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Banking and Financial Institutions Act 1989 · As enacted · Part IX · Restrictions on Business of Licensed Institutions

Section 66

(1)

Except as may be provided in any regulations made under section 116 (2), no licensed institution shall acquire or hold—

(b)

any immovable property or any right or interest therein, except such as may be reasonably necessary for the purpose of conducting its business, or of providing housing or other amenities for its staff, and as may in either case be approved by the Bank.

(a)

any shares of, or otherwise have an interest in shares in, any corporation; or

(2)

Subsection (1) shall not apply in respect of—

(a)

any share or interest in shares, or any immovable property or any right or interest in immovable property, acquired by a licensed institution—

(i)

by way of security for giving any credit facility to any person or for incurring any liability on behalf of any person;

(ii)

in the course of the realisation of any security given to or held by the licensed institution; or

(iii)

before the effective date, where the holding of the same was lawful immediately before such date; or

(b)

any shares or interest in shares acquired by a licensed institution under an agreement entered into by the licensed institution, with the approval of the Bank, with any corporation to which any credit facility was given, or on whose behalf any liability was incurred, by the licensed institution, whereby shares of such corporation are issued to the licensed institution in partial or full satisfaction of the credit facility given, or the liability incurred;

(3)

Any share or interest in shares, or any immovable property or any right or interest in any immovable property, acquired pursuant to subsection (2) (a) (i) or (ii) or (b) by a licensed institution shall be disposed of as soon as practicable but not later than twelve months, or such longer period as the Bank may allow in any particular case, commencing on the date on which the same was acquired.

(A)

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Terms defined in s 2

agreement
Defined · s 2
"agreement" means an agreement whether formal or informal, oral or written, express or implied;
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Bank
Defined · s 2
"Bank" means the Central Bank of Malaysia established by the Ordinance;
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corporation
Defined · s 2
"corporation" has the meaning assigned thereto by the Companies Act 1965;
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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;
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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;
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licensed institution
Defined · s 2
"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
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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;
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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;
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share
Defined · s 2
"share", in relation to a corporation, means an issued share of the corporation and includes stock except where a distinction between stock and share is expressed or implied;
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Report

Read on from s 67

Part X

Powers of Supervision and Control Over Licensed Institutions

Read on from Part X

Part XI

Investigation, Search and Seizure

Read on from Part XI

Part XII

Application of Parts X and XI to Non-Scheduled Institutions Engaged in Provision of Finance

Read on from Part XII

Part XIII

Information and Secrecy

Read on from Part XIII

Part XIV

Offences

Read on from Part XIV

Part XV

General Provisions

Read on from Part XV

Part XVI

Read on from Part XVI