Savings Bank Act
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CONSOLIDATED TO 30 JUNE 2012
LAWS OF SEYCHELLES
SAVINGS BANK ACT
(1st January, 1981)
ARRANGEMENT OF SECTIONS
Part I ? PRELIMINARY
1. Short title
Part II ? ADMINISTRATION
3. Constitution of Savings Bank
5. Meetings of the Board
7. Employment of officers
Part III ? FINANCIAL PROVISIONS
8. Deposits and repayments
9. Security of Government
12. Employment of moneys
14. Surpluses and deficits
Part IV ? MISCELLANEOUS
17. Settlement of disputes
18. Non?liability of Government etc.
19. Stamp duty.
Part I. ? PRELIMINARY
1. This Act may be cited as the Savings Bank Act.
2. In this Act, unless the context otherwise requires ?
"bank" means ?
(a) a person licenced as a bank under the Financial Institutions Act;
(b) a bank outside Seychelles approved by the Principal Secretary, Finance;
"Board" means the Board of Directors of the Savings Bank established under section 4;
"Chairman" means the chairman of the Board;
"member" means a member of the Board including the Chairman.
"prescribed" means prescribed by regulations under this Act;
"revenue" of the Savings Bank does not include moneys received on deposit;
"Savings Bank" means the Seychelles Savings Bank constituted under this Act.
PART II. ? ADMINISTRATION
3. The Seychelles Savings Bank (and all its offices) subsisting at the commencement of this Act shall be deemed to be constituted and appointed under this Act.
4. (1) Subject to section 12, the Savings Bank shall be under the direction and control of a Board of Directors which may, subject to this Act, take such steps as may be necessary and desirable for the encouragement of the thrift and for the proper management and conduct of business of the Savings Bank.
(2) The Board shall consist of a Chairman and not less than 2 nor more than 4 other members.
(3) The members of the Board shall be appointed by the President.
(4) The term of office of a member is for 3 years and, subject to subsections (6) and (7), a member is eligible for reappointment.
(5) A member may resign his office by giving written notice of not less than one month to the President.
(6) A person shall not be appointed a member if ?
(a) he is in solvent or adjudged bankrupt or has entered into an arrangement or composition with his creditors;
(b) he has been convicted in a court of law of a felony or an offence involving fraud or dishonesty.
(7) A member shall cease to hold office if ?
(a) he becomes subject to any disqualification mentioned in subsection (6); and
(b) he is mentally or physically incapable of carrying out his duties on the Board; or
(c) he is guilty of gross misconduct in relation to his duties on the Board; or
(d) in the opinion of the President, he is incompetent or otherwise unsuited to continue in office.
5. (1) The Board shall meet as often as the Chairman may consider necessary but not less frequently than once in every calendar quarter.
(2) The quorum for any meeting of the Board shall be as follows ?
(i) three, where the Board consists of five members; or
(ii) two, where the Board consists of less than five members.
(3) Where a member has any interest in any business for consideration at a meeting of the Board he shall, at the commencement of the consideration of such business, declare his interest.
(4) Subject to this Act, the Board may regulate its meetings and proceedings in such manner as it thinks fit.
6. The Minister may open or close branch Savings Banks in any district in Seychelles.
7. The President may appoint such officers as may be necessary for the execution of this Act.
PART III. ? FINANCIAL PROVISIONS
8. Deposits of money to be paid into the Savings Bank shall be received and repaid under such conditions as may be prescribed.
9. The repayment of all moneys deposited in the Savings Bank together with interest on those moneys is guaranteed by the Government and accordingly if at any time the assets of the Savings Bank shall be insufficient to pay the lawful claims of every depositor, the Minister shall ?
(a) cause that deficiency to be met out of general revenues; and
(b) certify that deficiency to the People's Assembly without delay.
10. (1) Subject to this section, interest shall be payable on deposit accounts to each depositor at such rate and subject to such conditions as may be determined by the Minister by order published in the Gazette:
Provided that ?
