Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637

Incorporating all amendments up to 1 January 2007

ACT 637 
LOAN (LOCAL) ACT 1959 

Part I PRELIMINARY

SECTION

1.Short title

2.Interpretation

Part II AUTHORIZATION AND APPLICATION OF LOAN

SECTION

3.Power to raise loans for purposes of the Development Fund

4.Sums charged on and payable out of Consolidated Fund

5.Application of loan

5a.Omitted or Deleted Section

Part III PROVISIONS APPLICABLE TO ISSUE AND TRANSFER OF STOCK

SECTION

6.Issue and form of stock

7.Refusal of application

8.Transfer of stock

8a.Participating investing institutions and primary investing institutions

8b.Depository institutions

8c.Duties and obligations of depository institutions in relation to transfers effected under subsection8b(2)

8d.Bank's power to require information, inspect and take copies

8e.Maintenance of secrecy by the Bank

9.Payment of interest

10.Authorization of Bank

Part IV PROVISIONS RELATING TO REDEMPTION, purchase, conversion and cancellation OF STOCK AND CREATION OF SINKING FUND

SECTION

11.Redemption of stock

11a.Power to purchase and cancel stock

11b.Power to convert stock

12.Sinking fund

13.Application of sinking fund

14.Procedure if sinking fund insufficient

15.Omitted or Deleted Section

Part V GENERAL

SECTION

16.Acceptance of advance deposits

17.False entries, etc., in books, documents, etc.

18.Contravention of Act, penalty and criminal liability of institutions, directors, etc.

19.Civil liability not affected by prosecution or nonprosecution, etc.

20.Rules

21.Liability of Government in respect of stock

22.Minister's power to amend the First or Second Schedule

First Schedule

Second Schedule

An Act to authorize the raising of loans within Malaysia to provide sums required for the purposes of the Development Fund.

[28 July, 1959; Throughout Malaysia--1 April 1965, Act No. 27 of 1965]

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/1.Short title

Part I PRELIMINARY

1. Short title

This Act may be cited as the Loan (Local) Act 1959.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/2.Interpretation

2. Interpretation

(1) In this Act, unless the context otherwise requires--

"advance deposit"

means the deposits as are received under subsection 16(1) of this Act;

"Bank"

means Bank Negara Malaysia established under the Central Bank of Malaysia Act 1958 [Act519];

"customer's account"

means an account maintained by a depository institution in respect of a transferor or a transferee under subsection 8B(5);

"depository institution"

means a participating investing institution authorized by the Bank under subsection8b(1);

"financial institution"

means--

(a) any licensed bank, licensed merchant bank, licensed finance company, or licensed discount house, as those terms are defined in the Banking and Financial Institutions Act 1989 Act 372 ];

(b) any State Government;

(c) any statutory body; or

(d) any fund, scheme, organization, body corporate or unincorporate, or any other person, as may be specified in writing by the Minister; 

"participating investing institution"

means a financial institution authorized by the Bank under subsection8a(1);

"primary investing institution"

means a participating investing institution appointed by the Bank under subsection8a(2);

"statutory acknowledgement receipt"

means an acknowledgement receipt in the form in the First Schedule issued under b(6);

"statutory body"

means any body or authority established, appointed or constituted by any written law, and includes any local authority;

"statutory monthly statement"

means a monthly statement in the form in the Second Schedule issued under c(2);

"stock"

means stock issued pursuant to sections3 and 6 or a stock held by any person or pursuant to a transfer of it, or of a part of it, under this Act;

"stock customer"

means a person who makes or takes a transfer of a stock under b(2);

"stock issue"

means any loan raised under subsection3(1) by the issue of stock under Part III;

"trustee stock"

means any of the securities mentioned in section 4 of the Trustee Act 1949 [Act 208];

"the Minister"

means the Minister for the time being charged with the responsibility for finance;

(2) In relation to Sabah and Sarawak, references in this Act to any written law or to any provisions of it shall--

(a) if that written law has been extended to apply to Sabah or Sarawak be construed as references to the written law or provisions as so extended to Sabah or Sarawak, as the case may be;

(b) if that written law has not been so extended, be construed as references to the corresponding written law or provisions, if any, in force in Sabah or Sarawak, as the case may be. 

