39.—(1) In the case of every Associated Bank which was, at the passing of the Currency Act, a bank of issue, so much of the proportion of notes mentioned in sub-section (4) of section 60 of that Act as is for the time being not redeemed in pursuance of that section shall not, in respect of any day after the date of the passing of this Act, be deemed for the purposes of this Part of this Act to be consolidated bank notes outstanding with such Associated Bank.

(2) As on and from the day after the date of the passing of this Act, the appropriate rate per cent. per annum for the purposes of sub-section (1) of section 66 of the Currency Act shall be such rate, not exceeding two and one-half per cent. per annum, as shall from time to time be appointed by the Minister.