Section 25
Section 25
Except as provided under paragraph (e)-of subsection-
-of section-24 and subsection-
-of this section, no Islamic bank shall grant advances, loans or credit facilities to—
(a)
any of its directors, officers or employees or other persons being persons receiving remuneration from it (other than accountants, advocates and solicitors, architects, estate agents, doctors and any other persons receiving remuneration from it in respect of their professional services);
(b)
any firm in which any of its directors, officers or employees is interested as partner, manager, agent or guarantor;
(c)
any corporation in which any of its officers or employees is a director, manager, agent or guarantor, or any corporation in the shares of which any of its officers or employees has any material interest as determined by the Central Bank;
d loans or of, in the one time, tion which is described 1965, other bank under companyanies Act institution unsecured credit and credit ect of any h security, xceeds the security or, here is no n the basis c.
(e)
of sub-ral Bank with ded for under employees or ing remuneants, advocate agents, living remuprofessional ors, officers r, manager, officers or agent or shares ofees has any the Central
(d)
any corporation in which any of its directors (not being an executive director, he being within the ambit of the provisions of paragraph (c) pursuant to subsection (3)) is a member, director, manager, agent or guarantor, or any corporation in the shares of which any such director of the Islamic bank has any interest whatsoever directly or indirectly; or
(e)
any individual for whom any of its directors, officers or employees is a guarantor.
(2)
An Islamic bank may grant to any of its officers or employees loans which are provided under its appropriate scheme of service and, where the bank is satisfied that special or compassionate circumstances exist, a loan not exceeding at any one time six months' remuneration of that officer or employee on such terms and conditions as the bank thinks fit.
(3)
The provisions of paragraph (c) of subsection (1) and of subsection (2) shall also apply to the executive directors of Islamic banks.
(4)
The provisions of paragraph (d) of subsection (1) shall not apply to the granting of advances, loans or credit facilities by an Islamic bank to—
(a)
a corporation which is listed on a recognized stock exchange and in the shares of which no director of that Islamic bank has, directly or indirectly, any material interest as determined by the Central Bank; and
(b)
a public company in which a director of that Islamic bank has no interest in his personal capacity, as determined by the Central Bank:
Provided that for the purposes of this subsection the director concerned is not an executive director of that Islamic bank.
(5)
For the purposes of this section, "director", "officer" or "employee" includes a spouse, parent or child of a director, an officer or employee.
(a)
that the advance, loan or credit facility meets the standards of credit-worthiness required of other applicant borrowers;
(b)
that the terms of the advance, loan or credit facility are not less favourable to the bank than those offered to others;
(c)
that the grant of the advance, loan or credit facility will serve the best interest of the bank; and
(d)
that the advance, loan or credit facility has been approved by the votes of not less than two-thirds of all the other directors of the bank at a duly constituted meeting of the full board of directors and the approval has been recorded in the minutes of that meeting.