(3) Where any record or account is required to be maintained under this Act by the Bank or by any participating investing institution, whether acting in its capacity as a primary investing institution or a depository institution or otherwise, it shall be maintained in the manner or the means as the Bank may determine or specify, including its maintenance in writing or by means of any visual recording (of still or moving images), or any sound recording or any electronic, magnetic, mechanical, or other recording whatsoever, on any substance, material, thing or article.

(4) The functions, powers and duties conferred upon the Bank under this Act shall be performed, exercised and discharged by the Bank on behalf of the Minister.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/3.Power to raise loans for purposes of the Development Fund

Part II AUTHORIZATION AND APPLICATION OF LOAN

3. Power to raise loans for purposes of the Development Fund

(1) Subject to the Constitution and this Act, the Minister may, from time to time, raise within Malaysia in the manner and on the terms and conditions as he thinks fit, the sums as may be required by Malaysia for purposes of the Development Fund or for one or more of those purposes.

(2) Where the loan is raised by the issue of stock, Part III shall apply.

(3)^*The sums raised under this Act shall notexceed the sum specified, from time to time, by the Yang di-PertuanAgong by order* published in the Gazette and the order shall, as soon as possible after its publication,be laid by the Minister before the Dewan Rakyat.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/4.Sums charged on and payable out of Consolidated Fund

4. Sums charged on and payable out of Consolidated Fund

(1) All debt charges in respect of loans raised under this Act are chargedupon and payable out of the Consolidated Fund.

(2) In this section"debt charges" includes interest, sinking fund charges, the repaymentor amortization of debt, and all expenditure in connection with theraising of the loans and the service and redemption of debt createdby it.

(3) All expenditurein connection with the purchase, conversion and cancellation of stockmade in accordance with this Act are charged upon and payable outof the Consolidated Fund.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/5.Application of loan

5. Application of loan

(1) Any sum raised under this Act less the sum required to defray theexpenses in connection with the raising of the loan shall, subjectto subsection (2), be paid into the Development Fund specified in the Second Schedule to the Financial Procedure Act 1957 [Act 61], and shall be applied for the purposes of the Fund.

(2) Any sums raised under this Act may be applied--

(a) for the repayment or amortization of loans raised under this Act or any other written law; or

(b) where a loan is raised by the issue of stock under this Act or any other written law, for the purchase or conversion of such stock. 

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/5a.Omitted or Deleted Section

5a. Omitted or Deleted Section

(Deleted by Act A748).

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/6.Issue and form of stock

Part III PROVISIONS APPLICABLE TO ISSUE AND TRANSFER OF STOCK

6. Issue and form of stock

Stock issued under this Act shall be issued by the Bank on behalf of the Minister upon the terms as may be approved by the Minister and shall be issued in the form of an entry in the records of the Bank under a(3).

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/7.Refusal of application

7. Refusal of application

Any application to take up stock issued under this Act may be refused by the Secretary General to the Treasury without reason assigned.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/8.Transfer of stock

8. Transfer of stock

Every stock, or any part of it, may be transferred in accordance with this Act and in no other manner.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/8a.Participating investing institutions and primary investing institutions

8a. Participating investing institutions and primary investing institutions

(1) The Bank may authorize, in writing, any financial institution to be a participating investing institution.

(2) The Bank may appoint, in writing, any participating investing institution to be a primary investing institution.

(3) Only a primary investing institution may take up stock from the Bank, and the Bank shall maintain an entry in its records of every such stock.

(4) A participating investing institution shall maintain a single account with the Bank--

(a) of all transfers of stock to itself by another participating investing institution or by itself to another participating investing institution; and

(b) where the participating investing institution has been appointed a primary investing institution under subsection (2), there shall be included in the single account mentioned in paragraph (a) an account of all its stock taken up under subsection (3). 

(5) The Bank shall--

(a) pay to the participating investing institution interest on each of its stock standing in its account under subsection(4) on the date the interest becomes payable under section 9; and

(b) repay to the institution each of the stock standing in its account under subsection (4) on the date the stock becomes redeemable under section 11, by the means and in the manner as may be determined by the Bank.

(6) The Bank shall maintain records of the account of a participating investing institution, and the records shall be the sole and conclusive evidence of the state of the account, and of all the particulars and details of it, and it shall be binding on the Bank, the participating investing institution and on any other person having any interest in it.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/8b.Depository institutions

8b. Depository institutions

(1) The Bank may authorize, in writing, any participating investing institution to be a depository institution.

