An Act respecting Banks

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31 Victoria, c. 11
An Act respecting Banks
Source: Early Canada Online

Contents[edit]

An Act respecting Banks.

Preamble.
1. Banks may have branches in any part of Canada.
2. Banks in Nova Scotia and New Brunswick to pay duty on their circulation as in Quebec and Ontario.
Amount of duty.
3. Banks may hold and dispose of mortgages as collateral security.
4. May purchase and hold lands mortgaged.
5. May acquire an absolute title therein.
6. May act on power of sale, &c.
7. Banks and others may advance monies on Bills of lading, specifications, warehouse receipts &c.
May sell the goods in case of non-payment of monies so advanced.
8. Period of holding the same in pledge limited.
Notice of sale to be given.
9. Case of the warehouseman &c., being also the owner of the goods provided for.
Penalty for wilful false Statement in the receipt, &c.
10. Advances on such security to give a prior lien.
11. Advance on receipts of Cove-keepers, &c., for timber.
Effect of the transfer of such receipt, &c.
Power to sell in case of non-payment of advances.
12. If the Cove-keeper, &c., be himself the owner of the lumber.
13. Period of holding the lumber in pledge limited.
Notice of sale how to be given.
14. Advances on such security to give priority of lien.
15. Punishment of persons giving false receipts, &c., under this Act.
Or accepting or using the same knowingly.
16. If the offence be committed in the name of a firm.
17. Banks exempted from penalty for usury.
Rate of interest recoverable.
May allow any rate.
18. Rates of premium on notes discounted elsewhere than where payable, but payable at any branch of the Bank discounting.
19. The same when payable elsewhere than at a branch of the Bank discounting.
20. Duration of this Act.


31 Victoria, c. 11 (Canada)


An Act respecting Banks


[Assented to 21st December, 1867.]


