# An Act respecting Banks

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Source: Early Canada Online

## Contents

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 :
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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