Bermuda Monetary Authority Act 1969

[20 February 1969]

[preamble and words of enactment omitted]

PART I
PRELIMINARY

Interpretation

1 (1) In this Act, unless the context otherwise requires—

"Authority" means the Bermuda Monetary Authority established under section 2;

"bank" shall have the meaning assigned to it in the Banks Act 1969 [title 17 item 20];

"Board" means the Board of Directors of the Authority consti tuted under section 4;

"Chairman" means Chairman provided for in section 4;

"coin" means coin issued in Bermuda by the Authority;

"company" means a company to which the Companies Act 1981 [title 17 item 5] applies;

"credit union" has the meaning assigned to it in the Credit Unions Act 1982 [title 13 item 14];

"currency notes" means notes issued in Bermuda by the Author ity;

"deposit company" has the meaning assigned to it in the Deposit Companies Act 1974 [title 17 item 19];

"documents" includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include references to produce a copy of the information in legible form;

"dollar" means the Bermudian dollar;

"financial institution" means a person, body or entity specified in the Third Schedule;

"freely convertible" in relation to any currency, means freely con vertible, in the hands of a non-resident holder of the cur rency, into gold or any other currency;

"General Manager" means the General Manager provided for in section 6;

"Minister" means the Minister of Finance;

"public body" has the meaning given in section 3(2);

"resident" means a person who is deemed to be resident under regulation 3 of the Exchange Control Regulations 1973 [title 16 item 1a];

"specified securities" means securities denominated in any freely convertible currency or in Special Drawing Rights of the In ternational Monetary Fund being either —

(a) securities issued or guaranteed by the Government of the country of issue being a country whose currency is freely convertible; or

(b) securities issued or guaranteed by the International Bank for Reconstruction and Development; or

"quoted securities" means securities, including deben tures and fully paid shares, quoted on a stock ex change recognized by the Minister for the purposes of this paragraph; and

"approved corporation" means a company or corporation having in the opinion of the Authority it sharehold ers' equity of a value of not less than $100,000,000 at the time of the investment; or

(d) securities issued or guaranteed by any organization rec ognized by the Minister as an international organization for the purposes of this paragraph;

"sterling" means the pound sterling.

(2) For the purposes of this Act —

(a) "a collective investment scheme" means a "mutual fund" which has the meaning assigned to it in section 156A of the Companies Act 1981 [title 17 item 19] or a "unit trust scheme" which has the meaning assigned to it in section 1 of the Stamp Duties Act 1976 [title 14 item 24];

(b) "financial year" means the financial year of the Authority but in the case of a financial institution it means the financial year of the particular financial institution.

(3) The Minister may by order replace or amend the meaning of the expression "a collective investment scheme" set out in subsection(2)(a) and notwithstanding the provisions of the Statutory Instruments Act 1977 [title 1 item 3] the affirmative resolution procedure applies to an order made under this subsection.

[section 1 amended by 1990:52 effective 12 July 1990]

PART II
CONSTITUTION

Establishment of Bermuda Monetary Authority

2 (1) There shall be established an Authority to be known as "the Bermuda Monetary Authority" which shall have such powers and shall perform such functions as are assigned to it by this Act and the Regulations made thereunder.

[section 2(1) amended by 1990:52 effective 12 July 1990]

(2) The Authority shall be a body corporate having perpetual succession and a common seal and, subject to this Act, shall have power to acquire, hold and dispose of movable and immovable property of whatever kind and to enter into contracts and to do all things necessary for the purpose of its functions.

(3) The Authority may sue and be sued in its corporate name and may for all purposes be described by that name.

(4) The seal of the Authority shall be authenticated by the sig nature of the Chairman and one other director authorized to act in that behalf and shall be judicially and officially noticed.

(5) All documents, other than those required by law to be un der seal, made by, and all decisions of, the Board may be signified under the hand of the Chairman or any director or officer authorized to act in that behalf.

