circulation, until the expiration of its charter, or such other period as Parliament may appoint; Exchange of Govt. securities for Provincial Notes.and the Receiver General Exchange of shall receive any Provincial Debentures or other government securities now held by any such Bank in compliance with the requirements of its charter, in exchange for Notes of the Dominion; and shall also pay to such Bank one half the estimated cost of its unissued notes.
Surrender may be gradual or immediate.2. In entering into any such arrangement as aforesaid with any Bank, the Governor in Council may provide either for the immediate or the gradual surrender of its power to issue notes, such gradual surrender not extending over a period of more than twelve months; Exchange of certain Debentures for Dominion Notes.but in such case the exchange of Dominion Notes for such Debentures and government securities as aforesaid, held by the Bank under the requirements of its charter, shall be made only in equal proportion to the amount of its notes actually redeemed and withdrawn from circulation, as shewn by its monthly returns.
No obligation to hod debentures after surrender.3. From the date of any such arrangement with any Bank, it shall no longer be bound to hold any Provincial Debentures or other government securities which it may be now required by law to hold.
Weekly returns to the Auditor; and payment of compensation, half yearly.4. Every Bank so surrendering its power to issue notes shall made a weekly return to the Auditor of its notes redeemed to and withdrawn from circulation, and of those still outstanding, and the compensation hereinbefore authorized shall be paid to it half yearly in proportion to the amount so redeemed and withdrawn, computed on the average of the weekly returns for the half year, until the amount redeemed is equal to nine-tenths of its circulation on the thirtieth day of April, one thousand eight hundred and sixty-six, when it shall be entitled to compensation on the full amount thereof.
Powers of Governor in Council in making arrangement with any Bank.5. The powers of the Governor in Council in making an arrangement with any Bank for the surrender of its power to issue notes, shall extend to any provisions which may be deemed expedient respecting the redemption of the notes of such Bank, or the right of reissuing any such notes during the period agreed upon for the gradual redemption thereof, and generally to all provisions which the Governor in Council may deem expedient to the convenient working of this Act, and not inconsistent with the enactments contained in it, subject, nevertheless, to the arrangements already made under the authority of the Act of the late Province of Canada hereinafter mentioned; and any Order in Council for giving effect to such provisions shall have the force of law.
Power to resume right of issue.6. Any Bank which may have surrendered its power to issue notes, may resume such power after giving at least three months notice in writing to the Receiver General, and publishing such notice during the like period in the Canada