(a) a reduction in the rate of interest; or
(b) any other change adversely affecting depositors,
shall not take effect until the expiration of 3 months after the order is published in the Gazette.
(2) Interest in terms of subsection (1) shall not be payable on any amount less than R.10 and shall be calculated on a monthly basis on the minimum balance held on deposit during each month.
(3) Interest on deposits shall, subject to subsection (2), be calculated to 31st December in every year and shall then be added to and become part of any principal moneys remaining on deposit.
(4) An order under subsection (1) may determine either the same or different rates of interest for deposits made under different conditions.
11. (1) All expenses incurred in the execution of this Act shall be met from the moneys in the Savings Bank.
(2) Estimates of the revenue and expenditure of the Savings Bank shall be prepared for each year and for any longer period required by the Minister and shall be submitted to him not later than such date as he directs.
12. (1) Subject to this Act, moneys in the Savings Bank shall not be applied in any way to the purposes of the Government.
(2) Subject to subsection (3), moneys in the Savings Bank shall be deposited in the Public Treasury or with the Central Bank of Seychelles, the Development Bank of Sey? chelles or a bank, so that so far as practicable those moneys are invested in such securities or employed at interest in such manner as the Principal Secretary, Finance may approve.
(3) With the approval of the Principal Secretary, Finance sums may be kept in hand from the moneys in the Savings Bank for the general purposes of the Bank.
(4) Any sums of money that may from time to time be required for the repayment of any deposit or deposits under the authority of this Act, or for the payment of interest on deposits or expenses incurred in the execution of this Act, may be raised by the sale of the whole or a part of any securities referred to in subsection (2):
Provided that those sums of money may be advanced to the Savings Bank by the Minister out of general revenues until they can be raised by the sale of those securities and those advances shall bear interest at the rate from time to time payable to depositors.
13. (a) Annual accounts of
(i) the revenue and expenditure of the Savings Bank;
(ii) deposits received and repaid; and
(iii) interest credited to depositors,
during the year ended on 31st December, and
(b) a statement of the assets and liabilities of the Savings Bank,
shall, after being audited and certified by the Auditor? General, be laid by the Minister before the People's Assembly not later than 31st May in the next following year and shall as soon as practicable thereafter be published in the Gazette.
14. (1) If in any year the revenue of the Savings Bank is more than sufficient to defray the interest due to deposi? tors and all expenses under this Act, the Minister may direct the transfer of the whole or any part of the surplus to general revenues :
Provided that no transfer shall be made unless the assets of the Savings Bank thereafter exceed the liabilities by not less than 15 percent of the liabilities to depositors.
(2) If on 31st December in any year the assets of the Savings Bank exceed the liabilities by more than 15 percent of the liabilities to depositors, the Minister may direct that the whole or any part or the surplus over 15 percent shall be transferred to general revenues.
(3) If in any year the revenue of the Savings Bank is insufficient to defray the interest due to depositors and all expenses under this Act, the deficiency shall be met
(a) firstly out of any accrued excess of assets over liabilities under subsections (1) and (2) not previously transferred to general revenues; and
(b) if that accrued excess is insufficient, out of general revenues.
PART IV. ? MISCELLANEOUS
15. (1) The Minister may make regulations for the manage? ment and regulation of the Savings Bank.
(2) In particular and without prejudice to the generali? ty of subsection (1), the Minister may make regulations to ?