Principal objects

3 (1) The principal objects of the Authority shall be—

(a) to issue and redeem notes and coins;

(b) to supervise, regulate and inspect any financial institution which operates in or from within Bermuda;

(ba) to promote the financial stability and soundness of financial institutions;

(bb) to supervise, regulate or approve the issue of financial instruments by financial institutions or by residents;

(c) to foster close relations between financial institutions themselves and between the financial institutions and the Government;

(d) in accordance with any statutory provision in that behalf to manage exchange control and regulate transactions in foreign currency or gold on behalf of the Government;

(e) to advise and assist the Government and public bodies on banking and other financial and monetary matters; and

(f) to perform such functions as may be necessary to fulfil such principal objects.

(2) In this Act "public body" means a body designated for the purposes of this Act by the Minister by instrument in writing as a body having public purposes.

Board of Directors

4 (1) There shall be a Board of Directors of the Authority who, subject to this Act, shall be responsible for the policy of the Authority and the general administration of its affairs and business.

(2) The Board shall consist of seven directors (including a Chairman) appointed by the Minister by instrument in writing from among persons having in the Minister's opinion knowledge and experi ence of Bermuda's economy.

(3) The Chairman, or, in his absence, such other director as the Chairman may by instrument in writing appoint to act in that behalf, shall be in charge of the management and operations of the Authority overall, and shall be answerable to the Board for his acts and decisions.

(4) No action, suit, prosecution or other proceeding shall be brought or instituted personally against the Chairman or any other di rector or an officer, a servant, an agent or an adviser of the Authority in respect of any act done bona fide in pursuance or execution or intended execution of this Act.

(5) Where any director is exempt from liability by reason only of subsection (4), the Authority shall be liable to the extent that it would be if that director were a servant or agent of the Authority.

(5A) Neither the Authority nor any person who is a director of the Board or who is acting as Chairman or an officer, a servant, an agent or an adviser of the Authority is liable in damages for any act done or omitted in the discharge or purported discharge of the supervisory functions of the Authority under this Act or the Regulations made thereunder unless it is shown that the act or omission was in bad faith.

(6) The First Schedule shall have effect as to the tenure of office of the directors and the operations of the Board and otherwise in relation thereto.

[section 4 amended by 1990:52 effective 12 July 1990]

Establishing committees

4A The Board, after consultation with the Minister, may establish such committees as the Board deems necessary for the purpose of advising the Authority on matters connected with the discharge of its functions under the Act and the Regulations made thereunder.

[section 4A inserted by 1990:52 effective 12 July 1990]

Officers, servants and agents

5 (1) The Authority shall appoint and employ a General Manager, and may appoint and employ such other officers, servants and agents as the Authority considers necessary for the due performance of the Au thority's functions.

(2) The remuneration, and other terms and conditions of em ployment, of persons appointed and employed pursuant to subsection (1) shall be such as the Authority thinks fit and the Minister approves.

(3) The Governor, acting on the advice of the Minister, may, subject to such conditions as he may impose, approve of the appoint ment of any public officer in the service of the Government by way of secondment to any office with the Authority, and any public officer so appointed shall, in relation to pension, gratuity or other allowance and to other rights and obligations as a public officer, be treated as continuing in the service of the Government.

(4) Without prejudice to the generality of subsection (3) the Governor, acting on the advice of the Minister, may authorize any public officer to exercise any function or class of function under the direction and control of the Authority as he may think fit and for the purpose of exercising such functions such public officer shall for all purposes be deemed to be an officer of the Authority.

General Manager

6 (1) There shall be a General Manager of the Authority, who shall also be the Secretary to the Authority.

(2) The General Manager shall be under the direction and con trol of the Chairman.

(3) Subject to subsection (2), the General Manager shall be the principal administrative officer of the Authority and be responsible for the carrying out of the Authority's functions.

PART III
CAPITAL AND RESERVES

7 (1) The authorized capital of the Authority shall be $2,400,000 which shall be subscribed at such times and in such amounts as the Board, with the approval of the Minister, may require.

(2) Subject to the approval of the House of Assembly signified by resolution the authorized capital of the Authority may from time to time be increased by resolution of the Board.

