Deposit Protection Corporation Act
- Commenced on 16 March 2012
- [This is the version of this document at 31 December 2016 and includes any amendments published up to 31 December 2017.]
- [Note: This version of the Act was revised and consolidated by the Law Development Commission of Zimbabwe]
Part I – Preliminary
1. Short titleThis Act may be cited as the Deposit Protection Corporation Act [Chapter 24:29].
2. InterpretationIn this Act“appropriate registering agency”, in relation to—(a)a banking institution, means the Registrar of Banking Institutions referred to in section 4(1) of the Banking Act [Chapter 24:20];(b)a building society, means the Registrar of Building Societies appointed in terms of section 5 of the Building Societies Act [Chapter 24:02];(c)a contributory institution, other than a banking institution or a building society, which is required to be registered under any enactment, means the person who is responsible for registering that institution under the enactment concerned;“appropriate supervisory agency”, in relation to—(a)a banking institution or financial institution to which Part IX of the Banking Act [Chapter 24:20] applies, means the Reserve Bank;(b)a contributory institution other than an institution referred to in paragraph (a), means a person or authority with power under any enactment to monitor, supervise or investigate the institution concerned;“banking business” means the business of accepting deposits withdrawable or repayable on demand or after a fixed period or after notice and the employment of those deposits, in whole or in part, by lending or any other means for the account and at the risk of the person accepting the deposits;“Board of Directors” means the Corporation’s Board of Directors established by section 6;“Chief Executive Officer” means the Chief Executive Officer of the Corporation appointed in terms of paragraph 13 of the First Schedule;“contribution” means a contribution payable to the Fund in terms of Part V;“contributory institution” means a banking institution, building society or other organisation which is a contributory institution in terms of Part IV and whose status as such has not been suspended or revoked in terms of section 27;“Corporation”—(a)means the Deposit Protection Corporation established by section 4; and(b)in relation to anything done or to be done by the Corporation, means the Deposit Protection Corporation referred to in paragraph (a), acting through its Board of Directors or through an employee in terms of this Act;“deposit” means an amount of money, whether made up of Zimbabwean or foreign currency or both, cheques or other negotiable or non-negotiable instruments, which a contributory institution accepts for credit to an account in its books;“depositor”, in relation to a contributory institution, means—(a)a person who has made a deposit with that institution; or(b)the trustee, executor, liquidator or other lawful representative of a depositor referred to in paragraph (a); or(c)a person to whom a depositor referred to in paragraph (a) or (b) has ceded his or her rights in the deposit concerned;“director” means a member of the Board of Directors;“examiner” [definition repealed by Act 12 of 2015]“financially distressed”, in relation to a contributory institution, means financially distressed as described in section 3(1);“Fund” means the Deposit Protection Fund established by section 13;“insolvent”, in relation to a contributory institution, means insolvent as described in section 3(3);“judicial manager” includes a provisional judicial manager and, in relation to a contributory institution that is not a company, any person whose functions are similar to those of a judicial manager or provisional manager of a company;“liquidator” includes a provisional liquidator and, in relation to a contributory institution that is not a company, any person whose functions are similar to those of a liquidator or provisional liquidator of a company;“Minister” means the Minister of Finance or any other Minister to whom the President may, from time to time, assign the administration of this Act;“protected deposit” means a deposit which—(a)is of a class prescribed for the purposes of section 40; and(b)immediately before the insolvency of the contributory institution with which it was made, created a liability, whether present or future, on the part of the institution towards the depositor;“prudential requirement” means a prudential requirement prescribed or fixed in terms of the Banking Act [Chapter 24:20];[definition substituted by Act 12 of 2015]“Reserve Bank” means the Reserve Bank of Zimbabwe established by the Reserve Bank of Zimbabwe Act [Chapter 22:15] (Act No 5 of 1999);“statutory body” means any body corporate established directly by or under an Act for special purposes specified in that Act, the membership of which consists wholly or mainly of persons appointed by the President, a Vice-President or a Minister or by any other statutory body;“troubled” [definition repealed by Act 12 of 2015]
3. When contributory institution becomes financially distressed, troubled or insolvent
Part II – Deposit Protection Corporation
4. Establishment of Deposit Protection CorporationThere is hereby established a body corporate to be known as the Deposit Protection Corporation, which shall be capable of suing and being sued in its own name and, subject to this Act, of doing everything that bodies corporate can do by law.
5. Functions and objectives of Corporation
6. Board of Directors
7. Provisions relating to directors, and to procedure and staff of Corporation
8. Ancillary powers of Corporation
9. Execution of contracts and instruments by CorporationAny agreement, contract or instrument approved by the Board of Directors may be entered into or executed on the Corporation’s behalf by any person whom the Board has generally or specially authorised to do so.
