Limitation
to directors. etc.
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24. (1) A bank shall not grant any facility specified in subsection on advances (3) to or on behalf of any person or body specified in subsection (4) if the aggregate amount of such facilities for the time being granted by that bank to or on behalf of any one or more such persons or bodies would thereby exceed twenty-five per cent of the paid up capital and reserves of the bank.
Limitation
on advances
to employees.
(2) Subject to and notwithstanding the provisions of subsection (1), a bank shall not grant any facility specified in subsection (3) to or on behalf of any person specified in paragraph (a) or (b) of subsection (4) if the aggregate amount of such facilities for the time being granted by that bank to or on behalf of that person or any of his relatives would thereby exceed one per cent of the paid up capital and reserves of the bank or two hundred and fifty thousand dollars, whichever is the less.
(3) For the purposes of subsections (1) and (2), the following facilities are specified-
(a) the granting, or permitting to be outstanding, of unsecured
advances or unsecured credit facilities:
(b) the giving of unsecured financial guarantees; and
(c) the incurring of any other unsecured liability.
(4) For the purposes of subsections (1) and (2), the following
persons and bodies are specifiod—
(a) any director of the bank:
(b) any relative of any such director:
(c) any firm, partnership or private company in which the bank or any of its directors or any relative of any of its directors is interested as director, partner, manager or agent; and
(d) any individual, firm, partnership or private company of which any director of the bank or any relative of any such director is a guarantor.
(5) The provisions of this section shall apply to a facility granted to or on behalf of a person or body jointly with another person or body as they apply to a facility granted to or on behalf of a person or body severally.
(6) The provisions of this section shall not apply to the purchase of telegraphic transfers.
25. A bank shall not grant or permit to be outstanding to any one of its employees unsecured advances or Unsecured credit facilities to an aggregate amount of such advances or facilities in excess of one year's salary for any such employee.
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26. A bank shall not engage, whether on its own account or as an Prohibition agent for another person, in any wholesale, retail, import or export trading trade, or otherwise have a direct interest in any commercial, agricultural,
by bank, industrial or other undertaking, except as permitted under sections 27 and 28 and except to the extent of such interest as a bank may acquire in the course of the satisfaction of debts due to it:
Provided that all interests acquired in the course of the satisfaction of debts due to it shall be disposed of at the earliest suitable oppor- tunity, and in any event not later than eighteen months after the ac- quisition thereof or within such longer period as the Commissioner may allow in any particular case.
27. (1) Subject to the provisions of subsection (2), a bank shall not acquire or hold any part of the share capital of any other company or companies to an aggregate value in excess of twenty-five per cent of the paid up capital and reserves of the bank, except such shareholdings as a bank may acquire in the course of the satisfaction of debts due to it :
Provided that all shareholdings acquired in the course of the satis- faction of debts due to it shall be disposed of at the earliest suitable opportunity, and in any event not later than eighteen months after the acquisition thereof or within such longer period as the Commissioner may allow in any particular case.
(2) This section shall not apply in respect of any shareholding approved in writing by the Financial Secretary in another bank or in a subsidiary company formed by the bank concerned for the carrying out of nominee, executor or trustee functions or other functions incidental to banking business.
Limitation no shareholding hy bank.
of interest fa
28. (1) A bank shall not purchase or bold any interest or interests Limitations in land of a value or to an aggregate value, as the case may be, in excess on holding of twenty-five per cent of the paid up capital and reserves of the bank. land. (2) Subject to the provisions of paragraph (6) of subsection (1) of section 29, in addition to the value of any land permitted to be pur- chased or held under subsection (1), a bank may purchase or hold interests in land to any value, where the occupation of such land is. in the opinion of the Financial Secretary, necessary for conducting the business of the bank or for providing housing or amenities for the staff of the bank.
(3) For the purpose of subsection (2), but without prejudice to the generality thereof, the Financial Secretary may in his discretion regard as necessary for conducting the business of a bank the whole of any premises in which an office of a bank is situated.
(4) There shall not be taken into account in the assessment of the value of interests in land for the purposes of this section the value of
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