Section 27 — BANKING ACT 1973

(a)

to any of its directors (as defined in subsection (3) of section 26);

(b)

to any firm or corporation of which any of its directors (as defined in subsection (3) of section 26) is a partner, director, manager or agent or to any corporation in which shares any of its directors (as so defined) has interest; or

(c)

to any individual, firm or corporation of whom or of which any of its directors (as defined in subsection (3) of section 26) is a guarantor, unless the following conditions are satisfied—

(a)

that the advance, loan or credit facility meets the standards of credit-worthiness required of other applicant borrowers;

(b)

that the terms of the advance, loan or credit facility are not less favourable to the bank than those offered to others;

(c)

that the grant of the advance, loan or credit facility will serve the best interest of the bank; and

(d)

that the advance, loan or credit facility has been approved by the votes of not less than two-thirds of all the other directors of the bank and the approval has been recorded in the minutes of the meeting of the directors.

(2)

For the purposes of subsection (1), a person shall be deemed to have interest in the shares of a corporation if—

(a)

that person owns twenty per centum or more of the paid-up capital shares of the corporation;

(b)

twenty per centum or more of the paid-up capital shares of the corporation are subject to a trust under which (to the knowledge of that person) he has an interest;

(c)

the corporation is or its directors are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of that person in relation to twenty per centum or more of the paid-up capital shares of the corporation;

(d)

that person is entitled to exercise or control the exercise of not less than twenty per centum or such other percentage as may be prescribed from time to time by the Central Bank, of the votes attached to the voting shares in the corporation;

(e)

that person has entered into a contract to purchase twenty per centum or more of the paid-up capital shares of the corporation;

(f)

that person has a right otherwise than by reason of having an interest under a trust, to have twenty per centum or more of the paid-up capital shares transferred to himself or to his order, whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not;

(g)

that person has a right to acquire twenty per centum or more of the paid-up capital shares of the corporation under an option whether the right is exercisable presently or in the future and whether on the fulfilment of a condition or not;

(h)

that person is entitled (otherwise than by reason of his having been appointed a proxy or representative to vote at a meeting of members of the corporation or of a class of its members) to exercise or control the exercise of a right attached to twenty per centum or more of the paid-up capital shares of the corporation, not being shares of which he is the registered holder; or

(i)

the aggregate total of shares to which two or more circumstances mentioned in the preceding paragraphs relate, shall be at any one time twenty percent or more of the paid-up capital shares of the corporation.

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