General reserve

8 (1) The Authority shall establish and maintain a General Re serve to which, subject to subsection (2), there shall be transferred at the end of each year an amount representing the net profit or from which there shall be deducted an amount representing the net loss of the Au thority after taking into account the expenses of its operation and after provision has been made for bad and doubtful debts, depreciation in as sets and other contingencies.

(2) Transfers to the General Reserve pursuant to subsection (1) shall be made in the manner following:

(a) so long as that Reserve amounts to less than 10% of the demand liabilities of the Authority at the end of the year in which any net profit was earned the whole of such net profit shall be transferred to that Reserve;

(b) so long as that Reserve is equal to or exceeds 10%, but is less than 15% of such liabilities, there shall be trans ferred to that Reserve one half of the net profit or such smaller amount as will make the Reserve equal to fifteen per centum of the said liabilities;

(c) where that Reserve is equal to or exceeds 15% of the said liabilities, further transfers may be made with the agreement of the Minister.

(3) Where any net profit remains after provision is made pur suant to subsections (1) and (2) the Board may, with the approval of the Minister, apply any portion thereof for the purpose of subscribing the paid up capital of the Authority and the remainder of such net profit shall be transferred to the Consolidated Fund.

(4) If in any year the Authority should make a net loss which exceeds the amount of the General Reserve at the end of that year, a sum equivalent to the amount by which such net loss exceeds that Re serve shall be paid to the Authority from the Consolidated Fund.

(5) For the purposes of subsection (2), "demand liabilities" does not include demand deposits placed with the Authority which con sist of public funds.

PART IV
CURRENCY

Establishment of currency of Bermuda

9 (1) There is hereby established a currency of Bermuda the unit of which shall be the Bermudian dollar which shall be divided into
one hundred cents.

(2) As from 6 February 1970—

(a) every contract, document, sale, payment, bill, note, in strument and security for money and every transaction, dealing, proceedings, matter and thing whatsoever re lated to money or involving the payment of or liability to pay any money which, but for this Act would have been deemed to be made, executed, signed, entered into, done and had in relation to pounds, shillings and pence, shall, in Bermuda, be deemed instead to be made, exe cuted, signed, entered into, done and had in and in re lation to the currency of Bermuda;

(b) in every statutory provision including this Act a refer ence to pounds, shillings, pence or fractions of a penny shall be construed as a reference to the equivalent sum in the currency of Bermuda.

(3) Where any conversion into the currency of Bermuda under this section would result in a fraction of a cent, then—

(a) if that fraction amounts to half a cent or more, it shall be regarded as one cent; and

(b) if that fraction amounts to less than half a cent, it shall be ignored.

(4) For the purposes of subsection (2) the Bermudian dollar shall have the parity with sterling in force at 6 February 1970.

Parity of Bermuda dollar

10 (1) The parity of the Bermudian dollar shall be equivalent to such amount of sterling, or of any other national or international cur rency, or of gold, as the Governor, acting in accordance with the Articles of Agreement of the International Monetary Fund, may by Order, made in accordance with this section, prescribe.

(2) An Order shall come into operation at the time and on the day on which it is subscribed in writing by the Governor or at such time, being not earlier than 24 hours from the time at which it is so sub scribed, as may be specified in such Order.

(3) An Order shall be given such publicity as soon as may be after it is subscribed in writing by the Governor as, in the opinion of the Governor, is likely to bring the Order to the notice of such persons as are immediately affected thereby and, notwithstanding the foregoing, shall be published in the Gazette.

(4) An Order may be made on a public holiday within the meaning of the Public Holidays Act 1947 [title 28 item 8].

Sole right to issue notes and coins

11 (1) The Authority, subject to this Act and any statutory instru ment made under this Act, may provide and issue currency notes and coins in Bermuda.

(2) No person other than the Authority shall issue currency notes, bank notes or coins, or any documents or tokens payable to bearer on demand being documents or tokens having the appearance of currency notes or coins; and any person who issues such currency notes, bank notes, coins, documents or tokens, without prejudice to the Criminal Code [title 8 item 31], commits an offence.

Punishment on summary conviction: a fine of $720 or imprisonment for 6 months or both such fine and imprisonment.

