Malaysia legislation
Section 13
Section 13
(2)
Any such deposit shall be made in cash or securities specified in the First Schedule or partly in one way and partly in the other; and any cash comprised in a deposit may be invested in such manner not contrary to the Syariah as may be approved by the Director General.
(3)
All incomes accruing in respect of a deposit shall be payable to the operator making the deposit.
(4)
A deposit made under this section in respect of any class of takaful business shall be retained by the Accountant General until either the operator ceases to be registered in respect of that class of takaful business or the deposit is required in the winding up of the operator, and if the operator ceases to be registered as aforesaid, the deposit or part of it may be further retained for the purpose of and in accordance with any such provision for liabilities in respect of certificates as is required by subsection (3) of section 11.
(5)
If at any time a deposit under this section (other than a deposit retained after the operator has ceased to be registered as aforesaid) comprises assets other than Government securities, and the value of those assets is less than the sum prescribed by virtue of subsection (1) reduced by the value of any Government securities comprised in the deposit, then the Director General may by notice in writing direct the operator to add thereto within twenty-eight days of the service of the notice, cash or securities specified in the First Schedule of a value not less than the difference.
(6)
An operator which has made a deposit under this section may at any time substitute for any assets comprised in the deposit cash or securities specified in the First Schedule, so long as the value of the deposit is not thereby reduced to an amount below that which is required by this Act.
(7)
In the foregoing subsections "securities" (except in the expression "Government securities") includes any form of investment not contrary to the Syariah, and "Government securities" means securities of which the principal or profit is charged directly or by way of guarantee on the Consolidated Fund of the Federation or of any State, but no deposit shall include—
(a)
any shares in, or other securities of an operator registered under this Act;
(b)
except so far as a debt comprised in the deposit is secured on land, any estate or interest in land; or
(c)
any securities authorized in paragraphs 2,3,4, 5 and 6 of the First Schedule which the Minister on the advice of the Director General and the Accountant General declares in writing to the operator to be unsuitable for the purposes of a deposit.
(8)
Where by virtue of subsection (7) (c) any securities comprised in a deposit are declared unsuitable, the operator shall within one calendar month of the securities being so declared, substitute therefor such other securities as are authorized by this section.