Banking Act · s 48

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48.
Recommendations concerning credits and investments
(1) In respect of loans and advances or investments of banks the
Authority may make recommendations to the banks in respect of the following —
(a) the purposes for which loans, advances or investments may or may not be granted or made;
(b) the maximum maturities or, in the case of loans and advances, the type and minimum amount of security which shall be required and, in the case of letters of credit, the minimum or margin deposit;
(c) the limits for any description of loans, advances or investments or for the total amount outstanding in respect of any description of loans, advances or investments.
(2) Any recommendation made under subsection (1) shall apply uniformly to all banks engaging in the transactions covered by the recommendations.
(3) Where the Authority has made a recommendation under subsection (1) and either —
(a) no notice of objection is made under subsection (4); or
(b) such a notice is given but representations are not made in accordance with that subsection, the Authority may issue a direction in writing to each licensed bank on any of the matters referred to in subsection (1) requiring that effect be given to the recommendation within such time as is specified in the direction.
(4) Where the Authority has made a recommendation under subsection (1), the bank generally or any one of them may, within 14 days of the receipt of the recommendation, give the Authority notice in writing of objection to the recommendation; and where such a notice is given, the bank concerned shall be entitled, within one month of the notice, to make representations in writing to the Authority setting out the reasons for the objection.

Banking
(5) Upon receipt of any representations under subsection (4), the Authority shall consider them and may —
(a) reject the representations; or
(b) amend or modify the recommendation in accordance with the representations, or otherwise, and, in either event, the Authority shall thereupon issue a direction in writing to each bank requiring that, within such time as is specified in the direction, effect be given to the original recommendation or, as the case may be, to the recommendation as subsequently amended or modified by the Authority.
(6) Any bank which fails to comply with a direction under subsection (3) or (5), is guilty of an offence and liable on conviction to a fine not exceeding $150,000.

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s 48Recommendations concerning credits and investments

(1)

In respect of loans and advances or investments of banks the

Authority may make recommendations to the banks in respect of the following —

(a)

the purposes for which loans, advances or investments may or may not be granted or made;

(b)

the maximum maturities or, in the case of loans and advances, the type and minimum amount of security which shall be required and, in the case of letters of credit, the minimum or margin deposit;

(c)

the limits for any description of loans, advances or investments or for the total amount outstanding in respect of any description of loans, advances or investments.

(2)

Any recommendation made under subsection (1) shall apply uniformly to all banks engaging in the transactions covered by the recommendations.

(3)

Where the Authority has made a recommendation under subsection (1) and either —

(a)

no notice of objection is made under subsection (4); or

(b)

such a notice is given but representations are not made in accordance with that subsection, the Authority may issue a direction in writing to each licensed bank on any of the matters referred to in subsection (1) requiring that effect be given to the recommendation within such time as is specified in the direction.

(4)

Where the Authority has made a recommendation under subsection (1), the bank generally or any one of them may, within 14 days of the receipt of the recommendation, give the Authority notice in writing of objection to the recommendation; and where such a notice is given, the bank concerned shall be entitled, within one month of the notice, to make representations in writing to the Authority setting out the reasons for the objection.

Banking

(5)

Upon receipt of any representations under subsection (4), the Authority shall consider them and may —

(a)

reject the representations; or

(b)

amend or modify the recommendation in accordance with the representations, or otherwise, and, in either event, the Authority shall thereupon issue a direction in writing to each bank requiring that, within such time as is specified in the direction, effect be given to the original recommendation or, as the case may be, to the recommendation as subsequently amended or modified by the Authority.

(6)

Any bank which fails to comply with a direction under subsection (3) or (5), is guilty of an offence and liable on conviction to a fine not exceeding $150,000.