Every foreign company which proposes to commence within the colony after the passing of this Act the business of life assurance, whether conjointly or not with any other class of business, shall, before commencing such life assurance business, deposit with the Public Trustee a sum of not less than five thousand pounds nor more than fifty thousand pounds in cash or approved securities.

Every foreign company which at the time of the passing of this Act is carrying on the business of life assurance within the colony, whether conjointly or not with any other class of business, shall, if it be intended to continue to carry on such life assurance business within the colony, deposit with the Public Trustee within six months after the passing of this Act a sum of not less than five thousand pounds nor more than fifty thousand pounds in cash or approved securities.

The cash and approved securities mentioned in subsections one and two hereof shall be calculated according to the scale in the Schedule hereto.

Every deposit of approved securities made with the Public Trustee under this section shall be deemed to be a compulsory deposit of securities within the meaning and for the purposes of “The Life Assurance Companies Act, 1873,” which shall be read and construed for all purposes as if the deposits of approved securities required by this section were required by that Act.

Every such deposit is a deposit under Part I. of this Act.

Every foreign company which proposes to commence within the colony after the passing of this Act the business of (a) fire insurance, or (b) marine insurance, or (c) fire and marine insurance, shall, before commencing any such business, and

Every foreign company which at the time of the passing of this Act is carrying on any such business as aforesaid within the colony shall, within six months from the passing of this Act,

Obtain from the Public Trustee a certificate, in form to be prescribed by the Governor, authorising the company named therein to carry on such business within the colony for the period of twelve months from the date named in such certificate.

If the Public Trustee shall refuse to grant a certificate, the company may apply to a Judge of the Supreme Court, who may direct him to issue a certificate, or may make such other order as he may deem just.

For the purposes of such certificate every such company shall furnish to the Public Trustee a statement of its affairs for the period and in the form prescribed as aforesaid.

And the Public Trustee shall grant such certificate upon a resolution of the hereinafter-mentioned Board that it is satisfied of the financial stability of the company applying therefor.

Such certificate shall continue in force for twelve months only, but a renewal thereof may be granted from year to year in like manner as the original was granted.

Save as aforesaid it shall not be lawful for any such company to carry on any such business within the colony without such certificate.

Every foreign company which proposes to commence within the colony, after the passing of this Act, the business of accident insurance, or insurance of any class not hereinbefore mentioned, shall, before commencing such business, deposit with the Public Trustee the sum of ten thousand pounds in cash or approved securities.

Every foreign company which at the time of the passing of this Act is carrying on any such business as last aforesaid within the colony shall, if it be intended to continue to carry on such business within the colony, deposit with the Public Trustee, in cash or approved securities, within six months from the passing of this Act, the sum of not less than five thousand pounds nor more than ten thousand pounds, calculated according to the scale in the Schedule hereto.

Every such deposit is a deposit under Part III. of this Act.

No foreign company making the prescribed deposit under any one Part of this Act shall be required to make the prescribed deposit under any other Part thereof.

No foreign company shall be deemed to continue to carry on business within the colony after a specified date by reason only of receiving premiums or other moneys, or liquidating liabilities, or doing acts after that date in respect of policies or other contracts granted or made before that date.

If in any case the deposit made by any foreign company pursuant to subsection two of sections three or eight of this Act, within the time therein limited, do not amount to the maximum sum thereby prescribed, then further deposits shall be made half-yearly thereafter, according to the scale in the said Schedule, as the case may be, until the maximum sum is reached.

For the purpose of ascertaining the amounts of such further deposits as aforesaid, every such foreign company shall, until it has deposited the prescribed maximum sum, send in to the Colonial Treasurer half-yearly, from and after the passing of this Act, a return, verified by the statutory declaration of the attorney or agent of the company within the colony, showing the total amount covered by all policies current at the end of such half-year, and that amount shall be deemed the “total amount assured by current policies” within the meaning of the Schedule hereto.

All cash deposited with the Public Trustee under this Act shall bear interest at the rate of four pounds per centum per annum, and the Public Trustee shall pay the same accordingly.

