35. Financing facilities and limits

the aggregate amount outstanding by way of financing facilities granted by an Islamic bank shall not at any time exceed 20 per cent of its capital funds or such greater percentage not exceeding 50 per cent of its capital funds as the Authority may approve; and

the aggregate amount outstanding by way of substantial financing facilities granted by an Islamic bank shall not at any time exceed 25 per cent of its capital funds, or such greater percentage as the Authority may specify.

transactions with the Government;

transactions between banks;

the purchase of telegraphic transfers;

any facilities granted against letters of credit or bills or guarantees or documents in respect of imports into or exports from

any other type of transaction which the Authority may approve.

grant any financing facilities against the security of its own shares;

grant, whether directly or indirectly, unsecured financing facilities such that the aggregate amount outstanding at any time exceeds the sum of $10,000 or such other sum as the Authority may direct in any of the following cases —

to any of its directors or their associates, whether those financing facilities are obtained by its directors or the associates jointly or severally;

to an institution in which it or any of its directors or their associates has an interest as a partner, manager or agent, or to any person of whom or of which any of its directors or their associates is a guarantor;

to any company, other than an Islamic bank, which is an associate of the Islamic bank.

“substantial financing facility” means any financing facility granted by an Islamic bank to a person which, either alone or together with any financing facilities granted to any associate, in the aggregate exceeds 15 per cent of the Islamic bank’s capital funds;

“unsecured financing facilities” means financing facilities given without security, or in respect of any financing facility given with security, any part thereof which at any time exceeds the market value of the assets constituting that security, or where the Authority is satisfied that there is no established market value, on the basis of a valuation approved by it.