Banking and Financial Legalese

Banking and Financial Legalese


Building Credit Business

The business that provides any form of credit facilities to any person for the purpose of;

  • The reconstruction, renovation or the construction of any building or other form of structures.
  • The buying of immovable property

And these are for the purpose of commercial, residential or industrial functions or any other form of business that has been prescribed by the Central Bank of Malaysia, with the approval from the Minister of Finance.

 

Business Associate

The person that is referred to as a business associate includes;

  • In an institution where that particular person is a director and any other director of such institution.
  • Any person that has in their possession of any form of property to the said person.
  • Any person that has any knowledge or information in with regards to the dealings, business, property or the affairs of such person.
  • A banker, advocate, accountant, nominee, auditor or any other person that has been employed or appointed by the said person at any time before or after the effective date.
  • If the said person is actually a corporation then it would also include the directors of that particular corporation, any of the associates or any of the related corporation to the said corporation and any of the business associates of the associate or to the related corporation of the said corporation.
  • Any person that has been indebted to the said person.
  • Any person that is acting in concert with the said person.

 

Chief Executive

A person by whatever name that they are called, either jointly or individually with one or more person who have the responsibility, subject to the authority of the board of directors for the conduct of the day to day business as well as the administration of that particular institution.

 

Credit Facility

In this particular context, credit facility can be defined as;

  • The giving of any advance, loan or any other facility in whatever form or by whatever that it is called whereby that particular person has been given access to whether it is directly or indirectly to the funds of the person giving the same.

  • The giving of the guaranteed in the relations to the obligations of any of the person.

  • It will also include any form of transactions or dealings as prescribed by the Central Bank of Malaysia.

 

Credit Token Business

The credit token business can be considered as any business whereby a token, being a cheque, voucher, booklet, card, stamps, coupon, form or any other document of thing that is given or has been issued to a person that is referred to as a customer, by the person that is carrying on the business which is referred to as the issuer. Whereby the issuer in this case undertakes;

  • On the production of the token the issuer will supply the cash, goods or services on credit whether or not some other action is required.

  • If the production of the token is to a third party, whether or not any other action is required, the third party in this case will then supply the goods, cash or services. Here the issuer will pay the third party for them, whether or not deducting any discount or commission, in return for the payment to be made thereafter to the issuer by the customer.

In this particular context the use if the token is to operate a machine provided by the issuer or by the third party who will then be regarded as the production of the token to the person that provides the machine.

 

Deposit

The deposit is referred to as the sum of money that has been paid or received on the terms which includes;

  • Where the money will be repaid, with or without interest or at a premium or discount.

  • Where the money is repayable either wholly or in part with any consideration in the money or the money’s worth.

And the repayment if the money either at a time or on demand in the circumstances which have been agreed upon by or on behalf of the person that is making the payment as well as the person that is receiving it. This is regardless whether the transaction is described as an investment, an advance, a sale, a loan, a saving, a repurchase but does not include money bona fide;

  • By an advance or from a part of the payment under the contract for the sale, hire or any other provision of the property or services, and which will be repayable only in the event that the particular property or services is not or are not in fact sole, hired or otherwise provided.

  • By way of security for the performance of the contract or by way of security in respect of any of the loss which may have resulted from the non-performance of the contract.

  • Without prejudice to the paragraph that was mentioned earlier, by way of security for the delivery up or the return of any of the property, whether in a particular state of repair or otherwise.

  • Or in any of the similar circumstances, to or by such other person that has been specified in the First Schedule of the Banking and Financial Act 1989.

 

Depositor

A depositor is basically a person that is entitled to the repayment of the deposit whether it was made by them or by another person.

 

Development Finance Business

The development finance business refers to;

  • The business of providing the capital or any form of credit facility on the terms which would be required to be utilized for agricultural, industrial, commercial or any other economic development. As for the term “development” in this particular context, it can be defined as the commencement of any of the new industrial, agricultural, commercial and other economic ventures as well as the expansion or the improvement of any of the existing ventures.

  • It can also refer to the business that has been prescribed by the Central Bank of Malaysia with the approval from the Minister of Finance.

Document

In this context, document refers to;

  • Any marks, figures, inscriptions, writing, sign, letters, signals, symbols, caricature, picture, drawings or any other representation whatsoever in any form.

