Protection of Depositors Act


Published: 1999-11-10

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
Protection of Depositors Act
PROTECTION OF DEPOSITORS [CH.317 – 1



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

PROTECTION OF DEPOSITORS
CHAPTER 317

PROTECTION OF DEPOSITORS

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

SECTION

1. Short title.
2. Interpretation.

PART II
DEPOSIT INSURANCE FUND

3. Establishment of Deposit Insurance Fund.
4. Membership in the Fund Compulsory.
5. Financing of the Fund.
6. Insurance cover.

PART III
DEPOSIT INSURANCE CORPORATION

7. Management of the Fund.
8. Composition of Board.
9. Terms of office of members of Board.
10. Chairman of the Board.
11. Procedure.
12. Validity of proceedings.
13. Capital of Corporation.
14. Exemption.
15. Powers of The Corporation.
16. Insurance payment procedures.
17. Business with closed institutions.
18. Effect of closure.
19. Accounts and audit.

PART IV
SPECIAL POWERS OF THE CORPORATION

20. Corporation to act on advice of the Bank.
21. Corporation may take over control, etc.

CH.317 – 2] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

22. Notification of takeover of property and control.
23. Duty to assist where Corporation assumes control.
24. Termination of control.
25. Protection of persons acting under this Part.
26. Offences under Part IV.

PART V
MISCELLANEOUS

27. General offences.
28. Bye-laws.
29. Application.
30. Confidentiality.

PROTECTION OF DEPOSITORS [CH.317 – 3



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

CHAPTER 317

PROTECTION OF DEPOSITORS
An Act to establish a Deposit Insurance Fund for the

protection of depositors; to establish a Deposit Insurance
Corporation to manage the Fund; to give special powers to
the Corporation; and for connected purposes.

[Assent 30th September, 1999]
[Commencement 10th November, 1999]

PART I
PRELIMINARY

1. This Act may be cited as the Protection of
Depositors Act, 1999.

2. (1) In this Act —
“affiliate” has the same meaning as in section 2 of

the Companies Act;
“agent” in relation to an institution, includes its

bankers and any persons, whether officers of
the institution or not, who are employed as its
auditors, but does not include its legal advisers;

“the Bank” means the Central Bank of The Bahamas
established by section 3 of the Central Bank of
The Bahamas Act;

“Board of Management” means the Board of
Directors of the Corporation;

“Chairman” means the Chairman of the Board of
Management;

“Corporation” means the Deposit Insurance Cor-
poration established under section 7;

“deposit” means —
(a) the unpaid balance of money or its equiva-

lent received or held by a institution from or
on behalf of a person in the usual course of
business and for which the institution has
given or is obliged to give credit to that
person’s checking, savings, demand or time


40 of 1999

Short title.

Interpretation.

Ch. 308.

Ch. 351.

CH.317 – 4] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

account, or for which the institution has
issued a certificate, receipt, cheque, money-
order, draft or other instrument in respect of
which it is primarily liable; but shall not
include letters of credit, stand-by letters of
credit or instruments of a similar nature,
subordinated debts, preference shares, inter-
bank deposits, foreign currency deposits,
deposits of Government and statutory
corporations, deposits of foreign Govern-
ments,deposits in any financial institution
wholly owned by the Government, and
deposits from affiliates; and

(b) such other deposits as may be prescribed
by the Minister on the recommendation of
the Bank;

“directors” includes any category of persons
perform-ing the functions of directors or
analogous functions;

“the Fund” means the Deposit Insurance Fund
established under section 3;

“institution” means any person carrying on banking
business wholly or partly in Bahamian currency;

“Minister” means the Minister of Finance;
“officer” in relation to an institution, includes any

category of managers as well as any person in
the employment of the institution;

“parent company” means a company that owns at
least fifty per cent of the outstanding voting
shares in another company;

“premium year” means in relation to the calculation
and payment of premiums pursuant to this Act
the period beginning on January 1 and ending
on December 31 in any year;

“subsidiary company’ means a company at least fifty
percent of whose outstanding voting shares are
owned by another company.

(2) In this Act a reference to a director, officer or
agent of an institution includes a reference to a person who
has been but is no longer a director, officer or agent
thereof.

