*BANK SIMPANAN NASIONAL ACT 1974

to promote and mobilize savings, particularly from small savers, and to encourage thrift and the saving habit;

to provide means for savings by the general public;

to utilize the funds of the Bank for investments, including financing for the economic development of the nation;

to assume the functions and responsibilities of the Post Office

Savings Bank; and

to promote the interests of its depositors and other customers.

Powers of the Bank

receive as deposits from its customers or collect on their behalf moneys which are repayable either on demand or otherwise;

grant loans and advances to, or give guarantees for the benefit of, its depositors and other customers for housing and such other purposes as may be approved by the Minister and enter into agreements for these purposes;

invest in securities of the Government or of the Government of any State or of any public authority or other securities for purposes consistent with its objects;

promote the formation of an incorporated company or participate in the promotion of such a company or acquire an undertaking or part thereof;

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acquire land and property for or in connection with the exercise of its powers, and develop such land and property;

dispose of or lease or otherwise deal with the whole or any part of its undertaking or property;

provide and operate giro services;

accept from customers for safe custody securities and other articles of value;

levy a charge for any service rendered by it;

maintain accounts with the Government, the Government of any

State, banks and other financial institutions;

open branches and appoint agents or correspondents;

operate schemes for the issue and promotion of premium savings certificates which are redeemable either on demand or otherwise and, notwithstanding any other written law to the contrary, hold, promote, organize and administer draws for the awarding of bonus payments to holders of issued premium savings certificates; and

(la)

provide, operate and manage any other products or services as may be necessary for the purpose of attaining the objects of the

Bank and impose charges for such products and services; and

carry on the general business of a savings bank and do all such other things as are incidental or conducive to the attainment of its objects.

, which shall be responsible for the policy and overall administration of the affairs and business of the Bank.

Bank Simpanan Nasional 11

Members of the Board of Directors shall be appointed by name by the

Minister and shall comprise of—

When attending meetings of the Board in place of a director, an alternate director shall for all purposes be deemed to be a member of the

Board.

An alternate director shall cease to be an alternate director when the director in respect of whom he is an alternate director ceases to be a member of the Board.

Terms of appointment of Chairman and directors

the Chairman shall be appointed for a term not exceeding five years and shall be eligible for reappointment; and

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any other director (other than the Chief Executive) shall hold office for a term not exceeding three years and shall be eligible for reappointment.

Directors shall be paid by the Bank such salaries, fees or allowances as may be determined by the Minister.

During the temporary incapacity owing to illness or during the temporary absence from Malaysia of the Chairman, the Deputy Chairman may act as temporary Chairman, and if both the Chairman and the Deputy

Chairman are absent, the Minister may appoint one of the other directors to be temporary Chairman.

The Minister may at any time terminate the appointment of the

Chairman or any director who—

No person shall be appointed or remain as Chairman or director of the Bank if he—

The Chief Executive—

The Chief Executive shall devote the whole of his professional time to the service of the Bank:

Provided that he may, if so appointed and with the approval of the

Minister, become—

The Bank shall furnish the Minister with such information with respect to its financial position and activities as the Minister may from time to time require.

Meetings of the Board

The Chairman, or in his absence, the Deputy Chairman, shall preside at every meeting of the Board. In the absence of both the Chairman and the

Deputy Chairman, members of the Board shall elect a person from among themselves to act as Chairman.

Any three members may requisition a meeting of the Board.

Four members of the Board present at a meeting of the Board shall form a quorum.

All decisions at a meeting of the Board shall be by a simple majority of the votes of the directors present and voting:

Provided that if upon any question the votes are equally divided, the

Chairman or the person presiding shall have a casting vote.

Committees of the Board

The Board may elect a member of the Board to be the chairman of a committee.

The Board may appoint any person to be a member of a committee established under subsection (1).

Bank Simpanan Nasional 15

A member of a committee shall hold office for such term as may be specified in his letter of appointment and is eligible for reappointment.

The Board may revoke the appointment of a member of a committee without assigning any reason for the revocation.

A member of a committee may, at any time, resign by giving a one month notice in writing to the Chairman of the Board.

The Board may, at any time, discontinue or alter the constitution of a committee.

A committee may regulate its own procedure.

Disclosure of director’s interest in contract, etc.

A disclosure under subsection (1) shall be recorded in the minutes of the Board and, after disclosure, the director shall—

No act or proceeding of the Board shall be questioned on the ground that a director has contravened the provisions of this section.