Issue of currency

12 The Authority shall from time to time as circumstances may re quire —

(a) arrange for the printing of notes and the minting of coins for circulation in Bermuda; and

(b) arrange for the safe custody of unissued stocks of notes and coins and for the preparation, safe custody and de struction of plates and paper for the printing of notes and dies for the minting of coins.

Regulations as to form of notes and coins

13 The Minister may, on the recommendation of the Authority, by regulation prescribe —

(a) the denominations (being multiples or fractions of a dollar), forms and designs, of the currency notes and coins to be issued by the Authority;

(b) the devices to be borne by such notes and coins;

(d) the standard weight and composition of such coins and the amount of tolerance and variation which shall be al lowed therein.

Issue and redemption of currency notes

14 The Authority shall on demand by any person at its place of business in Bermuda issue and redeem currency notes against dollars,
and may, upon such demand as aforesaid, in its discretion issue and re deem currency notes against any other currency which may be included in the reserve of external assets pursuant to section 19:

Provided that—

(a) the requirements of this paragraph shall have effect in relation to the fixing of rates of exchange for sterling or any other currency in respect of spot transactions, that is to say —

(i) the Authority shall obtain the Minister's ap proval for a rate before fixing the rate;

(ii) a rate shall not in any event diverge by more than one percentage point on either side from the parity of the currency of Bermuda pre scribed under section 10; and

(b) the Authority shall not be obliged in respect of any one transaction to buy or sell sterling or any other currency for an amount less than $20,000 or such other amount (whether more or less than that amount) as the Author ity may fix as a minimum amount for such purpose, so, however, that notice of every minimum amount so fixed shall be published in the Gazette as soon as possible after it is fixed; and

(c) nothing in this section shall require the Authority to is sue currency of Bermuda so that at any time the amount of currency issued and available is in the opinion of the Authority in excess of that required as a normal current medium of exchange.

Legal tender

15 (1) Currency notes shall be legal tender at their face value for the payment of any sum.

(2) Coins shall be legal tender at their face value up to an amount not exceeding $100 in the case of coins of a denomination of not less than one dollar, and up to an amount not exceeding $5 dollars in the case of coins of a denomination of less than one dollar.

[see GN 200/1990 as to calling in of $1 note and 50 cent coin which ceased to be legal tender after 30 April 1990]

Calling in of currency notes or coins

16 (1) Notwithstanding section 15 the Authority may, on giving not less than one month's notice in the Gazette, call in any currency notes or coins on the payment of the face value thereof and any such

Bermuda in any freely convertible currency;

(v) specified securities:

Provided that not more than 25% of the reserve of external assets shall be invested in securities defined in paragraph (c) of the definition of specified securities;

(vi) balances with the Crown Agents.

(2) It is hereby declared that external assets do not include any security, debt or other liability in any currency, issued or guaranteed by the Government or by any resident.

[Section 19 amended by 1990:52 effective 12 July 1990]

Local assets

20 The Authority shall at all times maintain a reserve of local as sets—

(a) which shall be in value not less than the difference, if any, between the amount of its total liabilities in relation to the face value of currency notes in circulation and the value of external assets specified in section 19; and

(b) which shall consists [sic] of both or either of the following—

(i) Treasury bills issued by the Government and maturing in not more than 93 days;

(ii) securities issued or guaranteed by the Govern ment, so, however, that securities maturing more than 5 years from the date of acquisition shall not constitute more than one half of the lo cal assets held by the Authority under this sec tion.

PART IVA
SUPERVISION, REGULATION AND INSPECTION OF FINANCIAL INSTITUTIONS

Authority to supervise, regulate and inspect financial institution

20A (1) Every person, body or entity specified in the Third Schedule (in this Act referred to as a "financial institution") operating in or from within Bermuda shall be subject under this Act or the Regulations made thereunder to supervision, regulation and inspection by the Authority.

(2) The Minister may by order replace, add to or vary the Third Schedule.

(3) Notwithstanding the provisions of the Statutory Instruments Act 1977 [title 1 item 3], the affirmative resolution procedure applies to an order made under subsection (2).