(a) prescribe limits of deposits;
(b) prescribe the modes of making deposits;
(c) prescribe the modes of withdrawing deposits and interest and provide for lost deposit books;
(d) prescribe other services and facilities which may be provided by the Savings Bank, including prize draws or similar schemes or small loans to depositors;
(e) regulate deposits by or prescribe conditions for the withdrawal of moneys by minors, guardians, trustees, friendly societies or other charitable bodies;
(f) provide for the testamentary disposal of deposits and prescribe the modes of dealing with the deposits of deceased or insane persons;
(g) provide for the forfeiture of deposits made in wilful contravention of this Act;
(h) authorise the Principal Secretary, Finance to enter into an arrangement with the government savings bank of any other country for the transfer of sums standing to the credit of depositors from the Seychelles Savings Bank to that Savings Bank, and vice versa, and prescribe conditions for those transfers;
(i) provide for a duty to be paid to the Savings Bank in respect of each payment made by the Savings Bank from a depositor's account to a third party and prescribe the amount of that duty and the form and manner of that payment;
(j) provide for fees or commission to be paid to the Savings Bank for the maintenance of deposit accounts or for any other services provided by the Savings Bank.
16. (1) No person appointed to carry or assist in carrying this Act into effect shall disclose the name of any depositor or the amount which may have been deposited or withdrawn by any depositor except :
(a) in due course of law; or
(b) to any other person appointed to carry or assist in carrying this Act into effect.
(2) A person who contravenes this section is guilty of an offence and is liable to imprisonment for 6 months and to a fine of R.3000.
17. (1) Any dispute between an officer of the Savings Bank and a depositor or other person in respect of a claim on the Savings Bank shall be referred for decision to the Minister.
(2) If the claimant is dissatisfied with the decision of the Minister he may proceed as in an ordinary action before the competent court, and the court may make such order as to costs as it sees fit.
18. No liability shall be incurred by, and no action shall be brought against the Government, the Minister, the Principal Secretary, Finance or a person acting under their authority (who is not an officer of the Savings Bank) in respect of any claim arising from or in connection with a payment made or act done in accordance with this Act:
Provided that a person may recover a sum lawfully due to him from any other person to whom payment has been made in accordance with this Act.
19. Save as otherwise expressly prescribed in respect of payments by the Savings Bank to third parties, no stamp duty shall be levied in respect of any transaction with the Savings Bank.
LAWS OF SEYCHELLES
SAVINGS BANK ACT
SAVINGS BANK (RATE OF INTEREST) ORDER
[9th January, 1989]
1. This Order may be cited as the Savings Bank (Rate of Interest) Order.
2. (1) The rate of interest payable on deposit accounts under section 10(1) of the Act shall be 9% except that interest shall not be payable on any minimum balance maintained by a depositor holding a Savings Bank cheque book.
(2) The rate of interest payable on time deposits for fixed periods shall be as determined by the Principal Secretary, Finance.
SAVINGS BANK REGULATIONS
[1st January, 1981]
ARRANGEMENT OF REGULATIONS
PART I. ? PRELIMINARY
PART II. ? ADMINISTRATION
3. Branch Banks
4. Hours of business
5. Business of the Savings Bank
PART III. ? DEPOSIT ACCOUNTS
6. Deposit accounts
7. Opening accounts
8. Multiple accounts
9. Depositors residing on islands
PART IV. ? DEPOSITS
11. Entries in deposit books
12. Duplicate deposit books
13. Continuation deposit books
PART V. ? WITHDRAWALS
15. Notice of withdrawal
16. Who may withdraw deposits
17. Small withdrawals
18. Testamentary declarations
19. Payment under testamentary declaration
20. Payment on intestacy
21. Discharge to Bank
PART VI. ? TRANSFERS
22. Transfer of balance of account
23. Transfers to other savings banks
PART VII. ? MISCELLANEOUS
24. Fictitious names
25. Judicial proceedings
1. Authority for withdrawal by agent
2. Testamentary declaration
PART I ? PRELIMINARY
1. These regulations may be cited as the Savings Bank Regulations.
2. In these regulations, unless the context otherwise requires ?
"account" means a deposit account in terms of Regulation 6;
"Bank" means the Savings Bank and includes a Branch Bank;
"Branch Bank" means a branch of the Savings Bank in any district in Seychelles;
"Managing Director" means the person for the time being appointed as Managing Director of the Savings Bank.