Every foreign company which has made any deposit with the Public Trustee under this Act shall be entitled to receive from time to time the income arising from such deposit.

Every foreign company which has made deposit of approved securities with the Public Trustee under this Act may withdraw from his custody any such securities so deposited on depositing with him approved securities of an equal value, and any such substituted securities shall for all purposes be treated as securities originally deposited.

The Board appointed under “The Public Trust Office Act, 1872,” shall, in any case of original or substituted deposit of approved securities, be the sole judge of the value of such securities for the purposes of such deposit, and its decision shall be final and conclusive on the depositor:

Provided that, where such securities consist of real estate, or leasehold interests or mortgages on the security of real estate, the assessment of the actual and improved value of such real estate and leasehold interests made by the Commissioner of Taxes under the provisions of “The Land and Income Assessment Act, 1891,” shall be deemed to be the value of such real estate and leasehold interests for the purposes of such deposit.

If, whilst any securities are deposited under this Act with the Public Trustee, they be lost, stolen, destroyed, or damaged, the injury sustained by the depositor, or by any other person interested therein, shall be made good out of moneys to be appropriated for the purpose by the General Assembly.

Subject to the provisions of this Act, but without prejudice to the special trust in favour of life assurance policies registered, or to be registered, under the provisions of section nine of “The Life Assurance Companies Act, 1873,” the Public Trustee shall, as to every deposit made under this Act, hold the same in trust for policy-holders or claimants in respect of policies or other contracts issued, granted, or entered into in the colony by the foreign company making such deposit, whether such policies or contracts have been granted or entered into before or after the passing of this Act:

Provided that the deposit made under any one Part of this Act shall be held in trust exclusively for policyholders and claimants as aforesaid, in respect of the particular class of insurance business referred to under that Part.

Until all the obligations of such foreign company as aforesaid in the colony in respect of such policies or contracts as aforesaid are cancelled, annulled, or liquidated, such deposit shall not be liable to be attached or levied upon, or be subject to any debts of or claims against such company, without the previous consent in writing of the Colonial Treasurer, who may give his consent on such terms and conditions as he may think equitable, having regard to the interests of the persons in trust for whom such deposits are held by the Public Trustee.

If any foreign company which has made any deposit with the Public Trustee under this Act ceases to carry on business in the colony, such company may withdraw such deposit—

The Public Trustee shall cause every such notice as aforesaid, and also his decision with regard to every such proposed withdrawal, to be published at the cost of the company in such manner as he may think fit.

If any foreign company makes default in duly and fully complying with any of the requirements of this Act affecting such company, then in every such case, if no other penalty is elsewhere expressly provided, such company, and also its attorney, general agent, and other agent, are respectively and severally liable to a penalty of not more than fifty pounds for every day during which such default continues.

If any such default as aforesaid be continued for a period of three months the Colonial Treasurer may, by notice published in the New Zealand Gazette, prohibit the defaulting company from carrying on business in the colony either absolutely or for such time as he may declare.

If any such foreign company as aforesaid, or any person as attorney, general agent, or other agent of such company or otherwise for or on behalf of such company, after the publication of such notice as last aforesaid, receives any application for insurance, or accepts any premium for insurance, or otherwise carries on the business of such company within the colony, then, in addition to and irrespective of the penalty specified in section eighteen of this Act, such company and person are respectively and severally liable to a penalty of one hundred pounds for each and every act done in breach of this provision.

In any action or other proceedings it shall not be necessary to prove that a company has been incorporated, but it shall be sufficient to show that such company is carrying on business or has agreed by the style or description by which it is made a party to any action or other proceedings.

All penalties imposed by this Act are recoverable in a summary way.

The Public Trustee shall, within thirty days after the beginning of each session of Parliament, prepare and lay before Parliament a statement made up to the date of the beginning of the session, and showing as to each foreign company making deposit under Part III. of this Act the nature and value of the securities so deposited.

This Act shall be read with “The Life Assurance Companies Act, 1873.”