THE BANK AMALGAMATION.

Temuka Leader, Issue 2884, 22 October 1895, Page 4

THE BANK AMALGAMATION.

Wellington, Oct. 18,

The agreement entered into between the Colonial Bank and 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 mentioned in a certain list marked " D," which has been prepared and signed by three directors of each bank. The basis of the contract is the business and assets of the Colonial Bank, aud for the purposes of the agreement the face value of the consideration is estimated at £461,211; but from this sum is to be deducted and retained by the purchasing bank the sum of £327,305 as security pending the taking over, realisation or adjustment of the accounts of ths selling bank. The sum of £133,906 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 "D" list are to remain the property of the selling bank. The face value of these amouuts to £J 02,000. The accounts of the selling bank are taken as from the 31st 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 increased indebtedness shall be allowed in respect of any such accounts, except by mutual agreement. If the purchasing bank represent 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 may require that th 6 account shall be closed and realised after one month's notice 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 amount then due therefor. The purchasing bank is to meet all the business obligations of the selling bank which are disclosed on the books. A list of officers of the selliug bank is to be furnished to the purchasing bant, and as many of them as exigencies may require are to be allowed employment by the purchasing bank. The lauded properties and bank premises of the selling bank are to be taken at their values appearing in the balance-sheet up to 31st August last in New Zealand, and 31st May in London. The furniture and stationery have been assessed at £6350. If any difference arises between the two parties it is to be referred to arbitration. The agreement is conditional upon its subsequent ratification by resolution passed by the proprietors or shareholders of the selliug bank as provided by the BankofJSew Zealand and B inking Act, 1895, and the approval of Parliament is to be signified as prescribed in the aama Act. The date appointee} for the transfer of the Colonial Bank'a business is to be the second Monday after tho ratification and approval of the agree west.