35.—(1) The maximum amount of consolidated bank notes which may be outstanding with any particular Associated Bank mentioned in the second column of F507[Schedule 4]—

(a) on any day during the period commencing on the day after the date of the passing of this Act and ending on the 31st day of December, 1944, shall not exceed the amount stated in the third column of F507[Schedule 4] opposite the name of such Associated Bank in the second column of that Schedule;

(b) on any day during the triennial period ending on the 31st day of December, 1947, shall not exceed the amount stated in the fourth column of F507[Schedule 4] opposite the name of such Associated Bank in the second column of that Schedule;

(c) on any day during the triennial period ending on the 31st day of December, 1950, shall not exceed the amount stated in the fifth column of F507[Schedule 4] opposite the name of such Associated Bank in the second column of that Schedule;

(d) on any day during the triennial period ending on the 31st day of December, 1953, shall not exceed the amount stated in the sixth column of F507[Schedule 4] opposite the name of such Associated Bank in the second column of that Schedule.

(2) The Commission shall before the appointed day and the Bank shall on and after that day each take such steps, by restriction of issue or otherwise, as it thinks fit towards ensuring that the amount of consolidated bank notes outstanding with an Associated Bank on any day during a period mentioned in the foregoing sub-section of this section does not exceed the maximum amount indicated in that sub-section in respect of such Associated Bank for such period.

(3) No consolidated bank notes shall be issued by the Bank to any Associated Bank after the 31st day of December, 1953.

(4) It shall not be lawful for any Associated Bank to pay out any consolidated bank notes in respect of which it is the responsible bank after the 31st day of December, 1953, and if any Associated Bank shall pay out any consolidated bank note in contravention of this sub-section, such Associated Bank shall be liable to pay to the Bank a sum equal to one-tenth of the amount of such note.

(5) Sub-section (3) of section 58 of the Currency Act shall cease to have effect as on and from the 1st day of January, 1954, and every regulation made and direction given under that sub-section which is in force immediately before that day shall similarly cease to have effect.

(6) No consolidated bank notes shall be issued by the Commission or by the Bank to any bank which is not one of the eight banks named in the second column of F507[Schedule 4] to this Act.

(7) Whenever any amalgamation, partition, transfer, or other change occurs amongst the eight banks mentioned in the second column of F507[Schedule 4], it shall be lawful for the Board, with the consent of the Minister, to make such (if any) adjustment of all or any of the amounts stated in the third, fourth, fifth, and sixth columns respectively of F507[Schedule 4] as shall, in the opinion of the Board, be requisite or desirable in consequence of such amalgamation, partition, transfer, or other change.