Section 42 — MALAYSIA DEPOSIT INSURANCE CORPORATION ACT 2011

(a)

Islamic deposits; and

(b)

conventional deposits.

(2)

For the purpose of subsection (1)—

(a)

where a depositor owns only one deposit with a deposit-taking member, that deposit shall be insured—

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(i)

in respect of the principal and return on an Islamic deposit, up to such limit as prescribed by the Minister on the recommendation of the Corporation; and

(ii)

in respect of the principal and interest on a conventional deposit, up to such limit as prescribed by the Minister on the recommendation of the

Corporation; and

(b)

where a depositor owns more than one deposit with a deposit-taking member, the aggregate of those deposits shall be insured—

(i)

in respect of the principal and return on Islamic deposits, up to such limit as prescribed by the

Minister on the recommendation of the Corporation;

and

(ii)

in respect of the principal and interest on conventional deposits, up to such limit as prescribed by the Minister on the recommendation of the

Corporation.

(3)

For the avoidance of doubt, a limit prescribed under subsection (2) may relate to any type or description of deposits and different limits may apply to different types or descriptions of deposits.

(4)

Subject to regulations made under section 209—

(a)

where a deposit-taking member is obligated to repay monies to a depositor who is acting as a trustee for any beneficiary or as joint owner with another, and the trusteeship or joint ownership is disclosed on the records of the deposit-taking member—

(i)

the deposit of the depositor as trustee or as a joint owner, shall be deemed to be a deposit separate from any deposit of that depositor acting on his own behalf or acting in another trust or joint capacity with the deposit-taking member;

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(ii)

where a trustee is acting for two or more beneficiaries, the deposit held in trust by him for each beneficiary, shall each be deemed to be a separate deposit; and

(iii)

the deposit held in trust by a trustee for a beneficiary in a deposit-taking member shall be deemed to be a deposit separate from a deposit of that beneficiary with the deposit-taking member on his own behalf and shall also be deemed to be separate from any deposit held in trust by another trustee for the beneficiary in the deposit-taking member;

(b)

for the avoidance of doubt, where a depositor is a joint owner of a deposit in a deposit-taking member with another person, all the deposits of such depositor with such person shall be aggregated and be deemed to be one deposit and shall be insured up to such limit as prescribed under subsection (2); and

(c)

for the purposes of paragraphs (4)(a) and (b)—

(i)

the deposit-taking member shall indicate on its records—

(A)

for a trust account, that the account is held by the trustee for the named beneficiaries; or

(B)

for a joint account, the names of the individual joint owners;

(ii)

the trustee shall—

(A)

maintain detailed records as may be prescribed by the Corporation on the trust accounts;

(B)

submit to the deposit-taking member such records as may be required by the Corporation under this Act; and

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(C)

file a statutory declaration certifying the accuracy of the records submitted under subsubparagraph (B) when required by the

Corporation; and

(iii)

the trustee in maintaining and submitting any record on the trust accounts required under subparagraph (ii)

shall ensure that the information given shall be true, correct and complete and shall not contain false or deceptive information and the deposit-taking member shall rely on such records for the purposes of subparagraph (i) and the trustee shall indemnify the deposit-taking member in the event of any legal proceedings relating to such records.

(5)

Notwithstanding anything in paragraph (4)(a), the Corporation shall not separately insure the deposits held in trust for any beneficiary if, in the opinion of the Corporation, the trust exists primarily for the purpose of obtaining or increasing deposit insurance.

(6)

For the purpose of subparagraph (4)(a)(i), any deposit held in trust by the same trustee for the same beneficiary shall be aggregated and be deemed to be one deposit.

(7)

Subject to regulations made under section 209 and the disclosure made by the trustee under subparagraph (4)(c)(ii), where a depositor—

(a)

operates a business as a sole proprietor or a partner of a partnership; or

(b)

carries on any professional practice, that has been disclosed as such on the records of the deposit-taking member, a deposit of such business or professional practice shall be deemed to be separate from the deposits of the depositor on his own behalf or as trustee or joint owner.

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(8)

The Corporation may require depositors to submit to the

Corporation such information as it may consider expedient or necessary for the purposes of making any payment under this Act.

Transfers of deposits among deposit-taking members