SECT. 2.-Establishment of a Savings Bank.

No savings bank can be formed without the sanction of a barrister appointed for the revisal of the rules, and of the commissioners for the reduction of the national debt. The objects for which such a bank may be established are, the accumulation of sums at compound interest, and the purchase of government annuities for the depositors.2 Where no savings bank exists, a society may be established for the latter purpose, provided the minister of the parish, or elder for the time being," or a resident justice of the peace, be one of the trustees.3

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Rules, &c.-Institutions claiming the privileges of savings banks must have all their rules entered in a book open to depositors. All rules (except they extend merely to an alteration of the hours of attendance) before being acted on must be certified by a barrister appointed for the purpose,* after being signed by two trustees. The barrister gives a certificate on the rules if they are in conformity to law, returns one copy, and deposits the other in the National Debt Office. The rules are binding on the members, officers, and depositors (including purchasers of annuities), without farther notice.6

Privileges. All documents directed by and prepared in terms of the act, are exempt from stamp-duty, and where the estate of a deceased depositor does not amount to £50, there are no duties of any kind charged on the succession to his claims on the bank.7 The property is vested in the trustees for the time being, in whose name all actions can be raised and defended. Savings banks have, on the application of two trustees, the same preference to other creditors over the funds of their office-bearers as that possessed by friendly societies.9 (See next Chapter, Sect. 2.)

Disputes. By the act of Geo. IV., disputes between banks and depositors are to be referred, in the first place, to two arbiters, one chosen by either party, and if they do not agree, to the barrister appointed to revise the laws, who charges a

19 Geo. IV. c. 92, § 2.-2 Ibid. 3 & 4 Wm. IV. c. 14, § 1.- Ibid. § 27. 4 9 Geo. IV. c. 92, § 3.-5 Ibid. § 4. 3 & 4 Wm. IV. c. 14, § 26. 7 & 8 Vict. c. 83, § 19.-6 9 Geo. IV. c. 92, § 5.-7 Ibid. § 40-44. 5 & 6 Wm. IV. c. 57, § 4. 3 & 4 Wm. IV. c. 14, § 19.-8 9 Geo. IV. c. 92, § 8.93 & 4 Wm. IV. c. 14, § 28.

* There is no provision in 5 & 6 Wm. IV. c. 57 for appointing an Advocate in Scotland, as in the case of the Registrar of friendly societies. Rules must consequently be transmitted for certification to the barrister appointed for England.

fee not exceeding a guinea, and whose decision is final.1 There is a provision of the act of 1844 by which every dispute must be referred in writing to the revising barrister in London, who finally determines it, and has power to inspect. books and examine witnesses on oath; but it is difficult to see how this clause, prepared solely with a view to England, can be practically applied in Scotland.2 All documents, such as receipts, orders, certificates, &c., must be in the forms assigned by the commissioners for the reduction of the national debt, who are entitled to appoint officials for carrying the system into execution.3

SECT. 3.-Deposits and Interest.

The interest to be paid for deposits is limited by the act of 1844 so as not to exceed £3, Os. 10d. per cent. per year. Minors may deposit and grant receipts, and transactions with depositors who are or may become married women are valid, without the interference of the husband, unless he give notice and require payments to be made to him. With the consent of the managers, savings banks may receive deposits from charitable institutions to the amount of £100 a-year, and £300 on the whole, exclusive of interest, and from friendly societies, constituted in terms of 10th Geo. IV. c. 56, and 4th and 5th Wm. IV. c. 40, to any amount." No anonymous deposits can be received, and the names and designations of depositors must be entered in the books.7

Restrictions on Depositors.-No person who has made a deposit in or is entitled to any benefit from one savings bank, is entitled to open a new account, or to subscribe to any other savings bank; and depositors must, before making a first deposit, and at such other times as the managers may require, make, either personally, or, in the case of infants under the age of seven, by some person to be approved of by the managers, —a declaration that the party has no interest in any other savings bank. Persons contravening the regulation forfeit all the interest they may have in savings banks, and the sums in their name are paid to the account of the commissioners for the reduction of the national debt. A printed notice of the regulation must be affixed to the place for receiving deposits in each bank, and must be printed at the

19 Geo. IV. c. 92, § 45.-27 & 8 Vict. c. 83, §§ 14, 15.-3 9 Geo. IV. c. 92, §§ 59, 61.-47 & 8 Vict. c. 83, § 2.-5 9 Geo. IV. c. 92, §§ 25, 26. 7 & 8 Vict. c. 83, § 12.—6 9 Geo. IV. c. 92, § 27-29. 10 Geo. IV. c. 56, § 30. 4 & 5 Wm. IV. c. 40, § 9.--7 9 Geo. IV. &c. § 32.

beginning of the deposit book.1 Members of charitable bodies and friendly societies are not subjected to the penalties of this regulation, on account of such societies depositing in savings banks; 2 nor are trustees of depositors, who may be depositors on their own account in any other bank.3 No savings bank can receive more than £30 from any depositor within one year, ending on the 20th November, nor above £150 on the whole; and whenever the whole sum, principal and interest, amounts to £200, no farther interest must be paid. There must be a rule that every depositor is to produce his book once a-year for examination.5 When a deposit is made in trust, it cannot be uplifted without the receipt both of the trustee and the beneficiary, if both be alive and competent to act.6

Transfers.-Depositors may transfer their whole interest in one savings bank to another, but not a portion of it. The person transferring receives a certificate, which he indorses in presence of a manager of the bank to which he transfers his deposit, who attests the indorsement; on the transfer being effected, the depositor is in the same situation with an original subscriber.7

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Interest.-Interest on deposits must be calculated halfyearly, to the 20th May or 20th November, or yearly, to the 20th November, or up to such period nearest" to these, as such interest shall be payable according to the rules and regulations of such savings banks respectively ;" and the managers may direct the interest to be computed yearly or half-yearly, and added to the principal sum as if it were a new deposit.9

SECT. 4.-Succession to Shares.

