Finance Companies Act · 2021 Revised Edition · Part · Regulation of Business
18. Demand deposits, dealings in foreign exchange etc. by finance companies
Official textFrom Attorney General's Chambers, unchanged
No finance company shall -
finance company
"finance company" means any company licensed under this Act, to carry on financing business or Islamic financing business, and all branches and offices in Brunei Darussalam of such a company is deemed to be one finance company for the purpose of this Act:
accept any deposit which is repayable on demand by cheque, draft or order drawn by a depositor on the finance company;
•
deal in gold or foreign exchange of whatever kind;
grant unsecured advances. unsecured loans or unsecured credit facilities which in the aggregate and outstanding at any one time exceed 10 per cent of the paid-up share capital and published reserves of the finance company and which as regards -
any individual director whether borrowing on his own account or jointly with another director;
a firm in which it or any of its directors has an interest as a partner, manager or agent, or to any individual or firm of whom or of which any of its directors is a guarantor;
any other person or body of persons whether incorporated or not, exceed at any time the sum of $5,000; and
grant or permit to be outstanding to any customer any advances, loans or credit facilities, or give financial guarantees or incur any other liabilities on his behalf to an aggregate amount of •
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such advances, loans or credit facilities, guarantees or liabilities in excess of 60 per cent of the paid-up share capital and published reserves of the finance company:
Provided that, with the approval of the Authority, the percentage referred to in this paragraph may be increased to 100 per cent of the paid-up share capital and published reserves of the finance company.
Finance Companies
CAP. 89 19
In subsection (I)@) -
"directors" include the husband, wife, father, mother, son or daughter of a director:
director
"director" includes any person occupying the position of director of a finance company by whatever name called and includes a person in accordance with whose directions or instructions the directors of a finance company are accustomed to act and an alternate or substitute director;
"unsecured advances", "unsecured loans" or "unsecured credit facilities" mean advances, loans or credit facilities made without security or, in respect of any advance. loan or credit facility made with security, any part thereof which at any time exceeds the market value of the assets constituting that security, or where the
Authority is satisfied that there is no established market value, on the basis of a valuation approved by the Authority.
Authority
"Authority" means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010 (S 103120 10); [S 1 7/2 02 I]
All the directors of a finance company shall be liable jointly and severally to indemnify a finance company against any loss arising from the making of any unsecured advance, loan or credit facility under subsection (l)(c)(ii) or (iii).
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 (S 103120 10); [S 1 7/2 02 I]
deposit
Defined · s 2"deposit" means a sum of money received or paid on terms - (a) under which it will be repaid, with or without interest. or at a premium or discount; or (b) under which it is repayable, either wholly or in part, with any consideration in money or money's worth, such repayment being either on demand or at a time or in such circumstances agreed by or on behalf of the person making the payment and the person receiving it, regardless whether the transaction is described as a loan. credit facility, advance, Finance Con?panies investment, saving, sale or sale and repurchase, but does not include money paid bonafide - (i) by way of an advance or a part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is not or are not in fact sold, hired, or otherwise provided; (ii) by way of security for the performance of a contract or by way of security in respect of any loss • which may result from the non-performance of a contract; (iii) without prejudice to sub-paragraph (ii), by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise;
director
Defined · s 2"director" includes any person occupying the position of director of a finance company by whatever name called and includes a person in accordance with whose directions or instructions the directors of a finance company are accustomed to act and an alternate or substitute director;
finance company
Defined · s 2"finance company" means any company licensed under this Act, to carry on financing business or Islamic financing business, and all branches and offices in Brunei Darussalam of such a company is deemed to be one finance company for the purpose of this Act:
Part
Minimum Liquid Assets
Part
Inspection of Finance Companies
Part 7
Part