Development Financial Institutions Act 2002 · Updated to 6 Oct 2023 · Part III · Restrictions on Business
30. Restriction on giving of financing facility
Feedback & supportA prescribed institution may, whether from its own funds or any trust fund it manages under section 43, and notwithstanding paragraph 28(3)(a), grant a financing facility to the spouse, child or parent of any of its directors or officers for the purchase of a house if—
prescribed institution
“prescribed institution” means a development financial institution which is prescribed by the Minister under subsection 2(1);
the person to whom the financing facility is given has creditworthiness which is not less than that normally required by the prescribed institution of other persons to whom financing 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 financing facility are not less favourable to the prescribed institution than those normally offered to other persons;
financing facility
“financing facility” means— *NOTE—The Companies Act 1965 has been repealed by the Companies Act 2016 which comes into operation on 31 January 2017–see subsection 620(1)…
the giving of the financing facility will be in the interests of the prescribed institution; and
the financing facility is approved by all other directors of the prescribed institution at a duly constituted meeting of the directors where not less than three quarters of all the directors of the prescribed institution are present and such approval has been recorded in the minutes of that meeting.