(2) Any person, other than a participating investing institution, desiring either to make or take a transfer of a stock shall do so only through a depository institution.

(3) A depository institution shall maintain with the Bank, in addition to the account maintained by it under a(4), a separate single account in respect of all transfers effected through it under subsection (2).

(4) The Bank shall--

(a) pay to a depository institution the interest due on the principal moneys represented by each of the stock standing in the depository institution's account under subsection (3) on the date the interest becomes payable under section9; and

(b) repay to the institution the principal moneys represented by the stock standing in its account under subsection (3) on the date it becomes redeemable under section11, by the means and in the manner as may be determined by the Bank.

(5) A depository institution shall maintain a customer's account in respect of every transferor and transferee who is a party to any transfer effected through the depository institution under subsection(2), except where a customer's account in respect of a transferee is maintained by another depository institution, in which case the first mentioned depository institution shall have the stock transferred into the transferee's account with the second mentioned depository institution.

(6) Where a transfer of stock is made by any person under subsection(2), the following procedure shall be complied with by the respective depository institutions:

(a) the depository institution by which the transfer is made shall immediately issue--

(i) to the transferor, a statutory acknowledgement receipt in the form in the First Schedule in respect of the transfer; and

(ii) to the transferee, a statutory acknowledgement receipt in the form in the First Schedule in respect of the transfer, if the depository institution maintains a customer's account in respect of the transferee's stock; and

(b) if another depository institution maintains a customer's account in respect of the transferee's stock, the depository institution mentioned in paragraph (a)shall immediately notify the other depository institution of thetransfer and the other depository institution shall immediately issueto the transferee a statutory acknowledgement receipt in the formin the First Schedule in respect of the transfer. 

(7) A statutory acknowledgement receipt shall not be capable of being negotiated or dealt with in any manner whatsoever, and shall be used solely between the depository institution which issued it and the stock customer to whom it was issued as evidence of the transfer of a stock under subsection (2) to which it relates.

(8) Where the amount in the account maintained by a depository institution with the Bank under subsection (3) is affected by a transfer effected through it under subsection (2), the depository institution shall communicate immediately to the Bank information of any change in the amount caused by the transfer.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/8c.Duties and obligations of depository institutions in relation to transfers effected under subsection8b(2)

8c. Duties and obligations of depository institutions in relation to transfers effected under subsection8b(2)

(1) A depository institution shall maintain an account in respect of each stock customer.

(2) A depository institution shall issue to each of its stock customers a statutory monthly statement in the form in the SecondSchedule in respect of his stock on or before the tenth day of the month succeeding the month in respect of which the statutory monthly statement is issued.

(3) A statutory monthly statement shall be the sole evidence of the stock held by a stock customer at the close of the month in respect of which it is issued.

(4) A depository institution shall--

(a) pay the stock customer the interest on each of the stock which stands in the customer's account, and the payment shall be made on the date the interest becomes payable under section9; and

(b) repay to the stock customer the principal moneys represented by each of the stock which stand in the stock customer's account, and the repayment shall be made on the date the stock becomes redeemable under section 11. 

(5) The stock dealt with by a depository institution in respect of any transfer effected through it under b(2) shall be dealt with solely and exclusively in the manner, and for the purpose, provided under section 8b, and shall not be dealt with or utilized by the depository institution in any other manner, or for any other purpose whatsoever.

(6) A depository institution shall furnish to the Bank the returns, details, particulars or information in relation to the accounts maintained by it under subsection (1) in respect of each stock customer, or its stock customers generally, as may be specified by the Bank, or as the Bank may, from time to time, require in writing.

(7) The Bank may, through any of its officers authorized in writing by the Governor or the Deputy Governor of the Bank, inspect and take copies of accounts maintained by a depository institution under this section, including the accounts in respect of any particular stock customer or any other record or account relating to or affecting any stock under this Act, and the depository institution, and every director, officer, employee, servant or agent of the depository institution shall furnish to the officer of the Bank all such books, records, correspondence, or any other document as may be required by the officer, and shall provide him all the assistance as he may require.

