Deposit Protection Act · 2023 Revised Edition · Part 4
33. Effects of cancellation or termination
Official textFrom Attorney General's Chambers, unchanged
Where the membership of a member institution is cancelled under section 31 or terminated under section 32 —
member institution
“member institution” means any financial institution deemed to be a member institution under section 27 whose membership has not been cancelled under section 31 or terminated under section 32;
the financial institution shall not assume or use the words
“deposit protection” or any derivative of these words in any language or any other word in any language capable of being construed that the financial institution is a member institution;
the member institution shall inform its depositors in writing that the outstanding deposits with the member institution shall continue to be protected deposits for a period of 2 years from the
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effective date of cancellation or termination, unless the deposit is fully withdrawn or has reached its maturity, whichever is earlier;
in the case of a cancellation due to a member institution surrendering its licence, such institution shall be required to notify its depositors of the cancellation of its membership in a manner to be prescribed by the Corporation;
the member institution shall not be considered to be a member institution by reason only that its deposits continue to be protected deposits under paragraph (b), section 46 or 47; and
the member institution shall not be relieved from its obligations or liabilities to the Corporation that have accrued before the cancellation or termination of its membership.
For the purposes of subsection (1)(b), the cancellation under section 31 or termination under section 32 of the membership shall not affect the obligation, right and the ability of the Corporation to make a payment under Chapter 4 of this Part.
Corporation
“Corporation” means the Brunei Darussalam Deposit Protection Corporation established by section 3;
For the purpose of subsection (1)(c), the member institution shall indemnify the Corporation in the event of any payment made by the
Corporation to depositors, in respect of such of its deposits as have been transferred or acquired by another member institution or such other person as approved by the Minister.
The Corporation may, in such manner and through such media as it deems expedient, give public notice of the cancellation or termination of any membership of a member institution if in the opinion of the Corporation, the public interest requires that such notice be given.
Where a member institution is obligated to repay to a person any monies that are received or held by the member institution, such monies are deemed not to constitute part of a deposit for the purposes of deposit protection with the Corporation if the date on which the person acquires his interest in the monies is a date subsequent to the date on which the membership of the member institution is cancelled under section 31 or terminated under section 32 by the Corporation.
deposit
“deposit” means a deposit as defined in section 2(3) of the Banking Order, 2006, a deposit as defined in section 2(3) of the Islamic Banking Order, 2008 and a deposit as defined in section 2 of the Finance Companies Act, as the case may be;
Any member institution which contravenes subsection (1)(a),
or (c) is guilty of an offence and liable on conviction to a fine not
Deposit Protection exceeding $1,000,000, and in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
Terms defined in s 2
Corporation
Defined · s 2“Corporation” means the Brunei Darussalam Deposit Protection Corporation established by section 3;
deposit
Defined · s 2“deposit” means a deposit as defined in section 2(3) of the Banking Order, 2006, a deposit as defined in section 2(3) of the Islamic Banking Order, 2008 and a deposit as defined in section 2 of the Finance Companies Act, as the case may be;
deposit protection
Defined · s 2“deposit protection” means the protection provided to the depositors of a member institution in case of its failure to pay its deposits;
financial institution
Defined · s 2“financial institution” means a bank licensed under section 4 or 23 of the Banking Order, 2006, an Islamic bank licensed under section 4 or 23 of the Islamic Banking Order, 2008 and a finance company licensed under section 3 of the Finance Companies Act;
member institution
Defined · s 2“member institution” means any financial institution deemed to be a member institution under section 27 whose membership has not been cancelled under section 31 or terminated under section 32;
protected deposits
Defined · s 2“protected deposits” means the deposits protected pursuant to section 45.
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Offences
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