Islamic Banking Act · 2024 Revised Edition · Part · General
104. Redemption of securities held by Islamic bank under liquidation
Official textFrom Attorney General's Chambers, unchanged
As soon as practicable after the making of an order for the winding-up of an Islamic bank, the liquidator of the Islamic bank —
Islamic bank
“Islamic bank” means a company which carries on Islamic banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
shall publish a notice in the Gazette and a daily newspaper circulating in Brunei Darussalam requiring every debtor of the
Islamic bank to redeem any property he has deposited with the
Islamic bank as security for any financing that he has obtained from the Islamic bank; and
shall send a copy of that notice by registered post to every debtor whose security is held by the Islamic bank and whose name is mentioned in the statement of affairs made out under the provisions of the Insolvency Act (Chapter 247).
The notice shall specify the latest date up to which any securities may be redeemed, which date shall not be less than 3 months from the date of the notice.
Nothing in this section shall affect any powers exercisable by the
Authority by virtue of section 59 or 62.
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
Terms defined in s 2
Authority
Defined · s 2“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
financing
Defined · s 2“financing” means the extension of credit, loans, advances, murabahah, leasing, instalment sale, istisna’ or any other modality that is not contrary to Hukum Syara’;
Islamic bank
Defined · s 2“Islamic bank” means a company which carries on Islamic banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;