10. Policy directions to Corporation
11. Validity of decisions and acts of Corporation and committeesNo decision made or act done by or under the authority of the Corporation or any of its committees shall be invalid solely because-
12. Exemption from liability of Corporation, etcNo liability shall attach to—
Part III – Deposit Protection Fund
13. Establishment and object of Deposit Protection Fund
14. Composition of FundThe Fund shall consist of—
15. Administration of FundFor the purpose of administering the Fund, the Corporation may exercise any power conferred upon a trustee by the common law and, without derogation from Part III of the First Schedule, may delegate its powers of administration to its Chief Executive Officer and other members of its staff.
16. Holding and investment of Fund
17. Financial year of FundThe financial year of the Fund shall be the period of twelve months ending on the 31st December each year or on such other date as may be prescribed.
18. Accounts of Fund and statement of accounts
19. Audit of Fund’s accounts
20. Powers of auditors
21. Internal auditorThe Corporation shall appoint an internal auditor, and section 80 of the Public Finance Management Act [Chapter 22:19] (Act No. 11 of 2009) shall apply in relation to the internal auditor’s functions as if the Corporation were a Ministry and the Chief Executive Officer were the Corporation’s accounting officer.
22. Fund to be charged with expenses of CorporationWithout derogation from paragraph 7 or paragraph 15(2) of the First Schedule, the expenses of the Corporation shall be chargeable to the Fund.
Part IV – Contributory institutions
23. Banks and building societies to be contributory institutions on registration
24. Bank or building society becoming contributory institution after registration
25. Declaration of certain organisations to be contributory institutionsWith the Minister’s approval, the Corporation may by statutory instrument declare that any organisation other than a banking institution or building society referred to in section 23(1) shall be a contributory institution, if—
26. ***[section repealed by Act 12 of 2015]
27. Revocation or suspension of contributory institution’s status
Part V – Payment of contributions
28. Liability to pay contributionsSubject to this Act, every contributory institution, including a contributory institution that is under judicial management or curatorship in terms of the Banking Act [Chapter 24:20], shall pay contributions to the Fund.
30. Contributions payable by new institutions
31. Supplementary contributions
32. Penalty for failure to pay contributions
33. Contributions, surcharges and interest to be debts due to fundA contribution and any surcharge or interest connected therewith shall be a debt due to the Fund, and the Corporation may recover it from the contributory institution concerned by proceedings in a court of competent jurisdiction.
34. Prohibition against payment of dividends while contribution unpaid
Part VI – Compensation
35. Compensation payable to depositors on insolvency of contributory institutionSubject to this Act, if a contributory institution becomes insolvent, the Corporation shall as soon as practicable compensate depositors for any direct loss they may have suffered through the institution’s insolvency in respect of their protected deposits with that institution:Provided that the Corporation shall wherever possible ensure the payment of such compensation within sixty days after the contributory institution became insolvent.[proviso inserted by Act 12 of 2015]
36. Intervention by Reserve Bank and Corporation before insolvency of contributory institution
37. Judicial managers to notify Reserve Bank of insolvency of contributory institution
38. Corporation as liquidator and power to appoint agents
[section amended by Act 12 of 2015]
39. Payment of compensation
40. Depositors may apply for compensation
41. Extent to which deposits are protected
42. Calculation of amount of protected deposit
43. Jointly-held depositsWhere a protected deposit is jointly held, the Corporation shall divide the compensation payable under this section between the joint depositors in such shares as the Corporation considers appropriate in the light of the information before it:Provided that, if the Corporation reasonably anticipates a dispute over the share to be paid to any joint depositor, the Corporation may initiate interpleader proceedings in any competent court for the purpose of determining the dispute.
44. Postponement, reduction or refusal of compensation in certain cases
45. ***[section repealed by Act 9 of 2011].
46. Subrogation of Corporation
Part VII – Monitoring of contributory institutions
47. ***[section repealed by Act 12 of 2015]
48. ***[section repealed by Act 12 of 2015]
49. Information to be provided to Corporation by contributory institutions
50. Appropriate registering and supervisory agencies to provide Corporation with informationEvery appropriate registering agency or supervisory agency shall provide the Corporation, on request, with whatever information the Corporation may require to ascertain the financial condition of any contributory institution for which the agency concerned is responsible for registering or supervising.
51. Action that Corporation may take where contributory institution is found not to have complied with prudential requirements
52. ***[section repealed by Act 12 of 2015]
53. Duties of auditors of contributory institutions
Part VIII – General
55. False statements, etc.
56. Hindering or obstructing examiner or other officialAny person who, without just cause, knowingly hinders or obstructs a director, employee or agent of the Corporation in the exercise of his or her functions under this Act shall be guilty of an offence and liable to a fine not exceeding level five or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.[section amended by Act 12 of 2015]
57. Preservation of secrecy
58. Use of confidential information for personal gain
59. Co-operation between Corporation and registering and supervisory agencies
60. EvidenceA document purporting to be signed by or on behalf of the Corporation and stating—
61. Publicity for deposit insurance scheme
62. ***[section repealed by Act 9 of 2011]
63. Preference of claims on insolvency of contributory institution
65. Amendment of Cap. 24:20The Banking Act [Chapter 24:20] is amended—
66. Transitional provisions
History of this document
16 March 2012