(8) The account of a stock customer maintained by a depository institution under subsection (1) shall be secret as between the institution and the stock customer and shall not be disclosed to any person by the depository institution except to the Bank, including the officers of the Bank referred to in subsection(7), unless such disclosure is authorized in writing by the stock customer.

(9) A depository institution shall be absolutely and wholly responsible and liable to its stock customer in respect of all transfers taken or made by the stock customer through it under subsection8b(2).

(10) A depository institution shall not require a stock customer to pay any charge, fee, or any other payment in respect of any matter dealt with by it in relation to a stock customer under this Act, except as may be provided by rules made under section 20.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/8d.Bank's power to require information, inspect and take copies

8d. Bank's power to require information, inspect and take copies

(1) The Bank may, in writing, require any participating investing institution which may also be a primary investing institution, to furnish to the Bank the returns, details, particulars or information in relation to any account or record maintained by it under this Act.

(2) The Bank may, through any of its officers authorized in writing by the Governor or Deputy Governor of the Bank, inspect or take copies of any account, record, book, or any other document maintained by a participating investing institution under this Act.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/8e.Maintenance of secrecy by the Bank

8e. Maintenance of secrecy by the Bank

Without prejudice to section 16a of the Central Bank of Malaysia Act 1958, any information in the possession of the Bank by virtue of any provision of this Act shall be secret as between the Bank and the person to whom it relates or from whom it was obtained and shall not be disclosed except with the consent of that person.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/9.Payment of interest

9. Payment of interest

(1) The interest upon the principal moneys represented by stock issued under this Act shall be paid half yearly in the manner provided under subsection 8a(5) or 8b(4), as may be applicable.

(2) The Minister shall in each half-yearly period ending with the day on which interest on stock issued under this Act falls due, appropriate out of the Consolidated Fund a sum equal to one half-year's interest on the whole of the stock so issued in order that the interest for the half-year may be paid from it.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/10.Authorization of Bank

10. Authorization of Bank

(1) The Governor of the Bank and the Bank may perform the duties of the Secretary General to the Treasury and the Treasury respectively under this Part of this Act, provided that they are duly authorized in writing by the Minister.

(2) The Minister may fix the fee as he considers reasonable to be charged on the Consolidated Fund for the performance by the Bank of any duties under this Act.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/11.Redemption of stock

Part IV PROVISIONS RELATING TO REDEMPTION, purchase, conversion and cancellation OF STOCK AND CREATION OF SINKING FUND

11. Redemption of stock

(1) Stock issued under the provisions of this Act shall be redeemable at par--

(a) on such dates as may be specified in the prospectus; or

(b) where the prospectus provides that the stock is redeemable at the election of the Minister, on the earlier of the following dates:

(i) the date of maturity; or

(ii) the date of a call for redemption before maturity, to the extent to which such call is made, in accordance with the terms set out in the prospectus, after which dates all the interest on the principal moneys represented thereby shall cease and dertermine, whether payment of such principal moneys shall have been demanded or not.

(2) Notwithstanding subsections 8a(5), 8b(4) and 11(1), where stock is redeemable at the election of the Minister and acall for redemption is made for only part of the stock, only suchpart of the stock as has been called for redemption shall be redeemableon the date of the call.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/11a.Power to purchase and cancel stock

11a. Power to purchase and cancel stock

(1) The Bank may, with the approval of the Minister, purchaseany stock, issued under section 6, held by any person subject to such price and such terms as may be allowed by the Minister.

(2) The Bank may, with the approval of the Minister, cancel any stock purchased in accordance with subsection (1) upon such terms as may be allowed by the Minister.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/11b.Power to convert stock

11b. Power to convert stock

(1) The Bank may, with the approval of the Minister, convert any stock or any part thereof, by exchanging such stock for any other stock, including new stock issued for the purposes of this section subject to such price and such terms as may be allowed by the Minister.

(2) The Bank may, with the approval of the Minister, cancel any stock it has obtained under subsection (1) upon such terms as may be allowed by the Minister.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/12.Sinking fund

12. Sinking fund

(1) The Minister may, in each half-year ending on the day on which interest on the stock issued under this Act falls due, in addition to the sum appropriated in accordance with subsection9(2), appropriate out of the Consolidated Fund for the formation of a sinking fund a sum equal to one-half of the annual contributions specified in the prospectus relating to the issue of stock issued under this Act.

