Section 2

produced by a computer;

displayed on the screen of a computer; or

accurately translated from a statement or representation so produced;

"issuer" means any person, acting alone or under an arrangement with another person, who undertakes to be responsible for the payment obligation in respect of a payment instrument resulting from the user being issued with or using the payment instrument;

"officer", in relation to any sole proprietorship, company, body association or group of persons, whether corporate or unincorporate includes any employee and a chief executive officer;

"director" means any person who occupies the position of a director by whatever name called, and includes an alternate or substitute director, and without prejudice to the foregoing, in the case of—

a co-operative society, means a member of the Board of Directors, or other governing body of the co-operative society;

a statutory body, means a member of the board, committee council or other governing body of the statutory body;

a partnership, means a partner;

a sole proprietorship, means the sole proprietor; and

any company, body, association or group of persons, whether corporate or unincorporate, including those listed in (a) to (d) above, means a person in accordance with whose directions and instructions the directors or officers are accustomed to act or a person having the direction and control, whether directly or indirectly, of the management of its business or affairs;

"operator" means any person, acting alone or under an arrangement with another person, responsible for the rules, procedures and operations of a payment system but excludes such persons as may be prescribed by the Bank;

"participant" means any person who is permitted by the rules governing the payment system to send payment or settlement instructions to a payment system and is bound by the rules governing that payment system;

"systemic risk" means—

the risk that the failure of a participant or operator to meet his payment or settlement obligations will cause another participant to be unable to meet his payment or settlement obligations when due; or

the risk that the failure of a participant or operator to meet his payment or settlement obligations may cause significant liquidity or credit problems that might threaten the stability of financial markets;

"relative" has the same meaning as in the Banking and Financial Institutions Act 1989 [Act 372];

"securities" has the same meaning as in the Securities Commission Act 1993 [Act 498];

"business associate" has the same meaning as in the Banking and Financial Institutions Act 1989;

"designated payment system" means a payment system prescribed as a designated payment system under subsection 6(1);

"payment system" means any system or arrangement for the transfer, clearing or settlement of funds or securities, but excludes—

a payment system operated by the Bank under the Central Bank of Malaysia Act 1958;

a clearing house recognized under the Securities Industry Act 1983 [Act 280];

a clearing house licensed under the Futures Industry Act 1993 [Act 499];

an in-house payment system operated by a person solely for his own administrative purposes that does not transfer, clear or settle funds or securities for third parties;

a system that solely facilitates the initiation of payment instructions; and

such other systems or arrangements as may be prescribed by the Bank.

Where an issuer operates a payment system, such issuer shall also comply with the requirements of Part II.

Application