Common seal

Until a seal is provided under this section, a stamp bearing the inscription “Bank Simpanan Nasional” or “National Savings Bank” may be used as the common seal.

All deeds, documents and other instruments requiring the seal of the

Bank shall be sealed with the seal of the Bank in the presence of the

Chairman and the Chief Executive or some other person authorized by the

Board to act in that behalf, who shall sign every such deed, document or other instrument to which the seal is affixed and the signing shall be sufficient evidence that the seal was duly and properly affixed and that the same is the lawful seal of the Bank.

Any document or instrument which if executed by a person not being a body corporate would not be required to be under seal may in like manner be executed by the Bank; and any such document or instrument may be executed on behalf of the Bank by any officer or employee of the Bank generally or specially authorized by the Board in that behalf.

Officers and employees of the Bank shall hold office for such period, receive such salaries and allowances and be subject to such terms and conditions of service as may be determined by the Board and approved by the Minister.

Discipline

The Bank may, with the approval of the Minister, make regulations to provide for the discipline of its officers and employees.

The disciplinary regulations made under this section—

The following provisions shall apply to a disciplinary committee:

A disciplinary committee shall exercise its powers in all matters relating to the discipline of the officers or employees placed under its jurisdiction.

In the exercise of its disciplinary functions and powers, a disciplinary committee shall have the power to take disciplinary action and impose any disciplinary punishment or any combination of two or more disciplinary punishments as may be provided for under any disciplinary regulations made under section 14A.

Disciplinary Appeal Board

the Chairman, who shall be the chairman of the Disciplinary

Appeal Board and shall have the casting vote; and

two other members who may consist of the members of the

Board of Director, officers or any combination of the members of the Board of Directors and officers who shall be appointed

Bank Simpanan Nasional 19

by the chairman of the Disciplinary Appeal Board for the purpose of the appeal provided that—

the members of the Board of Directors or officers are not members of the disciplinary committee whose decision is the subject matter of the appeal; and

When the Disciplinary Appeal Board considers an appeal, a member of the disciplinary committee against whose decision the appeal is made shall not be present or in any way participate in any proceedings relating to that appeal.

The Disciplinary Appeal Board may confirm, reverse or vary the decision of the disciplinary committee.

Surcharge

did not or has failed to collect any moneys owing to the bank for the collection of which he is or was responsible;

is or was responsible for any payment of money from the Bank which ought not to have been made or for any payment of moneys which is not duly approved;

is or was responsible, directly or indirectly, for any deficiency in, loss or the destruction of, any moneys, stamps, securities, stores or other property of the Bank;

being or having been an accounting officer, fails or has failed to keep proper accounts or records; or

has failed to make any payment, or is or was responsible for any delay in the payment of money from the Bank to any person to whom such payment is due under any contract, agreement or arrangement entered into between that person and the Bank.

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The Bank shall, before the person is surcharged, serve on him a written notice calling on him to show cause why he should not be surcharged.

If a satisfactory explanation is not received within fourteen days from the date of service of the notice under subsection (2), the Bank may surcharge against that person such sum as the Bank deems fit.

The Bank shall cause the Chief Executive to be notified of any surcharge made under subsection (3) and the Chief Executive shall thereupon notify the person surcharged.

The Bank may at any time withdraw any surcharge in respect of which a satisfactory explanation has been received or if it otherwise appears that no surcharge should have been made, and the Bank shall immediately cause the Chief Executive to be notified of such withdrawal and the Chief

Executive shall inform the person surcharged of the withdrawal.

The amount of any surcharge imposed under subsection (3) and not withdrawn under subsection (5) shall be a debt due to the Bank from the person surcharged and may be sued for and recovered in any court at the suit of the Bank and may also, if the Bank so directs, be recovered by deduction from—

Any member of the public service who has by virtue of subsection (1)

become an officer or employee of the Bank may not later than twelve

Bank Simpanan Nasional 21

months from the appointed date elect in writing whether to continue in the service of the Bank or to revert to the public service; and if he elects to revert to the public service, shall thereupon revert to that service on terms and conditions not less favourable than those which would have been attached to his service had he not become an officer or employee of the Bank by virtue of subsection (1); and his service with the Bank shall be deemed to be service within the public service.

Any member of the public service who reverts to the public service under subsection (2) may, by reason that no vacancy is immediately available for him in the public service, be required by the Government, and the Bank shall permit him, to continue to serve with the Bank for a period not exceeding five years.

