THE BANK PURCHASE AGREEMENT.

Grey River Argus, Volume XXXVII, Issue 9268, 19 October 1895, Page 4

THE BANK PURCHASE AGREEMENT.

(FSB PBESS ASSOOIAffIOK.) Wellington, October 18. The agreement! entered into between the Colonial Bank and the Bank of No* Zealand for the purchase of the former institution was laid on the table of both r f?p% Houses this afternoon. ,-^,:< The Bank of New Zealand purchases the business and assets of the Colonial Baiik, except uncalled up capital and the reserve liability of shareholders and the assets and debts mentioned in a certain list marked "D," which has been prepared and signed by three directors of each Bank. The basis of the oontraot Is that the business and assets of the Colonial Bank, and for the purposes of the agreement the face valae of the consideration Is estimated at L46i,211 ; but from this sum is deducted and retained by the purchasing Bank the cam of L 327.305 as security, pending taking over the accounts of the sailing Bank. The sun? of L 133.906 is to be paid in cash by the Bank of New Zealand to the Colonial Bank on the ratification and approval of the agreement. The assets and debts mentioned In the " D" Hat are to remain the property of the Belling Bank. The faca value of .these amounts to L 102.000. The accounts of the selling Bank are taken as from the 31st May last In London, and as from the 31st August laßt in New Zealand, and ftom these dates all rate?, taxes, and fire insurance premiums ate to be paid by the purchasing B*nk. Monthly returns as to the accounts ara to be furuished by the Purchasing Bank, and no increase of indebtedness shall be allowed in respect of any such accounts except by mntu 1 agreement. If the purchasing Bank represents to the selling Bank that any account lsbscomlngbad, or la the event of a caatomar failing to pay interest en any such account, the purchasing B»nk may rt quire that the account Bhall bo cJoaed end reillged after one month'a notice to the selling Bink, bnt the selling Bant shall have (ha option of withdrawing suoh account from the assets hereby told on paying to the purchasing Bank, the amount then due. Therefore the parchasing bank la to meet all the busi- „ ness obligations of the selling bank, which are disclosed on the books. The i list of officers of the selling Bank is to be ' furnished to the purchasing bank, and as many of them as exigencies msy re- J quire are to be allowed employmeut by I the parchasing Bank. The landed pro* i per y and Bank premises of the sell in ,» Bank are to be taken at the values appear' ing on the balance sheet up to the 3 1st 1 August last in New Z aland and 31st May i In London. Thefumitu-e and stati- nery have been asiis ied at L 6350. If any differ- h ence arises between the two parties it is c to be referred to arbitration. The agreement is conditional upon its s bsequant a ratification by resolution pasted by the t! proprietors and shareholders of the selling Bank, as provided by the " Bank of New Zealand and the Baling Act, 1895," li and the approval of Parliament, to bo « signified as prescribed in the same Act. I The date appointed for. tie transfer of the tf Colonial Bank business is to be the G ■•oond Monday after the ratification and j o; •ppioYal of the tgrfltttenh *i