(2) If at any time the Minister is satisfied that the value of the sinking fund will be sufficient with further accumulations of interest but without further payment of the contribution to enable the loan to be redeemed out of the proceeds of the sinking fund when the same falls due to be redeemed, the Minister may suspend further payments of the contributions to the sinking fund:

Provided that the Minister may at any time recommence payment of the contribution if he considers this to be necessary.

(3) The Minister may, at any time, apply all or any part of the moneys in the sinking fund created under this section to the purchase of trustee stock or stock issued under this Act which matures not later than the stock in relation to which the sinking fund was formed.

(4) The Accountant General shall, in each year, pay into the sinking fund created under this section a sum equivalent to the annual interest which would have been payable on any stock purchased under subsection(3) if the stock had not been purchased as mentioned above.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/13.Application of sinking fund

13. Application of sinking fund

The sinking fund created under section 12 shall be applied--

(a) firstly, for the payment of all expenses of, or incidental to, the management of the sinking fund and the redemption, purchase or conversion of the stock issued under this Act;

(b) secondly, for the repayment of principal moneys represented by the stock; and

(c) finally, for any purchase or conversion of stock under sections 11aand 11b. 

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/14.Procedure if sinking fund insufficient

14. Procedure if sinking fund insufficient

In case the sinking fund created under section 12 is insufficient for the repayment of all principal moneys represented by stock issued under this Act at the time when it becomes due or the purchase or conversion of stock under a and b, the Minister shall make good the deficiency out of the Consolidated Fund.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/15.Omitted or Deleted Section

15. Omitted or Deleted Section

(Deleted by Act A748)

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/16.Acceptance of advance deposits

Part V GENERAL

16. Acceptance of advance deposits

(1) In anticipation of the raising of any loan under the authority of this Act the Minister may, if he thinks fit, authorize acceptance by the Treasury or the Bank from a primary investing institution of deposits not exceeding the amount of the loan.

(2) Advance deposits shall be applied to the purchase of stock of the first loan issued by Malaysia after the date on which the deposits were received either by the Treasury or the Bank:

Provided that the advance deposits may be applied for any of the purposes referred to in section5:

Provided further a depositor may give notice in writing within seven days after the date of issue of the loan that he wishes the advance deposits or part of it made by him to be repaid.

(3) Whenever a depositor gives notice that he wishes the whole or part of the advance deposits made by him to be repaid, the deposits or part of it made by the depositor shall be repaid immediately, but no interest shall be payable on it.

(4) Advance deposits which are applied to the purchase of stock in accordance with subsection (2) shall carry interest at the rate applicable to the stock calculated from the date the deposit was received by the Treasury or the Bank and the interest shall be charged on the Consolidated Fund.

(5) Any power to invest conferred on a primary investing institution by any instrument or written law shall include the power to make advance deposits in accordance with this section.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/17.False entries, etc., in books, documents, etc.

17. False entries, etc., in books, documents, etc.

No person shall, with intent to deceive--

(a) make or cause to be made a false entry;

(b) omit to make, or cause to be omitted, any entry; or

(c) alter, abstract, conceal or destroy, or cause to be altered, abstracted, concealed or destroyed, any entry, in any book or record, or in any report, slip, statement or other document whatsoever, relating to the business, affairs, transactions, conditions, property, assets, liabilities or accounts, of any participating investing institution, or any primary investing institution, or any depository institution, or of the Bank.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/18.Contravention of Act, penalty and criminal liability of institutions, directors, etc.

18. Contravention of Act, penalty and criminal liability of institutions, directors, etc.

(1) Any participating investing institution, whether acting in its capacity as a primary investing institution or a depository institution or otherwise which, or any other person who, contravenes any provision of this Act shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding--

(a) ten million ringgit; or

(b) where an amount of money is the subject matter of the offence, ten times the amount, whichever is the greater, or to imprisonment for a term not exceeding fifteen years or both:

Provided that where the person found guilty of the offence is a body corporate, the above-mentioned punishment of imprisonment shall not apply to it.

(2) Where any offence against any provision of this Act has been committed by any institution mentioned in subsection (1), any person who at the time of the commission of the offence was a director, officer, or controller of the institution or was purporting to act in any such capacity, or was in any manner or to any extent responsible for the management of any of the affairs of the institution, or was assisting in the management, shall be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.