[Section 20A inserted by 1990:52 effective 12 July 1990]

PART V
OPERATIONS

Relations with Government

21 (1) The Authority —

(a) shall act as adviser to the Minister on policy matters relating to any financial institution and on monetary or financial matters generally;

(b) may act as investment adviser to the Government or to any public body; and

(c) may act generally as agent for the Government where it can do so appropriately and consistently with its func tions under this Act;

(d) shall, in connection with the incorporation of companies, which propose to carry on any restricted business activity as set out in the Ninth Schedule to the Companies Act 1981 [title 17 item 5] the establishment or formation of partnerships, collective investment schemes, sole traders or other entities or in respect of an application for a permit pursuant to section 134 of the Companies Act 1981 [title 17 item 5] or pursuant to section 4 of the Overseas Partnerships Act 1995 [title 17 item 52], process applications and make recommendations to the Minister or in respect of all matters relating, ancillary or consequential thereto occurring before or after such incorporation, establishment, formation or application make recommendations to the Minister.

(2) The Minister may from time to time, after consultation with the Board, give to the Authority in writing such general directions as ap pear to the Minister to be necessary in the public interest and the Au thority shall act in accordance with such directions.

[Section 21 amended by 1990:52 effective 12 July 1990, by 1995:32 effective 28 July 1995; and by 1998 : 35 effective by notice in Official Gazette]

Furnishing information

22 (1) Subject to this Act, the Authority may require—

(a) any person to furnish it at such time or times or at such intervals or in respect of such period or periods with such information as the Authority may reasonably require to discharge its functions under section 21(1)(a) or 21(1)(d); or

(b) any financial institution to furnish it at such time or times or at such intervals or in respect of such period or periods with such information as the Authority may reasonably require to discharge its functions in respect of the supervision, regulation or inspection of the financial institution.

(2) Where the authority requires information to discharge its functions under section 21(1)(d), the information shall be such as the Minister determines under section 4A(3) or section 6(1) of the Companies Act 1981 [title 17 item 5] but no person shall be obliged to furnish the information.

(3) Subject to this Act, the Authority may —

(a) require any financial institution to produce within such time and at such place such document or documents;

(b) authorize an officer, a servant, an agent or an adviser of the Authority, on producing evidence of his authority, to require any financial institution to provide him forthwith with such information or to produce to him forthwith such documents as he may specify.

being such document or information as the Authority may reasonable require for the discharge of its functions in respect of the supervision, regulation or inspection of the financial institution.

(4) The power under this section to require a financial institution to produce documents includes power —

(a) if the documents are produced to take copies of them or extracts from them;

(b) if the documents are not produced, to require the financial institution which was required to produce them to state, to the best of its knowledge and belief, where they are.

[section 22 amended by 1990:52 effective 12 July 1990; and by 1998 : 35 effective by notice in Official Gazette]

PART VI
ACCOUNTS AND STATEMENTS

Financial year

25 The financial year of the Authority shall end on the thirty-first day of December.

Expenditure budget

26 (1) The Authority shall, not later than four months (or such shorter period as the Minister may allow) before the commencement of each financial year, submit to the Minister for his approval estimates in such form and in such detail as the Minister may require in respect of the Authority's expenditure on operations in that financial year.

(2) The Authority shall submit as soon as may be to the Minis ter for his approval any proposed amendments to any such estimates.

(3) Any such estimates and any such amendments, when ap proved by the Minister for any financial year, shall constitute the Au thority's expenditure budget for that financial year.

(4) The Authority shall not without the Minister's approval spend in total in any financial year more than the total amount of ex penditure approved by the Minister for that financial year.

(5) The Minister may lay down in writing guidelines to be ob served by the Authority in the management of the Authority's expendi ture budget ("Ministerial guidelines'), and the Authority shall comply with any such guidelines.

(6) Where a specific sum is provided in the Authority's expen diture budget for any financial year in respect of any expenditure item, the Authority shall not spend on that item in that financial year any amount in excess of that sum unless the excess expenditure either—

(a) is made within the Ministerial guidelines; or

(b) has been approved by the Minister.

