Savings Bank Act


Published: 1936-06-01

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Savings Bank Act
SAVINGS BANK [CH.315 – 1



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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

SAVINGS BANK
CHAPTER 315

SAVINGS BANKS

ARRANGEMENT OF SECTIONS

SECTION

1. Short title.
2. Interpretation.
3. Constitution of Savings Bank.
4. Management under Postmaster-General.
5. Establishment and closure of branch savings banks.
6. Appointment of officers.
7. Deposits and repayments.
8. Security of Government.
9. Interest.
10. Salaries and expenses.
11. Disposal of monies.
12. Accounts.
13. Surpluses and deficits.
14. Power to make rules.
15. Names of depositors, etc., not to be disclosed.
16. Settlement of disputes.
17. Non-liability of Government.

SAVINGS BANK [CH.315 – 3



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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

SAVINGS BANK

CHAPTER 315

SAVINGS BANKS
An Act relating to The Bahamas Post Office Savings

Bank.
[Commencement 1st June, 1936]

1. This Act may be cited as the Savings Bank Act.
2. In this Act, unless the context otherwise requires —
“Minister” means the Minister responsible for the

Post Office Savings Bank;
“prescribed” means prescribed by rules under this

Act;
“revenue” of the Savings Bank does not include

moneys received on deposit;
“Savings Bank” means the Post Office Savings Bank

established under the Post Office Act and
continued under this Act as the Post Office
Savings Bank of The Bahamas.

3. The Savings Bank (and all other offices thereof)
subsisting at the time when this Act comes into operation
shall be deemed to be constituted and appointed under this
Act.

4. Subject to the provisions of section 11 of this
Act the Savings Bank shall be under the management and
control of the Postmaster-General who may, subject to the
provisions of this Act and any rules made thereunder, take
such steps as may be desirable for the encouragement of
thrift, for the proper management of the Savings Bank,
and otherwise for the promotion of the objects and
purposes of this Act.

5. The Postmaster-General may, with the approval
of the Minister, open branch savings banks at any post office
in The Bahamas and may, with like approval, close any
branch savings bank.

7 of 1936
43 of 1964
E.L.A.O., 1974
5 of 1987

Short title.

Interpretation.

E.L.A.O., 1974.

16 of 1914.

Constitution of
Savings Bank.

Management
under
Postmaster-
General.

Establishment
and closure of
branch savings
banks.

E.L.A.O., 1974.

CH.315 – 4] SAVINGS BANK





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

6. The Governor-General, acting in accordance with
the advice of the Public Service Commission, may appoint
such persons as may be necessary for the execution of this
Act.

7. Deposits of money to be paid into the Savings
Bank shall be received and repaid under such conditions as
may be prescribed.

8. The repayment of all moneys deposited in the
Savings Bank together with interest thereon is guaranteed
by the Government of The Bahamas, and accordingly if at
any time or times the assets of the Savings Bank shall be
insufficient to pay the lawful claims of every depositor, the
Minister of Finance shall cause such deficiency to be met
out of the Consolidated Fund, which is hereby appro-
priated to that purpose, and the Treasurer shall certify
such deficiency to Parliament without delay.

9. (1) Interest shall be payable on deposits at the rate
of two per centum per annum, or at such other rate as may
be fixed from time to time by the Minister:

Provided that not less than three months’ notice of
any change of rate shall be given in the Gazette.

(2) Such interest shall not be payable on any amount
less than one dollar or on any fraction of one dollar and
shall not commence to accrue until the first day of the
month next following the day of deposit and shall cease on
the last day of the month preceding that in which such
deposit shall be withdrawn.

(3) Interest on deposits shall, subject to the
provisions of subsection (2) of this section, be calculated to
the thirtieth day of June in every year and shall then be
added to and become part of any principal money
remaining on deposit.

10. (1) All expenses incurred in the execution of this
Act shall be met from revenue derived from the investment
of moneys deposited in the Savings Bank.

(2) For the purposes of this Act expenses shall mean
the cost of any work or service done by or in connection
with the Savings Bank, including such sum on account of
administrative and other overhead expenses as may, with
the approval of the Minister, be reasonably assigned to
that work or service.

Appointment of
officers.
E.L.A.O., 1974.

Deposits and
repayments.

Security of
Government.
E.L.A.O., 1974.

Interest.

E.L.A.O., 1974.

5 of 1987, Sch.

Salaries and
expenses.

E.L.A.O., 1974.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

11. (1) Subject to the provisions of this Act moneys
in the Savings Bank shall not be applied in any way to the
purposes of The Bahamas, but, except so far as any sums
may be prescribed to be kept in hand for the general
purposes of the Savings Bank, shall be deposited in the
Treasury and shall, as far as practicable, be invested on
behalf of the Savings Bank, under the direction of the
Treasurer, in such securities or be employed at interest in
such manner as shall be approved from time to time by the
Minister, and any such investment may at any time be
changed into other like securities:

Provided that not more than one-third of such
moneys shall at any time be or remain invested in securities
of the Government of The Bahamas.

