Section 2

any company owing a duty or liability under an Islamic financing facility or a conventional credit facility to the

Corporation or any subsidiary of the Corporation, whether present or future, or whether vested or contingent;

any subsidiary of the company referred to in paragraph (a);

any company which has provided security for the performance of or discharge of a duty or liability owed by the primary affected person to the Corporation or any subsidiary of the Corporation, whether present or future, or whether vested or contingent; or

any company where at least five percent of its share capital has been charged, pledged or mortgaged by any person to secure the performance of or discharge of a duty or liability owed by the primary affected person to the Corporation or any subsidiary of the Corporation, whether present or future, or whether vested or contingent, and does not include a member institution;

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“assessment year”, in relation to the calculation and payment of premiums and levies under this Act, means the period beginning on the first day of January and ending on the thirty-first day of December of each year or such other period as may be approved by the Minister;

“Assessor Committee” means a committee provided for in section 104;

“asset” includes any Islamic financing facility, conventional credit facility, property, business and enterprise of any kind;

“associated” means a corporation where not less than twenty per centum and not more than fifty per centum of that corporation’s shares are held by another corporation, the first-mentioned corporation thereby being an associate corporation of the other corporation;

“authorized depository agent” has the same meaning as “authorized depository agent” under the Securities Industry (Central Depositories)

Act 1991 [Act 453];

“Board” means the board of directors of the Corporation;

“bridge institution” means a subsidiary of the Corporation designated as a bridge institution under paragraph 99(1)(f);

“business group” means a group of companies where a member institution is related to or associated with other companies of the same group;

“capital instruments” means preference shares, loan stocks, subordinated term debts or other instruments approved by Bank

Negara Malaysia as being eligible to be capital for the purposes of the

Financial Services Act 2013 [Act 758] or the Islamic Financial

Services Act 2013 [Act 759];

“central depository” has the same meaning as defined under the

Securities Industry (Central Depositories) Act 1991;

“certificate owner” means the person who has the legal title to a takaful certificate and includes—

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where the certificate has been assigned, the assignee;

where entitled as against the takaful operator to exercise the rights of a legal owner of the certificate, the personal representative of a deceased certificate owner; and

in relation to a certificate providing for the payment of an annuity, the annuitant;

“Chairman” means the chairman of the Board;

“chief executive”, in relation to a corporation, means a natural person by whatever name called, who, either individually or jointly with one or more persons, is responsible, subject to the authority of the directors, for the conduct of the business and the administration of that corporation;

“Chief Executive Officer” means the chief executive of the

Corporation;

“company” has the same meaning as defined under the

Companies Act 2016 [Act 777];

“Consolidated Fund” means the Federal Consolidated Fund established by the Federal Constitution;

“constituent documents”, in relation to a body, corporate or unincorporate, means the statute, charter, memorandum of association, articles of association, rules, by-laws, partnership agreement, or other instrument, under or by which the body is incorporated or established, or its governing and administrative structure, the scope of its functions, business, powers or duties are set out, whether contained in one or more documents;

“conventional credit facility” means—

the giving of any advance, loan, trade credit or other facility in whatever form or by whatever name called whereby the person to whom the advance, loan, trade credit or other

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facility is given has access, directly or indirectly, to the funds or property of the person giving the same;

the giving of a guarantee or any security in relation to the obligations of any person; or

any other like dealing or transaction as may be prescribed by the Corporation;

“conventional deposit” has the same meaning assigned to the definition of “deposit” under subsection 2(1) of the Financial Services

Act 2013 and does not include an Islamic deposit;

“Corporation” means the Malaysia Deposit Insurance Corporation;

“corporation” has the same meaning as defined under section 3 of the Companies Act 2016;

“deposit” means—

a conventional deposit; or

an Islamic deposit;

“depositor” means a person—

whose account has been or is to be credited in respect of monies constituting an Islamic deposit or conventional deposit or part of such deposit; or

to whom a member institution is liable in respect of an instrument issued for monies constituting an Islamic deposit or conventional deposit or part of such deposit;

“deposit-taking member” means a member institution that is an

Islamic bank or a licensed bank;

“development financial institution” has the same meaning as defined under the Development Financial Institutions Act 2002 [Act 618];

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“document” has the same meaning as defined under section 3 of the

Evidence Act 1950 [Act 56];

“facsimile seal” means a duplicate of the common seal of the

Corporation;

“family takaful” means takaful under a family takaful certificate;

