, and to furnish such particulars or information therein as theManager Committee of Management may require.

 

(b) Any Society, Institution or other Organisation above referred to may from time to time amend their authority as to persons entitled to receive repayment of deposits by substituting other persons in lieu thereof or adding others to such authorised persons.

 

Deposits.

 

Any sum from one penny upwards may be received as a deposit.

 

The Bank shall not received any deposit which makes the sum standing in the name of any depositor in the Bank exceed five hundred pounds: provided that when and so long as the limit imposed on the sum that may be deposited in a Savings Bank is a greater sum than five hundred pounds this rule shall have effect as if that greater sum were substituted for five hundred pounds and when and so long as the amount which may be deposited in a Savings Bank is unlimited, this rule shall have no effect.

 

Deposit by Trade Union.

 

The Bank shall not receive any deposit which makes the sum standing in the name of the trustee or treasurer of a Trade Union exceed two thousand pounds.

 

Postal Transactions.

 

Deposits may be made through the post at the Depositors' own risk, and on the written request of a the Depositor, accompanied by his Pass Book, payments will be made by cheque or postal order through the post, to the address mentioned in such request, at the risk and expense of the Depositor.

 

 

 

 

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