Section 18
of Act 125
Section 18
Every licensed borrowing company shall maintain a minimum amount of liquid assets which shall be prescribed from time to time by the Central Bank by notice in writing to the borrowing company.
(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 sub-séctiori (1) 6ach licénséd borrowing company shall be allowed a period of not less than oné weék (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 fa ei entral Bank.
Por the purposes of this section liquid assets shall be—
(a)
notes and coin which are legal tender in the
Federation;
(b)
deposit and current accoint balances held with (less any loans and advances from) any bank in the
Federation;
Restriction on payment of dividends.
Maintenance of minimum amount of liquid assets.
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[S. 18-20]
12 Act 6
of /AAYSE (cmoney—at-call-inthe-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.
PARC (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.
Maximum 19, (1) No licensed borrowing| company shall hold risk
Pee of assets in excess of ten times both its paid-up capital and risk assets. teserye aS published in its latest and duly audited balance sheet.
Sub me (2) For the purposes of this section, “risk assets” means
A-A 369(77 assets other than liquid assets and the reserve held with the
Central Bank pursuant to section 37 (c).
Unsecured 20, (1) A liceitsed borrowing se shall not grant to loam> any person an unsecured advahée, loan or credit facility qxocen Ee which in the aggregate at any ong time exceeds five thousand dollars. dollars.
(2)
In sub-section (1), the expression “unsecured advance, loan or credit facility” means—
(a)
an advance, loan or credit facility made without security; or
~) wher than a (b) an advance, loan or credit facility secured only by
‘ ~ a guarantee or guarantees} or .
Ae icd hy Ha (c) any part of an advance, loan or credit facility
Govern niert secured by tangible assets which exceeds—
Cam f54) (i) in the case of a charge of immovable pro-perty the amount charged or the market value of the charged property whichever is less; or
(ii)
the market value of any property other than immovable property, but where the Central Bank is satisfied that there is no established market value, the valuation approved by the Central Bank.
[S. 20-23]
FINANCES
BORROWING COMPANIES 13
(3)
All the directors of a licensed borrowing company shall be liable jointly and severally to indemnify the licensed borrowing company against any loss arising from the making of an unsecured advance, loan or credit facility in contra-vention of sub-section (1).
Subs. Act 230