Clause 8

If, in the case of any insurer, a bank licensed under any written law for the time being in force relating to banking makes with the Accountant-General an agreement in a form approved by the Commissioner, whereby the bank covenants with the Government to deposit with the Accountant-General a specified sum in cash on account of the insurer’s deposit under this Act in respect of either class of insurance business, and the covenant complies with any requirements the Commissioner sees fit to impose as to the circumstances in which that sum is to be deposited, then for the purposes of this Act the insurer shall be treated as having deposited under section 7 of this Act a sum of cash equal to that so covenanted for and the sum so covenanted for shall be recoverable notwithstanding that no consideration is furnished on the agreement.

Any sum deposited by a bank in pursuance of an agreement made under subsection (1) of this section shall be dealt with under or for the purposes of this Act as if it were a sum deposited by the insurer under section 7 of this Act.

This section shall not authorise an agreement to be substituted under subsection (6) of section 7 of this Act for assets comprised in a deposit.