PART II. ? ADMINISTRATION
3. A Branch Bank shall be under the charge of a person designated by the Managing Director.
4. (1) The Savings Bank shall be open to the public daily except in Sundays and public holidays.
(2) The hours of business and any changes to those hours shall be published in a newspaper circulating in Seychelles.
5. (1) The Savings Bank may, on such terms and conditions as it may determine?
(a) receive monies on deposit accounts or time deposits;
(b) issue savings bonds or stamps;
(c) arrange prize draws;
(d) grant loans not exceeding R50,000 to depositors;
(e) make periodical payments on the instructions of depositors;
(f) accept payments from depositors and other persons of accounts for public utilities and similar subjects; and
(g) sell and purchase foreign currency and travellers' cheques.
(2) Terms and conditions determined under sub?regulation (1) may be different for different classes of business.
PART III. ? DEPOSIT ACCOUNTS
6. (1) A deposit account may be opened by ?
(a) a person of 10 years of age or older in his own name;
(b) (i) a parent or guardian; or
(ii) a person designated by order of the Supreme Court,
on behalf of and in the name of a minor; or
(c) a person for the benefit of a third party in the name of that third party.
(2) A deposit account may also be opened in the name of ?
(a) a body corporate;
(b) a friendly, charitable or other society;
(c) a religious or conventual body or institution;
(d) an association or unincorporated body,
and shall be operated by one or more persons specially authorised to do so by the body opening the account.
(3) A minor of 10 years of age or older who is not of unsound mind shall be competent to deal with his deposits and a receipt for a payment made to such a minor shall be a good discharge to the Bank for the amount so paid.
7. (1) Subject to sub?regulation (4), every person on opening an account shall attend in person at the Savings Bank and shall state his full name, age, occupation, residence and other particulars necessary to identify him to a clerk of the Bank.
(2) As soon as a person's description has been registered in the description register and he has signed or marked that register, a deposit book shall be filled up and given to him.
(3) A deposit book shall only contain the number of a person's account, his surname and initials.
(4) In the case of a deposit account opened under Regulation 6(1) (b) or (c), the person opening the account shall give such particulars of himself and of the third party as the Managing Director may require for identification :
These particulars shall be registered in the description register and shall be signed or marked by the person opening the account.
8. (1) A person may with the permission of the Managing Director have more than one account in the Savings Bank in his own name.
(2) Before opening a second or subsequent account in his own name, a person shall, in addition to complying with Regulation 7, make a full declaration of all the accounts held by him and furnish such particulars as the Managing Director may require.
9. (1) Notwithstanding regulation 7(1), a person residing on an island where there is no Savings Bank may become a depositor by forwarding to the Managing Director an application on the form provided stating his full name, age, occupation, residence, and other particulars necessary to identify him.
(2) An application under sub?regulation (1) must be signed or marked in the presence of a well?known person residing on the island or the manager of the island.
PART IV. ? DEPOSITS
10. (1) A deposit shall be received for the credit of any deposit account from any person if it is made on the form provided.
(2) If a deposit is not acknowledged by a credit entry in the deposit book, a receipt shall be given to every person making a deposit.
(3) No deposit shall be less than R. 10.
11. (1) The deposit book shall be forwarded to the Savings Bank not later than 31st March in each year, when all the transactions of the depositor with the Bank and any interest due for the previous year shall be entered in it, or shall be forwarded at any other time when required by the Managing Director.
(2) A depositor should produce his deposit book at the time of making a deposit or withdrawal so that the entry may be made in it at that time.
(3) The Bank will not recognise any entry made in a deposit book either of deposit or withdrawal unless the entry is made in words as well as figures and is signed by a clerk of the Bank:
Provided that where an entry is made in a deposit book by machine the amount may be entered in figures only and initialled by a clerk of the Bank.
(4) All deposits and payments must be supported by vouchers on the form provided.
12. (1) A depositor who has lost his deposit book and wishes a new book may make application to the Managing Director.
