Banks Amalgamation.

Feilding Star, Volume XVII, Issue 96, 19 October 1895, Page 2

Banks Amalgamation.

TEEMS OF SETTLEMENT. (Per Press Association). Wellington, October 18. The agreement entered into between the Colonial Bank and the Bank of New Zealand for the purchase of the former institution was laid on the table of both Houses this afternoon. The Bank of, New Zealand purchases the business and assets of the Colonial Bank, except the uncalled capital and reserve liability of shareholders, and the assets and debts nientianed in a certain list marked " D," which has been prepared and signed by three Directors of the Bank. The basis of the contract is the business and assets of the Colonial Bank, and for the purposes of the agreement the face value of the consideration is estimated at £461,221, but from this sum is die* ducted and retained by the purchasing - Bank the sum of £327,805 .as security pending the taking over, realisation or adjustment of the accounts of the selling Bank. The sum of £183,906 is to be paid in cash by the Bank of New Zealand to the Colonial Bank on ratification and approval of the agreement. The assets and debts mentioned in the " D," list are to remain the property of the selling Bank. The face value of these amounts to £102,000. The accounts of the selling Bank are taken as from tbe 81st May last in London, and as from the 31st August last in New Zealand, and from these dates all rates, taxes, and fire insurance premiums are to be paid by the purchasing Bank. Monthly returns as to the accounts are to be furnished by the purchasing Bank, and no increase of indebtedness shall be allowed in respect of any such accounts, except by mutual agreement. If the purchasing Bank represents to the selling Bank that any account is becoming bad, or in the event of a cus- '. tomer failing to pay interest on any such account, tbe purchasing Bank may rerequire that the account shall be dosed and realised after one month's notice to to the selling Bank, but the selling bank shall have the option of withdrawing such account from the assets hereby sold. On paying to the purchasing Bank the amonnt then due thereon the par* chasing Bank is to meet all business obligations of the selling Bank which are disclosed on the books/ A list of officers of the selling Bank is to be furnished to the purchasing Bank, - and as many of them as the exegencies may require are to be afforded employment by the purchasing Bank. The landed property and bank premises of the selling Bank are to be taken at the values appearing in the balance sheet up to 81st August last in New Zealand and 81st May in London. Furniture and stationery have been assesed at £6250. If any \ difference arises between the two parties it is to be referred to arbitration. The agreement is conditional upon its subsequent ratification by a resolution passed by the proprietors or shareholders of the selling bank provided by the. Bank of New Zealand and Banking Act, 1895, and approval of Parliament to. be signified as prescribed in the same Act. The date appointed for the transfer" of the Colonial Bank's business} is to be the second Monday after ratification and approval of agreement. ■,