PROTECTION OF DEPOSITORS [CH.317 – 5



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(3) For the purposes of this Act , an institution is
deemed to be closed when the institution is ordered by the
Governor to wind up its business under section 14 of the
Banks and Trust Companies Regulation Act.

PART II
DEPOSIT INSURANCE FUND

3. (1) There is established for the protection of
depositors a fund to be known as the Deposit Insurance
Fund.

(2) The Fund shall be managed by the Board of
Management of the Corporation.

4. Membership in the Fund is compulsory for
every institution carrying on banking business wholly or
partly in Bahamian currency and licensed under the Banks
and Trust Companies Regulation Act.

5. (1) A compulsory initial contribution of one
million dollars shall be paid to the Fund within ninety days
of the coming into force of this Act, five hundred thousand
dollars of which shall be paid by the Bank as capital in
accordance with subsection (2) of section 13 and five
hundred thousand dollars in aggregate of which shall be
paid by member institutions; the contribution to be paid by
member institutions shall be calculated based on their pro
rata percentage share of all deposits insured by the
Corporation on the last day of the month in which this Act
comes into force.

(2) Every member of the Fund shall pay an annual
premium to the Fund, equal to one twentieth of one per
cent of an amount equal to the average of the sum of those
deposits insured by the Corporation and deposited with the
member institution as of March 31 and September 30 in the
immediately preceding premium year.

(3) For the purpose of making the calculation referred
to in subsection (2), a member institution may use any
method approved by the Corporation to determine the
aggregate amount of its deposits that are insured by the
Corporation.

Ch. 316.

Establishment of
Deposit
Insurance Fund.

Membership in
the Fund
compulsory.
Ch. 316.

Financing of the
Fund.

CH.317 – 6] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(4) The premium payable by a member institution
shall be based on returns to be certified by the member
institution and submitted in such form and at such time as
the Corporation may require.

(5) One half of the premium payable by a member
institution shall be paid to the Corporation on or before
June 15 in the premium year for which the premium is
payable, and the remainder shall be paid to the Corpora-
tion on or before December 15 in the premium year.

(6) Notwithstanding subsection (2), the premium
payable by a member institution in respect of the premium
year in which it becomes a member institution shall be the
same proportion of one twentieth of one percent of the
amount equal to the sum of those deposits insured by the
Corporation and deposited with the member institution as
at the end of the month in which it becomes a member
institution, as the number of days in which any of the
deposits with that member institution are insured by the
Corporation in that premium year is of three hundred and
sixty five.

(7) Notwithstanding subsection (5) —
(a) one half of the premium payable by a member

institution under subsection (6) shall be paid to
the Corporation within sixty days after the end
of the month in which the member institution
becomes a member institution; and

(b) the remainder of the premium shall be paid to
the Corporation on or before December 31
immediately following the month in which the
member institution becomes a member institu-
tion.

(8) Where in the opinion of the Corporation the
Fund had made or is likely to make payments to depositors
which have exhausted or are likely to exhaust the Fund, the
Corporation shall furnish the Minister with an estimate of
the amount necessary to meet the obligations of the Fund
in the year next succeeding and the Minister on the advice
of the Bank after consultation with the member institutions,
may by order require that special contributions be levied on
them.

(9) Where the Corporation determines that the Fund
has reached a satisfactory level it may refund any excess
moneys to the member institutions pro rata.

PROTECTION OF DEPOSITORS [CH.317 – 7



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

6. (1) The Corporation shall insure each deposit in
a member institution which is payable in The Bahamas in
Bahamian currency.

(2) Deposit Insurance coverage is limited to fifty
thousand dollars or such greater amount as the Minister
may, by order, prescribe on the advice of the Bank after
consultation with the member institutions save that where a
depositor maintains deposits in more than one institution or
in different capacities and rights, the limit shall apply to the
principal amounts including interest up to the date of
closure less any amounts owed to the institution by the
depositor, and maintained on deposit in each institution in
each capacity and right.

(3) A depositor is protected by deposit insurance only
when the member institution in which he has a deposit is
closed.