“family takaful certificate” means a takaful certificate issued by a takaful operator carrying on the business of family takaful under which an obligation arises on the death or survival of a person, including extensions of cover for personal accident, disease or sickness, and including an annuity, and a certificate solely providing coverage against disease or sickness or solely against medical expenses but excluding a solely personal accident certificate;

“financial institution” means a licensed bank, an Islamic bank an insurance company or a takaful operator;

“general policy” means a policy issued by an insurance company licensed under the Financial Services Act 2013 to carry on the business of general insurance;

“general takaful” means takaful other than family takaful;

“general takaful certificate” means a takaful certificate issued by a takaful operator licensed under the Islamic Financial Services

Act 2013 to carry on the business of general takaful;

“Governor” means the Governor of Bank Negara Malaysia;

“insurance benefit” means an obligation under an insurance policy to pay an amount to or for the benefit of an insured person or to fulfil a non-pecuniary obligation upon the occurrence of one or more events provided for in the insurance policy and an amount that is payable under an insurance policy on account of such an obligation;

“insurance company” means an insurer licensed to carry on insurance business under the Financial Services Act 2013, other than an insurer licensed to carry on solely reinsurance business, Danajamin

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Nasional Berhad and any person carrying on solely financial guarantee insurance business or credit guarantee insurance business;

“insurance policy” means a life policy or a general policy;

“insured deposits” means those deposits separately insured as

Islamic deposits or conventional deposits under section 42;

“insured person” means a person entitled to an insurance benefit, whether or not the person is the policy owner;

“insurer member” means a member institution that is an insurance company or a takaful operator;

“investment account” has the same meaning as defined under subsection 2(1) of the Islamic Financial Services Act 2013;

“Islamic bank” means a bank licensed under the Islamic Financial

Services Act 2013, other than a licensed international Islamic bank;

“Islamic banking business” has the same meaning as defined under subsection 2(1) of the Islamic Financial Service Act 2013;

“Islamic deposit” has the same meaning as defined under subsection 2(1) of the Islamic Financial Services Act 2013;

“Islamic financing facility” has the same meaning assigned to the definition of “financing facility” under subsection 2(1) of the

Islamic Financial Services Act 2013;

“Islamic securities” means securities which are in accordance with

Shariah;

“liabilities” includes debts, duties and obligations of every kind, whether present or future, and whether vested or contingent;

“licensed bank” has the same meaning as defined under subsection 2(1) of the Financial Services Act 2013;

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“life insured” means—

the person in respect of whom an insurance policy provides coverage on the occurrence of his death or survival; or

the person in respect of whom an insurance policy provides coverage on occurrence of an accident, a disease or sickness, whether or not the person is the policy owner;

“life policy” means a policy issued by an insurance company carrying on the business of life insurance under which an obligation arises on the death or survival of a person, including extensions of cover for personal accident, disease or sickness, and including an annuity and a policy solely insuring against disease or sickness or solely against medical expenses but excluding a policy that is solely a personal accident policy;

“liquidator” includes an interim liquidator, where applicable;

“member institution” means a financial institution or a person that is deemed to be or prescribed as a member institution under this Act and the membership of which has not been cancelled under section 38 or terminated under section 39;

“Minister” means the Minister charged with the responsibility for finance;

“office” includes the head office, principal place of business, a branch, an agency, a mobile place of business, a place of business set up and maintained for a limited period only and any other place of business;

“officer”, in relation to a member institution or an affected person, means—

any director, secretary or employee of the member institution or the affected person;

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any receiver, manager or receiver and manager whether appointed by a court or otherwise; and

any liquidator appointed by a court or otherwise;

“participating life” means—

the person in respect of whom a takaful certificate provides coverage on occurrence of his death or survival; or

the person in respect of whom a takaful certificate provides coverage on occurrence of an accident, a disease or sickness, whether or not the person is the certificate owner;

“participating life policy” means a life policy conferring a right to the policy owner to participate in allocations, of which the amount or timing is at the discretion of the insurance company, from the assets of an insurance fund under the Financial Services Act 2013;

“policy owner” means the person who has legal title to an insurance policy and includes—

where the policy has been assigned, the assignee;

where entitled as against the insurance company to exercise the rights of a legal owner of the policy, the personal representative of a deceased policy owner; and

in relation to a policy providing for the payment of an annuity, the annuitant;

“prescribed”, where no mode is mentioned, means prescribed by order published in the Gazette;

“primary affected person” means any company referred to in paragraph (a) of the definition of “affected person”;