HER Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows :
Banks may have branches in any part of Canada
1. Any Act or Charter incorporating any Bank or Banking Institution, in the late Province of Canada, or in the Province of Nova Scotia or New Brunswick, shall until the first day of January, in the year of our Lord one thousand eight hundred and seventy, and thence until the end of the then next session of the Parliament of Canada, apply and have effect throughout the whole Dominion of Canada, and the Directors of such Bank may open and establish Branches, or Offices of discount and deposit, in any part of Canada.
Banks in Nova Scotia and New Brunswick to pay duty on their circulation as in Quebec and Ontario
2. Every Bank incorporated, chartered or recognized by the Legislature of Nova Scotia or of New Brunswick, shall, on the fifteenth day of May next, and on each fifteenth day of May and each fifteenth day of November thereafter, deliver to the-Receiver General a statement of the total amount in nominal value of the Bank notes issued by it, and in circulation at the end of each month after the first day of January next, for which no previous statement has been made, attested in like manner, in like form, and under the like provisions and penalties as provided with respect to Banks in the Provinces of Ontario and Quebec by chapter twenty-one of the Consolidated Statutes of Canada, with respect to Banks in the said Provinces,
Amount of duty
and shall, at the time of delivering such statement, pay to the Receiver General a duty at the rate of one per centum per annum, on the average amount by which the Bank Notes therein mentioned as in circulation during the period for which statement is made, have exceeded the average amount of the gold and silver coin or bullion which such Bank has had on hand during the same period,—in the manner and under the provisions in and under which the Banks in the Provinces of Ontario and Quebec are by the said Act bound to pay a like duty.
Banks may hold and dispose of mortgages as collateral security
3. Every Bank incorporated under any Act of the Legislature of the late Province of Canada or of Nova Scotia or New Brunswick, or of the Parliament of Canada, or by Royal charter, may take, hold and dispose of mortgages and hypothèques upon. personal as well as real property, by way of additional security for debts contracted to such Bank in the course of its business ; and the rights, powers and privileges which any such Bank has or is hereby declared to have or to have had in respect of real estate mortgaged to it, shall be held and possessed by it, in respect of any personal estate which may be mortgaged to it.
May purchase and hold lands mortgaged
4. Every such Bank may purchase any lands or real estate offered for sale under execution at the suit of the Bank so purchasing, or exposed to sale by the Bank under a power of sale given to it for that purpose, in cases where, under similar circumstances, an individual could so purchase, without any restriction as to the value of the lands which it may so purchase, and may acquire a title thereto as any individual purchasing at Sheriff's sale or under a power of sale, in like circumstances, could do, and may take, have, hold and dispose of the same at pleasure.
May acquire an absolute title therein
5. Every such Bank may under its existing Charter, acquire and hold an absolute title in or to land mortgaged to it in security for a debt due or owing to it, either by obtaining a release of the equity of redemption in the mortgaged property, or by procuring a foreclosure in any Court of Chancery or of Equity, or by other means whereby, as between individuals, an equity of redemption can by law be barred.
May act on power of sale, &c
6. Nothing in any charter, Act or law shall be construed as ever having prevented or as preventing any such Bank from acquiring and holding an absolute title to and in any such mortgaged lands, whatever the value thereof may he, or from exercising or acting upon any power of sale contained in any mortgage given to it or held by it, authorizing or enabling it to sell or convey away any lands so mortgaged.
Banks and others may advance monies on Bills of lading, specifications, warehouse receipts &c
7. Notwithstanding any thing to the contrary in the Charter or Act of incorporation of any Bank in this Dominion, any bill of lading, any specification of timber, or any receipt given by a warehouseman, miller, wharfinger, master of a vessel, or carrier, for cereal grains, goods, wares or merchandize, stored or deposited, or to be stored or deposited in any warehouse, mill, cove, or other place in Canada, or shipped in any vessel, or delivered to any carrier for carriage from any place whatever to any part of this Dominion, or through the same, or on the waters bordering thereon, or from the same to any other place whatever, and whether such cereal grains are to be delivered upon such receipt in species or converted into flour, may, by indorsement thereon by the owner of, or person entitled to receive such cereal grains, goods, wares or merchandize, or his attorney or agent, be transferred to any incorporated or chartered Bank in this Dominion, or to any person for such Bank, or to any private person or persons, as collateral security for the due payment of any bill of exchange or note discounted by such Bank in the regular course of its banking business, or any debt due to such private person or persons, and being so indorsed shall vest in such Bank or private person from the date of such indorsement, all the right and title of the indorser to or in such cereal grains, goods, wares or merchandize, subject to the right of the indorser to have the same re-transferred to him, if such bill, note or debt be paid when due ;
May sell the goods in case of non-payment of monies so advanced
And in the event of the non-payment of such bill or note or debt when due, such Bank or private person may sell the said cereal grains, goods, wares or merchandize, and retain the proceeds or so much thereof as will be equal to the amount due to the Bank or private person upon such bill or note or debt, with any interest or costs, returning the overplus, if any, to such indorser.
Period of holding the same in pledge limited
