CHAPTER 404
NATIONAL BANK OF COMMERCE (REORGANISATION AND VESTING OF ASSETS AND LIABILITIES) ACT

[SUBSIDIARY LEGISLATION]

INDEX TO SUBSIDIARY LEGISLATION

   NOTICES

      The National Bank of Commerce (Determination of the Allocation of Assets and Liabilities) Notice

NOTICES

THE NATIONAL BANK OF COMMERCE (DETERMINATION OF THE ALLOCATION OF ASSETS AND LIABILITIES) NOTICE

(Section 10(2))

   Where, pursuant to section 9 of the National Bank of Commerce (Reorganisation and Vesting of Assets and Liabilities) Act, 1997, the former bank was dissolved on the 1st day of October, 1997;

   And whereas, as of the effective date, all the undertakings and business affairs of the former bank have been taken over and are being conducted, respectively, by the Corporation, NBC (1997) and NMB;

   And whereas, as a result of the dissolution of the former bank, the Minister is, after advice of the Committee, required by Notice published in the Gazette to determine the allocation and transfer of the assets and liabilities of each entity:

   NOW THEREFORE, I, DANIEL YONA, Minister for Finance, do hereby declare the following notice–

1.   Citation

   This Notice may be cited as the National Bank of Commerce (Determination of the Allocation of Assets and Liabilities) Notice, 1998 and shall be deemed to have come into force on 1st October, 1997.

2.   Interpretation

   (1) In this Notice, unless the context requires otherwise–

   "Act" means the National Bank of Commerce (Reorganisation and Vesting of Assets and Liabilities) Act *;

   "Book" means the Book containing the Report of the Committee on the Distribution of Assets and Liabilities of the former bank;

   "Corporation" means NBC Holding Corporation established under the National Bank of Commerce (Reorganisation and Vesting of Assets and Liabilities) Act *;

   "effective date" means 1st October, 1997;

   "entity" means respectively the Corporation, NBC (1997) or NMB;

   "former bank" means the National Bank of Commerce established by the National Bank of Commerce (Established and Vesting of Assets and Liabilities) Act, 1967 *;

   "NBC" (1997) means NBC (1997) Limited established under section 3(2) of the NBC (1997) Limited Incorporation Act, 1997 *;

   "NMB" means the National Microfinance Bank Limited established under section 4(2) of the National Microfinance Bank Limited Incorporation Act, 1997 *.

   (2) Words or expressions occurring in this Notice and not defined in subparagraph (1) shall bear the same meaning as given to them in the Act.

3.   Vesting of Assets

   Notice is hereby given that the assets and liabilities of the former bank shall, as of the effective date, be and are hereby deemed to have vested as the case may be, in the Corporation, NBC (1997), in accordance with the allocation determined under this Notice.

4.   Vesting of liabilities

   Where an asset is allocated and vested in an entity, the liabilities arising from or connected to that asset shall, save where it is otherwise expressly provided, also be deemed to have been transferred from the former bank and vested in the entity concerned.

5.   Allocation to the Corporation

   (1) The Assets described in Part A of the First Schedule to this Notice, and more particularly described in Appendix 1A to 1H of the Book and which were immediately before the effective date owned by the former bank are hereby allocated to and vested in the Corporation.

   (2) The Assets described in Part B of the First Schedule to this Notice, and more particularly described in Appendix 11(1) of the Book and which were immediately before the effective date owned by the former bank are hereby allocated to and vested in the Corporation.

6.   Allocation to NBC (1997)

   (1) The assets and liabilities described in Part A of the Second Schedule to this Notice, and more particularly described in Appendix 2A to 2P of the Book and which were immediately before the effective date owned by the former bank for the purpose of conducting banking business are hereby allocated to and vested in NBC (1997).

   (2) Without prejudice to subparagraph (1) of this paragraph, the lands and buildings located in various areas of the United Republic as set out in Appendix 2D(1) of the Book and in part B of the Second Schedule to this Notice and which were immediately before the effective date owned by the former bank are being allocated to and vested in NBC (1997).

7.   Allocation to NMB

   (1) The assets and liabilities described in Part A of the Third Schedule to this Notice, and more particularly described in Appendix 3A to 3M of the Book and which were immediately before the effective date owned by the former bank for the purpose of conducting banking business are hereby allocated to and vested in NMB.

   (2) Without prejudice to subparagraph (1) of this paragraph the lands and buildings located in various areas of the United Republic as set out in Appendix 3H(1) of the Book and in Part B of the Third Schedule to this Notice and which were immediately before the effective date owned by the former bank are hereby allocated to and vested in NMB.

