Section 21
Liability of Government in respect of stock
The Government shall be liable for all interest payable and all repayments of principal moneys represented by stock issued under and in accordance with this Act, and in respect of all stock dealt with under and in accordance with section 16 of the Loan (Local)
(Amendment) Act 1990, but where the liability of the Government arises in consequence, or by reason of any default of a participating investing institution in the performance of its duties and obligations under this Act, including its duties and obligations as a primary investing institution or a depository institution, as may be applicable, the institution shall be liable on demand by the Government to indemnify the Government in full in relation to the liability.
(2)
For the purposes of subsection (1), ―default‖ includes—
(a)
any negligence or failure in the carrying out of any function, or the exercise of any power, or the discharge of any duty, under this Act; and
(b)
any offence under this Act, or any offence under any other written law in relation to any matter dealt with under this
Act, regardless—
(i)
whether or not there has been any prosecution in respect of the offence; or
(ii)
whether the default was committed by the participating investing institution, or any director,
(i)
(ii)
26 Laws of Malaysia ACT 637
officer, or controller (as those words are defined in subsection 18(6)), or any clerk, servant or agent of the participating investing institution, or any clerk or servant of the agent.