Malaysia legislation
Section 25
Section 25
(2)
Without prejudice to the generality of subsection (1), for the purposes of this Act, the Corporation may do all such things necessary for or incidental to the objects of the Corporation and, in particular, the
Corporation may—
(a)
for the purpose of reducing or averting a risk to the financial system or a threatened loss to the Corporation—
(i)
acquire assets from a member institution;
(ii)
except for purposes of the provision of liquidity assistance, make loans or advances or provide financing with or without security, or guarantee with or without security any loan, advance or financing provided, to a member institution;
(iii)
acquire, by way of security or otherwise, or subscribe to shares or capital instruments of a member institution and hold, dispose of or otherwise deal with such shares or capital instruments;
(iv)
make a deposit with a deposit-taking member;
(v)
guarantee all or part of the liability of a deposit-taking member in respect of a deposit; or
(vi)
guarantee or assume all or part of the liability of an insurer member in respect of a takaful or insurance benefit;
46
(b)
hold, dispose of or otherwise deal with assets acquired from a member institution;
(c)
borrow or otherwise raise funds in such manner as the
Corporation thinks fit;
(d)
acquire and hold any movable or immovable property for its own use and dispose of or otherwise deal with such property;
(e)
guarantee, indemnify, or become liable for the payment of monies or the performance of any obligations;
(f)
mortgage, charge or create a lien on or transfer or otherwise deal with any of its assets to secure the performance of any of its obligations or any of the obligations of any other person;
(g)
enter into any agreement with any person in furtherance of its objects or in relation to the performance of its functions, including a strategic alliance agreement with Bank Negara
Malaysia;
(h)
settle or compromise any claim by or against the
Corporation;
(ha) provide such subsidies, grants, Islamic financing facility or conventional credit facility, with or without return or interest, to any person for the purpose of training, research, education or development of human resource in relation to banking and financial services; and
(i)
do all such other things as may be necessary for or incidental to the exercise of any power or the performance of any obligation of the Corporation.
(3)
The Corporation may, either generally or in any particular case, appoint any person who is not a director, officer or employee of the
Corporation, to render such assistance as it may specify in the exercise of its powers, the performance of its functions, or the discharge of its
Malaysia Deposit Insurance Corporation 47
duties, under this Act, or to exercise, perform or discharge such powers, functions or duties on behalf of and in the name of the
Corporation as may be specified by the Corporation.
Lending of money or provision of financing for specified purposes