8.   Taxation

   Subject to the provisions of the Act, no transaction entered into or arising out of the reorganisation of the former bank or the incorporation of the entities, shall attract any charge of tax or duty.

FIRST SCHEDULE

(Paragraph 5)

PART A
ASSETS AND LIABILITIES ALLOCATED TO THE CORPORATION

ASSETS

30th September, 1997
T.Shs. Million

1. EQUITY INVESTMENTS

2. INVESTMENT SUBSIDIARIES

Name of Company

Percentage

T.Shs. Million

Provision for diminution in Value T.Shs. Million

Net Book Value T.Shs. Million

Morogoro Canvas Mill Limited

4%

100

(100)

Highland Hotel

37.08%

53

(53)

Zana za Kilimo

8.2%

50

(50)

Tanzania Investment Bank Company Limited

9.96%

30

(30)

(preference shares only)

–%


10


(10)


243

(243)

NIL

Name of Company

Percentage

T.Shs. Million

NBC (1997) Limited

100%

Microfinance Bank Limited

Karadha Company Limited

93.8%


550

550

Less: provision for diminution in value of investment in Karadha

550

NIL

30th September, 1997
T.Shs. million

Net Book Value
T.Shs. millions

1.   AMOUNTS RECEIVABLE
FROM GOVERNMENT
Subtotal

15,406



15,406






15,406



Land and Buildings Bank Buildings

Residential Buildings

Work in Progress

Fixtures Fittings and Equipment

Motor Vehicles

Computer Equipment

Total

T.Shs. million

T.Shs. million

T.Shs. million

T.Shs. million

T.Shs. million

T.Shs. million

T.Shs. million

Cost 1st July, 1997

4,690

11,656

2,292

261

1,264

66

20,229

Additions Disposals



________

147

195

147

489


(38)


(69)


(107)

30th September, 1997 Depreciation

4,690

11,656

2,292

370

1,390

213

20,511

1st July, 1997

1,049

2,638

234

895

70

4,886

Change for the period

46

114

8

48

4

220

Eliminated on disposal 30th September, 1997


1,095


2,652



242

(55)


888


174

(55)


5,051

Net Book amount 30th September, 1997


3,595


9,004


2,292


128


502


39


15,560

TOTAL ASSETS

30,966

LIABILITIES

30th September,
1997 T. Shs.
million

1.   SPECIAL FINANCING PROGRAMME DEPOSITS

340

340

2.   PROVISION FOR OUTSTANDING LITIGATION AND CONTINGENT LIABILITIES

3,318

3,218

3.   PROVISION FOR RESTRUCTING COSTS
Provision at 1st July
New provision
Amounts paid during the period
Provision at 30th September, 1997


15,318



(2,207)






13,199

13,199

4.   RESERVES

   At 1st July

16,413

   Loss for the period


(2,304)


14,109

14,109

TOTAL LIABILITIES

30,966

PART B
FULLY PROVISIONED ASSETS

1.   BALANCES WITH OTHER BANK

498

2.   GOVERNMENT SPECIAL BONDS

102,966

3.   EQUITY INVESTMENTS

793

4.   INTER-BRANCH SUSPENSE

10,631

5.   BILLS RECEIVABLE

478

6.   OTHER

2,680


   Less 100% provision

118,046
(118,046)




NIL

SECOND SCHEDULE

(Paragraph 6)

PART A
ASSETS AND LIABILITIES ALLOCATED TO NBC (1977)

ASSETS

30th September, 1997

Net Bank Value T.Shs. Million

1. CASH

14,795

14,795

2. BALANCES WITH BANK OF TANZANIA

   Current account – local
Current account – foreign currency
Statutory minimum reserve

5,546
4,555
12,224


22,325




22,325

3. BALANCES WITH OTHER BANK

   Bank abroad

61,752

61,752

4. CHEQUES AND ITEMS FOR CLEARING

6,351

6,351

5. TREASURY BILLS

   Treasury bills:
Treasury bonds:

43,030
1,000


44,030



44,030

6.   GOVERNMENT SECURITIES
Government securities consist of government stocks maturing on various dates as summarised below

   Within 1 year
1-2 years
2-5 years
Over 5 year

409
35
819
341


1,604





1,604

7. OTHER ASSETS


   Interbranch suspense
Interest receivable
Prepayments and sundry assets


28,912
1,322
4,535


34,769





34,769

This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.