Charities Act 1993 (repealed)

28 Power to give directions about dormant bank accounts of charities.E+W

(1)Where [F1the Commission] —

(a)[F2is informed] by a relevant institution—

(i)that it holds one or more accounts in the name of or on behalf of a particular charity (“the relevant charity”), and

(ii)that the account, or (if it so holds two or more accounts) each of the accounts, is dormant, and

(b)[F3is unable], after making reasonable inquiries, to locate that charity or any of its trustees,

[F4it may give] a direction under subsection (2) below.

(2)A direction under this subsection is a direction which—

(a)requires the institution concerned to transfer the amount, or (as the case may be) the aggregate amount, standing to the credit of the relevant charity in the account or accounts in question to such other charity as is specified in the direction in accordance with subsection (3) below; or

(b)requires the institution concerned to transfer to each of two or more other charities so specified in the direction such part of that amount or aggregate amount as is there specified in relation to that charity.

(3)The [F5Commission] may specify in a direction under subsection (2) above such other charity or charities as [F6it considers] appropriate, having regard, in a case where the purposes of the relevant charity are known [F7to the Commission], to those purposes and to the purposes of the other charity or charities; but the [F5Commission] shall not so specify any charity unless [F8it has received] from the charity trustees written confirmation that those trustees are willing to accept the amount proposed to be transferred to the charity.

(4)Any amount received by a charity by virtue of this section shall be received by the charity on terms that—

(a)it shall be held and applied by the charity for the purposes of the charity, but

(b)it shall, as property of the charity, nevertheless be subject to any restrictions on expenditure to which it was subject as property of the relevant charity.

(5)Where—

(a)[F9the Commission has been] informed as mentioned in subsection (1)(a) above by any relevant institution, and

(b)before any transfer is made by the institution in pursuance of a direction under subsection (2) above, the institution has, by reason of any circumstances, cause to believe that the account, or (as the case may be) any of the accounts, held by it in the name of or on behalf of the relevant charity is no longer dormant,

the institution shall forthwith notify those circumstances in writing to [F10the Commission] ; and, if it appears to [F10the Commission] that the account or accounts in question is or are no longer dormant, [F11it shall revoke] any direction under subsection (2) above which has previously been given [F12by it] to the institution with respect to the relevant charity.

(6)The receipt of any charity trustees or trustee for a charity in respect of any amount received from a relevant institution by virtue of this section shall be a complete discharge of the institution in respect of that amount.

(7)No obligation as to secrecy or other restriction on disclosure (however imposed) shall preclude a relevant institution from disclosing any information to [F13the Commission] for the purpose of enabling [F14the Commission to discharge its functions] under this section.

(8)For the purposes of this section—

(a)an account is dormant if no transaction, other than—

(i)a transaction consisting in a payment into the account, or

(ii)a transaction which the institution holding the account has itself caused to be effected,

has been effected in relation to the account within the period of five years immediately preceding the date when [F15the Commission is informed] as mentioned in paragraph (a) of subsection (1) above;

(b)a “relevant institution” means—

(i)the Bank of England;

[F16(ii)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(iii)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits; or

(iv)such other person who may lawfully accept deposits in the United Kingdom as may be prescribed by the [F17Minister].]

(c)references to the transfer of any amount to a charity are references to its transfer—

(i)to the charity trustees, or

(ii)to any trustee for the charity,

as the charity trustees may determine (and any reference to any amount received by a charity shall be construed accordingly).

[F18(8A)Sub-paragraphs (ii) to (iv) of the definition of “relevant institution” in subsection (8)(b) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.]

(9)For the purpose of determining the matters in respect of which any of the powers conferred by section 8 or 9 above may be exercised it shall be assumed that [F19the Commission has] no functions under this section in relation to accounts to which this subsection applies (with the result that, for example, a relevant institution shall not, in connection with the functions of [F20the Commission] under this section, be required under section 8(3)(a) above to furnish any statements, or answer any questions or inquiries, with respect to any such accounts held by the institution).

This subsection applies to accounts which are dormant accounts by virtue of subsection (8)(a) above but would not be such accounts if sub-paragraph (i) of that provision were omitted.

(10)Subsection (1) above shall not apply to any account held in the name of or on behalf of an exempt charity.

Textual Amendments

F1Words in s. 28(1) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 121(2)(a); S.I. 2007/309, art. 2, Sch.

F2Words in s. 28(1) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 121(2)(b); S.I. 2007/309, art. 2, Sch.

F3Words in s. 28(1) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 121(2)(c); S.I. 2007/309, art. 2, Sch.

F4Words in s. 28(1) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 121(2)(d); S.I. 2007/309, art. 2, Sch.

F5Words in s. 28(3) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 121(3)(a); S.I. 2007/309, art. 2, Sch.

F6Words in s. 28(3) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 121(3)(b); S.I. 2007/309, art. 2, Sch.

F7Words in s. 28(3) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 121(3)(c); S.I. 2007/309, art. 2, Sch.

F8Words in s. 28(3) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 121(3)(d); S.I. 2007/309, art. 2, Sch.

F9Words in s. 28(5) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 121(4)(a); S.I. 2007/309, art. 2, Sch.

F10Words in s. 28(5) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 121(4)(b); S.I. 2007/309, art. 2, Sch.