(4) Payment to the person prima facie entitled under
this section by the Corporation in respect of any deposit
insured discharges the Corporation from liability in respect
of that deposit.

(5) When payment is made by the Corporation
under this section in respect of a deposit with a member
institution the Corporation is subrogated up to the insured
limit to all the rights of the depositor as against that
member institution and may maintain an action in respect
of such rights in the name of the depositor or in the name
of the Corporation.

(6) Subject to subsection (7) the benefit of insurance
cover shall not be extended to any depositor who is shown
to have been a party to or profited from the circumstances
giving rise to the member institution’s failure.

(7) Subsection (6) shall not apply to depositors who
are professional advisors of the member institution and
whose bona fides are not in question.

(8) Payments to depositors of closed institutions shall
commence not later than six months after closure of the
member institution.

(9) The Corporation shall in respect of rights to which
it is subrogated have priority over other insured unsecured
creditors of the closed institution.

Insurance cover.

CH.317 – 8] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

PART III
DEPOSIT INSURANCE CORPORATION

7. (1) There is hereby established for the purposes
of this Act a corporation to be known as the Deposit
Insurance Corporation.

(2) The Corporation shall be a body corporate
having perpetual succession and a common seal.

8. The Board of Management and Members of the
Corporation shall be appointed by the Minister and shall
consist of —

(a) the Governor of the Bank;
(b) the manager of Bank Supervision and one other

manager of the Bank;
(c) the Financial Secretary; and
(d) two persons who have knowledge and experience

in banking, commerce, finance, accounting,
insurance or law.

9. (1) Members of the Board shall be appointed for a
term of not less than three years and shall be eligible for re-
appointment.

(2) Members of the Board shall be paid such
remuneration (whether by way of honorarium, salary or
fees) as the Minister may determine.

10. (1) The Governor of the Bank shall be Chairman
of the Board.

(2) The Chairman shall in the event of an equality in
the voting, in addition to his original vote, have a casting
vote.

11. The Corporation shall determine its own
procedure save that the quorum for meetings shall be four
members.

12. No vacancy in the membership of the Corpora-
tion or irregularity in the appointment of its members shall
invalidate its proceedings.

13. (1) The authorised capital of the Corporation
shall be one million dollars which may be increased by
order of the Minister.

Management of
the Fund.

Composition of
Board.

Terms of office
of members of
Board.

Chairman of the
Board.

Procedure.

Validity of
proceedings.

Capital of
Corporation.

PROTECTION OF DEPOSITORS [CH.317 – 9



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(2) Notwithstanding section 28 of the Central Bank
of The Bahamas Act, upon the establishment of the
Corporation there shall be paid-up by the Bank in respect
of the capital a sum of five hundred thousand dollars.

(3) The paid-up portion of the authorised capital
may be increased by such amount as the Minister on the
recommendation of the Bank may approve.

(4) Any increase in the authorised or paid-up capital
shall be notified by publication in the Gazette.

14. The Corporation shall be exempt from the
provisions of the Insurance Act and the Stamp Act.

15. For the proper management and administration
of the Fund, the Corporation shall have power —

(a) to appoint and employ such number of man-
agers, employees and officers and other persons
as it considers necessary or desirable for the
efficient performance of its functions and upon
such terms and conditions as agreed;

(b) to enter into agreement with the Bank for the
secondment of staff and the provision of services;

(c) to establish committees;
(d) to pay off depositors up to the insured limit;
(e) subject to prior claims being paid, to deduct

from moneys from the Fund due to a depositor,
any loans due, call, called-in guarantees and
overdrafts and to set-off deposits pledged as
collateral;

(f) to require from any director, manager, agent or
employee of a member institution or from such
person in its parent company or any of its
subsidiary companies any information in relation
to its business or the production of any docu-
ment or record under his custody or control;

(g) on the advice of the Bank —
(i) to levy authorised contributions and premia

on member institutions;
(ii) to arrange for restructuring of a failed

member whether by merger with a finan-
cially sound member or otherwise;

Ch. 351.

Exemption.
Ch. 347.
Ch. 370.
Powers of The
Corporation.

