Clause 13

Section 31 of the principal Act is amended by inserting, immediately after subsection (2), the following subsections:“(3) Where a finance company has failed to maintain the reserves required by an order made under subsection (1)(f), the Authority may by notice in writing direct that finance company to make good the deficiency within the period specified in the notice.(4) If the defaulting finance company fails to make good the deficiency within the period specified in the notice referred to in subsection (3), it shall be lawful, notwithstanding the provisions of any other written law, for the Authority to serve a notice in writing upon any bank with which the defaulting finance company has a credit balance, whether in current or deposit account, directing that bank to transfer to the Authority up to such amount as is specified in the notice as being equivalent to the amount of the deficiency in the minimum cash balances of the defaulting finance company required under subsection (1)(f) and the bank shall comply immediately with the requirements of that notice.(5) The Authority may, notwithstanding any notice given under subsection (3) or (4), impose on any finance company that fails to maintain the reserves required by an order made under subsection (1)(f) a penalty interest charge of $100 per day or such larger amount as the Authority may determine for every day during which the finance company continues to fail to maintain such reserves.”.