Banking and Financial Institutions Act 1989 · As enacted · Part IX · Restrictions on Business of Licensed Institutions
Section 63
Official textFrom Laws of Malaysia Online, unchanged
No licensed institution shall give any credit facility under any exemption by the Bank referred to in section 62 (1), or give any credit facility under section 62 (3), unless the following conditions are satisfied:
licensed institution
"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
the person to whom the credit facility is given has creditworthiness which is not less than that normally required by the institution of other persons to whom credit facilities are given;
person
"person" includes an individual, any corporation, statutory body, local authority, society, trade union, co-operative society, partnership and any other body, organization, association or group of persons, whether corporate or unincorporate;
the terms of the credit facility are not less favourable to the licensed institution than those normally offered to other persons;
credit facility
"credit facility" means— (a) the giving of any advance, loan or other facility in whatever form or by whatever name called whereby the person to whom the same is given has access, directly or indirectly, to the funds of the person giving the same; (b) the giving of a guarantee in relation to the obligations of any person; or (c) any other dealing or transaction as may be prescribed by the Bank;
the giving of the credit facility will be in the interests of the licensed institution; and
the credit facility is approved by all other directors of the licensed institution at a duly constituted meeting of the directors where not less than three quarters of all the directors of the licensed institution are present and such approval has been recorded in the minutes of that meeting.
Terms defined in s 2
credit facility
Defined · s 2"credit facility" means— (a) the giving of any advance, loan or other facility in whatever form or by whatever name called whereby the person to whom the same is given has access, directly or indirectly, to the funds of the person giving the same; (b) the giving of a guarantee in relation to the obligations of any person; or (c) any other dealing or transaction as may be prescribed by the Bank;
licensed institution
Defined · s 2"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
person
Defined · s 2"person" includes an individual, any corporation, statutory body, local authority, society, trade union, co-operative society, partnership and any other body, organization, association or group of persons, whether corporate or unincorporate;
Part X
Powers of Supervision and Control Over Licensed Institutions
Part XI
Investigation, Search and Seizure
Part XII
Application of Parts X and XI to Non-Scheduled Institutions Engaged in Provision of Finance
Part XIII
Information and Secrecy
Part XIV
Offences
Part XV