Islamic Financial Services Act 2013 · Updated to 2 Jan 2025 · Part XIV · Intervention and Remedial Action
220. Qualified financial agreement
Official textFrom Laws of Malaysia Online, unchanged
For the purposes of this section, “institution” refers to a licensed person, an approved issuer of a designated Islamic payment instrument or operator of a designated payment system.
The parties under a qualified financial agreement may continue to enforce their rights under the qualified financial agreement and shall not be affected by—
agreement
“agreement” means an agreement whether formal or informal, oral or written, express or implied;
the assumption of control of a licensed person or an operator of a designated payment system pursuant to section 179;
the appointment of a receiver and manager of the business, affairs or property of any institution pursuant to section 184;
or
the making of an order for the compulsory transfer of the business, assets or liabilities of a licensed person pursuant to section 188, except during such period as may be prescribed in regulations made under section 271 upon the commencement of the assumption of control or the appointment of a receiver and manager.
Islamic Financial Services 193
Where a qualified financial agreement is transferred to any person pursuant to the exercise of the powers under subsection 180(6)
or section 186 or to a bridge institution or any other person under section 188—
the acquiring person or bridge institution shall assume all the rights and obligations under such qualified financial agreement of the institution from which such agreement was transferred; and
the enforcement by the parties of their rights under such qualified financial agreement shall be in accordance with the terms of such agreement as if the acquiring person or bridge institution had always been a party to such agreement.
If the qualified financial agreement is not transferred to a bridge institution or another person, the parties to such qualified financial agreement shall be entitled to enforce their rights under such agreement at the expiry of the period referred to in subsection (2).
Where the qualified financial agreement of an institution is transferred to an acquiring person or a bridge institution during the period prescribed by the Bank under subsection (2), and where a person is a counterparty to two or more qualified financial transactions under that agreement with the same institution, all or none of such qualified financial transactions shall be transferred to the acquiring person or bridge institution.
If a qualified financial agreement relating to financial collateral that applies to any property of the institution is transferred, that property shall also be transferred to the acquiring person or bridge institution.
Terms defined in s 2
agreement
Defined · s 2“agreement” means an agreement whether formal or informal, oral or written, express or implied;
Part XV
Other Powers of Bank
Part XVI
Enforcement and Penalties
Part XVII
General Provisions
Part XVIII