8. But no such cereal grains, goods, wares or merchandize, shall be held in pledge by such bank or private person for any period exceeding six months ; and no transfer of any such bill of lading, specification of timber or receipt, shall be made under this Act to secure the payment of any bill, note or debt, unless such bill, note or debt, be negotiated or contracted at the same time with the indorsement of such bill of lading, specification of timber or receipt ;
Notice of sale to be given
and further, no sale of any cereal grains, goods, wares or merchandize, shall take place under this Act until or unless ten days' notice of the time and place of such sale has been given by registered letter transmitted through the Post Office, to the owner of such cereal grains, goods, wares or merchandize prior to the sale thereof.
Case of the warehouseman &c., being also the owner of the goods provided for
9. Provided that where any person engaged in the calling of warehouseman, miller, wharfinger, master of a vessel or carrier, by whom a receipt may be given in such his capacity, as hereinbefore mentioned, for cereal grains, goods, wares or merchandize, is at the same time the owner of or entitled himself (otherwise than in his capacity of warehouseman, miller, wharfinger, master of a vessel or carrier,) to receive such cereal grains, goods, wares or merchandize,—any such receipt, or any acknowledgment or certificate intended to answer the purpose of such receipt, given and endorsed by such person, shall be as valid and effectual for the purposes of this Act, as if the person giving such receipt, acknowledgment or certificate, and indorsing the same, were not one and the same person ;
Penalty for wilful false Statement in the receipt, &c
and the wilfully making any false statement in any such receipt, acknowledgment or certificate, or the wilfully alienating or parting with, or not delivering to the holder or indorsee any cereal grains, goods, wares or merchandize mentioned in such receipt, acknowledgment or certificate, contrary to the undertaking therein expressed or implied,—shall be a misdemeanor, punishable in like manner as any misdemeanor mentioned in section fifteen of this Act.
Advances on such security to give a prior lien
10. All advances made on the security of any bill of lading, specification, receipt, acknowledgment or certificate shall give and be held to give to the person, Bank or other body corporate making such advances, a claim for the re-payment of such advances on the grain, goods, wares or merchandize therein mentioned prior to and by preference over the claim of any unpaid vendor ; any law, usage or custom to the contrary notwithstanding.
Advance on receipts of Cove-keepers, &c., for timber
11. Notwithstanding anything to the contrary in the Charter or Act of incorporation of any Bank in Canada, any cove receipt, or any receipt given by a Cove-keeper or by the keeper of any wharf, yard, harbor or other place, for timber, boards, deals, staves or other lumber laid up, stored or deposited, or to be laid up, stored or deposited in or on the cove, wharf, yard, harbour or other place in Canada, of which lie is the keeper,—or any bill of lading or receipt given by a master of a vessel, or by a carrier for timber, boards, deals, staves or other lumber shipped in such vessel or delivered to such carrier for carriage from any place whatever, to any part of Canada or through the same, or on the waters bordering thereon, or from the same to any other place whatever, may, by indorsement thereon, by the owner of or person entitled to receive such timber, boards, deals, staves or other lumber, or his attorney or agent, be transferred to any incorporated or chartered bank in Canada, or to any person for such bank, or to any private person or persons, as collateral security for the due payment of any bill of exchange or note discounted by such bank in the regular course of its banking business, or of any debt due to such private person or persons,
Effect of the transfer of such receipt, &c
and being so indorsed shall vest in such bank or private person, from the date of such indorsement, all the right and title of the indorser, to or in such timber, boards, deals, staves or other lumber, subject to the right of the indorser to have the same re-transferred to him, if such bill, note or debt be paid when due ;
Power to sell in case of non-payment of advances
and in the event of the non-payment of such bill or note or debt when due, such bank or private person may sell the said timber, boards, deals, staves or other lumber, and retain the proceeds, or so much thereof as will be equal to the amount due to the bank or private person upon such bill or note or debt, with any interest or costs, returning the overplus, if any, to such indorser.
If the Cove-keeper, &c., be himself the owner of the lumber
12. When any person engaged in the calling of Cove-keeper, or of keeper of any wharf, yard, harbour or other place, or of master of a vessel or carrier, by whom a receipt or bill of lading may be given in such his capacity, as hereinbefore mentioned, for timber, boards, deals, staves or other lumber, is at the same time the owner of or entitled himself (otherwise than in his capacity of Cove-keeper, or of keeper of a wharf, yard, harbour or other place, or of master of a vessel or carrier) to receive such timber, boards, deals, staves or other lumber, any such receipt or bill of lading, or any acknowledgment or certificate intended to answer the purpose of such receipt or bill of lading, given and indorsed by such person, shall be as valid and effectual for the purpose of this Act, as if the person giving such receipt or bill of lading, acknowledgment or certificate, and indorsing the same, were not one and the same person.
Period of holding the lumber in pledge limited
13. But no timber, boards, deals, staves, or other lumber, shall be held in pledge by such bank or private person, for any period exceeding twelve calendar months ; and no transfer of any such receipt or bill of lading shall be made under this Act to secure the payment of any bill, note or debt, unless such bill, note or debt is negotiated or contracted at the same time with the indorsement of such receipt or bill of lading ;
Notice of sale how to be given
