Section 2
Interpretation
of Act 627
(1)
In this Act, unless the context otherwise requires—
“payment instruction” or “settlement instruction” includes an instruction to transfer, clear or settle transactions in funds or securities, as the case may be; .
10 Laws of Malaysia - Act 627
“Bank” means the Central Bank of Malaysia established by the
Central Bank of Malaysia Act 1958;
“fund” or “money” includes any unit of account or unit of value that facilitates the purchase of goods or services;
“data” means representations of information or of concepts that are being prepared or have been prepared in a form suitable for use in a computer;
“specify” means to specify in writing, and a power to specify includes the power to specify differently for different persons, payment systems or payment instruments, or for different classes, categories or descriptions of persons, payment systems or payment instruments;
“prescribe” means prescribed by order published in the Gazette, and a power to prescribe includes the power to make different provisions for different persons, payment‘ systems or payment instruments, or for different classes, categories or descriptions of persons, payment systems or payment instruments;
“Governor” means the Governor of the Bank and includes a
Deputy Governor of the Bank;
“payment instrument” means any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services or to otherwise make payment;
“designated payment instrument” means a payment instrument prescribed as a designated payment instrument under subsection 24(1);
“chief executive officer”, in relation to an operator, means a person by whatever name called, who, either individually or jointly with one or more other persons, is responsible, subject to the authority of the directors, for the conduct of the business and the administration of the operator;
“computer” means any device for recording, storing, processing, retrieving or producing any information or other matter, or for performing any one or more of those functions, by whatever name or description such device is called; and where two or more computers carry out any one or more of those functions in combination or in succession or otherwise conjointly, they shall be treated as a single computer;
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“Minister” means the Minister charged with the responsibility
OC for finance;
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“computer output” means a statement or a representation, whether in written, printed, pictorial, film, graphical, acoustic or other form—
O (a) produced by a computer;
(a)
a co-operative society, means a member of the Board of
Directors, or other governing body of the co-operative society;
(b)
displayed on the screen of a computer; or
(c)
accurately translated from a statement or representation so produced;
“officer”, in relation to any sole proprietorship, company, body, association or group of persons, whether corporate or unincorporate, includes any employee and a chief executive officer;
“issuer” means any person, acting alone or under an arrangement with another person, who undertakes to be responsible for the payment obligation in respect of a payment instrument resulting from the user being issued with or using the payment instrument;
“director” means any person who occupies the position of a director by whatever name called, and includes an alternate or substitute director, and without prejudice to the foregoing, in the case of—
(6)
astatutory body, means a member of the board, committee, council or other governing body of the statutory body;
(c)
a partnership, means a partner;
\
O (d) a sole proprietorship, means the sole proprietor; and
(e)
any company, body, association or group of persons, whether corporate or unincorporate, including those listed in (a) to (d) above, means a person in accordance with
C whose directions and instructions the directors or officers are accustomed to act or a person having the direction and control, whether directly or indirectly, of the management of its business or affairs;
12 Laws of Malaysia Act 627
“operator” means any person, acting alone or under an arrangement with another person, responsible for the rules, procedures and operations of a payment system but excludes such persons as may be prescribed by the Bank;
“participant” means any person who is permitted by the rules governing the payment system to send payment or settlement instructions to a payment system and is bound by the rules governing that payment system;
“systemic risk” means—
-
the risk that the failure of a participant or operator to meet his payment or settlement obligations will cause another participant to be unable’ to meet his payment or settlement obligations when due; or
(b)
the risk that the failure of a participant or operator to meet his payment or settlement obligations may cause.
significant liquidity or credit problems that might threaten the stability of financial markets;
“relative” has the same meaning as in the Banking and Financial
Institutions Act 1989 [Act 372];
“securities” has the same meaning as in the Securities Commission
Act 1993 [Act 498];
“business associate” has the same meaning as in the Banking and Financial Institutions Act 1989;
“designated payment system” means a payment system prescribed as a designated payment system under subsection 6(1);
“payment system” means any system or arrangement for the transfer, clearing or settlement of funds or securities, but excludes—
(a)
a payment system operated by the Bank under the Central
Bank of Malaysia Act 1958;
(b)
aclearing house recognized under the Securities Industry
Act 1983 [Act 280];
(c)
a clearing house licensed under the Futures Industry Act 1993 [Act 499];
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(d)
an in-house payment system operated by a person solely for his own administrative purposes that does not transfer, clear or settle funds or securities for third parties;
(e)
a system that solely facilitates the initiation of payment instructions; and
(f)
such other systems or arrangements as may be prescribed by the Bank.