(7) This section shall not restrict the Authority's power to pay interest on deposits placed with the Authority, or require the Authority in any circumstances to obtain the Minister's approval for the payment of such interest.

Audit

27 (1) The accounts of the Authority shall be audited annually by the Auditor.

(2) Without prejudice to subsection (1) the Minister may at any time require the Auditor to examine and report on the accounts of the Authority as a whole or any aspect of the Authority's operations and the Authority shall provide the Auditor with all necessary and proper facili ties for such an examination.

Publication of accounts and annual report

28 (1) The Authority shall, within four months after the end of each financial year, cause to be made and transmit to the Minister—

(a) a report of the operations of the Authority during that year; and

(b) a copy of the annual statement of accounts of the Au thority certified by the Auditor.

(2) The Minister shall as soon as possible after their receipt—

(a) cause a copy of the report and annual statement of ac counts to be laid before both Houses of the Legislature; and

(b) cause a copy of the annual statement of accounts to be published in the Gazette.

(3) The Authority shall as soon as may be after—

(a) the last working day in each month, make up and transmit to the Minister; and

(b) the last working day in June and December of each year, make up and publish in the Gazette,

a statement showing its assets and liabilities at the close of business on such respective day.

PART VII
MISCELLANEOUS

Other regulations

29 (1) The Minister may, after consultation with the Board, make Reg ulations—

(a) prescribing anything which may be or is to be prescribed under this Act;

(b) directing and controlling the calling in and demonetiza tion of currency notes and coins issued under this Act; and

or document regarding the account or regarding any matter or thing relating to the business or other affairs of any individual depositor, client or other customer of a financial institution which has been obtained by the Authority in the exercise of its functions relating to the supervision, regulation or inspection of a financial institution shall be disclosed.

(2) No director, officer, servant, agent or adviser of the Authority shall be required to produce in any court any book or document or to divulge or communi cate to any court any matter or thing coming under his notice in the performance of his duties under this Act or other statutory provision, ex cept on the direction of the court or in so far as may be necessary for the purpose of carrying into effect this Act or other statutory provision.

(3) Notwithstanding anything to the contrary in this section the Minister, where he is of the opinion that it is desirable so to do in the interests of internal security or for the detection of crime, may authorize any police officer of or above the rank of Inspector by warrant under his hand to inspect and take copies of any of the books or records of the Authority.

(4) The books of the Authority shall be deemed to be banker's books for the purposes of the Evidence Act 1905 [title 8 item 10].

[section 31 amended by 1990:52 effective 12 July 1990]

False verification of account or report

32 Any director, officer or auditor of the Authority who verifies any statement, account or report required to be furnished to the Minister pursuant to this Act, or who is concerned with delivering or transmitting the same to the Minister, knowing the same to be false in a material par ticular, commits an offence.

Punishment on summary conviction: a fine of $10,000 or imprisonment for six months or both such fine and imprisonment.

Punishment on conviction on indictment: a fine of $25,000 or imprison ment for 2 years or both such fine and imprisonment.

[section 32 amended by 1990:52 effective 12 July 1990]

Transmitting false information

33 (1) Where the Authority requires information —

(a) in the discharge of its functions under section 21(1)(a); or

(b) in the discharge of its functions under section 21(1)(d) or its functions relating to the supervision, regulation or inspection of a financial institution under this Act,

then a person commits an offence if he furnishes or is concerned with furnishing any information to the Authority knowing the same to be false or misleading in a material particular or recklessly furnishes information which is false or misleading in a material particular.

(2) A person who commits an offence —

(a) under subsection (1)(a) is liable on summary conviction to a fine of five thousand dollars;

(b) under subsection (1)(b) is liable on summary conviction to a fine of twenty-five thousand dollars or to imprisonment for six months or both or on conviction on indictment to a fine of fifty thousand dollars or to imprisonment for two years or both.

(3) Where an offence under subsection (1) committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of any director, manager, secretary or other officer of the body corporate, he, a [sic] well as the body corporate, shall be deemed to be guilty of an offence and is liable to be proceeded against and punished accordingly.

(4) Where the affairs of a body corporate are managed by the members, subsection (3) applies in relation to the acts and defaults of a member in connection with his functions of management as if her were a director of the body corporate.

