Malaysia legislation
Section 36
Section 36
(2)
The provisions of subsection (1) shall not apply—
(a)
where the single person referred to therein is a licensed institution or any person specified by the Minister which is engaged in the provision of finance;
(b)
to any credit facility given to, or liability incurred on behalf of, any person by the Bank in respect of imports into or exports from Malaysia or trade within Malaysia against letters of credit or bills of exchange; or
(c)
to any transactions specified by the Minister which are entered into with any particular person, or any class, category or description of persons, as may be specified by the Minister.
(3)
For the purposes of this section, in computing the amount of any credit facility given to a single person, or any liability incurred on behalf of a single person, any credit facility given to, or any liability incurred on behalf of, the following persons, shall
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Bank Simpanan Nasional Berhad be deemed to be a credit facility given to, or a liability incurred on behalf of, such single person:
(a)
where such single person is an individual, his or her spouse, child or family corporation;
(b)
where such single person is a corporation, its related or associate corporations;
(c)
where such single person is a society registered under the
Co-operative Societies Act 1993, its subsidiaries as defined in section 2 of that Act and the related or associate corporations of such subsidiaries; or
(d)
persons acting in concert with such single person:
Provided that the Minister may specify that all or any of the persons, or any particular person, or any class, category or description of persons, mentioned in paragraphs (a) to (d) shall be excluded in the application of this subsection in relation to any particular single person, or any class, category or description of single persons, to whom a credit facility is to be given, and at the same time specify the criteria or the basis on which such person or persons are to be so excluded.
(4)
For the purposes of paragraph (3)(a), “family corporation”
has the meaning assigned to it in subsection 23(4).
(5)
Where the Bank fails to comply with subsection (1), it shall be guilty of an offence and shall on conviction be liable to a fine not exceeding five million ringgit.
(6)
Where the Bank is guilty of an offence under subsection (5), any person who at the time of the commission of the offence was a person responsible for the Bank shall also be guilty of that offence and shall on conviction be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or to both.
Prohibition of credit facilities to director and officer