Banking Act 1987

52 Contributory institutions and general provisions as to contributions

(1) All authorised institutions shall be liable to contribute to the Fund and are in this Part of this Act referred to as "contributory institutions".

(2) Contributions to the Fund shall be levied on a contributory institution by the Board by the service on the institution of a notice specifying the amount due, which shall be paid by the institution not later than twenty-one days after the date on which the notice is served.

(3) Subject to section 56 below, on each occasion on which contributions are to be levied from contributory institutions (other than the occasion of the levy of an initial contribution from a particular institution under section 53 below)—

(a) a contribution shall be levied from each of the contributory institutions; and

(b) the amount of the contribution of each institution shall be ascertained by applying to the institution's deposit base the percentage determined by the Board for the purpose of the contribution levied on that occasion.

(4) Subject to section 57 below, the deposit base of an institution in relation to any contribution is the amount which the Board determines as representing the average, over such period preceding the levying of the contribution as appears to the Board to be appropriate, of sterling deposits with the United Kingdom offices of that institution other than—

(a) secured deposits;

(b) deposits which had an original term to maturity of more than five years; and

(c) deposits in respect of which the institution has in the United Kingdom issued a sterling certificate of deposit.

(5) In its application to this section, section 5(3) above shall have effect with the omission of paragraphs (b) and (c).