  • Any visual recordings, whether they are still or moving images, any form of sound recording, or any mechanical, electronic, magnetic or other form of recording whatsoever and howsoever it was made on any material, article, substance or thing.

 

Electronic Fund Transfer

Here the transfer of the funds are other than the transactions that originated by the cheque, draft or similar instrument, which is then initiated regardless at which particular stage it was initiated, through a telephonic instrument, electronic terminal, a computer, magnetic tape or any other storage device so as to order, instruct or authorize any person so that they can debit or credit a certain amount, and this will also include direct deposits or point-of-sale transfers or withdrawals of the funds, automated teller machine transactions, and transfers that have been initiated or transmitted by telephone.

 

Electronic Terminal

An electronic terminal refers to an electronic device, other than a telephone that is operated by a person, where the person is able to initiate an electronic fund transfer and such electronic devices includes cash dispensing machines, point-of-sale terminals and automated teller machines.

 

Factoring Business

Any form of business that conducts the activity of acquiring debts due to any persons or any other form of business activities that have been prescribed by the Central Bank of Malaysia with the approval of the Minister of Finance.

 

Foreign Currency

Here the foreign currency refers to any other currency besides the Malaysian currency which is the Malaysian Ringgit (RM).

 

Leasing Business

This is basically the business of;

  • Letting or sub-letting any form of movable property on hire for the objective of the usage of the property by the hirer or any other person in any form of business, profession, trade or occupation. This will also include any of the industrial, commercial, agricultural or other forms of economic enterprise whatsoever and where the owner of the property regardless of whether the letting is with or without an option to purchase that particular property, however it should not include the business of hire-purchase that is subjected to the Hire Purchase Act 1967.

  • This will also include for the purpose of the movable property which includes plants, machinery, equipment or other chattel that is attached or will be attached to the earth or has been fastened or will be fastened permanently or otherwise to anything attached to the earth.

Or any other form of business that has been prescribed by the Central Bank of Malaysia with the approval of the Minister of Finance.

 

Liabilities

Liabilities in this context refer to any debts, duties, obligations, duties of any kind, whether they are in the future or during the present, or whether they are vested or contingent.

 

Property

Property can be defined as any immovable or movable property and also includes;

  • Any form of negotiable instrument that includes the bearer of the note, Treasury bill, cheque, negotiable certificate of deposit, bank note, dividend, bill of exchange, and promissory note.

  • Any of the mortgages or charges whether they are legal or equitable, lien or pledge, letter of hypothecation or trust receipt, undertakings, guarantee, whether they are actual or constructive, indemnity or any other means of securing the payment of discharge of a debt or liability, whether they are present or in the future and whether or not they are vested or contingent.

  • Any form of tangible or intangible property.

  • Any title, claim, power or privilege, right, chose in action, whether they are present or future or whether they are vested or contingent in relations to any of the property or which is otherwise of value.

  • Any conveyance that is executed for the assigning, surrendering, conveying, appointing, or otherwise the transferring or the disposing of the immovable property where that particular person executing the conveyance is the proprietor or has possessed of is entitled to a contingent right, either for the whole interest or for any of the less interest.

  • Any form of securities that include funds, debenture, shares and stocks.

 

Provision of Finance

The provision of finance includes;

  • Factoring business

  • The acceptance or the guarantee of any of the liability, duty of any of the person or obligations.

  • The lending of money.

  • Leasing business.

  • The purchase of promissory notes, debentures, bills of exchange, certificates of deposits or any form of negotiable instruments.

 

Relative

In this context a relative in relations to a particular person will also include;

  1. The spouse of the person.

  2. The brother or the sister of that particular person.

  3. The brother or the sister of the spouse of the person.

  4. Any lineal ascendant or descendant of the person.

  5. Any lineal ascendant or descendant of the spouse of the person.

  6. The spouse of any person that has been referred to in paragraph ii, ii, iv or v.

  7. Any lineal descendant of that particular person that is referred to in paragraph ii, iii or vi.

  8. Any uncle, aunt or cousin of the person, or of the spouse of the person.

  9. Any souse, lineal descendant or ascendant of the person that was referred to in paragraph viii.

 

Representative office

The representative office refers to any office in Malaysia of a foreign institution.

 

Statutory Body

Statutory body is defined as any authority or body whether it is corporate or unincorporated, established, constituted or has been appointed by any of the written law but does not includes that of any local authority.

 

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