Uganda Commercial Bank Act

UGANDA COMMERCIAL BANK ACT. ARRANGEMENT OF SECTIONS. Section PART I INTERPRETATION. 1. Interpretation. PART II ESTABLISHMENT AND CAPITAL. 2. Establishment of the bank. 3. Head office. 4. Functions of the bank. Capital and reserve. 5. Authorised capital. 6. General reserve fund. 7. Borrowing powers. PART III ADMINISTRATION. The board. 8. Board of directors. 9. Qualifications for appointment as director. 10. Term of office. 11. Meetings of the board. Staff. 12. Appointment of employees. 13. Declaration of secrecy. PART IV ACCOUNTS AND AUDIT. 14. Balance sheet. 15. Functions of auditor. PART V MISCELLANEOUS. 16. Contracts. 17. Byelaws of the bank. 18. Powers of the Minister. 19. Service of documents. 20. Relations with the Government. 21. Relations with other banks. 22. Companies Act not to apply to the bank. 23. Regulations. 24. Liquidation. CHAPTER 55 UGANDA COMMERCIAL BANK ACT. Commencement : 8 October, 1965. An Act to establish the Uganda Commercial Bank and other purposes connected therewith. PART I INTERPRETATION. 1. Interpretation.

nt : 8 October, 1965. An Act to establish the Uganda Commercial Bank and other purposes connected therewith. PART I INTERPRETATION. 1. Interpretation.

In this Act, unless the context otherwise requires— ( a ) "bank" means the bank established by section 2; ( b ) "board" means the board of directors established by section 8; ( c ) "financial year" means the period of 12 months ending on the 30th"> day of September; ( d ) "functions" includes powers and duties; ( e ) "Minister" means the Minister to whom functions under this Act are assigned. PART II ESTABLISHMENT AND CAPITAL. 2. Establishment of the bank. (1) There shall be established a commercial bank to be known as the Uganda Commercial Bank. (2) The bank shall be a body corporate with perpetual succession and a common seal and may sue or be sued in its corporate name. (3) The bank may, subject to the limitations contained in this Act relating to the business which may be carried on by the bank, purchase, hold, manage and dispose of real and personal property and may enter into such contracts as may be expedient.

may be carried on by the bank, purchase, hold, manage and dispose of real and personal property and may enter into such contracts as may be expedient.

(4) The application of the common seal of the bank shall be authenticated by the chairperson of the board or in his or her absence, a director appointed by the chairperson in that behalf, and two other directors, all of whom shall sign in token of their presence; and such signing shall be independent of the signing of any person who may sign the instrument as a witness. (5) Every contract in respect of any matter subsisting between the Uganda Credit and Savings Bank and any other person and in force immediately before the commencement of this Act shall be deemed to subsist between the bank and that other person. 3. Head office. The bank shall have its head office in Kampala and may open branches and appoint agents in and out of Uganda in accordance with the decisions of the board made in that behalf. 4. Functions of the bank.

may open branches and appoint agents in and out of Uganda in accordance with the decisions of the board made in that behalf. 4. Functions of the bank.

(1) The bank is authorised to carry on and transact the following kinds of business— ( a ) the receiving of deposits and the keeping of cash accounts on such terms as may be determined by the board; ( b ) the advancing and lending of money on securities and property, including the following— (i) goods which, or the documents of title to which, are deposited with or assigned to the bank as security for the advances or loans; (ii) goods which are hypothecated with the bank for such security, or loans if so authorised by special directions of the board; (iii) debentures of companies with limited liability whether incorporated in Uganda or elsewhere, subject to such directions as may be issued by the board; ( c ) the granting of overdrafts with or without security to such extent as may be prescribed by the byelaws of the bank; ( d ) the selling and realisation of the proceeds of sale of any stocks, funds, shares, securities, debentures, promissory notes or goods which or the documents of title to which have been deposited, pledged or hypothecated with or assigned or transferred to the bank for security for advances or loans or which are held by the bank or over which the bank is entitled to any lien or charge in respect of any loan or advance or any debt or claim of the bank, and which have not been redeemed in due time in accordance with the terms and conditions of the deposit, pledge, hypothecation, assignment or transfer; ( e ) the selling and realisation of all property, whether movable or immovable, which may in any way come into the possession of the bank in satisfaction or part satisfaction of any of its claims and the acquisition and holding of and generally the dealing with any right, title or interest in any property, movable or immovable, which may be the bank's security for any loan or advance or may be connected with any such security; ( f ) the drawing, accepting, discounting, buying and selling of bills of exchange and other negotiable securities; ( g ) the buying and selling of, and otherwise dealing in, foreign exchange; ( h ) the making, issuing and circulating of bank drafts and letters of credit to order or otherwise than to the bearer on demand; ( i ) the drawing of bills of exchange and the granting of letters of credit payable out of Uganda; ( j ) the buying of bills of exchange payable out of Uganda at any u This section of the article is only available for our subscribers.

out of Uganda; ( j ) the buying of bills of exchange payable out of Uganda at any u This section of the article is only available for our subscribers.

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