Malaysia legislation
Section 41
Section 41
(a)
“deposit” means the unpaid balance of the aggregate of deposits as defined under subsection 2(1) received or held by a deposit-taking member from or on behalf of a person and includes—
(i)
a bank draft, traveller’s cheque, prepaid letter of credit, money order or other similar instrument in respect of which the deposit-taking member is primarily liable and which meets the criteria as specified by the Corporation;
(ii)
cheque or other similar instrument or instruction entered into a payment system designated under subsection 30(1) of the Financial Services Act 2013
or subsection 39(1) of the Islamic Financial Services
Act 2013 notwithstanding any delay or failure by the deposit-taking member in crediting the account;
(iii)
a foreign currency deposit; or
(iv)
any liability or financial instrument as may be specified by the Corporation, but excludes, unless it is otherwise specified by the
Corporation under subparagraph (iv)—
(A)
a deposit that is not payable in Malaysia;
Malaysia Deposit Insurance Corporation 59
(B)
a money market deposit;
(C)
a negotiable instrument of deposit and any other bearer deposit;
(D)
a repurchase agreement;
(E)
a deposit that is payable by a deposit-taking member in the course of its Labuan banking business conducted under the Labuan Financial Services and
Securities Act 2010 [Act 704] or its Labuan Islamic banking business conducted under the Labuan
Islamic Financial Services and Securities Act 2010
[Act 705];
(EA) an investment linked to derivatives; and
(F)
any other liability or financial instrument as may be specified by the Corporation;
(b)
“trust account” includes monies held on account for the purpose of a trust.
(2)
(Deleted by Act A1647).
Scope of coverage for deposits