Banks Amalgamation.

Manawatu Herald, 22 October 1895, Page 2

Banks Amalgamation.

The agreement entered into. be? tween the Colonial Bank and the Bank of New Zealand for the purchase of the former institution has i been laid on the table of both Houses of Parliament, i the Bank of New, y?es lajaOiw I chases the business and asfets'ofeihe i Colonial Bank, except the uncalled > capital and reserve liability of shares holders, and the assets and debts : mentioned in a certain list marked : " D," which has been prepared and signed by three Directors of the i Bank. The basis of the contract is ; the business and assets.^ s*Js%< i Colonial Bank and for the "purrpTOidr s of the agreement the face value of i the consideration is estimated at ; £461.211, bat-^roflTithir s?m is ' deducted and retained" by .the' piiy- > chasing Bank the sum of £827,805 '< as security pending the tajking pyejv, ■ realisation or adju3tmen? ofn'fc^r [ account of the SBlling JBank.7 ToW> ilauin of £188,906 is to be paid in

eaah by the Bapk of New Zealand U) the u>loQ|slJrank ott ''ratification and approvai'ei theagreement. The assets and mentioned in the •• D " lisfcftfpq !&¥#> the property of the seUijlgEan^ ; The face value of these aSnt|to £102,000. The accounta^p^e Celling Bank are taken a£js#f}he $lst May last in London?fap9? as from 81st August last in Nt# Zealand, and from these dategarifc^9i6e9j taxes and fire in- "^ suran^^ejtniums arc to be paid bj the nMW^Bing Bank. Monthlj retutnaartb the accounts are to be furnished p^ .the purchasing Bank, Monthly teturns as to the accounts ate to be* furnished by the piirchflsing ,Ba»k, and no increase oi indebtedness shall be allowed ie respect of any such accounts, except bynjfutual agreement. If the purchaating Bank represents to the selling Bank that any account is becoming bad, or in the event of a customer, failing to pay interest on any -such account, the purchasing Bank 8 may require that the account flhall be closed and realised after one moQth l B notice to the selling Bank, but the selling Bank shall have the optiori^sf withdrawing such account from the assets hereby sold. On paying to the purchosing Bank the amount then due thereon the puis chasing, Bank is jfco meet all business obligations of the Belling Bank which are disclosed on the books. A list of officers of the selling Bank is to be funfisHed to the purchasing Bank, and as many of them as the exigencies 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 31st August laßt in New Zealand and 81st May in London. Furniture and stationery have been assessed at £6,250. If any difference arises between the two parties ifc is to be referred to arbitration. The ogreeruenfc is conditional upon its subsequent ratification by a resolution passed bythe proprietors or shareholders of tho selling Bank as provided by the. "Bank of New Zealand and Backing 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 businesses to be the second Monday after ratification and approvnl of pgreemenfr.