Home | Databases | WorldLII | Search | Feedback Niue Sessional Legislation

Banking Act 1986

NIUE

BANKING ACT 1986

Act 115 of 1986 - 28 November 1986

Analysis

1. Short title and commencement
2. Interpretation
3. Restrictions
4. Licensed Bank
5. Issue of Licence
6. Conditions of Licence
7. Yearly statements

---------------------------

AN ACT

to provide for the terms, conditions, regulation and licensing of the business of banking in Niue.

1. Short title and commencement - (1) This Act may be cited as the Banking Act 1986.

(2) This Act shall come into force on a date to be fixed in terms of Article 34 of the Niue Constitution.

2. Interpretation - (1) In this Act unless the context otherwise requires, -

"Bank" means any company whose operations include the acceptance of deposits of money withdrawable or transferable by cheque or other means of payment transfer;

"Banking Business" means the business of accepting deposits of money withdrawable or payable upon demand or after a fixed period or after notice and the employment of these deposits in whole or in part by lending or any other means for the account and at the risk of the company accepting such deposits and the carrying on of its usual business;

"Cabinet" means the Cabinet of Ministers of Niue established by Article 2 of the Constitution;

"Company" means an incorporated body and includes a company incorporate outside Niue which has comprised with the incorporation laws of its country or state of origin;

"Licensed" means Licensed under this Act to conduct banking business in Niue; and

"Minister" means Minister of Finance.

(2) For the purposes of this Act a company shall be deemed to be conducting "Banking Business" if it accepts, from the general public (including Government), deposits of money as a regular feature of its business irrespective of any terms and conditions under which such deposits of money are accepted and whether or not certificates or other instruments are issued in respect of such deposits.

3. Restrictions- (1) No company other than a bank licensed under this Act shall-

(a) use in any language the word "bank", "banking" or "banker" or any derivatives thereof or of like import in the name description or title under which such company is carrying on business in Niue;

(b) make any representation in any bill head, letter paper, notice, advertisement or in any other manner whatsoever that such person is carrying on banking business in Niue.

(2) Every Licensed bank shall use as part of its description or title the word "bank" or one or more of its derivatives in any language.

4. Licensed bank- (1) Notwithstanding the provisions of any other law, no banking business shall, except as hereinafter provided, be carried on in Niue except by a Licensed bank.

(2) A Licensed bank shall be authorised to carry on banking business at all its branches in Niue.

5. Issue of License- (1) Every person desirous of carrying on banking business in Niue shall apply in writing to the Cabinet for such a License under Section 6.

(2) The issuance of such a Licence shall be in writing and shall be signed by the Minister.

6. Conditions of licence- The Cabinet may and without assigning any reason therefore-

(a) refuse to issue a licence under this Act; or

(b) issue a licence subject to such conditions as may seem desirable.

7. Yearly statement- Every licensed bank shall furnish to the Cabinet no later than six calendar months after the last day of December each year a statement showing the assets and liabilities of the bank's business in Niue as at the close of business on the last Wednesday of such December.

---------------------------------------