CH.317 – 10] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(iii) to accumulate, manage and to invest so far
as possible, in Government and quasi
Government instruments and short term
deposits, funds collected, to borrow by the
issuance of bonds or otherwise, lend, give
guarantees and acquire the undertaking of
any institution which is in financial
difficulty.

16. (1) Where the Bank advises the Corporation that
a member institution has closed, the Corporation shall
notify depositors by making public notification of the
closure in such newspapers as may be considered
appropriate, indicating the dates, times and places at which
insurance payment shall be made.

(2) No payment may be made unless a depositor
produces satisfactory evidence of his deposit to the
Corporation and that evidence shall be surrendered to the
Corporation on receipt of payment.

(3) Persons who have deposits in excess of the
insured limit shall be paid the insured portion of their
deposits less any amounts owed to the institution by the
depositor, and shall be issued with a certificate for the
amount in excess of the limit.

(4) Depositors may submit claims for deposit
insurance up to one year after closure of the institution with
which the deposit was made.

(5) Claims made after the time specified in
subsection (4) shall be made against the assets of the
institution and shall be paid pro rata as the assets of the
institution are collected and sold.

(6) Claims shall be supported by evidence of deposit
ownership and may be made by depositors in person or in
writing supported by affidavit.

17. (1) Persons who have borrowed money from
institutions that have been closed shall make payments on
the same terms and conditions attaching to their loan
contracts with the institutions.

(2) Demand loans become due as soon as an
institution is closed.

Insurance
payment
procedures.

Business with
closed
institutions.

PROTECTION OF DEPOSITORS [CH.317 – 11



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

18. Where an institution is closed —
(a) all deposit accounts of the institution are frozen

forthwith; and
(b) interest on deposits immediately ceases to

accrue whether or not the date of maturity of the
deposit was beyond the date of closure.

19. (1) The Corporation shall keep proper accounts
of all transactions and shall prepare in respect of each
financial year a statement of accounts as at December 31 of
each year, or at such other date and in such form as the
Minister may direct.

(2) Such accounts shall be audited annually by an
auditor appointed by the Corporation with the approval of
the Minister.

(3) The Minister shall cause a copy of the statement
of accounts and the auditor’s report to be laid on the table of
both Houses of Parliament.

PART IV
SPECIAL POWERS OF THE CORPORATION

20. In the performance of its functions and in the
exercise of its powers under this Act, the Corporation shall
comply with any general or specific directions of the Bank
and shall act only on the advice of the Bank.

21. (1) Where the Bank advises the Corporation —
(a) that the rights of depositors or creditors of an

institution are threatened;
(b) that an institution is likely to become unable to

meet its obligations or is about to suspend or has
suspended payments; or

(c) that an institution is not maintaining high
standards of financial probity or sound business
practices,

the Corporation, for the protection of depositors, shall, in
addition to any other powers conferred on it by any other
law, have power —

(d) to investigate the affairs of the institution
concerned and any of its affiliate and to appoint
a person or persons for that purpose;

Effect of closure.

Accounts and
audit.

Corporation to
act on advice of
the Bank.

Corporation may
take over control,
etc.

CH.317 – 12] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(e) to such extent as it thinks fit, to assume control
of and carry on the affairs of the institution and,
if necessary, to take over the property and
undertaking of the institution;

(f) to take all steps it considers necessary to protect
the interests, and to preserve the rights of
depositors and creditors of the institution;

(g) to restructure the business or undertaking of the
institution or to reconstruct its capital base;

(h) to provide such financial assistance to the
institution as it considers necessary to prevent
the collapse of the institution;

(i) to acquire or sell or otherwise deal with the
property, assets and undertaking of or any
shareholding in the institution, at a fair market
price;

(j) to appoint such persons as it considers necessary
to assist in the performances of the functions
conferred by paragraphs (d) to (i).

(2) Pursuant but without prejudice to its powers
under subsection (1), the Corporation may appoint any
person or persons to act as Receiver or Receiver-Manager
of the institution and such appointment shall take effect as
though made by the depositors and other creditors of the
institution pursuant to a charge over all the fixed and
floating assets of the institution and without prejudice to
any other powers vested in such Receiver or Receiver-
Manager the Receiver or Receiver-Manager shall exercise
his powers in accordance with sections 139 to 151 of the
Companies Act.