and further, no sale of any timber, boards, deals, staves or other lumber, shall be made under this Act, until nor unless thirty day's notice of the time and place of such sale shall have been given by registered letter transmitted through the Post Office, to the owner of such timber, boards, deals, staves, or other lumber, prior to the sale thereof; and every such sale shall be made by public auction after notice thereof by advertisement, stating the time and place thereof, for at least eight days consecutively, in at least two daily newspapers published in or nearest to the place where such sale is to be made ; and if such place be in the Province of Quebec, then at least one of such newspapers shall be a newspaper published in the English language, and at least one other of such newspapers shall be a newspaper published in the French language ; and in all cases a daily newspaper shall be deemed to be published nearest to a place if no other daily newspaper be published in the same language in or nearer to such place, if in the Province of Quebec, transfer of such or if no two other daily newspapers are published in or nearer to such place if in any other Province in Canada ; and if in any place where any such sale by auction is to be made, there be not any newspaper published daily in either language, but some newspaper or newspapers be published there in such language less often than daily, then such advertisement shall also be published in every issue of such local newspaper, or of at least one of such local newspapers, during the time in which it would otherwise be published in daily newspapers.
Advances on such security to give priority of lien
14. All advances made on the security of any such cove receipt or bill of lading, or receipt, acknowledgment or certificate as aforesaid, shall give and be held to give to the person, bank or other body corporate making such advances, a claim for the repayment of such advances on the timber, boards, deals, staves or other lumber therein mentioned, prior to and by preference over the claim of any unpaid vendor or other creditor, save and except claims for wages of labor performed in making and transporting such timber, boards, deals, staves, or other lumber, any law, usage or custom to the contrary notwithstanding.
Punishment of persons giving false receipts, &c., under this Act
15. If any Miller, Warehouseman, Master of a vessel, Forwarder, Carrier, Wharfinger, Keeper of a Cove, Yard, Harbour or other place for storing timber, deals, staves, boards or other lumber, Factor, Agent or other person, or any clerk or person in his employ, knowingly and wilfully gives to any person any writing purporting to be a receipt for or an acknowledgment of any cereal grain, timber, deals, staves, boards or other lumber, or other goods, wares, merchandize or property as having been received in his Warehouse, Vessel, Cove, Wharf or other place, or in any such place about which he is employed, or as having been in any other manner received by him or the person in or about whose business he is employed, before the goods or property named in such receipt, acknowledgment or writing have been actually so received by or delivered to him or his employer, with the intent to mislead, deceive, injure or defraud any person or persons whomsoever, although such person or persons may be then to him unknown ; or if any person knowingly and wilfully accepts or transmits or uses any such false receipt, acknowledgment or writing,—
Or accepting or using the same knowingly
the person giving and the person accepting, transmitting or using such false receipt, acknowledgment or writing shall severally be guilty of a misdemeanor, and shall on conviction be liable to be imprisoned in the Penitentiary for the Province where the offence is committed for any term not exceeding three years nor less than two years, or to be imprisoned in any other gaol or place of confinement for any term less than two years but not less than one year, in the discretion of the Court before which the conviction shall be had.
If the offence be committed in the name of a firm
16. If any offence in the next preceding section mentioned be committed by the doing of any thing in the name of any firm, company or copartnership of persons, the person by whom such thing is actually done, or who connives at the doing thereof, shall be deemed guilty of the offence and not any other person.
Banks exempted from penalty for usury
17. No Bank shall after the passing of this Act incur any penalty or forfeiture for usury ; and any Bank may stipulate for, take, reserve or exact any rate of interest or discount not exceeding seven per centum per annum, and may receive and take in advance any such rate,
Rate of interest recoverable
but no higher rate of interest shall be recoverable by any Bank ;
May allow any rate
any rate of interest whatever may be allowed by any Bank upon money deposited with it.
Rates of premium on notes discounted elsewhere than where payable, but payable at any branch of the Bank discounting
18. Any Bank or Banking Institution carrying on business as such in Canada, may, in discounting at any of its places of business, branches, agencies or offices of discount or deposit, any note, bill, or other negotiable security or paper payable at any other of its own places or seats of business, branches, agen- cies or offices of discount and deposit in Canada, receive or retain in addition to the discount any amount not exceeding the following rates per centum, according to the time it has to run, on the amount of such note, bill or other negotiable secu- rity or paper, to defray the expenses attending the collection thereof; that is to say : under thirty days, one eighth of one per cent,—thirty days or over, but under sixty clays, one fourth of one per cent,—sixty days and over, but under ninety days, three eighths of one per cent,—ninety days and over, one half of one per cent.
The same when payable elsewhere than at a branch of the Bank discounting
19. Any Bank or Banking Institution carrying on business as such in Canada, may in discounting any note, bill or other negotiable security or paper, bond fide payable at any place in Canada different from that at which it is discounted, and other than one of its own places or seats of business, branches, agen- cies or offices of discount and deposit in Canada, receive and retain in addition to the discount thereon, a sum not exceeding one half of one per centum on the amount thereof, to defray the expenses of agency and charges in collecting the same.
Duration of this Act
20. This Act shall be in force until the first day of January, in the year of our Lord one thousand eight hundred and seventy, and thence until the end of the then next session of Parliament.



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