In forceUpdated to 6 Oct 2023Read it in Bahasa Malaysia

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Development Financial Institutions Act 2002 · Updated to 6 Oct 2023 · Part III · Restrictions on Business

32. Control of credit limit

(1)

A director or officer of a prescribed institution shall not grant any financing facility in excess of the limit, or outside the scope of any terms and conditions, imposed on him by the prescribed institution, or in contravention of any directions given to him, or any agreement made with him, by the prescribed institution.

(2)

(Deleted by Act A1502).

(3)

Subsection (1) applies to the funds of the prescribed institution and any trust fund it manages under section 43.

(4)

The Bank may by written notice direct a prescribed institution to—

(a)

submit any information relating to its policy and procedure for the granting of any financing facility;

(b)

submit a report on the limit or the terms and conditions imposed, the directions given, and the agreements made, in relation to the authority of each of its directors or officers authorized to grant financing facilities; or

(c)

modify the policies or procedures referred to in paragraph (a), or vary the matters mentioned in paragraph (b), as the Bank deems fit and proper, either generally, or in relation to any class of directors or officers, or in relation to any particular director or officer, and such modification or variation shall be binding on the prescribed institution and its directors and officers.

Development Financial Institutions 51

(5)

(Deleted by Act A1502).

Investment of assets

Terms defined in s 3

agreement
Defined · s 3
“agreement” means an agreement whether formal or informal, oral or written, express or implied;
Open s 3
Bank
Defined · s 3
“Bank” means the Central Bank of Malaysia established under the *Central Bank of Malaysia Act 2009;
Open s 3
development
Defined · s 3
“development” includes the commencement of any new industrial, agricultural, commercial or other economic venture or the expansion or improvement of any such existing venture;
Open s 3
director
Defined · s 3
“director” includes any person who occupies the position of a director, and includes a person in accordance with whose directions and instructions the directors or officers are accustomed to act and an Development Financial Institutions 19 alternate or substitute director, and without prejudice to the foregoing, in the case of— (a) a co-operative society, means a member of the board, or other governing body, of the co-operative society; (b) a statutory body, means a member of the board, committee, council or other governing body of the statutory body; (c) a partnership, means a partner; (d) a sole proprietorship, means the sole proprietor; and (e) any other body, association or group of persons, whether corporate or unincorporate, means a person having the direction and control of the management of its business or affairs;
Open s 3
financing facility
Defined · s 3
“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)…
Open s 3
modification
Defined · s 3
“modification” includes amendment, adaptation, alteration, variation, addition, division, substitution or exclusion;
Open s 3
officer
Defined · s 3
“officer”, in relation to an institution, means any of its employees and includes its Chief Executive Officer;
Open s 3
prescribed institution
Defined · s 3
“prescribed institution” means a development financial institution which is prescribed by the Minister under subsection 2(1);
Open s 3
trust fund
Defined · s 3
“trust fund” means any fund established under section 43;
Open s 3

Report

Read on from s 33

Part IV

Obligations and Sourcing of Funds

Read on from Part IV

Part V

Dealings with Government Funds

Read on from Part V

Part VI

Control of Defaulter

Read on from Part VI

Part VII

Auditor and Accounts

Read on from Part VII

Part VIII

Examination and Investigation

Read on from Part VIII

Part IX

Miscellaneous

Read on from Part IX