CHAPTER XX.

RETURNS BY A BANK.

The following returns to the government are required by the Bank Act.

Sec. 112, monthly returns in the form set forth in Schedule D.

Sec. 113, special returns called for by the Minister.

Sec. 114, a return of all dividends, etc., unpaid for more

than five years.

Sec. 114, a return of all drafts or bills of exchange issued by the bank and unpaid for more than five years.

Sec. 114, a certified list of shareholders.

Secs. 147 to 151 impose penalties upon a bank which neglects to transmit any of the above mentioned returns.

Sec. 152 provides that when any return is transmitted by post, the date of deposit in the post office, as shown by the post office mark or stamp upon the envelope or wrapper enclosing the return, shall be taken primâ facie to be the day when the return was transmitted.

By sec. 153 provision is made for the criminal and civil liability of persons who make any wilfully false or deceptive statement in any account, statement, return, report or other document respecting the affairs of a bank, etc.

Minister in the Act means the Minister of Finance and Receiver-General (sec. 2).

RETURNS.

112. Monthly returns shall be made by the bank to the Monthly. Minister in the form set forth in schedule D to this Act.

2. Such returns shall be made up and sent in within the first Within first fifteen days of each month, and shall exhibit the condition of 15 days. the bank on the last juridical day of the month last preceding.

3. Such returns shall be signed by the chief accountant and How signed. by the president, or vice-president, or the director then acting

Sec. 112.

as president, and by the manager, cashier or other principal officer of the bank at its chief place of business. 53 V., c. 31, s. 85.

Monthly returns.

Special returns.

How made.

Cf. sec. 113 which empowers the Minister of Finance to call for special returns.

Monthly returns have been required since 1871. Sec 13 of 34 Vict., c. 5, provided as follows:

"Monthly returns shall be made by the bank to the government in the following form, and shall be made within the first ten days of each month, and shall exhibit the condition of the bank on the last juridical day of the month preceding; and such monthly returns shall be signed by the President or VicePresident, or the Director (or, if the bank be en commandité, the principal partner) then acting as President, and by the Manager, Cashier, or other principal officer of the bank at its chief seat of business."

The form prescribed in the Act of 1871 was itself an elaboration of the form of statement required to be published in certain cases under chapter 21 of the Consolidated Statutes of Canada, 1859.

By statutes subsequent to 1871 changes were made from time to time, the changes being designed to make the information given more detailed and trustworthy, without however disturbing that general continuity of form which is desirable for the purpose of comparison.

The present form was adopted in 1900. It is printed among the schedules in Chapter XXVI., infra.

The officers making the return should be careful to classify the items of assets and liabilities under the proper heads. Improper classification of items may constitute a false or deceptive statement within sec. 153.

The monthly returns of the various banks are published each month in a consolidated form by the government.

113. The Minister may also call for special returns from any bank, whenever, in his judgment, they are necessary to afford a full and complete knowledge of its condition.

2. Such special returns shall be made and signed in the manner and by the persons specified in the last preceding section.

3. Such special returns shall be made and sent in within Sec. 113. thirty days from the date of the demand therefor by the Min- Within 30 days from ister: Provided that the Minister may extend the time for demand. sending in such special returns for such further period, not exceeding thirty days, as he thinks expedient. 53 V., c. 31, s.

86.

The special returns which may be called for under this section are in addition to the monthly returns required to be made by sec. 112.

114. The bank shall, within twenty days after the close of Annual. each calendar year, transmit or deliver to the Minister a return,—

(a) of all dividends which have remained unpaid for more

than five years; and,

(b) of all amounts or balances in respect of which no transactions have taken place, or upon which no interest has been paid, during the five years prior to the date of such

return :

Provided that, in the case of moneys deposited for a fixed period, the said term of five years shall be reckoned from the date of the termination of such fixed period.

shall show.

2. The return mentioned in the last preceding subsection What return shall set forth,—

(a) the name of each shareholder or creditor to whom such dividends, amounts or balances are, according to the books of the bank, payable;

(b) the last known address of each such shareholder or credi-
tor;

(c) the amount due to each such shareholder or creditor;
(d) the agency of the bank at which the last transaction took
place;

(e) the date of such last transaction; and,

(f) if such shareholder or creditor is known to the bank to
be dead, the names and addresses of his legal representa-
tives, so far as known to the bank.

Sec. 114.

Further annual

return.

Particulars.

How annual returns signed.

Annual list.

To Parliament.

3. The bank shall likewise, within twenty days after the close of each calendar year, transmit or deliver to the Minister a return of all drafts or bills of exchange, issued by the bank to any person, and remaining unpaid for more than five years prior to the date of such return, setting forth so far as known,

(a) the names of the persons to whom, or at whose request such drafts or bills of exchange were issued;

(b) the addresses of such persons;

(c) the names of the payees of such drafts or bills of exchange;

(d) the amounts and dates of such drafts or bills of exchange;

(e) the names of the places where such drafts or bills of exchange were payable; and,

(f) the agencies of the bank respectively from which such drafts or bills of exchange were issued.

4. The returns required by the foregoing provisions of this section shall be signed by the chief accountant, and by the president or vice-president or the director then acting as president, and by the manager, cashier or other principal officer of the bank, at its chief place of business.

5. The bank shall also, within twenty days after the close of each calendar year, transmit or deliver to the Minister a certified list showing,

(a) the names of the shareholders of the bank on the last day of such calendar year, with their additions and residences;

(b) the number of shares then held by them respectively; and,

(c) the value at par of such shares.

6. The Minister shall lay such returns and lists before Parliament at the next session thereof. 53 V., c. 31, ss. 87 and 88; 63-64 V., c. 26, s. 21.

This section dates from 1890, except sub-sec. 3. The present Sec. 114. division into sub-sections is a result of the revision of 1906. Annual The effect of the first two sub-sections is to secure to a bank, returns of unpaid so long as it is solvent, the benefit of unpaid dividends and other dividends, amounts and balances in respect of which transactions have etc. ceased to take place or interest ceased to be paid. Until the dividends, etc., are claimed, the sole obligation of the bank is to make the required returns so as to give notice by means of the government publications to any persons who may be entitled and allow them an opportunity to claim payment.

Under sec. 126, the liability of a bank for moneys deposited with it or dividends declared and payable on its capital stock is never barred by any statute of limitations or enactment or law relating to prescription. It is therefore necessary, in the event of the winding-up of a bank, to provide a fund to meet claims which may be made from time to time to unpaid dividends and deposits, and interest, if any. This is done by sec.

115.

Sub-sec. 3 dates from 1900. Its purpose is to give notice to persons in whose favour any drafts or bills may have been issued, and to allow them an opportunity to claim the proceeds.

The lists of shareholders are published annually by the government.