Insurance Order, 2006 · As enacted
17. Bank covenants in lieu of deposits
Official textFrom Attorney General's Chambers, unchanged
If1 in the case of any insurer, a bank licensed under any written law for the time being in force relating to banking makes with the Authority an agreement in a form approved by the Authority whereby the bank covenants to deposit with the Authority a specified sum in cash on account of the insurer's deposit under section 16 in respect of either class of insurance business, and the covenant complies with any requirements the Authority may impose as to the circumstances in which that sum is to be deposited, then for the purpose of this
Authority
"Authority" means such person as is appointed by His Majesty the Sultan and Yang Di-Pertuan under subsection 11) of section 4 to be the Authority for the purposes of this Order;
Order, the insurer shall be treated as having made the deposit under section 16
and the sum so covenanted for shall be recoverable notwithstanding that no consideration is furnished on the agreement.
Any sum deposited by a bank in pursuance of an agreement made under subsection (1) shall be dealt with under or for the purposes of this Order as if it were a sum deposited by the insurer under section 16.
Terms defined in s 2
Authority
Defined · s 2"Authority" means such person as is appointed by His Majesty the Sultan and Yang Di-Pertuan under subsection 11) of section 4 to be the Authority for the purposes of this Order;
insurance business
Defined · s 2"insurance business" includes the business of effecting and carrying out contracts {a} protecting persons against loss or liability to loss in respect of risks to which such persons may be exposed; or {b) to pay a sum of money or render money and includes reinsurance business;