18.Section 45 of the principal enactment is hereby repealed and the following section substituted therefor :-
| 45.
| | (1) Where the Director of Bank Supervision is satisfied that a licensed commercial bank-
| | | (a) is engaged in unsafe and unsound practices in the carrying on of its business which is likely to jeopardize its obligations to its depositors or is likely to result in such bank being unable to meet its obligations; or |
| (b) has contravened or failed to comply with the provisions of this Act or of any regulation, direction, order or other requirement made or given under this Act or has contravened or failed to comply with any other written law which in the opinion of the Director of Bank Supervision relates to banking or finance, |
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| | (2) An order issued under subsection (1) shall -
| | | (a) specify the unsafe and unsound practice engaged in or the provisions of this Act or other written law or the regulation, direction, order or other requirement made or given under this Act that are contravened or not complied with; |
| (b) be served personally on, or be sent by registered post to, the licensed commercial bank; |
| (c) take effect on the date of its service on the licensed commercial bank, notwithstanding an appeal made under subsection (3), unless the Monetary Board otherwise directs. |
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| | (3) Any licensed commercial bank aggrieved by an order issued under subsection (1) may, before the expiration of thirty days of the date of service of the order, appeal to the Monetary Board and the Monetary Board shall, within thirty days of the date of receipt of the appeal confirm, vary or revoke such order. | | |
| | (4) Without prejudice to anything contained in section 9, and notwithstanding that an appeal has been tendered to the Monetary Board under subsection (3), a licensed commercial bank which fails to comply with an order under subsection (1) within the period specified in the order, shall be guilty of an offence under this Act and shall be liable on conviction upon trial by a Magistrate to a fine of one million rupees and to a further fine of one hundred thousand rupees for each day of non-compliance with the order after the conviction, provided that, where an appeal has been tendered under subsection (3), proceedings shall not be instituted before a Magistrate until the decision of the Monetary Board is conveyed to the licensed commercial bank.". | | |
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Sri Lanka Consolidated Acts