Islamic Banking Act · s 62

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62.
Disbursement of funds
(1) The provisions of this section only apply where the Authority has assumed control of the business of an Islamic bank pursuant to section 59.
(2) The Authority may, from the assets of the Islamic bank, discharge in whole or part deposit liabilities which the Authority is satisfied are owed by the Islamic bank and including sums owed to the Authority pursuant to subsection (4).
(3) In discharging deposit liabilities pursuant to subsection (2), the
Authority shall have regard to the available assets of the Islamic bank 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
Islamic bank available to enable the discharge of the deposit liabilities set out in the category or categories preceding —
(a) deposit liabilities incurred by the Islamic bank with non-bank customers where the deposit liabilities are required by the
Authority to be included in the computation of the liquidity and reserve requirements pursuant to sections 44 and 45;
(b) deposit liabilities incurred by the Islamic bank with other banks where the deposit liabilities are required by the Authority to be included in the computation of the liquidity and reserve requirements pursuant to sections 44 and 45;

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(c) deposit liabilities incurred by the Islamic bank with non-bank customers where the deposit liabilities are not required by the Authority to be included in the computation of the liquidity and reserve requirements pursuant to sections 44 and 45.
(4) The Authority may, from its assets, discharge the deposit liabilities of the Islamic bank, in which case the Authority shall be subrogated to the rights of each such depositor to the intent that each sum so paid by the Authority shall rank as a debt of the Islamic bank to the Authority ranking with the same priority as the deposit liability which the Authority has discharged.
(5) Without the prior approval of the Authority and subject to such conditions (if any) as the Authority may specify, neither the receiver of all or any of the property of the Islamic bank nor a liquidator of the Islamic bank, whether (in either case) appointed before or after the Authority assumed control of the Islamic bank, shall exercise any powers or rights which would be exercisable but for the provisions of this subsection.
(6) Where —
(a) the Authority has not given his approval pursuant to subsection (5) to the exercise of powers or rights which would otherwise be available to a receiver or liquidator; or
(b) has given such approval but subject to conditions, the receiver or liquidator is not 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.
(7) The powers of the Authority under this section may be exercised by the Authority notwithstanding the provisions of any other written law.

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s 62Disbursement of funds

(1)

The provisions of this section only apply where the Authority has assumed control of the business of an Islamic bank pursuant to section 59.

(2)

The Authority may, from the assets of the Islamic bank, discharge in whole or part deposit liabilities which the Authority is satisfied are owed by the Islamic bank and including sums owed to the Authority pursuant to subsection (4).

(3)

In discharging deposit liabilities pursuant to subsection (2), the

Authority shall have regard to the available assets of the Islamic bank 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

Islamic bank available to enable the discharge of the deposit liabilities set out in the category or categories preceding —

(a)

deposit liabilities incurred by the Islamic bank with non-bank customers where the deposit liabilities are required by the

Authority to be included in the computation of the liquidity and reserve requirements pursuant to sections 44 and 45;

(b)

deposit liabilities incurred by the Islamic bank with other banks where the deposit liabilities are required by the Authority to be included in the computation of the liquidity and reserve requirements pursuant to sections 44 and 45;

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(c)

deposit liabilities incurred by the Islamic bank with non-bank customers where the deposit liabilities are not required by the Authority to be included in the computation of the liquidity and reserve requirements pursuant to sections 44 and 45.

(4)

The Authority may, from its assets, discharge the deposit liabilities of the Islamic bank, in which case the Authority shall be subrogated to the rights of each such depositor to the intent that each sum so paid by the Authority shall rank as a debt of the Islamic bank to the Authority ranking with the same priority as the deposit liability which the Authority has discharged.

(5)

Without the prior approval of the Authority and subject to such conditions (if any) as the Authority may specify, neither the receiver of all or any of the property of the Islamic bank nor a liquidator of the Islamic bank, whether (in either case) appointed before or after the Authority assumed control of the Islamic bank, shall exercise any powers or rights which would be exercisable but for the provisions of this subsection.

(6)

Where —

(a)

the Authority has not given his approval pursuant to subsection (5) to the exercise of powers or rights which would otherwise be available to a receiver or liquidator; or

(b)

has given such approval but subject to conditions, the receiver or liquidator is not 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.

(7)

The powers of the Authority under this section may be exercised by the Authority notwithstanding the provisions of any other written law.