Protection of Depositors Bye-laws, 1999

Link to law: http://laws.bahamas.gov.bs/cms/images/LEGISLATION/SUBORDINATE/1999/1999-0105/ProtectionofDepositorsBye-laws1999_1.pdf
Published: 1999-11-19

Protection of Depositors Bye-laws
PROTECTION OF DEPOSITORS [CH.317 – 3


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

CHAPTER 317

PROTECTION OF DEPOSITORS

PROTECTION OF DEPOSITORS BYE-LAWS, 1999

(SECTION 28)
[Commencement 19th November, 1999]

1. These Bye-laws may be cited as the Protection of
Depositors Bye-laws, 1999.

2. In these Bye-laws —
“the Act” means the Protection of Depositors Act,

1999;
“individual account” means a deposit account main-

tained by a person in his own name and on his
own behalf;

“insured deposit” means a deposit insured under
section 6 of the Act;

“insured limit” means the limit of deposit insurance
coverage prescribed by or under section 6 of the
Act;

“joint account” means an account in which more than
one person has an interest;

“nominee” includes an agent, guardian, custodian and the
receiver of a patient’s property appointed under
section 37 of the Mental Health Act;

“prescribed maximum” means the sum of fifty
thousand dollars or such other amount as may
be prescribed under section 6(2) of the Act;

“trust account” means an account in respect of which
a beneficiary has an interest under an irrevocable
express trust created by a written law or by a
trust instrument, but does not include any
interest retained by the settlor.

S.I. 105/1999

Citation.

Interpretation.

Ch. 230.

CH.317 – 4] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

3. (1) The Corporation shall commence operation on
the date the Act comes into force (hereinafter referred to
as the commencement date).

(2) Within four weeks of the commencement date or
such later date as may be allowed by the Corporation the
Bank shall transmit to the Corporation in respect of every
institution —

(a) a copy of its memorandum and articles of
association;

(b) a copy of its accounts for the immediately
preceding three years or for the period since it
was licensed, whichever is the shorter;

(c) a statement as to its deposit liabilities.
4. (1) The Corporation shall issue to every institution

a certificate of insurance —
(a) within eight weeks of the commencement date

or such later date as may be allowed by the
Minister; or

(b) within four weeks of the notification under bye-
law 6 to the Corporation of the licensing of the
institution.

(2) An institution shall display prominently in all of
its offices a copy of its certificate of insurance certified by
the Corporation.

5. (1) The Corporation shall assess the initial con-
tribution and the annual premium to be paid by every
institution in accordance with the provisions of section 5 of
the Act.

(2) Where after the commencement date an institution is
licensed for the first time, the assessment in respect of that
institution shall be made not earlier than six months
after the issue of the licence.

(3) The Corporation shall notify every institution of
the initial contribution and annual premium which it is
required to pay, the manner of payment and the time within
which such payment is to be made.

6. Within one week of the issue of a licence to an
institution the Bank shall notify the Corporation of the
same and shall transmit to the Corporation copies of the
information which the institution has submitted to the
Minister under section 4 of the Banks and Trust
Companies Regulation Act.

10th November
1999.

Commencement
of operations of
Corporation.

Issue of
certificate of
insurance to
licensed
institution.

Assessment of
initial
contribution and
annual premium.

Minister to
supply to
Corporation
information
regarding
institutions.
Ch. 316.

PROTECTION OF DEPOSITORS [CH.317 – 5


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

7. The Bank may make available to the Corporation
copies of any reports made by the Bank relating to any
member institution.

8. (1) On or before January 31 in each year every
institution shall file with the Corporation a report, certified
by a director of the institution of —

(a) its deposit liabilities for each quarter of the
preceding year;

(b) the institution’s assessment of the annual pre-
mium imposed on it under section 5 of the Act
for the current year.

(2) An institution which fails to comply with
paragraph (1) is guilty of an offence.

9. The public notification of the closure of an
institution under section 16(1) of the Act shall indicate
the date of closure and shall state that —

(a) payment of insured deposits will commence
within six months from the date of closure;

(b) if the depositor does not claim his insured
deposit from the Corporation within twelve
months of the date of closure, all rights of the
depositor against the Corporation concerning
the insured deposit are barred, but without
prejudice to the rights of the depositor against
the institution.

10. (1) The Corporation shall in respect of a closed
institution —

(a) balance the books of the institution and update
all of its depositors’ accounts;

(b) prepare a list of the assets of the institution;
(c) prepare a list of all depositors and determine the

liability of the institution to each depositor;
(d) prepare a list of the depositors with loans from

the institution and a list of those loans which can
be set off against deposits under section 15 (e) of
the Act;

(e) prepare statements of all depositors’ accounts for
reconciliation by the depositors prior to the filing
of claims for deposit insurance under section 16
of the Act;

Reports to be
available to the
Corporation.

Annual returns
by institutions to
Corporation.

Public
notification of
closure of
institution.

Powers of
Corporation in
relation to closed
institution.

CH.317 – 6] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(f) prepare a list of depositors with deposits in
excess of the insured limit and a list of those
depositors to whom certificates for the excess
will be given under section 16 of the Act;

(g) prepare a list of other uninsured liabilities of the
institution and an estimate of the amount of such
liabilities;

(h) prepare a list showing depositors without any
set-offs.

(2) The Bank shall grant all assistance within its
power to the Corporation in the discharge of the
Corporation’s duties under paragraph (1).

11. In calculating the sum to be paid to the depositor
under section 15(d) of the Act, there shall be deducted any
moneys due to the institution by the depositor.

