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Part X · Powers of Supervision and Control Over Licensed Institutions

Section 78

(1)

Where the Bank considers that a licensed institution—

(a)

is likely to become unable to meet all or any of its obligations; or

(b)

is about to suspend payment to any extent, the Bank, with the concurrence of the Minister, may, notwithstanding section 31 of, but without prejudice to section 42 of, the Ordinance—

(A)

grant loans to that licensed institution against the security of that institution's own shares, or any other shares, or any other sufficient security;

(B)

purchase any shares of that licensed institution for the purpose of controlling the business of that institution; or

(2)

The Bank, or the licensed institution to which the Bank has granted loans under subsection (1) (C), shall dispose of any shares purchased by it in pursuance of subsection (1) at such time when the Bank is satisfied that the reasons for which such shares were purchased have ceased to exist.

(C)

grant loans to another licensed institution to purchase any shares, or the whole or any part of the properties and liabilities, of the licensed institution referred to in paragraph (a) or (b).

(3)

In exercising any power conferred on the Bank under this section, the Bank shall consult the Advisory Panel.

Report

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

General Provisions

Part XVI

Schedules