Malaysia legislation
Section 129
Section 129
(a)
a corporation by the Minister under section 3(4) of the repealed Banking Act 1973 authorising it to carry on banking business under that Act, shall be deemed to be a licence granted under section 6(4) to carry on banking business and shall—
(i)
in the case of a licence granted under the said section 3 (4) to a corporation which is a public company immediately before the effective date, remain valid for a period of six months from the effective date; and
(ii)
in the case of a licence granted under the said section 3 (4) to a corporation which immediately before the effective date, is a bank established outside Malaysia, remain valid for a period of five years from the effective date, or for such further period as the Minister may at any time before the expiry of the said five years specify by notice in writing to the bank on the application of such bank; or
(b)
a public company by the Minister under section 7 (3) of the repealed Finance Companies Act 1969 enabling it to carry on finance business under that Act, shall be deemed to have been granted under section 6 (4) to carry on finance company business and shall remain valid for a period of six months from the effective date.
(2)
A licence as is referred to in subsection (1) (a) (i) or (b) shall be surrendered by the holder of the licence before the expiry of the period of six months referred to therein, whereupon the Minister shall grant to such holder a licence under section 6 (4), with or without conditions—
(a)
in the case of the surrender of a licence as is referred to in subsection (1) (a) (i), to carry on—
(i)
where the holder is a bank, banking business; or
(ii)
where the holder is a merchant bank, merchant banking business; and
(b)
in the case of the surrender of a licence as is referred to in subsection (1) (b), a licence to carry on finance company business.
(3)
A licence as is referred to in subsection (1) (a) (ii) shall be surrendered by the holder of the licence before the expiry of the period of its validity under subsection (1) (a) (ii), and if before such surrender the holder has, subject to section 49, transferred its property, business and liabilities to a public company, such public company shall, upon application to the Minister and surrender of such licence by the holder, be granted a licence under section 6 (4), with or without conditions, to carry on banking business.
(4)
A licence under section 6 (4) which is granted pursuant to the surrender of a licence under subsection (2) or (3) shall have effect from the date of the surrender.
(5)
During the period between the effective date and the date of the surrender of a licence in accordance with subsection (2) or (3), as may be applicable, (both dates inclusive), the licence shall—
(a)
continue to remain subject to the conditions, if any, applicable to it immediately before the effective date, such conditions being deemed to be imposed under this Act in respect of a licence granted under section 6 (4);
(b)
be subject to the provisions of this Act applicable to a licence granted under section 6 (4); and
(c)
be subject to any other condition, limitation or restriction that may be imposed pursuant to this Act, as if it were a licence granted under section 6 (4).
(6)
Where any licence is not surrendered to the Bank within the period specified in subsection (2) or (3), as may be applicable, such licence shall, upon the expiry of such period, be deemed to be revoked and the provisions of section 13 shall apply in relation to such revocation in the same manner as they apply to the revocation of a licence granted under section 6 (4).