(5) Where a partnership is guilty of an offence under subsection (1), every partner, other than a partner who is proved to have been ignorant or to have attempted to prevent the commission of the offence, is also guilty of the offence and is liable to be proceeded against and punished accordingly.

(6) Where any other association, incorporated or not, is guilty of an offence under subsection (1) —

(a) every officer of the association who is bound to fulfil any duty of which the breach is the offence; or

(b) if there is no such officer, every member of the governing body other than a member who is proved to have been ignorant of or to have attempted to prevent the commission of the offence,

is also guilty of the offence and is liable to be proceeded against and punished accordingly.

[section 33 repealed and replaced by 1990:52 effective 12 July 1990]

Communication by auditor with Authority

33A No auditor of a financial institution is in breach of any duty to which he is subject as auditor of that institution by reason of his communicating in good faith to the Authority, whether or not in response to a request made by it, any information or opinion on any matter of which he becomes aware in his capacity as auditor of that institution and which relates to the business or affairs of that institution.

[Section 33A inserted by 1993:32 effective 7 July 1993]

Imitation of currency notes

34 (1) Any person, except a person acting in accordance with the terms of previous written permission from the Authority, who makes, causes to be made, uses for any purpose whatsoever or utters any doc ument purporting to be or in any way resembling or so nearly resembling as to be calculated to deceive any currency note or part thereof commits an offence.

Punishment on summary conviction: a fine of $1,500 or in default of pay ment thereof imprisonment for 3 months.

(1A) The court upon convicting any person under this section may order the document in respect of which the offence was committed, any copies of that document, and any plates, blocks, dyes [sic], or other in struments used for or capable of being used for printing or reproducing that document which are in the possession of such person, to be de stroyed under the supervision of the court.

(2) In this section "currency note" means a note issued under this Act, and includes also any note of similar character by whatever named called, issued by or on behalf of the Government of the United Kingdom, or by or on behalf of the Government or any other country or administration whether within or without the Commonwealth.

PART VIII
TRANSITIONAL PROVISIONS, REPEAL, ETC.

[omitted]

[Part IV was brought into operation on 6 February 1970 [GN 63/70] and the remainder on 20 February 1969 [GN 83/69]]

FIRST SCHEDULE (Section 4)

1 The term of office of every director shall be specified in the in strument appointing him and shall not exceed three years, but any di rector retiring on the expiration of his term of office shall, subject to paragraph 2 of this Schedule, be eligible for re-appointment.

2 A person may not be appointed or remain a director if he is a member of either House of the Legislature.

3 The Minister may appoint any person who might be appointed a director to act temporarily in the place of any director who is absent or unable to act.

4 Any director may at any time resign his office by instrument in writing addressed to the Minister and transmitted through the Chair man, and from the date of the receipt by the Minister of such instrument such director shall cease to be a director of the Authority.

5 The names of all members of the Board as first constituted and every change in the membership thereof and every appointment made under section 4(4) shall be published in the Gazette.

6 (1) The Board shall meet as often as they deem necessary or expedient for the due performance of their functions and of the functions of the Authority and meetings shall be held at such places, on such days and at such times as the Chairman, or three other directors acting to gether, may determine.

(2) The Chairman, or, in the event of the absence or inability to act of the Chairman, a director elected by the directors present to act in that behalf shall preside at a meeting of the Board and the Chairman or director so presiding shall have a vote and in the event of an equality of votes the Chairman shall have a further and casting vote.

(3) The quorum of the Board shall be 4 directors including the director presiding at the meeting.

(4) The validity of any proceeding of the Board shall not be af fected by any vacancy amongst the directors or by any defect in the ap pointment of a director.

7 The Authority may pay to the directors such remuneration and allowances as it thinks fit and the Minister approves, and may with the Minister's approval pay to the Chairman or any other director, in light of the duties performed by him, remuneration or allowances that are differ ent from those that it pays to other directors.

SECOND SCHEDULE

[omitted]

Bermuda Consolidated Legislation

Bermuda Monetary Authority Act 1969