Banking Act · s 40

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40.
Loans secured by immovable property
(1) Subject to subsection (2), a bank shall not make any loans or advances which exceed in the aggregate 20 per cent of the amount of its deposits in Brunei Darussalam or such higher or lower percentage as the
Authority may allow (including the deposits and borrowings from any other bank) on the security of immovable property for the purpose of purchasing, improving or altering such immovable property.
(2) With the prior written consent of the Authority, any bank whose business is principally in making loans or advances on the security of immovable property may make such loans or advances in an aggregate amount up to, but not in excess of 50 per cent of the amount of its deposits in
Brunei Darussalam or such higher or lower percentage as the Authority may allow (including the deposits and borrowings from any other bank at that bank).
(3) A loan or advance secured solely by a mortgage, deed of trust, or other such instrument upon immovable property or by notes or other obligations which are so secured, is, for the purpose of this section, a loan or

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advance secured by immovable property; and where a loan or advance is secured in part by a mortgage, deed of trust, or other instrument upon immovable property which is of less value than the amount of the loan or advance, or by notes or other obligations which are so secured, then, for the purposes of this section, account shall be taken only of so much of the loan or advance as is equal to the value of the immovable property as a security as determined by a person appointed by the Authority.
(4) Nothing in this section shall be construed as prohibiting a bank from accepting as security for a loan or advance previously made in good faith without security or upon security subsequently found to be inadequate, a mortgage, deed of trust, or other instrument upon immovable property, or notes or other obligations which are so secured.
(5) A bank which contravenes the provisions of subsection (1) or (2)
is guilty of an offence and liable on conviction to a fine not exceeding $150,000.

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s 40Loans secured by immovable property

(1)

Subject to subsection (2), a bank shall not make any loans or advances which exceed in the aggregate 20 per cent of the amount of its deposits in Brunei Darussalam or such higher or lower percentage as the

Authority may allow (including the deposits and borrowings from any other bank) on the security of immovable property for the purpose of purchasing, improving or altering such immovable property.

(2)

With the prior written consent of the Authority, any bank whose business is principally in making loans or advances on the security of immovable property may make such loans or advances in an aggregate amount up to, but not in excess of 50 per cent of the amount of its deposits in

Brunei Darussalam or such higher or lower percentage as the Authority may allow (including the deposits and borrowings from any other bank at that bank).

(3)

A loan or advance secured solely by a mortgage, deed of trust, or other such instrument upon immovable property or by notes or other obligations which are so secured, is, for the purpose of this section, a loan or

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advance secured by immovable property; and where a loan or advance is secured in part by a mortgage, deed of trust, or other instrument upon immovable property which is of less value than the amount of the loan or advance, or by notes or other obligations which are so secured, then, for the purposes of this section, account shall be taken only of so much of the loan or advance as is equal to the value of the immovable property as a security as determined by a person appointed by the Authority.

(4)

Nothing in this section shall be construed as prohibiting a bank from accepting as security for a loan or advance previously made in good faith without security or upon security subsequently found to be inadequate, a mortgage, deed of trust, or other instrument upon immovable property, or notes or other obligations which are so secured.

(5)

A bank which contravenes the provisions of subsection (1) or (2)

is guilty of an offence and liable on conviction to a fine not exceeding $150,000.