When a person dies leaving money in a savings bank, exceeding £50, it cannot be paid to his representatives without a confirmation;10 but where the whole sum belonging to the deceased does not exceed £50, the managers, if no confirmation or administration to the estate have been made within one month, or if a month have elapsed without their receiving any notice of an intention to administer, or if they have received notice, but two months have elapsed without the notice having been acted on, may pay the sum

19 Geo. IV. &c. § 34. 7 & 8 Vict. c. 83. § 3.-2 9 Geo. IV. &c. § 30. - Ibid. § 33.— Ibid. § 35. 3 & 4 Wm. IV. c. 14, § 29.-57 & 8 Vict. c. 83, § 5. Ibid. § 7.-7 9 Geo. IV. c. 92, § 39.8 Ibid. § 49.9 Ibid. § 17. 10 Ibid. § 40. 5 6 Wm. IV. c. 57, § 4.

according to the rules of the institution. If no rules have been made on that point, they are to divide the sum among the next of kin, according to the law of succession in moveables.1 The payment of money according to this rule precludes the claim of any party professing a preferable right as against the bank, leaving him all legal recourse against the individuals who have obtained payment.2 Payments to persons appearing to have title by confirmation are likewise good in as far as respects the bank, against the claim of any other person as lawful representative, leaving him recourse against the individual who has obtained payment.3 When the deceased depositor is illegitimate, the managers may, with the approval of the revising barrister, pay his deposit to the persons who, if he were legitimate, would have succeeded.4 Terminable annuities, purchased under the act 3d and 4th Wm. IV. c. 14 (see next section), are, when not upon the life of the person entitled thereto, moveable property, and descendible to executors.5

SECT. 5.-Annuities.

A savings bank may contract with depositors for annuities, either immediate or deferred; and in either case, for life, or for a term of years. They are chargeable on the consolidated fund, all sums deposited on account of such annuities being paid over to the Bank of England. No annuity is to be contracted for where the nominee is under fifteen, and none is to be of less than £4 or more than £30 a-year; persons holding annuities from savings banks exceeding, on the whole, the legal sum, forfeit them. There are fees that may be charged on the transaction of annuities, varying from £1, 5s. to 5s. The holder of an annuity may remove the payment of it from one savings bank to another. The tables on which the annuities are calculated are those, from time to time, authorized by the treasury, and published in the Gazette.10 Fractional parts, less than sixpence, are deducted from annuities.11 No life annuity can be contracted for without proof of the age and existence of the nominee.12

Annuities are paid half-yearly, on the 5th January and the 5th July, or on the 5th April and the 10th October.

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19 Geo. IV. § 41. 5 & 6 Wm. IV. § 4. 7 & 8 Vict. c. 83, §§ 10, 20. -29 Geo. IV. § 42.-3 Ibid. § 43.-47 & 8 Vict. c. 83, § 11.-3 3 & 4 Wm. IV. c. 14, § 17.- Ibid. § 1.-7 Ibid. § 2. 7 & 8 Vict. c. 83, § 8.8 3 & 4 Wm. IV. e. 14, § 3. 7 & 8 Vict. c. 83, § 9.-9 3 & 4 Wm. IV. c. 14, § 4.-10 Ibid. §§ 5, 6.- Ibid. § 7.-12 Ibid. § 13.

The terms of payment depend on the period of completing the purchase by lodging the money. The 5th January will be the first term's payment of an annuity, purchased during the quarter ending 10th October preceding, and an annuity bought during any other quarter is similarly regulated, i. e. a whole quarter intervenes before the first payment. On the death of an annuitant, a quarter of the year's annuity becomes payable (besides all half-yearly arrears) to the executor, provided certificate of the party's death be presented within thirty days preceding some one of the days of payment, and within two years after the death. No quarterly payment is to be made in respect of a deferred life-annuity, unless the nominee has lived so long that a half-yearly payment has been made, or has become due.1

Annuities are not transferable, except in the case of bankruptcy or insolvency, when they may be made good with the insolvent's other property, and will be repurchased by the commissioners, according to the tables on which they were purchased.2 Where a person has purchased a deferred annuity for periodical payments, if he fail to continue the payments, or die before the annuity becomes payable, the sums will be returned, but without interest.

SECT. 6.-Officers and their Duties.

It must be provided by the rules, that no officer of the savings bank shall derive benefit from or have any interest in its funds, except to the extent of his salary; but treasurers, trustees, and managers, or others having direction, can have no salary, and are entitled to nothing but their actual outlay. Every officer intrusted with money, or receiving a salary, must find security (to be approved of by two trustees and three managers) to the Comptroller General of the national debt office, by a bond which may be pursued on by the bank.5 Trustees and managers are not personally liable, except in cases of wilful neglect or default, or for any money they may have received, unless they agree to take a portion of responsibility. Officers and others, having the custody of the property of a savings bank, may, on the order of two trustees and three managers, be called upon to account and deliver up all money and documents; and in

13 & 4 Wm. IV. c. 14, § 11.-2 Ibid. § 16.—3 Ibid. § 18.-9 Geo. IV. c. 92, § 6.5 Ibid. § 7. 7 & 8 Vict. c. 83, § 17.-6 9 Geo. IV. c. 92, § 9. 7 & 8 Vict. c. 83, § 6.