1987 Ed.]
Banking
[CAP. 155
69
(4A) The Commissioner may, by notice in writing to a bank, and subject to such conditions as he may think proper to attach thereto in any particular case, permit the bank to grant, without complying with subsection (1), any facility specified in subsection (3) (or such of those facilities as he specifies in the notice) to or on behalf of any person or body specified in subsection (4) (or such of those persons or bodies as he specifies in the notice); and where the bank, in pursuance of such notice and in accordance with such conditions, grants any such facility to or on behalf of any such person or body it shall not thereby contravene subsection (1). (Added, 64 of 1987, s. 21)
(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) For the purposes of subsections (2) and (4), a facility granted to or on behalf of any firm, partnership or non-listed company which a person specified in subsection (4)(a), (b), (c), (d), (e) or (f) is able to control, shall be deemed to be granted to that person or on his behalf.
(7) Every director and every manager of a bank which contravenes subsection (1) or (2) 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.
84. (1) Subject to subsection (6A), a licensed deposit-taking company shall not grant any facility specified in subsection (3) to or on behalf of any person or body specified in subsection (6)(g) or (h) if the aggregate amount of such facilities for the time being granted by the licensed deposit-taking company to or on behalf of any one or more such persons or bodies would thereby exceed 10 per cent of the paid-up capital and reserves of the licensed deposit-taking company. (Amended, 64 of 1987, s. 22)
(2) A licensed deposit-taking company shall not grant any facility specified in subsection (3) to or on behalf of any person specified in subsection (6)(a), (b), (c), (d), (e) or (f).
(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, unsecured loans or unsecured credit facilities including unsecured irrevocable documentary letters of credit;
3/90534
Limitation on
advances to directors, etc. of deposit-taking companies.
3/90535
▲ restricted licence bank
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Page 71
1987 Ed.]
Banking
[CAP. 155
69
(4A) The Commissioner may, by notice in writing to a bank, and subject to such conditions as he may think proper to attach thereto in any particular case, permit the bank to grant, without complying with subsection (1) any facility specified in subsection (3) (or such of those facilities as he specifies in the notice) to or on behalf of any person or body specified in subsection (4)) (or such of those persons or bodies as he specifies in the notice); and where the bank, in pursuance of such notice and in accordance with such conditions, grants any such facility to or on behalf of any such person or body it shall not thereby contravene subsection (1)Added, 64 of 1987, 5. 21)
(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) For the purposes of subsections (2) and (4), a facility granted to or on behalf of any firm, partnership or non-listed company which a person specified in subsection (4)(a), (b), (c), (d), (e) or (ƒ) is able to control, shall be deemed to be granted to that person or on his behalf.
(7) Every director and every manager of a bank which con- travenes subsection (1) or (2) 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 impri- sonment 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.
84. (1) Subject to subsection (6A), a licensed deposit-taking company shall not grant any facility specified in subsection (3) to or on behalf of any person or body specified in subsection (6)(g) or (h) if the aggregate amount of such facilities for the time being granted by the licensed deposit taking company to or on behalf of any one or more such persons or bodies would thereby exceed 10 per cent of the paid-up capital and reserves of the licensed-deposit-taking com- pany. (Amended, 64 of 1987, s. 22)
(2)-A-licensed-deposit taking company shall not grant any facility specified in subsection (3) to or on behalf of any person specified in subsection (6)(a), (b), (c), (d), (e) or (ƒ).
(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, unsecured loans or unsecured credit facilities including unsecured irrevocable documentary letters of credit;
3/90534
Limitation on
advances to directors, etc. of deposit-taking companies.
3/90535
▲ restricted licence
bank
Page 70Page 71
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