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“property” means any movable or immovable property and includes—

any right, interest, title, claim, chose-in-action, power or privilege, whether present or future, or whether vested or contingent, in relation to any property, or which is otherwise of value;

any conveyance executed for conveying, assigning, appointing, surrendering, or otherwise transferring or disposing of property where the person executing the conveyance is the proprietor or possessor, or wherein he is entitled to a contingent right, either for the whole or part of the interest;

any security, including any stock, share, debenture, bonds, loan stocks, transferable subscription rights or warrants;

any negotiable instrument, including any bank note, bearer note, Treasury bill, dividend warrant, bill of exchange, promissory note, cheque and negotiable certificate of deposit;

any mortgage or charge, whether legal or equitable, guarantee, lien or pledge, whether actual or constructive, letter of hypothecation or trust receipt, indemnity, undertaking or other means of securing payment or discharge of a debt or liability, whether present or future, or whether vested or contingent; and

any other tangible or intangible property;

“protected benefits” means those takaful and insurance benefits that are separately protected by the takaful and insurance benefits protection system under Part V;

“protected insurance benefit” means an insurance benefit of a type or description that is prescribed by regulations made under subsection 69(2) as being protected under the takaful and insurance benefits protection system provided for in this Act;

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“protected takaful benefit” means a takaful benefit of a type or description that is prescribed by regulations made under subsection 69(2) as being protected under the takaful and insurance benefits protection system provided for in this Act;

“qualified third party” means a corporation that meets such criteria as may be prescribed by the Corporation;

“Registrar of Companies” means the Registrar designated under subsection 20A(1) of the Companies Commision of Malaysia

Act 2001 [Act 614];

“registrar of courts” means any Registrar, Deputy Registrar, Senior

Assistant Registrar or Assistant Registrar of the High Court appointed under section 10 of the Courts of Judicature Act 1964 [Act 91];

“Registrar of land” means the Registrar as defined under section 5 of the *National Land Code [Act 56/1965], the Registrar as defined under section 4 of the Land Ordinance of Sabah [Sabah Cap. 68] or the

Registrar under the Land Code of Sarawak [Sarawak Cap. 81];

“registrar of Malaysian ships” means the registrar of Malaysian ships appointed under subsection 14(1) of the Merchant Shipping

Ordinance 1952 [Ord. 70/1952] and includes the Registrar General of

Ships appointed under subsection 14(1) of the Ordinance;

“related”, in relation to a corporation, means related within the meaning of section 7 of the Companies Act 2016;

“repealed Act” means the Malaysia Deposit Insurance Corporation

Act 2005 [Act 642];

“return” includes any form of rental, profit, dividend and benefit, including any fee or gift, payable or to be given in relation to any

Islamic deposit, as part of any takaful benefit or under any document, agreement, arrangement and instrument relating to an Islamic financing facility;

*NOTE—The National Land Code [Act 56/1965] has since been revised as the National Land Code

[Act 828] w.e.f. 15 October 2020

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“securities” has the same meaning as defined under the Capital

Markets and Services Act 2007 [Act 671];

“security” includes a mortgage or charge, whether legal or equitable, debenture, bill of exchange, promissory note, guarantee, lien or pledge, whether actual or constructive, letter of hypothecation, indemnity, undertaking and other means of securing payment or discharge of debt or liability, whether present or future and whether vested or contingent;

“share” has the same meaning as defined under the Companies

Act 2016;

“specified”, where no mode is mentioned, means specified in writing;

“subsidiary” has the same meaning as defined under the Companies

Act 2016;

“takaful” has the same meaning as defined under the Islamic

Financial Services Act 2013;

“takaful beneficiary” means a person entitled to a takaful benefit, whether or not the person is the certificate owner;

“takaful benefit” means an obligation under a takaful certificate to pay an amount to or for the benefit of a takaful beneficiary or to fulfil a non-pecuniary obligation upon the occurrence of one or more events provided for in the takaful certificate and an amount that is payable under a takaful certificate on account of such an obligation;

“takaful certificate” means a contract in respect of family takaful or general takaful;

“takaful operator” means a takaful operator licensed to carry on takaful business under the Islamic Financial Services Act 2013, other than a takaful operator licensed to carry on solely retakaful business and an international takaful operator.

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Qualified financial agreements

For the purposes of this Act—

Any reference in this Act to “this Act” shall, unless the context otherwise requires, be deemed to include a reference to any rules, regulations, by-laws, orders, notifications, directives, guidelines, circulars, notes or any other subsidiary legislation made or issued under this Act.