ACT 100
TRUST COMPANIES ACT 1949 (REVISED - 1973)

DEPOSIT BY TRUST COMPANIES



Section 7. Deposit to be held as security.


(1) From the time of the issue to any company of a certificate under section 4, the securities deposited by the company with the Accountant General under section 3 shall be held by the Accountant General as security for the depositors and creditors of the company and for the faithful execution of all trusts which may be accepted by or imposed upon the company and for its obligations generally.

(2) If at any time, by reason of the decline in value of any securities so held by the Accountant General or of the increase of the gross liabilities of any trust company, the Registrar is of opinion that additional security ought to be furnished by a trust company, he may order the company to make, within a period to be stated in the order, a further deposit of a specified value with the Accountant General:

Provided that the company may appeal from the order to the Minister, whose decision shall be final.

(3) Any trust company may, from time to time, with the approval of the Minister of Finance, substitute other securities for all or any of the securities deposited by it with the Accountant General.

(4) The interest accruing due on the securities deposited shall be paid to the company.


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