Deposit Protection Act · 2023 Revised Edition · Part 4
47. Deposits of member institution acquired by non-member institution
Official textFrom Attorney General's Chambers, unchanged
Where deposits with a member institution are acquired by a person who is not a member institution, such deposits are deemed to be and continue to be protected by the deposit up to the limit of $50,000 for the remainder of the assessment year, or upon maturity or until withdrawal, whichever is earlier, after the acquisition of the deposits by the acquiring non-member institution.
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;
For the purposes of subsection (1), and in accordance with such regulations as may be prescribed —
in relation to the depositors, the member institution shall —
Deposit Protection
obtain written consent of at least 75 per cent of all the depositors or their personal representatives to transfer deposits;
obtain written acknowledgement of each depositor that the depositor is aware that deposits transferred to the non-member institution will remain protected deposits for the remainder of the assessment year, or upon maturity or until withdrawal, whichever is earlier, the deposits placed with the amalgamated non-member institution shall no longer be protected deposits in whole or in part by the Corporation;
upon a request in writing, pay to a depositor, the principal amount of the deposit and return thereon, calculated to the date of withdrawal and no charge or penalty shall be imposed in respect of the payment;
and
provide a statement that the acquired member institution’s obligation to repay deposits will be assumed by the non-member institution; and
in relation to the acquiring non-member institution, enter into an agreement in writing to assume the acquired member institution’s liability in relation to the deposits on the same terms and conditions.
For the purpose of subsection (2)(b), the member institution shall indemnify the Corporation in the event of any payment made by the
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;
Corporation to depositors, in respect of such of its deposits as have been transferred or acquired by the acquiring non-member institution.
Corporation
“Corporation” means the Brunei Darussalam Deposit Protection Corporation established by section 3;
Terms defined in s 2
assessment year
Defined · s 2“assessment year”, in relation to the calculation and payment of premiums under this Act, means the period beginning on the first day of January and ending on the 31st day of December of each year or such other period as may be approved by the Minister;
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;
depositor
Defined · s 2“depositor” means a person — (a) whose account has been or is to be credited in respect of monies constituting a deposit or part of such deposit; or (b) to whom a member institution is liable in respect of an instrument issued for monies constituting a deposit or part of such deposit;
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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