22. (1) Where the Corporation proposes to exercise
powers under subsection (1)(e) of section 21 it shall
publish in the Gazette and in such newspapers as it thinks
appropriate a notification to that effect.

(2) The notification shall state —
(a) the property and undertaking it proposes to take

over;
(b) the powers of control it proposes to exercise,

and shall give such particulars as the Corporation
considers necessary for the information of persons having
business dealings with the institution.

Ch. 308.

Notification of
takeover of
property and
control.

PROTECTION OF DEPOSITORS [CH.317 – 13



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(3) Upon the publication of the notification the
property and the powers of control stated therein shall vest
in the Corporation.

(4) A notification under this section may be
amended or supplemented from time to time by subsequent
notification in the Gazette and the notification shall have
effect as so amended or supplemented.

23. (1) Where the Corporation has under section 21
assumed control of an institution, it may terminate, retain
or engage locally the services of any or all of the directors,
managers, agents, officers and employees of the institution
and the persons so retained or engaged shall manage the
affairs of the institution subject however to any directions
of the Corporation; and no acts done or resolution, rules,
bye-laws or decisions made or conveyances, transfers,
assignments or instruments executed during such period
relating to the business affairs, property, undertaking or
management of the institution shall have effect unless they
are approved by or are in conformity with the directions of
the Corporation.

(2) Where the Corporation is exercising powers
under section 21, in relation to any institution, that
institution, its affiliate and their directors, officers and
agents other than their auditors shall give every assistance
to the Corporation for the purpose of facilitating the
performance of functions under section 21, including the
supply of information or explanation in such form as may
be required the production of books, documents, minutes,
cash, securities and vouchers, and generally the provision
of all necessary facilities required for the performance of
any function under section 21, save that in the case of their
auditors they shall only be required to supply any
information which is in their possession or knowledge.

(3) Any person appointed under section 21 shall have
all the powers of a commissioner under the Commissions of
Inquiry Act to summon and examine persons required under
subsection (2) to assist the Corporation in the performance
of its functions, and the provisions of section 13 of the
Commissions of Inquiry Act shall apply in all respects to
persons summoned under this subsection.

(4) In any particular case, the Corporation may
appoint the Bank to perform any or all of its functions
under section 21 subject to such conditions as may be
specified in the appointment.

Duty to assist
where
Corporation
assumes control.

Ch. 184.

CH.317 – 14] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

24. (1) Where the Corporation has under section 21
assumed control of an institution, the Corporation shall,
subject to subsection (2), remain in control of, and may
continue to carry on the business of that institution until
such time as the Corporation publishes in the Gazette and
in such newspapers as it thinks appropriate a notification
that it has ceased to be in control of the institution.

(2) The Corporation shall relinquish control and
shall not continue to carry on the business of an institution
where —

(a) the circumstances on the basis of which the
Corporation assumed control of the institution
under section 21 have ceased to exist;

(b) the Corporation is of the opinion that it is no
longer necessary for it to remain in control of the
business of the institution; or

(c) the Corporation has sold or otherwise disposed
of the property, assets and undertakings of the
institution.

(3) Upon publication of a notification under
subsection (1) and subject to such conditions as may be
specified therein, all property not sold or otherwise disposed
of by the Corporation and all powers of control over the
affairs of the institution vested in the Corporation by or in
consequence of the previous notification published under
subsection (1) of section 22 shall vest in the institution if it
still subsist as a corporate entity and be deemed to have been
transferred from the Corporation to the institution.

(4) Where the Corporation has, in pursuance of
section 21, assumed control of an institution, the Supreme
Court may, upon the application of the directors of the
institution acting independently of the Corporation if it is
satisfied that it is no longer necessary for the protection of
the depositors or creditors of the institution that the
Corporation should remain in control of the business of
that institution, order that the Corporation cease to control
the business of that institution as from a date specified in
the Order.

25. The Crown, the Minister or the Corporation its
directors and officers and any person appointed by the
Corporation under section 21 are not subject to any action,
claim or demand by, or any liability to, any person in


Termination of
control.

Protection of
persons acting
under this Part.