(2) The Managing Director or person in charge of a Branch Bank, may, on receiving an application under sub?regulation (1) and payment of the cost, deliver a duplicate deposit book to the depositor and that delivery shall be noted at the foot of the depositor's account in the ledger.
(3) Every duplicate deposit book shall have written on it "DUPLICATE" in large letters and shall be initialled by the Managing Director or person in charge of the Branch Bank.
(4) The Managing Director or person in charge of a Branch Bank may, for the purpose of an investigation which in his opinion is justified, withhold payment on a duplicate book for 10 days after it has been delivered to a depositor.
13. (1) Where a new deposit book is issued to continue an account the current balance in the depositor's account in the ledger shall be entered in the new book.
(2) The issue shall be noted at the foot of the depositor's account in the ledger.
(3) The previous deposit book shall be cancelled by marking each page "CANCELLED" and initialling those markings.
PART V. ? WITHDRAWALS
14. (1) Subject to Regulations 15 and 16, a depositor may withdraw, by himself or by an authorised agent, any money standing to his credit.
(2) An authorised agent means a person appointed by an authentic deed or holding an authority signed and certified in the form of Schedule 1.
(3) The Managing Director may make a payment to a depositor or his authorised agent on production of?
(a) a withdrawal receipt signed by the depositor on the form provided; or
(b) an authority in the form of Schedule 1,
if he is satisfied that sufficient funds stand to the credit of the depositor to meet that withdrawal.
(4) Where money is paid to an authorised agent, the person receiving the money shall be required to sign a receipt for the amount paid :
Provided that the Managing Director may require that any form or authority presented by an authorised agent shall be left at the Bank for examination for 24 hours before payment.
(5) Where a depositor agrees to maintain a specified minimum balance in his account at all times, the Bank may in its discre? tion allow withdrawals by cheques supplied by the Bank.
(6) Notwithstanding any order under section 10(1) of the Act, no interest shall be paid on a minimum balance maintained under sub?regulation (5).
15. The Managing Director or the person in charge of a Branch Bank may require 7 days' notice for the withdrawal (whether by withdrawal receipt, authority, form, cheque or otherwise) of any sum exceeding R.1000.
16. Withdrawals may be made from accounts opened under ?
(a) Regulation 6 (1) (a), by the depositor;
(b) Regulation 6 (1) (b), by
(i) the person who made the deposit, for the sole use and benefit of the minor; or
(ii) a person qualified by law, for the sole use and benefit of the minor; or
(iii) the minor when he becomes 10 years of age; and
(c) Regulation 6 (1) (c), by ?
(i) the person in whose name the account stands; or
(ii) the person who made the deposit, for the sole use and benefit of the person in whose name the account stands.
17. (1) The Managing Director may pay to a person designated by the Principal Secretary, Finance a sum not exceeding R 1000, being the whole or part of a deposit in name of ?
(a) a minor under 10 years of age; or
(b) a insane person who has no guardian or other person competent to make withdrawals on his behalf.
(2) Payments made under sub?regulation (1) shall be for the sole use and benefit of the minor or insane person.
18. (1) A depositor may, by a declaration made at the Savings Bank, dispose unconditionally of any deposits or other monies which may stand to his credit with the Bank in the event of his death, and may by a subsequent declaration or by will revoke or amend a previous declaration.
(2) A declaration under sub?regulation (1) shall be made, in a book kept in the Bank for that purpose, in the form specified in Schedule 2.
(3) The declaration shall be signed or marked by the depositor, and the signature or mark shall be attested by the Managing Director.
(4) At a Branch Bank or on an island where there is no Savings Bank the declaration shall be made in the presence of the person in charge of the Branch Bank or of a well?known person residing on the island or the manager of the island, as the case may be, and that person shall attest the signature or mark and shall forward it immediately to the Managing Director, who shall have it copied into the book specified in sub?regulation (2).
(5) A declaration made in accordance with this regulation shall have the effect of a bequest by will, notwithstanding any law to the contrary:
Provided that nothing in this regulation shall be held to affect the law of succession with respect to the portion of property disposable by gift during life or by will, or to affect the rights of any party who may be prejudiced by the declaration.
