Banking Act · 2024 Revised Edition · Part 7
62. Disbursement of funds
Official textFrom Attorney General's Chambers, unchanged
The provisions of this section apply, and apply only, where the
Authority has assumed control of the business of a bank pursuant to section 59.
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
The Authority may, from the assets of the bank, discharge in whole or part deposit liabilities which the Authority is satisfied are owned by the bank and including sums owed to the Authority pursuant to subsection (4).
bank
“bank” means a company which carries on banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
In discharging deposit liabilities pursuant to subsection (2), the Authority shall have regard to the available assets of the bank at any time and the amount of deposit liabilities (whether then due or not) in the following categories and shall not discharge any deposit liability in the second and third categories unless satisfied that there are assets of the bank available to enable the deposit liabilities set out in the category or categories preceding —
deposit liability
“deposit liability” means liability in respect of a deposit (as so construed), including where appropriate, a sum due as a debt to Banking the Authority by virtue of section 62(4), and “depositor” and related expressions shall be construed accordingly;
deposit liabilities incurred by the bank with non-bank customers where the deposit liabilities are required by the Authority to be included in the computation of the liquidity and reserve requirements pursuant to sections 44 and 45;
deposit liabilities incurred by the bank with other banks where the deposit liabilities are required by the Authority to be included in the computation of the liquidity and reserve requirements pursuant to sections 44 and 45;
Banking 72
deposit liabilities incurred by the bank with non-bank customers where the deposit liabilities are not required by the
Authority to be included in the computation of the liquidity and reserve requirements pursuant to sections 44 and 45.
The Authority may discharge deposit liabilities of the bank from the assets of bank, in which case the Authority shall be subrogated to the rights of each such depositor to the intent that each sum so paid by the
Authority shall rank as a debt of the bank to the Authority ranking with the same priority as the deposit liability which it has discharged.
Without the prior approval of the Authority and subject to such conditions (if any) as the Authority may specify, neither the receiver of all or any of the property of the bank nor a liquidator of the bank, whether
(in either case) appointed before or after the Authority assumed control of the bank, shall exercise any powers or rights which would be exercisable but for the provisions of this subsection.
Where —
the Authority has not given its approval pursuant to subsection (5) to the exercise of powers or rights which would otherwise be available to a receiver or liquidator; or
has given such approval but subject to conditions, the receiver or liquidator is not liable to any person for any failure to discharge his obligations in that capacity which derives from the absence of such approval or any condition attached to such approval.
The powers of the Authority under this section may be exercised by the Authority notwithstanding the provisions of any other written law.
Terms defined in s 2
Authority
Defined · s 2“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
bank
Defined · s 2“bank” means a company which carries on banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
deposit liability
Defined · s 2“deposit liability” means liability in respect of a deposit (as so construed), including where appropriate, a sum due as a debt to Banking the Authority by virtue of section 62(4), and “depositor” and related expressions shall be construed accordingly;
Part
Overseas Branches and Representative Offices of Domestic Banks
Part
Unclaimed Balances
Part
Invitations to Make Deposits
Part