PROTECTION OF DEPOSITORS [CH.317 – 15



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

respect of anything done or omitted to be done in good
faith and without negligence in the performance, or in
connection with the performance of functions conferred on
the Corporation under this Part.

26. (1) Any person to whom subsection (2) of section
23 applies who —

(a) fails to assist or to facilitate the Corporation in
any function conferred by section 21;

(b) obstructs the Corporation in the performance of
any such function; or

(c) in the performance of his obligations under
subsection (2) of section 23, provides any false
or misleading information,

is guilty of an offence and shall be liable on conviction on
information to a fine of fifty thousand dollars or to
imprisonment for five years or to both.

(2) While the Corporation is in control of the
business of an institution, any person who, without the
approval or authority of the Corporation or in a manner
contrary to the directions of the Corporation, receives,
disposes of or otherwise deals with any assets of the
institution, or who tampers whether by making entries in or
otherwise, with any books, records or documents of the
institution is guilty of an offence and shall be liable on
conviction on information to a fine of fifty thousand dollars
or to imprisonment for five years or to both.

(3) Any person to whom subsection (2) of section
23 applies who fails to comply with a requirement or
demand by the Corporation to do or refrain from doing any
act or to assist or to facilitate the Corporation in any
function vested in it by section 21 is guilty of an offence an
shall be liable on conviction on information to a fine of
fifty thousand dollars or to imprisonment for five years or
to both.

PART V
MISCELLANEOUS

27. (1) Where a member institution of the Fund, or
any director, agent, servant or employee (including a
former director, agent, servant or employee) of that
institution fails to comply with any request by the


Offences under
Part IV.

General offences.

CH.317 – 16] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

Corporation for information relating to the affairs of the
institution or to co-operate in the inspection or investiga-
tion of the institution, that institution or that director, agent,
servant or employee is guilty of an offence and shall be
liable on summary conviction to a fine of twenty thousand
dollars or to imprisonment for two years or to both.

(2) Where a director, agent, servant, employee
(including a former director, agent, servant or employee) of
a member institution deliberately conceals from the
Corporation any material information regarding the
financial affairs of the member institution or provides false
or misleading information to the Corporation or falsifies or
tampers with the books, records, accounts, papers or
documents of the institution, so as to mislead the
Corporation, that director, agent, servant or employee is
guilty of an offence and shall be liable on conviction on
information to a fine of fifty thousand dollars or to
imprisonment for five years or to both.

(3) Where a depositor falsifies any passbook, certifi-
cate of deposit, bank statement or any document claiming
title to a deposit with a failed member institution or where a
person fraudulently claims to be a depositor either for
payment or for the purpose of claiming an insured deposit,
that depositor or person is guilty of an offence and shall be
liable on summary conviction to a fine of ten thousand
dollars or to imprisonment for one year or to both.

28. The Minister on the recommendation of the
Bank may make such bye-laws as are necessary for all
matters pertaining to the operations and functions of the
Corporation.

29. (1) Notwithstanding the provisions of this Act,
depositors of Gulf Union Bank (Bahamas) Ltd which is in
liquidation shall be qualified depositors under this Act and
each depositor shall be paid from the Fund the amount of
his deposit up to the insured limit prescribed in subsection
(2) of section 6 within ninety days of the coming into force
of this Act upon making a claim in accordance with
subsection (6) of section 16.

(2) In this section, “Gulf Union Bank (Bahamas)
Ltd” means the institution known by that name which was


Bye-laws.

Application.

PROTECTION OF DEPOSITORS [CH.317 – 17



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

granted a licence by the Minister on December 27, 1985
and which licence was suspended by the Minister on
October 2, 1997 and which was put into liquidation by the
court on December 12, 1997.

30. (1) No person shall disclose any information
relating to the affairs of an institution or of any customer of
an institution which is acquired in the performance of
normal duties or the exercise of any functions under this
Act unless lawfully required to do so by any court of
competent jurisdiction.

(2) Every person who contravenes the provisions of
subsection (1) is guilty of an offence and shall be liable on
summary conviction to a fine of two thousand dollars or to
imprisonment for three months or to both.

Confidentiality.