(2) 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 thereon or expenses incurred in the execution of
this Act, may be raised by the sale of the whole or part of
such securities:

Provided that any sums of money which may be
required for the purposes aforesaid, may, with the
approval of the Minister, be advanced to the Savings
Bank by the Treasurer out of the Consolidated Fund until
they can be raised by the sale of such securities and such
advances shall bear interest at the rate from time to time
payable to depositors.

12. Annual accounts of the revenue and expenditure
of the Savings Bank and of deposits received and repaid
and interest credited to depositors during the year ended
on the thirtieth day of June together with a statement of
the assets and liabilities of the Savings Bank, shall, after
being audited and certified by the Auditor, be laid upon
the table of the two Houses of Parliament not later than the
thirty-first day of December ensuing in every year and
shall as soon as practicable thereafter be published in the
Gazette.

13. (1) If in any year the revenue of the Savings Bank
shall be insufficient to defray the interest due to depositors
and all expenses under this Act, such deficiency shall be
met out of the Consolidated Fund which is hereby
appropriated to that purpose.

Disposal of
moneys.

E.L.A.O., 1974.

E.L.A.O., 1974.

Accounts.

Surpluses and
deficits.

E.L.A.O., 1974.

CH.315 – 6] SAVINGS BANK





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(2) If in any year the revenue of the Savings Bank
shall be more than sufficient to defray the interest due to
depositors and all expenses under this Act, then the
Minister may direct the transfer of the surplus or any
portion thereof to the Consolidated Fund:

Provided that no such transfer shall be made unless
the assets of the Savings Bank will thereafter exceed the
liabilities by not less than fifteen per centum of the
liabilities to depositors.

(3) If on the thirtieth day of June in any year the
assets of the Savings Bank exceed the liabilities by more
than fifteen per centum of the liabilities to depositors then
the Minister may direct that the surplus over fifteen per
centum or any portion thereof shall be transferred to the
Consolidated Fund.

14. (1) The Minister may make rules for the manage-
ment and regulation of the Savings Bank.

(2) In particular and without prejudice to the
generality of the foregoing powers such rules may —

(a) prescribe limits of deposits;
(b) prescribe the modes of making deposits;
(c) prescribe the modes of withdrawing deposits and

interest;
(d) prescribe the times at which deposit books shall

be returned to the Savings Bank by depositors;
(e) regulate deposits by minors, guardians, trustees,

married women, Friendly Societies and other
charitable bodies;

(f) prescribe conditions for the withdrawal of
moneys by minors, guardians, trustees, married
women, Friendly Societies and other charitable
bodies;

(g) prescribe the modes of dealing with the deposits
of deceased or insane persons;

(h) prescribe penalties not exceeding a fine of one
hundred dollars for the breach of any such rule;

(i) provide for the forfeiture of deposits made in
wilful contravention of this Act;

(j) authorise the Postmaster-General to enter into
an arrangement with the Post Office Savings
Bank of the United Kingdom of Great Britain


E.L.A.O., 1974.

E.L.A.O., 1974.

Power to make
rules.
E.L.A.O., 1974.

5 of 1987, s. 2.

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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

and Northern Ireland or with the Government
Savings Bank of any other country of the
Commonwealth, or any foreign country, for the
transfer of any sum standing to the credit of
depositors from such Savings Bank to the
Bahamas Savings Bank, and vice versa, and
prescribe conditions for such transfers.

15. (1) No person appointed to carry 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 in due course of law, or to such
person or persons as may be appointed to assist in carrying
this Act into operation.

(2) Any person contravening the provisions of this
section shall on summary conviction be liable to a fine of
four hundred dollars.

16. If any dispute shall arise between the Postmaster-
General or the officer managing and controlling any
branch savings bank and any individual depositor therein,
or any executor, administrator, next-of-kin of a depositor,
or any creditor or assignee of a depositor who may become
bankrupt or insolvent, or any person claiming to be such
executor, administrator, next-of-kin, creditor or assignee,
or to be entitled to any money deposited in such savings
bank, then, and in every such case, the matter in dispute
shall be referred to an arbitrator to be appointed by the
Minister, and if the parties be dissatisfied with the decision
given by the single arbitrator so appointed the matter may
be referred to arbitration under the provisions of the
Arbitration Act.

17. When any payment is made or act done by the
Postmaster-General or any person acting under his
authority in accordance with this Act and the rules for
the time being made thereunder, the Government, the
Postmaster-General and such person shall not be liable in
respect of any claim on the part of any person in
connection with such payment or act, but any person
may nevertheless recover any sum lawfully due to him
from the person to whom the Postmaster-General has paid
the same.

43 of 1964, Third
Sch.

Names of
depositors, etc.,
not to be
disclosed.

5 of 1987, s. 2.

Settlement of
disputes.

E.L.A.O., 1974.

Ch. 180.

Non-liability of
Government.