Malaysia legislation
Section 8
Section 8
The principal Act is amended by inserting after section 21A the following new section 21B:
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“Restriction on grant of loan, advance or credit facility under section 21 21B. No licensed finance company shall grant any advance, loan or credit facility under the exemption referred to in subsection 21(4) unless the following conditions are satisfied:
(a)
that the advance, loan or credit facility meets the standards of creditworthiness required of other applicant borrowers;
(b)
that the terms of the advance, loan or credit facility are not less favourable to the licensed finance company than those offered to others;
(c)
that the grant of the advance, loan or credit facility will serve the best interest of the licensed finance company;
(d)
that the advance, loan or credit facility has been approved by the votes of not less than two-thirds of all the other directors of the licensed finance company at a duly constituted meeting of the full board of directors and the approval has been recorded in the minutes of that meeting.”.
Amendment of section 23