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(a) shall limit the aggregate amount of any advances, loans, facilities, guaran- tees or liabilities which the authorized institution concerned may make, grant or incur to such aggregate amount as he may in his discretion specify, (but subject, however, to any direction given him by the Financial Secretary under subsection (5)) and, without limiting the generality of such discre- tion, such amount may be determined—
(i) in relation to the paid-up capital and reserves of the bank giving the letter of comfort as determined by reference to any accounts furnished to the Commissioner by the bank either at the time when the letter of comfort is submitted to the Commissioner for his determination, or subsequently;
(ii) having regard to—
(A) the extent of the beneficial shareholding of the bank giving the letter of comfort in the authorized institution for the benefit of which it is given where subsection (2)(a)(i) or (3)(a)(i), as the case may be, applies;
(B) the extent of any beneficial shareholding relevant in determining control for the purposes of subsection (2)(a)(ii) or (iii) or (3)(a)(ii) or (iii), as the case may be;
(C) the paid-up capital and reserves of the authorized institution for
the benefit of which the letter of comfort is given;
(D) the laws and practices applicable to the transactions of the bank
giving the letter of comfort;
(b) may require the bank giving the letter of comfort to submit, at such intervals as the Commissioner may determine, such accounts as he may specify,
and in notifying such acceptance to the authorized institution for the benefit of which the letter of comfort is given he shall also notify it of the limit imposed under paragraph (a) and any requirement under paragraph (b).
(5) The Financial Secretary may at any time direct the Commissioner either generally or in any particular case as to the limits to be imposed in the exercise of his functions under subsection (4)(a) and it shall be the duty of the Commissioner to comply with any such direction.
(6) The Commissioner may at any time, by notice to an authorized institution, the liabilities of which are assured by a letter of comfort accepted by the Commis- sioner under subsection (2) or (3), as the case may be...
(a) where any limit has been specified for the purposes of subsection (4)(a) or any requirement imposed under subsection (4)(b), specify a new limit or vary such a requirement; but he shall not impose a more restrictive limit unless he is of the opinion that—
(i) the institution has failed to comply with such limit or requirement; or (ii) it is in the interests of depositors so to do; or
(b) where any such limit has not been so specified or such a requirement
imposed, specify such limit or impose such requirement,
and the provisions of subsection (2) or (3), as the case may be, shall apply in relation to the exercise of the powers of the Commissioner under this subsection as they do in relation to the exercise of his powers under subsection (2) or (3), as the case may be.
(7) Notwithstanding subsection (1), where the aggregate amount of any ad- vances, loans, facilities, guarantees or liabilities immediately prior-
(a) to the specification of any new limit under subsection (6) did not exceed the
amount previously specified;
(b) to the imposition of a limit under subsection (4) or (6) did not exceed the
aggregate amount then permissible under this section; or
(c) to the withdrawal by the bank giving a letter of comfort accepted by the Commissioner under subsection (2) or (3), as the case may be, did not exceed the aggregate amount permissible by this section,
and immediately after such specification or withdrawal did exceed the amount permissible under this section, the authorized institution may-----
(i) permit such advances or loans included in computing such aggregate to be
outstanding until the maturity thereof;
(ii) permit such facilities, guarantees or liabilities so included to be outstanding until they may lawfully be terminated without penalty to the institution: Provided that, in either case, no new advances, loans, facilities, guarantees or liabilities which are to be included in computing such aggregate are granted while the limit is so exceeded.
(8) No letter of comfort accepted by the Commissioner under subsection (2) or (3) in accordance with his powers under this section shall authorize any advances, loans, facilities, guarantees or liabilities which exceed in aggregate any limitations on such aggregate amount assured in the letter of comfort..
(9) For the purposes of this section-
(a) the expression "person" includes any partnership, any public body and any
body of persons, corporate or unincorporate;
(b) the expression "advances, loans, facilities, guarantees or liabilities" shall mean advances, loans, facilities, guarantees or liabilities referred to in subsection (1);
(c) advances, loans, facilities, guarantees or liabilities shall be deemed to be granted to and to be outstanding in relation to any person liable or contingently liable thereon whether as principal debtor, guarantor, or otherwise:
Provided that the reference in this paragraph to a guarantor shall not include a person (not being an authorized institution) who guarantees the obligations of another under-
(i) a hire purchase agreement, that is to say an agreement for the bailment of goods under which the bailee may buy the goods, or under which the property in the goods will or may pass to the bailee; or
(ii) a conditional sale agreement, that is to say an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to payment of instalments or otherwise as may be specified in the agreement are fulfilled; and
(d) the expression "letter of comfort" means a letter of comfort whether or not
it is enforceable at law.
(10) Every director and every manager of an authorized institution which contravenes subsection (1) commits an offence and is liable-
(a) on conviction upon indictment to a fine of $200,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for every day during which the offence continues; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6 months and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.
(11) Any document purporting to be certified by the Commissioner as a true copy of any accounts, being accounts of the nature referred to in subsection (4), shall be admissible in evidence in any proceedings arising out of a contravention or alleged contravention of subsection (1) as truth of the matters stated in those accounts.
82. (1) Without prejudice to the other provisions of this Part, the Commis- Commissioner sioner may, after consultation with the Financial Secretary, by notice in the Gazette may issue certain issue directions requiring authorized institutions not to engage in business practices directions. which, in the opinion of the Commissioner, will or may cause the soundness of the financial position of authorized institutions to be dependent upon the soundness of the financial position of a single party.