Malaysia legislation
Section 41
of MALAYSIA DEPOSIT INSURANCE CORPORATION (AMENDMENT) ACT 2016
Section 41
(a)
“deposit” means the unpaid balance of the aggregate of deposits as defined under subsection 2(1) received or held by a deposit-taking member from or on behalf of a person and includes—
(i)
a bank draft, traveller’s cheque, prepaid letter of credit, money order or other similar instrument in respect of which the deposit-taking member is primarily liable;
(ii)
cheque or other similar instrument or instruction entered into a payment system designated under subsection 30(1) of the Financial
Services Act 2013 or subsection 39(1)
of the Islamic Financial Services Act 2013
notwithstanding any delay or failure by the deposit-taking member in crediting the account;
(iii)
a foreign currency deposit; or
(iv)
any liability or financial instrument as may be specified by the Corporation, but excludes, unless it is otherwise specified by the
Corporation under subparagraph (iv)—
(A)
a deposit that is not payable in Malaysia;
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(B)
a money market deposit;
(C)
a negotiable instrument of deposit and any other bearer deposit;
(D)
a repurchase agreement;
(E)
a deposit that is payable by a deposit-taking member in the course of its Labuan banking business conducted under the
Labuan Financial Services and Securities
Act 2010 [Act 704] or its Labuan Islamic banking business conducted under the
Labuan Islamic Financial Services and
Securities Act 2010 [Act 705]; and
(F)
any other liability or financial instrument as may be specified by the Corporation;
(b)
“trust account” includes monies held on account for the purpose of a trust.
(2)
For the avoidance of doubt, the liability or financial instrument referred to in subparagraph (1)(a)(iv) and paragraph (1)(a)(F) includes any liability or instrument under which a sum of money or money’s worth is received or paid on terms by any person, under which the receipt and repayment is in accordance with the terms of any agreement consistent with the Shariah on any basis, whether or not there is an obligation to repay the money in full.”.
Amendment of section 42