19. (1) When it is shown to the Managing Director that a depositor who made a declaration under regulation 18 is dead, the Managing Director may pay to a person in whose favour the declaration has been made any sum in the Savings Bank to which that person is entitled under the declaration.
(2) Payment under sub?regulation (1) shall only be made if the Managing Director is satisfied ?
(a) that no subsequent declaration or will otherwise disposing of the sum in the Savings Bank has been made; and
(b) that the depositor was entitled under the law of succession to dispose of that sum.
20. Where a depositor has died intestate and a person claims any sum in the Savings Bank in his name, the Managing Director may, after 3 months from the date of death, pay that sum to that person if he is satisfied that that person is legally entitled to that sum.
21. (1) Payment by the Managing Director under Regulation 19 or 20 shall be a sufficient discharge of any claim against the Savings Bank in respect of the money so paid.
(2) Sub?regulation (1) shall not prejudice the right of any other person claiming to be legally entitled to that money to recover it from the person to whom it has been paid or from any person claiming under or through the person to whom it has been paid.
PART VI. ? TRANSFERS
22. (1) A depositor who wishes to transfer the balance of his account to that of another depositor shall apply to the Managing Director on the form provided and shall produce his deposit book.
(2) On receipt of an application under sub?regulation (1) and the deposit book, the Managing Director shall make the transfer.
23. (1) The Principal Secretary, Finance may enter into an arrangement with the government savings bank of any other country for the transfer of any sums standing to the credit or depositors from the Seychelles Savings Bank to that savings bank, and vice versa.
(2) An application for a transfer under sub?regulation (1) shall be made to the Managing Director on the form provided and shall be accompanied by the deposit book and by such other information as the Managing Director may require.
(3) On receipt of the application in terms of sub?regulation (2), the Managing Director shall make the transfer subject to payment of commission and any expenses incurred.
PART VII. ? MISCELLANEOUS
24. If a person deposits money in a fictitious name with the intention of evading the provisions of the Act or these Regulation the sum so deposited and any interest thereon shall be forfeited to the Government.
25. All judicial proceeding to which the Savings Bank is a party shall be carried on in the name of and at the expense of the Bank.
SCHEDULE 1 Regulation 14(2)
SEYCHELLES SAVINGS BANK
Authority for withdrawal by agent
To : The Manager
Seychelles Savings Bank
Date : ..........
Please pay to Mr. ............................................................... *the sum of rupees ................................................................. from my deposits in the Savings Bank.
*all sums in my deposits to the Bank, with all interest thereon.
Signature or Mark of the Depositor
Depositor’s Account No : ….........................
*Delete alternative not required
I certify that I am personally acquainted with Mr. ..............................................
who is possessor of the Deposit Book No. ........................... now produced to me, and that he has affixed his signature (or mark) to this authority in my presence.
Full name ..............................
(Post or Designation .....................
Received the above amount R. ........................
Signature of the person to whom payment is made
This certificate may be signed ?
(a) On Mahe, by a Member of the People's Assembly, SPPF Official or Branch Committee Member, magistrate, barrister, attorney, medical practitioner or police officer
(b) On any other island, by a person specified in paragraph (a) or, in their absence, by the manager of the island, Civil Status Officer or any other well?known person residing on the island.
(c) In a country outside Seychelles by a magistrate, officer of a government savings bank or official of the government of that country.
SCHEDULE 2 Regulation 18(2)
SEYCHELLES SAVINGS BANK
holder of Deposit Account No. ............................ in the Seychelles Savings Bank, do hereby in accordance with regulation 19 of the Savings Bank Regulations declare that in the event of my death any deposits or other monies standing to my credit with the Savings Bank are to be disposed of by payment to …………........... ...........................................................................
Seychelles.................................................., 19 ...............
The above declaration was made in my presence.
(or Name ...................................