Section 36, The Bank of Sierra Leone Act, 2000

(1) The Bank may— (a) issue demand drafts and effect other kinds of remittances payable at its own principal place of business, branches and offices or at those of its agencies or correspondents; (b) import, export, refine, hold, sell purchase, transfer or otherwise deal in gold, gold coins and bullion, silver and such other precious metals as the Board shall determine; (c) open accounts for, accept deposits from and make credit available pursuant to this section only to the Government, funds and institutions controlled by Government, statutory bodies and licensed institutions in Sierra Leone as approved by the Board and act as banker to any such funds, licensed or other institutions; (d) pursuant to paragraph (c) purchase, sell, discount and rediscount inland bills of exchange and promissory notes arising out of *bona fide* commercial transactions; (e) purchase with or without a resale agreement, sell, discount and rediscount treasury bills and bonds of the Government forming part of a public issue; (f) purchase and sell other securities of the Government maturing in not more than twenty years which have been publicly offered for sale or form part of an issue which is being made to the public at the time of acquisition but such funds shall be deployed in financing projects with a gestation period of not more than seven years and which are self-amortising; 46 No. 3 Bank of Sierra Leone Act 2000 (g) invest in securities of the Government for any amount and to mature at any time, on behalf of staff funds and superannuation funds and other internal funds of the Bank; (h) grant to any licensed institution advances for fixed periods not exceeding three months against publicly issued treasury bills of the Government maturing within ninety-three days; (i) grant to any licensed institution advances for fixed periods not exceeding three months against promissory notes secured by pledge with the Bank in— (i) gold coin or gold bullion; (ii) securities of the Government which have been publicly offered for sale and are to mature within a period of twenty years; but no advance so secured shall at any time exceed seventy-five per cent of the market value of the security pledged and that the total of such securities held by the Bank (whether under the provisions of this sub-paragraph or otherwise) is within the limitations imposed by paragraph (f); (iii) such bills of exchange and promissory notes as are eligible for purchase, discount or rediscount by the Bank but no advance so secured shall exceed seventy-five percent of the nominal value of the instruments so pledged; [Margin: Cap. 225.] (iv) warehouse warrants or other documents of title to goods as defined in section 2 of the Sale of Goods Act in respect of staple commodities or other goods, duly insured and with a letter of hypothecation from the owner; but no such advance shall exceed sixty percent of the current market value of the commodities in question; No. 3 Bank of Sierra Leone Act 2000 47 (v) such assets other than those specified in the foregoing sub-paragraphs, and on terms and conditions which the Bank may determine; but no such advance shall be made available under this paragraph to a licensed institution for an amount in excess of twenty percent of its deposit accounts. (j) purchase and sell external currencies and purchase, sell, discount and rediscount bills of exchange and treasury bills drawn and payable in freely convertible foreign currencies and maturing within ninety days, exclusive of days of grace, from the date of acquisition; (k) purchase and sell securities issued and expressed in the currency of any country other than Sierra Leone whose currency is freely convertible and is issued or guaranteed by the Government of such country, and securities issued or guaranteed by international financial institutions; (l) maintain accounts with central banks and other banks abroad and act as correspondent, banker or agent for any central or other bank or other monetary authority and for any international financial institution of which Sierra Leone is a member; (m) undertake the issue and management of loans publicly issued in Sierra Leone by the Government or by public bodies on such terms and conditions as may be agreed; (n) accept from customers for custody securities and other articles of value; (o) undertake on behalf of customers and correspondents the purchase, sale, collection and payment of securities, currencies and credit instruments at home and abroad, and the purchase and sale of gold and silver; 48 No. 3 Bank of Sierra Leone Act 2000 (p) promote the establishment of a licensed institution clearing system and provide facilities for it; (q) issue, place, buy and sell its own securities on such terms and conditions, as may be determined by the Board in consultation with the Government; but any securities issued by it which is purchased or redeemed by the Bank shall not be included among its assets and shall be immediately retired and cancelled; (r) with the permission of the Government, make contribution of capital or advances to any foreign financial institution or undertake exchange clearing transactions with such foreign institution; (s) with the approval of the Government, participate in and promote growth of any currency union, and undertake exchange clearing or other financial transactions or make contribution of capital or any other dues payable by Sierra Leone as a member of such institution; (t) with the approval of the Minister, borrow from institutions and pledge assets or create lien over assets held by it as security for the repayment of such loan. (2) Notwithstanding anything contained in this Act or any other enactment, the Bank may contribute or donate funds to an institution or body corporate in Sierra Leone for the study or promotion of, or research in, banking, economics and allied subjects. (3) Any donation or contribution made under subsection (2) shall not exceed 5% of the estimated surplus distributable profits of the Bank for the current year after making full provision for the statutory and customary funds, charges and obligations of the Bank. No. 3 Bank of Sierra Leone Act 2000 49 (4) The validity of any loan or advance granted by the Bank in pursuance of the provisions of this Act shall not be called in question merely on the ground of non-compliance with the requirements of some other enactment or of any resolution, contract, Memorandum, Articles of Association or other instrument. [Margin: Management of monetary system.]