Banking Act 1979

The Board and the Fund

21 The Deposit Protection Board

(1) There shall be a body corporate to be known as the Deposit Protection Board (in this Part of this Act referred to as " the Board ") which—

(a) shall hold, manage and apply in accordance with the following provisions of this Part of this Act, a fund to be known as the Deposit Protection Fund (in this Part of this Act referred to as " the Fund "); and

(b) shall levy contributions for the Fund, in accordance with the following provisions of this Part of this Act, from recognised banks and licensed institutions; and

(c) shall have such other functions as are conferred on the Board by those provisions.

(2) The provisions of Schedule 5 to this Act shall have effect with respect to the Board.

22 The Deposit Protection Fund

(1) The Fund shall consist of—

(a) initial, further and special contributions levied by the Board under sections 24 to 26 below;

(b) moneys borrowed by the Board under section 26(3) below;

(c) moneys credited to the Fund in accordance with subsection (1) or subsection (5) of section 32 below; and

(d) income credited to the Fund in accordance with subsection (3) below.

(2) The moneys constituting the Fund shall be placed by the Board in an account with the Bank.

(3) So far as possible, the Bank shall invest moneys placed with it under subsection (2) above in Treasury bills payable not more than ninety-one days from the date of issue; and any income from moneys so invested shall be credited to the Fund.

(4) The administrative expenses of the Board shall be defrayed out of the Fund.

(5) There shall be chargeable to the Fund—

(a) payments to meet administrative expenses of the Board in accordance with subsection (4) above;

(b) repayments of special contributions under section 26(2) below;

(c) moneys required for the repayment of the Board's borrowings under section 26(3) below; and

(d) payments under section 28 below.