Section 37 — BANK SIMPANAN NASIONAL BERHAD ACT 1997

(a)

any of the Bank’s directors or officers or any other person receiving remuneration from it (other than any accountant,

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advocate and solicitor, architect, estate agent, doctor and any other person receiving remuneration from it in respect of his professional services);

(b)

any body corporate or unincorporate, or any sole proprietorship, in which any of the Bank’s directors or officers is a director or manager, or for which any of its directors or officers is a guarantor or an agent;

(c)

any corporation in which any of the Bank’s directors or officers has any interest in the shares of that corporation;

and

(d)

any person for whom any of the Bank’s directors or officers has given any guarantee or other undertaking involving financial liability.

(2)

The Bank may give to any of its officers, or its executive director—

(a)

any credit facility which is provided for under his scheme of service; or

(b)

where there is no such provision and the Bank is satisfied that special or compassionate circumstances exist, a loan not exceeding at any one time—

(i)

six months’ remuneration of that officer or executive director; or

(ii)

his remuneration for such longer period as may be approved by the Minister, and subject to such other terms and conditions as the

Minister thinks fit.

(3)

The provisions of—

(a)

paragraph (1)(a) shall not apply to the giving of any credit facility to the spouse, child or parent of an officer, including an executive director of the Bank, for the purchase of a house; and

(b)

paragraph (1)(c) shall not apply to the giving of any credit facility by the Bank to a corporation in which none of the directors or officers of the Bank has any material interest in the shares of that corporation.

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Bank Simpanan Nasional Berhad

(4)

For the purposes of this section—

(a)

“director” or “officer” includes a spouse, child or parent of a director or officer; and

(b)

the Minister shall from time to time specify what constitutes a material interest in the shares of a corporation.

(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.

Restriction on giving of credit facilities