Banking and Financial Institutions Act 1989 · As enacted · Part XVI
Section 129
Official textFrom Laws of Malaysia Online, unchanged
Subject to the provisions of this section, any licence granted to—
licence
"licence" means a licence granted or deemed to be granted under section 6 (4);
a corporation by the Minister under section 3(4) of the repealed Banking Act 1973 authorising it to carry on banking business under that Act, shall be deemed to be a licence granted under section 6(4) to carry on banking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—
corporation
"corporation" has the meaning assigned thereto by the Companies Act 1965;
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
public company
"public company" has the meaning assigned thereto by the Companies Act 1965;
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
a public company by the Minister under section 7 (3) of the repealed Finance Companies Act 1969 enabling it to carry on finance business under that Act, shall be deemed to have been granted under section 6 (4) to carry on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.
Minister
"Minister" means the Minister for the time being charged with the responsibility for finance;
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—
in the case of the surrender of a licence as is referred to in subsection (1) (a) (i), to carry on—
where the holder is a bank, banking business; or
where the holder is a merchant bank, merchant banking business; and
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.
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.
property
"property" means any movable or immovable property and includes— (a) any right, interest, title, claim, chose in action, power or privilege, whether present or future, or whether vested or contingent, in relation to any property, or which is otherwise of value; (b) any conveyance executed for conveying assigning, appointing, surrendering, or otherwise transferring or disposing of immovable property whereof the person executing the conveyance is proprietor or possessed or wherein he is entitled to a contingent right, either for the whole interest or for any less interest; (c) any security, including any stock, share, debenture and fund; (d) any negotiable instrument, including any bank note, bearer note, Treasury bill, dividend warrant, bill of exchange, promissory note, cheque and negotiable certificate of deposit; (e) any mortgage or charge, whether legal or equitable, guarantee, lien or pledge, whether actual or constructive, letter of hypothecation or trust receipt, indemnity, undertaking or other means of securing payment or discharge of a debt or liability, whether present or future, or whether vested or contingent; and (f) any other tangible or intangible property;
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.
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—
effective date
"effective date" means the relevant date or dates, as the case may be, notified by the Minister under section 1;
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);
be subject to the provisions of this Act applicable to a licence granted under section 6 (4); and
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).
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).
Terms defined in s 2
banking business
Defined · s 2"banking business" means— (a) the business of— (i) receiving deposits on current account deposit account, savings account or other similar account; (ii) paying or collecting cheques drawn by or paid in by customers; and (iii) provision of finance; or (b) such other business as the Bank, with the approval of the Minister, may prescribe;
corporation
Defined · s 2"corporation" has the meaning assigned thereto by the Companies Act 1965;
effective date
Defined · s 2"effective date" means the relevant date or dates, as the case may be, notified by the Minister under section 1;
established
Defined · s 2"established", in relation to— (a) a corporation, means incorporated; (b) a statutory body, means its coming into existence under the law establishing, appointing or constituting it; (c) a co-operative society, means registered; (d) a partnership, means its formation; (e) a sole-proprietorship, means the commencement of its business; or (f) any other individual, body, association or group of persons, whether corporate or unincorporate, which requires registration or other form of recording or recognition under any written law before it can lawfully commence its activities, means its registration, recording or recognition thereunder;
finance company business
Defined · s 2"finance company business" means— (a) the business of receiving deposits on deposit account, savings account or other similar account; and (b) (i) the lending of money; (ii) leasing business; or (iii) the business of hire-purchase, including that which is subject to the Hire-Purchase Act 1967; or (c) such other business as the Bank, with the approval of the Minister, may prescribe;
liabilities
Defined · s 2"liabilities" includes debts, duties and obligations of every kind, whether present or future, or whether vested or contingent;
licence
Defined · s 2"licence" means a licence granted or deemed to be granted under section 6 (4);
merchant bank
Defined · s 2"merchant bank" means a person which carries on merchant banking business;
merchant banking business
Defined · s 2"merchant banking business" means— (a) the business of— (i) receiving deposits on deposit account; and (ii) provision of finance; and (b) the business of— (i) providing consultancy and advisory services relating to corporate and investment matters; or. (ii) making or managing investments on behalf of any person; or (c) such other business as the Bank, with the approval of the Minister, may prescribe;
Minister
Defined · s 2"Minister" means the Minister for the time being charged with the responsibility for finance;
property
Defined · s 2"property" means any movable or immovable property and includes— (a) any right, interest, title, claim, chose in action, power or privilege, whether present or future, or whether vested or contingent, in relation to any property, or which is otherwise of value; (b) any conveyance executed for conveying assigning, appointing, surrendering, or otherwise transferring or disposing of immovable property whereof the person executing the conveyance is proprietor or possessed or wherein he is entitled to a contingent right, either for the whole interest or for any less interest; (c) any security, including any stock, share, debenture and fund; (d) any negotiable instrument, including any bank note, bearer note, Treasury bill, dividend warrant, bill of exchange, promissory note, cheque and negotiable certificate of deposit; (e) any mortgage or charge, whether legal or equitable, guarantee, lien or pledge, whether actual or constructive, letter of hypothecation or trust receipt, indemnity, undertaking or other means of securing payment or discharge of a debt or liability, whether present or future, or whether vested or contingent; and (f) any other tangible or intangible property;
public company
Defined · s 2"public company" has the meaning assigned thereto by the Companies Act 1965;
specify
Defined · s 2"specify", where no mode is mentioned, means specify from time to time in writing, and a power to specify includes the power to specify differently for different persons or different classes, categories or descriptions of persons;