12. (1) A claim for deposit insurance shall be in the
form set out in the Schedule and shall be accompanied by
satisfactory evidence of the claimant’s ownership of or
interest in the deposit.

(2) A separate claim shall be submitted for each
deposit in respect of which, in whole or in part, a claim is
made.

(3) The claim shall be made by the person in whose
name the deposit account is recorded, or by the assignee
thereof.

13. (1) For the purpose of payment of deposit
insurance, the deposit account records of the institution are
prima facie evidence of the deposit, its nature and
ownership.

(2) Where the Corporation is satisfied as to the bona
fides of the claim and the amount thereof that is due, the
Corporation shall authorise the payment of the claim.

(3) Payment shall be made to the claimant or to a
person authorised by him in writing to collect the amount
due and to sign a receipt therefor on his behalf.

(4) Where payment is made to a person other than
the depositor, the Corporation may require the person to
execute a contract of indemnity in respect of the amount
paid.

Payment by
Corporation to
depositor.

Claims for
deposit
insurance.
Schedule.

Payment of
claims.

PROTECTION OF DEPOSITORS [CH.317 – 7


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

14. (1) Deposits maintained by a person in more than
one account in the same name or in the name of a nominee
in the same institution shall be added together and insured
up to the prescribed maximum in respect of the aggregate
amount in the accounts.

(2) Funds held by a nominee for the benefit of a
principal, ward, minor or patient and deposited in one or
more deposit accounts shall be added to any individual
accounts of the principal, ward, minor or patient and
insured up to the prescribed maximum.

15. (1) Subject to this bye-law, a trust account shall be
insured up to the prescribed maximum.

(2) Subject to paragraph (4), trust accounts contain-
ing funds from the same settlor shall be aggregated.

(3) Funds held in a trust account shall not be
combined with individual accounts of a trustee, settlor or
beneficiary under the trust.

(4) Where the amount of the interest of a beneficiary
under a trust account is ascertainable from the records of the
institution, the interest of the beneficiary shall be insured up
to the prescribed maximum, separately from the trust
account, and the amount of the beneficiary’s interest shall
be deducted from that trust account for the purpose of
insurance of the trust account.

(5) Where a beneficiary has an interest in more than
one trust account, his interest in each such account shall be
combined and insurance shall be paid up to the prescribed
maximum on the aggregate of such interests.

16. Funds of a decedent held in his name, or in the
name of the executor or administrator of his estate, and
deposited in one or more deposit accounts shall be added
together and insured up to the prescribed maximum,
separately from the individual accounts of the beneficiaries
of the estate or of the executor or administrator.

17. (1) Subject to this bye-law, deposit insurance is
payable in respect of a joint account up to the prescribed
maximum.

(2) Joint accounts maintained by the same person are
added together.

(3) Where a depositor has an interest in more than
one joint account and different joint owners are involved


Individual and
nominee
accounts.

Trust accounts.

Personal
representative
accounts.

Joint accounts.

CH.317 – 8] PROTECTION OF DEPOSITORS





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

his interest in each such account shall be combined and
insurance shall be paid to the prescribed maximum on the
aggregate of such interest.

(4) Unless otherwise stated in the records of the
institution, the interest of co-owners in a joint account
shall be deemed to be equal.

(5) The receipt for payment of deposit insurance
shall be signed by all the joint holders of the account, except
where a mandate to the institution authorises any one or
more of such holders to sign for the withdrawal of funds.

SCHEDULE (Bye-Law 12(1))

THE PROTECTION OF DEPOSITORS BYE-LAWS, 1999
1. NAME OF INSTITUTION:................................................
Branch:................................................................................
2. CLAIMANT:.......................................................................
Surname:..............................................................................
First Name: .........................................................................
Other Name: ........................................................................
I.D.: .....................................................................................
Address: ..............................................................................
Telephone: ................(Home) ............(Work) ....................
3. DEPOSIT OR ACCOUNT TYPE: .....................................
Issue date: ...........................................................................
Maturity date: .....................................................................
Rate: ....................................................................................
Principal: $ ..........................................................................
Interest due: $ .....................................................................
Payments received to date: $ ..............................................
Total claim: $ .....................................................................
Is deposit pledged: Yes [ ] ...............No [ ] .......................
If yes, to whom: .................................................................
4. LOANS HELD AT INSTITUTION ..................................
Principal: $ .........................................................................
Rate: ...................................................................................
Term: ..................................................................................

PROTECTION OF DEPOSITORS [CH.317 – 9


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS


Date loan granted: ...............................................................
Instalments:$ .................. per ..............................................
Date of last payment: ..........................................................
Balance outstanding: $ ........................................................
I/We ......................................................... claimant(s) state that
this claim is made on behalf of ... ................... and that no part
of the said debt has been paid, that no endorsement or
assignment of the same or any part thereof has been given nor
do I/We have any outstanding loans with the said institution
save as set out above. I/We certify the above information to be
correct and are aware that there are penalties for fraudulent
claims under section 27(3) of the Protection of Depositors Act,
1999.
Signed: .......................................................................................
For official use only. ..................................................................
Balance due on deposit: $ ..........................................................
Outstanding loan (if any): $ .......................................................
Amount of insured claim: $ .......................................................
Receiver certificate: ...................................................................
Cross reference: .........................................................................
Claim No: ...................................................................................
Date received: ............................................................................
Date checked: .............................................................................
Verified: .....................................................................................
Approved: ..................................................................................
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