Question 587. - Is a trust or loan company allowed to use the words "Savings Bank" in an advertisement? If not, why not?

Answer. - No. This is a contravention of section 156 of the Bank Act, which reads as follows: "Every person using the word 'bank' or the words 'savings bank,' banking company,' banking house,' banking association' or 'banking institution,' or any word or words of import equivalent thereto in any foreign language, in a sign or in an advertisement, or in a title to represent or describe his business or any part of his business without being authorized so to do by this Act, or by some other Act in force in that behalf, is guilty of an offence against this Act." It is interesting to note that the words "Savings bank" were not inserted in this section until 1913. The object of this provision is to prevent persons or companies from doing business under any name which might mislead the public into the belief that it was doing business with a chartered bank.