Section 18 — Act 125

(2)

The minimum amount of liquid assets shall be expressed as a percentage of the deposit liabilities of every licensed borrowing company and such percentage may be varied by the Central Bank from time to time by notice in writing to every licensed borrowing company.

(3)

When the Central Bank issues a notice under subsection (1) each licensed borrowing company shall be allowed a period of not less than one week (as may be specified in such notice) within which to comply with the requirements of the notice.

(4)

Where a licensed borrowing company fails to comply with the requirements of the notice it shall not lend any money to any person unless it obtains the written approval of the Central Bank.

(7)

For the purposes of this section liquid assets shall be—

(a)

notes and coin which are legal tender in the Federation;

(b)

deposit and current account balances held with (less any loans and advances from) any bank in the Federation;

(8)

(6)

The Central Bank may by notice in writing require any licensed borrowing company to render such returns as it may deem necessary for the purposes of this section and section 19.

(c)

money at call in the Federation;

(d)

Treasury bills issued by the Government or by the Government of any State authorized to issue Treasury bills; or

(e)

other assets from time to time approved by the Minister on the recommendation of the Central Bank.

(2)

For the purposes of this section, "risk assets" means assets other than liquid assets and the reserve held with the Central Bank pursuant to section 37 (c).

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