25. Minimum holdings of liquid assets by finance companies

(1)

Every finance company shall maintain a minimum holding of liquid assets.

(2)

The minimum amount of liquid assets to be maintained by finance companies shall be determined by the Authority and shall be expressed as a percentage of the liabilities of each finance company on account of deposits.

(3)

The Authority shall prescribe the method of computing the amount of liquid assets to be held by finance companies.

(4)

For the purposes of this section, "liquid assets" means all or any of the follow-ing -

(a)

notes and coins that are legal tender in Brunei Darussalam;

(b)

net balances at banks in Brunei Darussalam;

(c)

net money at call in Brunei Darussalam;

(d)

other assets that the Authority may prescribe.

•

(5)

Any finance company that fails to comply with any requirements of this section shall be liable, on being called upon to do so by the Authority

Finance Companies

(in addition to any other penalty that may be imposed under this Act) to pay a penalty interest charge not less than one-fifteenth of one per cent of the amount of the deficiency for every day during which the default continues and shall not while the default continues accept any deposits or enter into new commitments without the approval of the Authority.

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