Netting of Financial Agreements Act 2015 · Updated to 6 Mar 2015 · Part II · Netting Provision
6. Power of Minister to prescribe other qualified financial agreement, netting provision and qualified financial transaction
Official textFrom Laws of Malaysia Online, unchanged
The Minister may, on the recommendation of the Central
Minister
“Minister” means the Minister charged with the responsibility for finance;
Bank of Malaysia, the Securities Commission, the Malaysia
securities
“securities” includes securities which are in accordance with Shariah. Netting of Financial Agreements 7
Deposit Insurance Corporation and the Pengurusan Danaharta
Nasional Berhad, prescribe—
any other agreement or arrangement to be a qualified financial agreement;
any other mechanism which has the effect of determining a single net amount to be a netting provision; or
any other transaction to be a qualified financial transaction.
An order under subsection (1) shall be laid before the
Dewan Rakyat as soon as practicable after its publication in the
Gazette.
In this section—
“Central Bank of Malaysia” means the Central Bank of Malaysia which continues to exist pursuant to subsection 3(1) of the Central
Bank of Malaysia Act 2009;
“Malaysia Deposit Insurance Corporation” means the Malaysia
Deposit Insurance Corporation which continues to exist pursuant to subsection 3(1) of the Malaysia Deposit Insurance Corporation
Act 2011 [Act 720];
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Netting of Financial Agreements 9
“Pengurusan Danaharta Nasional Berhad” means the Pengurusan
Danaharta Nasional Berhad incorporated under the Companies Act 1965 [Act 125] for such purposes provided under the Pengurusan
Danaharta Nasional Berhad Act 1998 [Act 587];
“Securities Commission” means the Securities Commission established under section 3 of the Securities Commission Act 1993 [Act 498].
Terms defined in s 2
Minister
Defined · s 2“Minister” means the Minister charged with the responsibility for finance;
netting provision
Defined · s 2“netting provision” means— (a) a provision in a qualified financial agreement which provides that upon the occurrence of the events specified by the parties in the agreement, all obligations owed by one party to another party under a qualified financial transaction are reduced to or replaced with a single net amount in accordance with the qualified financial agreement; or (b) any other mechanism which has the effect of determining a single net amount prescribed by the Minister to be a netting provision under paragraph 6(1)(b);
qualified financial agreement
Defined · s 2“qualified financial agreement” means— (a) a master agreement, with a netting provision, in respect of one or more qualified financial transactions, and where a master agreement is also in respect of one or more transactions that are not qualified financial transactions, the master agreement shall be a qualified financial agreement only with respect to the transactions that are qualified financial transactions; (b) any agreement or arrangement prescribed by the Minister to be a qualified financial agreement under paragraph 6(1)(a); or (c) an agreement relating to financial collateral that secures payment or performance of an obligation, including any agreement under which title to property has been provided for the purpose of such security, with respect to one or more qualified financial transactions under a master agreement referred to in paragraph (a) or an agreement or arrangement referred to in paragraph (b);
qualified financial transaction
Defined · s 2“qualified financial transaction” means the transaction referred to in section 5 and includes any other transaction prescribed by the Minister to be a qualified financial transaction under paragraph 6(1)(c);
securities
Defined · s 2“securities” includes securities which are in accordance with Shariah. Netting of Financial Agreements 7