CHAPTER XXV. OFFENCES AND PENALTIES. The Commencement of Business. business 132. Every director or provisional director of any bank and Commencing every other person, who, before the obtaining of the certificate without from the Treasury Board, by this Act required, permitting the certificate. bank to issue notes or commence business, issues or authorizes the issue of any note of such bank, or transacts or authorizes the transaction of any business in connection with such bank, except such as is by this Act authorized to be transacted before the obtaining of such certificate, is guilty of an offence against Offence. this Act. 53 V., c. 31, s. 14. See sec. 14 and notes thereto. The penalty for an offence against this Act is provided for by sec. 157. The Sale and Transfer of Shares. 133. Any person, whether principal, broker or agent, who If contrary wilfully sells or transfers or attempts to sell or transfer, (a) any share or shares of the capital stock of any bank by a false number; or, (b) any share or shares of which the person making such sale or transfer, or in whose name or on whose behalf the same is made, is not at the time of such sale, or attempted sale, the registered owner; or, (c) any share or shares, without the assent to such sale of the registered owner thereof; to requirements. is guilty of an offence against this Act. 53 V., c. 31, s. 37. Offence. See sec. 45. The penalty for an offence against this Act is provided for by sec. 157. Sec. 134. Holding less than forty p. c. in Dominion notes. Excess of The Cash Reserves. 134. Every bank which at any time holds less than forty per centum of its cash reserves in Dominion notes shall incur a penalty of five hundred dollars for each such offence. 53 V., c. 31, s. 50. See sec. 60. As to the procedure for enforcing the penalty, see sec. 158. The Issue and Circulation of Notes. 135. If the total amount of the notes of the bank in circulacirculation. tion at any time exceeds the amount authorized by this Act the bank shall, Penalty. Idem. Idem. Idem. Idem. Unauthor ized issue of notes for circulation. (a) if the amount of such excess is not over one thousand dollars, incur a penalty equal to the amount of such excess; or, (b) if the amount of such excess is over one thousand dollars, and not over twenty thousand dollars, incur a penalty of one thousand dollars; or, (c) if the amount of such excess is over twenty thousand dollars, and not over one hundred thousand dollars, incur a penalty of ten thousand dollars; or, (d) if the amount of such excess is over one hundred thousand dollars, and not over two hundred thousand dollars, incur a penalty of fifty thousand dollars; or, (e) if the amount of such excess is over two hundred thousand dollars, incur a penalty of one hundred thousand dollars. 53 V., c. 31, s. 51. See sec. 61. As to procedure, see sec. 158. 136. Every person, except a bank to which this Act applies, who issues or re-issues, makes, draws, or endorses any bill, bond, note, cheque or other instrument, intended to circulate Sec. 136. as money, or to be used as a substitute for money, for any Penalty. amount whatsoever, shall incur a penalty of four hundred dollars. coverable. 2. Such penalty shall be recoverable with costs, in any court How reof competent jurisdiction, by any person who sues for the same. 3. A moiety of such penalty shall belong to the person suing Appropriafor the same, and the other moiety to His Majesty for the public uses of Canada. tion. 4. If any such instrument is made for the payment of a less Intention sum than twenty dollars, and is payable either in form or in presumed. fact to the bearer thereof, or at sight, or on demand, or at less than thirty days thereafter, or is overdue, or is in any way calculated or designed for circulation, or as a substitute for money, the intention to pass the same as money shall be presumed, unless such instrument is, (a) a cheque on some chartered bank paid by the maker Exceptions. directly to his immediate creditor; or, (b) a promissory note, bill of exchange, bond or other under taking for the payment of money made or delivered by the (c) not designed to circulate as money or as a substitute for The section was divided into its present sub-sections in 1906, but in other respects it dates from 1890. It is to be noted that under this section a moiety of any penalty recovered belongs to the person suing for the same. There is no similar provision in other sections which impose penalties upon individuals. Where the penalty is payable by the bank the amount recovered belongs under sec. 158 to the Dominion, but any portion thereof may be remitted to the bank or paid to any person. The joint effect of this section and of the Dominion Notes Act is to reserve to the chartered banks and to the Government of Canada the exclusive privilege of issuing notes intended to circulate as money. See Chapter XXIX, infra, on Currency and Dominion Notes. Sec. 137. of notes. 137. Every person who in any way defaces any Dominion Defacement or provincial note, or bank note, whether by writing, printing, drawing or stamping thereon, or by attaching or affixing thereto, anything in the nature or form of an advertisement, shall be liable to a penalty not exceeding twenty dollars. 53 V., c. 31, s. 61. Penalty. Issuing notes Or without And accepting such notes. Penalty Cf. sec. 551 of the Criminal Code. 138. (a) Every person who, being president, vice-president, director, general manager, manager, clerk or other officer of the bank, issues or re-issues, during any period of suspension of payment by the bank of its liabilities, any notes of the bank payable to bearer on demand, and intended for circulation, or authorizes or is concerned in any such issue or re-issue; and, (b) If, after any such suspension, the bank resumes business without the consent in writing of the curator, hereinbefore provided for, every person who being president, vice-president, director, general manager, manager, clerk or other officer of the bank issues or re-issues, or authorizes or is concerned in the issue or re-issue of any such notes before being thereunto authorized by the Treasury Board; and, (c) Every person who accepts, receives or takes, or authorizes or is concerned in, the acceptance, receipt or taking of any such notes, knowing the same to have been so issued or re-issued, from the bank, or from such president, vicepresident, director, general manager, manager, clerk or other officer of the bank, in payment or part payment, or as security for the payment of any amount due or owing to such person by the bank; is guilty of an indictable offence, and liable to imprisonment for a term not exceeding seven years, or to a fine not exceeding two thousand dollars, or to both. 63-64 V., c. 26, s. 10. This section was added to the Act in 1900. As first enacted it formed one section with the proviso to sec. 61. See notes to that section. Sec. 138. notes 139. (a) Every person who, being the president, vice- Pledging of president, director, general manager, manager, cashier, or other officer of the bank, pledges, assigns, or hypothecates, or authorizes, or is concerned in the pledge, assignment or hypothecation of the notes of the bank; and, (b) Every person who accepts, receives or takes, or author- Accepting. izes or is concerned in the acceptance or receipt or taking of such notes as a pledge, assignment or hypothecation; shall be liable to a fine of not less than four hundred dollars and not more than two thousand dollars, or to imprisonment for not more than two years, or to both. 53 V., c. 31, s. 52. See sec. 63. Penalty. 140. (a) Every person who, being the president, vice- Issuing notes fraudulently. president, director, general manager, manager, cashier or other officer of a bank, with intent to defraud, issues or delivers, or authorizes or is concerned in the issue or delivery of notes of the bank intended for circulation and not then in circulation; and, accepting. (b) Every person who, with knowledge of such intent, Knowingly accepts, receives or takes, or authorizes or is concerned in the acceptance, receipt or taking of such notes; shall be guilty of an indictable offence, and liable to imprison ment for a term not exceeding seven years, or to a fine not Penalty. exceeding two thousand dollars, or to both. 53 V., c. 31, s. 52. See sec. 63. Warehouse Receipts, Bills of Lading and other Securities. Bank acquiring ware 141. If any bank, to secure the payment of any bill, note, house receipt or bill of debt or liability, acquires or holds, lading. |