Islamic Banking Act · s 40

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40.
Financing secured by immovable property
(1) Subject to subsection (2) an Islamic bank shall not grant any financing facilities which exceed in the aggregate 20 per cent of the amount of its deposits in Brunei Darussalam or such higher or lower percentage as the Authority may allow (including the deposits and borrowings from any other bank) on the security of immovable property for the purpose of purchasing, improving or altering such immovable property.
(2) With the prior written consent of the Authority, any
Islamic bank whose business is principally to grant financing facilities on the security of immovable property may grant such financing facilities in an aggregate amount up to, but not in excess of 50 per cent of the amount of its deposits in Brunei Darussalam or such higher or lower percentage as the
Authority may allow after taking into consideration the nature and modalities of Islamic banking business (including the deposits and borrowings from any other bank at that Islamic bank).
(3) Financing facilities secured solely by a mortgage, deed of trust, or other such instrument upon immovable property or by promissory notes or other obligations which are so secured, is, for the purpose of this section, financing facilities secured by immovable property; and where financing facilities are secured in part by a mortgage, deed of trust, or other instrument upon immovable property which is of less value than the amount of the financing facilities, or by promissory notes or other obligations which are so secured, then, for the purposes of this section, account shall be taken only of so much of the financing facilities as is equal to the value of the immovable property as a security as determined by a person appointed by the Authority.
(4) Nothing in this section shall be construed as prohibiting an
Islamic bank from accepting as security for a financing facilities previously made in good faith without security or upon security subsequently found to be inadequate, a mortgage, deed of trust, or other instrument upon immovable property, or promissory notes or other obligations which are so secured.

Islamic Banking 52
(5) An Islamic bank which contravenes subsection (1) or (2) is guilty of an offence and liable on conviction to a fine not exceeding $150,000.

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s 40Financing secured by immovable property

(1)

Subject to subsection (2) an Islamic bank shall not grant any financing facilities which exceed in the aggregate 20 per cent of the amount of its deposits in Brunei Darussalam or such higher or lower percentage as the Authority may allow (including the deposits and borrowings from any other bank) on the security of immovable property for the purpose of purchasing, improving or altering such immovable property.

(2)

With the prior written consent of the Authority, any

Islamic bank whose business is principally to grant financing facilities on the security of immovable property may grant such financing facilities in an aggregate amount up to, but not in excess of 50 per cent of the amount of its deposits in Brunei Darussalam or such higher or lower percentage as the

Authority may allow after taking into consideration the nature and modalities of Islamic banking business (including the deposits and borrowings from any other bank at that Islamic bank).

(3)

Financing facilities secured solely by a mortgage, deed of trust, or other such instrument upon immovable property or by promissory notes or other obligations which are so secured, is, for the purpose of this section, financing facilities secured by immovable property; and where financing facilities are secured in part by a mortgage, deed of trust, or other instrument upon immovable property which is of less value than the amount of the financing facilities, or by promissory notes or other obligations which are so secured, then, for the purposes of this section, account shall be taken only of so much of the financing facilities as is equal to the value of the immovable property as a security as determined by a person appointed by the Authority.

(4)

Nothing in this section shall be construed as prohibiting an

Islamic bank from accepting as security for a financing facilities previously made in good faith without security or upon security subsequently found to be inadequate, a mortgage, deed of trust, or other instrument upon immovable property, or promissory notes or other obligations which are so secured.

Islamic Banking 52

(5)

An Islamic bank which contravenes subsection (1) or (2) is guilty of an offence and liable on conviction to a fine not exceeding $150,000.