Section 8
Depository institutions
of Treasury Bills (Local) Act 1946
The Bank may authorize in writing any participating investing institution to be a depository institution.
(2)
Any person, other than a participating investing institution, desiring either to make a transfer or take a transfer of a Treasury Bill shall do so only through a depository institution.
(3)
A depository institution shall maintain with the Bank, in addition to the account maintained by it under subsection 7(4) a separate single account in respect of all transfers effected through it under subsection (2).
(4)
The Bank shall repay to a depository institution the principal moneys represented by each Treasury Bill standing in the depository institution’s account under subsection (3) on the date the Treasury
Bill falls due, by such means and in such manner as may be determined by the Bank.
(5)
A depository institution shall maintain a customer’s account in respect of every transferor and transferee who is a party to any transfer effected through the depository institution under subsection
(2)
, except where a customer’s account in respect of a transferee is maintained by another depository institution, in which case the first mentioned depository institution shall have the Treasury Bill transferred into the transferee’s account with the second mentioned depository institution.
(6)
Where a transfer of a Treasury Bill is made by any person under subsection (2), the following procedure shall be complied with by the respective depository institutions:
(a)
the depository institution by which the transfer is made shall forthwith issue—
(i)
to the transferor a statutory acknowledgement receipt in the form in Schedule A in respect of the transfer; and
Treasury Bills (Local) 11
(ii)
to the transferee a statutory acknowledgement receipt in the form in Schedule A in respect of the transfer, if such depository institution maintains a customer’s account in respect of the transferee’s Treasury Bills; and
(b)
if another depository institution maintains a customer’s account in respect of the transferee’s Treasury Bills, the depository institution mentioned in paragraph (a) shall forthwith notify such other depository institution of the transfer and such other depository institution shall forthwith issue to the transferee a statutory acknowledgement receipt in the form in Schedule A in respect of the transfer.
(7)
A statutory acknowledgement receipt shall not be capable of being negotiated or dealt with in any manner whatsoever, and shall be used solely between the depository institution which issued it and the
Treasury Bill customer to whom it was issued as evidence of the transfer of a Treasury Bill under subsection (2) to which it relates.
(8)
Where the amount in the account maintained by a depository institution with the Bank under subsection (3) is affected by a transfer effected through it under subsection (2), the depository institution shall communicate forthwith to the Bank information of any change in such amount caused by the transfer.
Duties and obligations of depository institutions in relation to transfers effected under subsection 8(2)