THE BANKING AGREEMENT.

Daily Telegraph (Napier), Issue 7499, 19 October 1895, Page 4

THE BANKING AGREEMENT.

[PKB PBKSS ASSOCIATION.]

Wellington, Last night,

The agreement entered into between the Colonial Bank and the Bank of New Zealand for the purchase of the former institution, was laid on tho table of both Houses this afternoon. The Sank of New Zealand purchases the business and assets of the Colonial B*nk except the uncalled capital and reserve liabilities of shareholders and the assets and debts mentioned in a certain list marked " D," whioh has been prepared and signed by three directors of each bank. The basis of the oontract is the business and assets of the Colonial Bank, and for the purposes of agreement the f«oe value of the consideration is estimated at £461,211, but from thia sum is deduoted and retained by the purchasing bank the sum of £327,306 as seourity pending taking over the realisation or adjustment of the accounts of the selling bank. The sum of £133,906 is to be paid in oash by the Bank of «ew Zealand to the Colonial Bank oh ratification and approval of the agreament. 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 be £102,000. Tne aocounta of the selling bank are taken as from 31st May last in London, and as from 31st August in Now Zealand, and from these dates all ratea, taxes, and fire inauranco premiums are to be paid by the purchasing bank. Monthly returna as to the aooountu are to be furnished by the purchasing bank, and no increase of indebtedness shall be allowed in respect of any suoh acoounta 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 customer failing to pay interest ou any such account, the purchasing bank may require that the account shall be closed and realised after one month's notice to the selling bank, bnt tbe selling bank shall have the option of withdrawing suoh aooount from the assets hereby sold, on paying to the purchasing bank the amount due thereon. The purchasing bank is to meet all business obligations of the Belling bank, which are described on the books. _ list of officera of the Belling bank is to be furnished to the purchasing bank, and as many of them as exigenoies may.re-: quire 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 iv the balance-sheet up to 3Ut Auguat laat in New Zealand, and 31bt May in London. The furniture and stationery has been assessed at £6250, and 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, as provided by the Bank of New Zealand Banking Aot, 1895, and approval of Parliament, to be signified as prescribed in the same Aot. The date appointed for the transfer of the Colonial Bank's business is to be the second Monday after the ratification and approval of the agreement.