(3) Where any person (in this subsection referred to as the "principal") would be liable under this Act to any punishment or penalty for any act, omission, neglect or default, he shall be liable to the same punishment or penalty for every such act, omission, neglect or default of any clerk, servant or agent of his, or of the clerk or servant of the agent:

Provided that the act, omission, neglect or default was committed by the principal's clerk or servant in the course of his employment, or by the agent when acting on behalf of the principal, or by the clerk or servant of the agent in the course of his employment by the agent or otherwise on behalf of the agent.

(4) Without prejudice to subsection (2), where an institution referred to in subsection (1) is a financial institution under (b) or (c) of the definition of "financial institution" under subsection 2(1), it shall not be liable to be prosecuted for any offence committed by it under subsection(1), or be liable under subsection(3).

(5) Nothing in this Act contained shall be deemed to prevent the prosecution, conviction and punishment of any person according to the provisions of any other written law; but so that no person shall be punished more than once for the same offence.

(6) For the purposes of this section, "director", "officer" and "controller" shall have the meaning respectively assigned to it under subsection 2(1) of the Banking and Financial Institutions Act 1989.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/19.Civil liability not affected by prosecution or nonprosecution, etc.

19. Civil liability not affected by prosecution or nonprosecution, etc.

The prosecution of, or the failure to prosecute, any person for an offence under this Act, or the acquittal or discharge of any person who is prosecuted for an offence under this Act, shall not, in any manner or to any extent whatsoever, affect his civil liability to any other person in relation to anything done by him under this Act.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/20.Rules

20. Rules

(1) The Minister may, on the recommendation of the Bank, make the rules as may be necessary or expedient for giving full effect to this Act, for carrying out or achieving the objects and purposes of this Act, or for the further, better or more convenient implementation of this Act.

(2) Without prejudice to the generality of subsection (1), rules may be made to provide for--

(a) matters relating to the issue of stock, application for stock, payment of interest on stock and the repayment of stock when it becomes redeemable;

(b) procedures and practices relating to the carrying out by any person of any provision of this Act;

(c) forms in respect of this Act;

(d) charges, fees and payments payable to the Bank, and charges, fees and payments payable to a depository institution, in respect of any provision of this Act; and

(e) matters relating to the carrying out of the transitional provisions contained in section16 of the Loan (Local) (Amendment) Act 1990 [Act A748]. 

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/21.Liability of Government in respect of stock

21. Liability of Government in respect of stock

(1) The Government shall be liable for all interest payable and all repayments of principal moneys represented by stock issued under and in accordance with this Act, and in respect of all stock dealt with under and in accordance with section 16 of the Loan (Local) (Amendment) Act 1990, but where the liability of the Government arises in consequence, or by reason of any default of a participating investing institution in the performance of its duties and obligations under this Act, including its duties and obligations as a primary investing institution or a depository institution, as may be applicable, the institution shall be liable on demand by the Government to indemnify the Government in full in relation to the liability.

(2) For the purposes of subsection (1), "default" includes--

(a) any negligence or failure in the carrying out of any function, or the exercise of any power, or the discharge of any duty, under this Act; and

(b) any offence under this Act, or any offence under any other written law in relation to any matter dealt with under this Act, regardless--

(i) whether or not there has been any prosecution in respect of the offence; or

(ii) whether the default was committed by the participating investing institution, or any director, officer, or controller (as those words are defined in subsection 18(6)), or any clerk, servant or agent of the participating investinginstitution, or any clerk or servant of the agent.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/22.Minister's power to amend the First or Second Schedule

22. Minister's power to amend the First or Second Schedule

The Minister, on the recommendation of theBank, may from time to time by order published in the Gazette vary, delete from, add to, substitutefor, or otherwise amend, the FirstSchedule or Second Schedule, and the Schedule as so varied, deleted from, added to, substitutedfor, or otherwise amended, shall come into full force and effect andshall be deemed to be an integral part of this Act as from the dateof the publication, or from the earlier or later date as may be specifiedin the order.

Unannotated Statutes of Malaysia - Principal Acts/LOAN (LOCAL) ACT 1959 Act 637/LOAN (LOCAL) ACT 1959 ACT 637,,/LIST OF AMENDMENTS