Section 25: Business which the Bank is authorised to transact

25. Business which the Bank is authorised to transact.___The Bank is authorised to carry on and transact the 13 several kinds of business hereinafter specified, namely:___ (1) the advancing and lending of money, and opening of cash-credits upon the security of___ (a) stocks, funds and securities 9[* * *] in which a trustee is authorised to invest trust money by any law for the time being in force in Pakistan and shares of the State Bank of Pakistan; 1 Subs. by the National Bank of Pakistan (Amdt.) Act, 1973 (11 of 1973), s. 6, for “Central Government”. 2 The original words “co-opted or” omitted by Ordinance, 52 of 1960, s. 11. 3 The original words “elected or” omitted ibid. 4 Sub-section (3) added, ibid. 5 Subs. ibid., s. 12, for certain original words. 6 Ins . by the National Bank of Pakistan (Amdt.) Ordinance, 1960 (52 of 1960 ), s.13 7 Subs. by the National Bank of Pakistan (Amdt.) Ordinance, 1970 (14 of 1970), s. 6 for “fifty”. 8Sub-section (2) subs. Ibid. 9The original brackets and words “(other than immoveable property)” omitted by the National Bank of Pakistan (Amdt.) Ordinance, 1960, (52 of 1960), s. 14. (b) debentures or other securities for money issued under the authority of any law or a time being in force in Pakistan by, or on behalf of, a port trust authority or a district board or a municipal board or committee 1[* * *]; (c) goods which, or the documents of title to which, are deposited with, or assigned to, the Bank as security for such advances, loans or credits; (d) subject to such directions as may be issued by the Central Board, debentures of companies with limited liability; (e) shares of companies with limited liability, in accordance with such directions in this regard as may be issued from time to time by the State Bank of Pakistan; (f) goods which are hypothecated to the Bank as security for such advances, loans or credits 2[* * *]; (g) accepted bills of exchange and promissory notes endorsed by the payees and joint and several promissory notes of two or more persons or firms unconnected with each other in general partnership; 3[*] 4[(h) immovable property or documents of title relating thereto, subject to such directions as may be issued by the Central Board;] 5[(i) subject to such directions as may be issued by the Central Board, tea crops;] Provided that any advances or loans which are guaranteed by the 6[Federal Government] or any Provincial Government in Pakistan may be made without any specific security; (2) the selling and realisation of proceeds of sale of any such promissory notes, debentures, stock receipts, bonds, annuities, stocks, shares, securities or goods which, or the documents of title to which, have been deposited with, or pledged, hypothecated, assigned or trans- ferred to, the Bank as security for such advances, loans or credits or which are held by the Bank or over which the Bank is entitled to any lien or charge in respect of any such advance or loan or credit or any debt or claim of the Bank, and which have not been redeemed in due time in accordance with the terms and conditions (if any) of such deposit, pledge, hypothecation, assignment or transfer; (3) the advancing and lending of money to Courts of Wards upon the security of estates in their charge or under their superintendence and the realisation of such advances or loans and any interest due thereon: Provided that no such advance or loan shall be made without the previous sanction of the Provincial Government concerned; (4) the drawing, accepting, discounting, buying and selling of bills of exchange and other negotiable securities; 7[(5)the investing of the funds of the Bank in or the underwriting of, any stocks, funds, shares, securities, debentures, bonds or scripts or other securities for money issued by any public limited company or any corporation established by or under any law for the time being in force or under the authority of the 6[Federal Government] or the State Bank of Pakistan, and converting the same into money when required, and altering, converting and transposing any such investment for or into any other of such investments;] 1 Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3 and II Sch. 2 The original comma and words “, if so authorised by special directions of the Central Board” omitted by Ordinance, 52 of 1960, s. 14. 3 The original word “and” omitted by the National Bank of Pakistan (Amdt.) Ordinance, 1960 (52 of 1960), s. 14. 4 Subs. ibid., for the original sub-clause (h). 5 New sub-clause (i) added, ibid. 6 Subs. by the National Bank of Pakistan (Amdt.) Act, 1973 (11 of 1973), s. 6, for “Central Government”. 7 Sub-section (5) which was previously amended by the National Bank of Pakistan (Amdt.) Ordinance, 1960 (52 of 1960), s. 14 have been subs. by the National Bank of Pakistan (Amdt.) Ordinance, 1970 (14 of 1970), s. 7. (6) the issuing of letters of credit; (7) the buying and selling of gold and silver whether coined or uncoined; (8) the receiving of deposits and keeping cash accounts on such terms as may be agreed on; (9) the acceptance of the charge of plate, jewels, titledeeds or other valuable goods o such terms as may be agreed on; (10) the 1[managing,] selling and realising of all property whether movable or immovable which may in any way come into the possession of the Bank in satisfaction or part satisfaction of any of its claims, and the acquisition and holding of, and generally the dealing with, any right, title or interest in any property movable or immovable which may be the Bank’s security for any advance or loan or may be connected with any such security 2[:] 3[Provided that the Bank shall not take over the management of any such property except in pursuance of an agreement with the debtor or of an order, judgment or decree of a court of competent jurisdiction;] (11) the transacting of pecuniary agency business on com mission and the entering into of contracts of indemnity, suretyship or guarantee with specific security or otherwise 4[, and the under-writing, participating in, and carrying out o f the issue of any stock, shares, debentures and other securities]; (12) the administration of estates for any purpose whether as an executor, trustee or otherwise and the acting as agent on commission in the transaction of the follow ing kinds of business, namely:___ (a) the buying, selling, transferring and taking charge of any securities or any shares in any public company; (b) the receiving of the proceeds whether principal, interest or dividends, of any securities or shares; (c) the remittance of such proceeds by public or private bills of exchange, payable either in Pakistan or elsewhere; (13) the drawing of bills of exchange and the granting of letters of credit payable out of Pakistan; (14) the buying of bills of exchange payable out of Pakistan; (15) the borrowing of money for the purpose of the Bank’s business, and the giving of security for money so borrowed by pledging assets or otherwise; (16) the paying, receiving, collecting and remitting money, bullion and securities under any agreement with the State Bank of Pakistan as its agent on behalf of any Government in Pakistan, or undertaking and transacting any business which the State Bank of Pakistan may from time to time entrust to it; (17) the establishing and discontinuing of branches and agencies; (18) the acquiring, maintaining and transferring of the Bank’s residential and business premises; (19) the taking over of the business, including the capital assets and liabilities of any other bank, with the sanction of the 5[Federal Government]; 1 Ins. by the National Bank of Pakistan (Amdt.) Ordinance, 1960 (52 of 1960), s. 14. 2 Subs. ibid., for semi-colon. 3 Proviso added ibid. 4 Added by the National Bank of Pakistan (Amdt.) Ordinance, 1962 (61 of 1962), s. 3. 5 Subs. by the National Bank of Pakistan (Amdt.) Act, 1973 (11 of 1973), s. 6, for “Central Government”. (20) the granting of advances or loans to any other bank for the purpose of averting or facilitating its winding up; 1[*] 2[* * * * * * *] 3[(21) with the previous permission in writing of the State Bank of Pakistan,___ (a) the investing of the funds of the Bank in any bank incorporated outside Pakistan, and (b) participating in the management and administration of any such bank in which the funds of the Bank have been invested; and] (22) generally, the doing of all such matters and things as may be incidental or subsidiary to the transacting of the various kinds of business including foreign exchange business hereinbefore specified.

Effective date: 1949-01-01

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