PREVENTION OF FRAUD (INVESTMENTS) ACT (NORTHERN IRELAND) 1940 - SECT 4 Deposits or guarantees required in connection with applications for principals' licences.

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PREVENTION OF FRAUD (INVESTMENTS) ACT (NORTHERN IRELAND) 1940 - SECT 4

Deposits or guarantees required in connection with applications for principals' licences.

4.(1) Subject to the provisions of this section, the Ministry shall not grant
a principal's licence unless the sum of five hundred pounds has been, and
remains, deposited by the applicant for the licence with the Accountant
General of the Supreme Court of Northern Ireland.

(2) Where any sum has been deposited under this section, then

(a)in the event of the depositor becoming bankrupt, the amount of the deposit
shall be paid to the assignee or trustee in bankruptcy; or

(b)if, in a case where the depositor is a corporation, the corporation is
ordered to be wound up by, or under the supervision of, the court, the amount
of the deposit shall be repaid to the corporation;

Subs.(3) rep. by 1978 c.23 s.122(2) sch.7

(4) Upon any application for a principal's licence the Ministry may dispense
with the necessity of making a deposit under this section in relation to the
application

(a)if there is given to the Ministry by a person approved by it an undertaking
in the prescribed form that, in consideration of the Ministry granting such a
licence upon that application, the person giving the undertaking will, upon
the occurrence of the following event at any time before a further principal's
licence is granted to the holder of the licence referred to in the
undertaking, that is to say, the holder becoming bankrupt or, in a case where
the holder is a corporation, the corporation being ordered to be wound up by,
or under the supervision, of the court, pay the sum of five hundred pounds to
the official assignee or trustee in bankruptcy or to the corporation, as the
case may be; or

(b)if the Ministry is satisfied that the applicant has at all times since the
beginning of the year nineteen hundred and thirty-nine been carrying on in
Northern Ireland the business of dealing in securities, and that it would
cause him undue hardship to make a deposit under this section.

(5) In the event in which, by virtue of an undertaking given under the last
preceding sub-section, any sum becomes payable to the official assignee or
trustee in bankruptcy or to a corporation, the official assignee or trustee or
the corporation, as the case may be, shall have the power and duty to recover
that sum from the person by whom it is payable; but if, in a case where any
sum is paid in pursuance of such an undertaking, it is found upon the
administration in bankruptcy or the winding-up that the assets of the bankrupt
or the corporation exceed the amount required to meet his or its debts and
liabilities (including the costs and expenses of the administration or
winding-up), the amount of the excess or the amount of the sum so paid,
whichever is the less, shall be repaid by the trustee or corporation to, or to
the personal representative of, the person by whom the undertaking was given.

(6) In this section the expression "official assignee" includes the assignee
(if any) chosen by the creditors to act with the official assignee.

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Northern Irish Legislation

PREVENTION OF FRAUD (INVESTMENTS) ACT (NORTHERN IRELAND) 1940 - SECT 4