Malaysia legislation
Section 28
Section 28
(2)
(Deleted by Act A1502).
(3)
Unless otherwise specified by the Bank, no prescribed institution shall grant any financing facility to—
(a)
any of its *members, directors or officers or any other person receiving remuneration from it (other than any person receiving remuneration from it in respect of his professional services);
(b)
any body corporate or unincorporate, or any sole proprietorship, in which any of its *members, directors or officers is a director or manager, or for which any of its
*members, directors or officers is a guarantor or an agent**; and***
(c)
(Deleted by Act A1502).
(d)
any person for whom any of its *members, directors or officers has given any guarantee or other undertaking involving financial liability.
(3A)
No prescribed institution shall grant any financing facility to any corporation in the shares of which any of its †members, directors or officers has any interest which, in aggregate, is of an amount that is in excess of such percentage as the Bank may specify.
*NOTE—For application to Bank Kerjasama Rakyat Malaysia Berhad–see paragraph 2 of the
Development Financial Institutions (Modification) Order 2002 [P.U. (A) 412/2002] which comes into operation on 15 February 2002.
**NOTE—For application to Bank Industri dan Teknologi Malaysia Berhad–see subparagraph 2(a) of the
Development Financial Institutions (Bank Industri dan Teknologi Malaysia Berhad) (Modification) Order 2004 [P.U. (A) 148/2004] which comes into operation on 15 February 2002 and Bank Pembangunan dan
Infrastruktur Malaysia Berhad–see subparagraph 2(a) of the Development Financial Institutions (Bank
Pembangunan dan Infrastruktur Malaysia Berhad) (Modification) Order 2004 [P.U. (A) 149/2004] which comes into operation on 15 February 2002.
***NOTE—For application to Bank Industri dan Teknologi Malaysia Berhad–see subparagraph 2(b) of the Development Financial Institutions (Bank Industri dan Teknologi Malaysia Berhad) (Modification)
Order 2004 [P.U. (A) 148/2004] which comes into operation on 15 February 2002 and Bank Pembangunan dan Infrastruktur Malaysia Berhad–see subparagraph 2(b) of the Development Financial Institutions
(Bank
Pembangunan dan
Infrastruktur
Malaysia
Berhad)
(Modification)
Order 2004
[P.U. (A) 149/2004] which comes into operation on 15 February 2002.
†NOTE—For application to Bank Kerjasama Rakyat Malaysia Berhad—see subparagraph 3(b) of the
Development Financial Institutions (Bank Kerjasama Rakyat Malaysia Berhad) (Modification) Order 2016 [P.U. (A) 15/2016] which comes into operation on 31 January 2016.
Development Financial Institutions 47
(4)
Notwithstanding subsection (3), a prescribed institution may, subject to such terms and conditions as it may impose, grant to any of its officers or its executive director—
(a)
any financing facility which is provided for under his scheme of service; or
(b)
where there is no such provision and the prescribed institution is satisfied that special or compassionate circumstances exist, a loan not exceeding such period as may be specified by the Bank.
(5)
For the purposes of this section, “director” or “officer” includes a spouse, child or parent of a director or officer, or any other person as may be specified by the Bank.
Single counterparty exposure limit