Finance Companies Act · 2021 Revised Edition · Part · General
30C. Disbursement of funds
Official textFrom Attorney General's Chambers, unchanged
The provisions of this section apply, and apply only, where the
Minister has assumed control of the business of a finance company under section 30.
The Minister may, from the assets of the finance company, discharge in whole or part deposit liabilities which the Minister is satisfied are owned by the finance company and including sums owed to the Minister under subsection (4).
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:
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In discharging deposit liabilities under subsection (2), the
deposit
"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;
Minister shall have regard to the available assets of the finance company 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 finance company available to enable the deposit liabilities set out in the category or categories preceding -
deposit liabilities incurred by the finance company with non-finance company customers where the deposit liabilities are required by the Minister to be included in the computation of the reserve and liquidity requirements under sections 13A and 25;
deposit liabilities incurred by the finance company with other finance company where the deposit liabilities are required by the Minister to be included in the computation of the reserve and liquidity requirements under sections 13A and 25;
deposit liabilities incurred by the finance company with non-finance company customers where the deposit liabilities are not required by the Minister to be included in the computation of the reserve and liquidity requirements under sections 13A and 25.
The Minister may discharge deposit liabilities of the finance company from the assets of the finance company in which case the Minister shall be subrogated to the rights of each such depositor to the intent that each sum so paid by the Minister shall rank as a debt of the finance company to the Minister ranking with the same priority as the deposit liability which it has discharged.
Without the prior approval of the Minister and subject to such conditions (if any) as the Minister may specify, neither the receiver of all or any of the property of the finance company nor a liquidator of the finance company, whether (in either case) appointed before or afier the Minister assumed control of the finance company, shall exercise any powers or rights which would be exercisable but for the provisions of this subsection.
Where -
the Minister has not given approval under subsection (5) to the exercise of powers or rights which would otherwise be available to receiver or liquidator; or
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has given such approval but subject to conditions.
the receiver or liquidator shall not be 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 Minister under this section may be exercised by the Minister notwithstanding the provisions of any other written law.
Terms defined in s 2
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;
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: