Statistics Act, 1999
R 385
Mutual Banks Act, 1993 (Act No. 124 of 1993)Chapter VIII : Amalgamation, Winding-up and Dissolution72. Transfer of part of a mutual bank’s business |
| (1) | A mutual bank may, with the written consent of the Registrar and on the conditions determined by him, transfer that part of its business which is conducted in a particular area and which constitutes a minor portion of its total business, to another mutual bank or to any other institution approved for the purpose by the Minister. |
| (2) | When a mutual bank proposes to transfer part of its business in terms of subsection (1), it shall furnish to the Registrar a return setting forth to the satisfaction of the Registrar all its assets and liabilities and, separately, those assets and liabilities which it proposes to transfer, and also a copy of the agreement setting out the proposed terms and conditions of the transfer. |
| (3) | The provisions of subsections (2), (3), (4), (5), (6), (10) and (11) of section 71 shall mutatis mutandis apply in relation to the assets and liabilities transferred in terms of subsection (1) of this section. |
| (4) | For the purposes of the transfer of assets and liabilities in terms of this section a mutual bank which takes transfer of part of the assets and liabilities of another mutual bank may issue debt instruments on the conditions approved by the Registrar, and the last-mentioned mutual bank may invest in such debt instruments and in shares of the first-mentioned mutual bank. |
| (5) | The Registrar shall not give his consent to the transfer of part of the assets and liabilities of a mutual bank unless— |
| (a) | he is satisfied, having regard to all the circumstances, including any statutory requirements in regard to liquid assets and minimum capital and reserves, that a reasonable and fair division of the assets, reserves and other liabilities of the mutual bank concerned has been made with regard to the transfer of the relevant part of its business; and |
| (b) | the agreement referred to in subsection (2) provides that the mutual bank transferring part of its assets and liabilities shall from time to time invest in stock, debt instruments or shares issued by the transferee mutual bank or institution, as the case may be, in order that such mutual bank or institution may repay deposits which the first-mentioned mutual bank transferred to it and which are withdrawn on the first maturity date subsequent to the date of the said transfer of assets and liabilities and may redeem, during such period as the Registrar may approve and on the conditions set out in the said agreement, any shares in it so transferred. |
| (6) | Upon the registration by the Registrar of the notice of the transfer of part of the assets and liabilities of any mutual bank to another mutual bank or other institution, the assets and liabilities transferred shall become assets and liabilities of the transferee mutual bank or institution, as the case may be. |
