Malaysia legislation
Section 44
Section 44
(2)
For purposes of subsection (1), and in accordance with such rules as may be made by the Corporation—
(a)
in relation to depositors, the transferring member shall—
(i)
obtain written consent of at least seventy five per cent of all the depositors to the transfer of deposit liabilities;
(ii)
obtain written acknowledgement by each depositor that the depositor is aware that deposit liabilities transferred to and assumed by the transferee will be insured for the remainder of the assessment year, or until maturity or full withdrawal, whichever is earlier, and that subsequently, the deposit liabilities will no longer be insured in whole or in part by the
Corporation;
Malaysia Deposit Insurance Corporation 65
(iii)
upon a request in writing, pay to a depositor, the principal amount of the deposit, and return or interest, calculated to the date of withdrawal and no charge or penalty shall be imposed in respect of the payment;
and
(iv)
provide a statement that the transferring member’s obligation to repay the deposits will be assumed by the transferee; and
(b)
the transferee shall enter into an agreement in writing to assume the transferring member’s deposit liabilities on the same terms and conditions.
(3)
For the purpose of paragraph (2)(b), the transferring member shall indemnify the Corporation in the event that any payment is made by the Corporation to depositors on account of the continuing insurance referred to in subsection (1).
(4)
The transferee shall maintain such records as are required by the
Corporation for the purposes of subsection (1).
Deemed deposits