Deposit Protection Act · 2023 Revised Edition · Part 4
46. Deposits by amalgamating institutions etc.
Official textFrom Attorney General's Chambers, unchanged
Where a person has deposits with two or more member institutions that amalgamate and continue in operation as one member institution (in this Chapter referred to as the amalgamated institution), a deposit of that person with an amalgamating institution on the day on which the amalgamated institution is formed, less any withdrawal from the deposit, is deemed to be and continue to be separately protected by the deposit protection scheme for a period of 2 years or upon maturity or until withdrawal, whichever is earlier, after the amalgamating institution becomes part of the amalgamated institution.
deposit
“deposit” means a deposit as defined in section 2(3) of the Banking Order, 2006, a deposit as defined in section 2(3) of the Islamic Banking Order, 2008 and a deposit as defined in section 2 of the Finance Companies Act, as the case may be;
A deposit made by a person referred to in subsection (1) with an amalgamated institution after the day on which the amalgamated institution is formed shall be protected by the deposit protection scheme only to the extent that the aggregate of that person’s deposits with the amalgamated institution is less than $50,000.
deposit protection
“deposit protection” means the protection provided to the depositors of a member institution in case of its failure to pay its deposits;
Where a member institution acquires the deposits of another member institution or amalgamating institution, those deposits, less any withdrawal from the deposits, shall continue to remain in the deposit protection scheme separately from any protected deposit up to the coverage limit of $50,000 for a period of 2 years, or upon maturity or until withdrawal, whichever is earlier, after the date of acquisition.
member institution
“member institution” means any financial institution deemed to be a member institution under section 27 whose membership has not been cancelled under section 31 or terminated under section 32;
A member institution shall maintain such records as necessary for the purposes of subsections (1) and (2).
Terms defined in s 2
deposit
Defined · s 2“deposit” means a deposit as defined in section 2(3) of the Banking Order, 2006, a deposit as defined in section 2(3) of the Islamic Banking Order, 2008 and a deposit as defined in section 2 of the Finance Companies Act, as the case may be;
deposit protection
Defined · s 2“deposit protection” means the protection provided to the depositors of a member institution in case of its failure to pay its deposits;
member institution
Defined · s 2“member institution” means any financial institution deemed to be a member institution under section 27 whose membership has not been cancelled under section 31 or terminated under section 32;
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