Section 4: Procedure for demanding explanations and search

4. Procedure for demanding explanations and search.___(1) On receiving a complaint that a Bank is wrongfully withholding the payment of a cheque or the delivery of anything held in deposit or safe custody, the 1[Federal Government] may by order require the Bank to explain the grounds on which it has withheld or delayed payment of the cheque or delivery of the thing held in deposit or safe custody and to furnish by a date to be specified a true statement of all the assets at the credit of or held in safe custody on behalf of the person concerned. (2) If the Bank refuses or fails to comply with an order made under sub-section (1) of this Section by the date specified or if the 1[Federal Government] is not satisfied with the correctness or completeness of the statement submitted thereunder, the 1[Federal Government] may authorise any officer of the 1[Federal Government] or of a Provincial Government to inspect the books, accounts and other documents of the Bank and to conduct a search of its vaults, coffers and premises which the officer may consider necessary to inspect or search in order to obtain the information required or to verify the statement furnished. (3) An officer authorised in this behalf may enter any premises at any time and if necessary break open any door or lock for the purpose of carrying out the order made under this section.

Effective date: 1947-01-01

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