Malaysia legislation
Section 134A
Section 134A
(a)
the assets of the deposit-taking member acquired in the course of its business other than its Islamic banking business, shall be applied to meet the liabilities incurred in the course of its business other than the Islamic banking business, in the order set out in section 134; and
(b)
where the assets of the deposit-taking member referred to in paragraph (a) is in surplus after payment has been made to meet its liabilities under paragraph (a), such surplus assets of the deposit-taking member shall be applied to meet the liabilities of the deposit-taking member under subsection (2).
(2)
Without prejudice to section 134, in the winding up of a deposit-taking member which has been approved under paragraph 15(1)(a) of the Financial Services Act 2013 to carry on
Islamic banking business—
(a)
the assets acquired by the deposit-taking member in the course of its Islamic banking business including the Islamic banking funds or any accounts established under subsection 15(3) of the Financial Services Act 2013, subject to paragraph (aa)—
(i)
shall not be subject to the debts of the deposit-taking member except in respect of its Islamic banking business or as provided in paragraph (b); and
(ii)
shall be available to meet all liabilities of the deposit-taking member in respect of its Islamic deposits in Malaysia in priority to all other unsecured liabilities incurred in the course of its Islamic banking
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business, other than the preferential debts set out in subsection 527(1) of the Companies Act 2016 in the order set out in that subsection and the debts due and claims owing to the Government under section 10 of the Government Proceedings Act 1956, which is attributable to its Islamic banking business as may be specified by the Corporation and the order of priority for payments of different categories of Islamic deposits may be prescribed by regulations made under section 209;
(aa) notwithstanding subsection 527(1) of the Companies Act 2016, but subject to any costs and expenses of the winding up set out in paragraph 527(1)(a) of the Companies Act 2016 directly incurred in realising the assets of the investment accounts and any tax set out in paragraph 527(1)(f) of the Companies Act 2016 which is attributable to the investment accounts, the assets of the investment accounts managed by the deposit-taking member in Malaysia, shall be available, in the order set out as follows:
(i)
to pay outstanding costs or expenses of the investment accounts;
(ii)
to pay any profit, fees, gains or other remuneration due to the deposit-taking member; and
(iii)
to meet the liabilities to the investment account holders; and
(b)
where the assets of the deposit-taking member referred to in paragraph (a) is in surplus after payment has been made to meet its liabilities under subparagraph (a)(ii), such surplus assets of the deposit-taking member shall be applied to meet the liabilities of the deposit-taking member including the liabilities of the deposit-taking member under section 134 in the order of priority stated therein.
(3)
(Deleted by Act A1647).
Malaysia Deposit Insurance Corporation 149
Priority of payments in the winding up of a deposit-taking member that is an Islamic bank