In determining whether the terms and conditions of service are or are not less favourable, as aforesaid, regard shall be had to salary or wages, conditions relating to termination of service, retirement benefits, medical attention, quarters, allowances, leave and overseas passages (if any) for himself and his family and any other benefits whether provided for himself or his widow or dependants.

Any question arising as to whether any terms and conditions of service are less favourable than those attached to the service mentioned in subsection (1) or (2) shall be referred to the Minister whose decision thereon shall be final.

Facilities for staff

scholarship and other financial assistance for persons employed or likely to be employed by it; and

provide houses, hostels, clubs and other educational and recreational facilities.

Public servants

for the purchase, erection, alteration, and renovation of a house in which he resides or intends to reside under rules approved by the Board;

to discharge a mortgage or encumbrance on such a house; or

for the purchase of a vehicle.

When the Bank is satisfied that special or compassionate circumstances exist, it may approve a loan or advance to an officer or employee on such terms and conditions as the Board deems appropriate.

Restriction on loans and advances

securities of the Government;

other investments authorized by or under the Trustee Act 1949

[Act 208];

loans for housing for depositors and other customers in accordance with the general directions of the Minister;

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other loans and advances to depositors and other customers for such purposes as may be approved by the Minister; and

other securities and investments as the Board may from time to time decide:

Provided that, subject to any variation which the Minister may make under subsection (2), securities held under paragraph (a) shall not be less than 70

per cent, and securities and investments held under paragraph (e) shall not exceed 10 per cent, of the funds available in any one year for investment and not needed for immediate use by the Bank.

The Minister may, after consultation with the Board, vary the percentage specified in the proviso to subsection (1).

No investment shall be made by the Bank outside Malaysia.

The accounts of the Bank shall be audited by the Auditor General.

General Reserve Fund

At the end of each financial year, the net profit of the Bank for that year shall be determined after allowing for the expenses of operation and after making provision for bad and doubtful debts, depreciation in assets, contribution to staff provident or pension funds and such other contingencies as are usually provided for by banks.

The net profit determined under subsection (2) shall be dealt with as follows:

The Board may appropriate such portion of the General Reserve Fund as may be necessary for the purpose of—

cause a copy of its profit and loss account and balance sheet certified by the Auditor General, together with a copy of any observation made by the Auditor General, to be transmitted to the Minister and such financial statements and observations shall then be published in the Gazette;

transmit to the Minister its annual report dealing with the activities of the Bank during the preceding financial year and containing information relating to the operations and accounts of the Bank, including a statement as to whether any contingent liabilities have been undertaken by the Bank pursuant to paragraph 5(b) in the period covered by the financial statements; and

publish its annual report together with the financial statements and the Auditor General’s observations referred to in paragraph

.

The Minister shall cause copies of the documents referred to in paragraph (1)(c) to be laid before each House of Parliament.

In particular, and without prejudice to the generality of the power conferred by subsection (1), such rules and regulations may relate to—

Any person contravening this section shall be guilty of an offence and shall on conviction be liable to a fine not exceeding one thousand ringgit.

Power to appoint attorney

Upon notice of a claim under a judgment of any court, it shall be lawful for the Chief Executive in his discretion to retain in the account a sum sufficient to answer the claim and to pay into the court on its order the amount of that claim or part thereof; but a court shall only make an order under this section if it is satisfied that the judgment-debtor has an account with the Bank for his own sole benefit.

Power to administer oath

Any person who upon such oath or affirmation makes any statement that is false, and which he either knows or believes to be false, or does not know to be true, shall be deemed guilty of an offence under section 193 of the Penal Code.

Public Authorities Protection Act

The expenses and compensation in respect of any immovable property acquired under this section shall be paid by the Bank.

When any immovable property has been acquired under this section, the Bank shall extract the necessary documents of title in respect of such property and shall pay any rent to which such property may be subject.

All subsidiary legislations in force immediately before the appointed date made under the 1948 Act shall, with necessary modifications, continue in force and have effect as if they have been made under this Act, and may be amended or repealed by regulations made under this Act.

All deposits made and all entries in depositors’ passbooks, and all funds invested in securities remaining unsold on the appointed date and all other business transacted under the 1948 Act shall, so far as may be consistent with this Act, be deemed to be deposits and entries made, funds invested and business transacted under this Act.

Transfer of land and property