Transfer of powers, rights and privileges, assets and liabilities
All powers, rights and privileges, movable properties, assets, debts, liabilities and obligations vested in or belonging to, and all other business transacted by the Post Office Savings Bank shall, on the appointed date, be transferred to and vest in the Bank without further conveyance and its business shall be carried on by the Bank.
Receipt and repayment of deposits and interest payable
Moneys from depositors and other customers with the Bank shall be received and repaid on such terms and conditions as the Board may decide; provided that the interest payable shall be at such rate as approved by the Minister.
Guarantee of the Government
The repayment of all moneys deposited in the Bank together with interest thereon is guaranteed by the Government and accordingly, in the event that the assets of the Bank shall be insufficient to pay the lawful claims of every depositor, such deficiency shall be charged on and paid out of the Consolidated Fund and the Minister shall certify such deficiency to the Dewan Rakyat at the earliest possible opportunity.
Interest on loans and advances
The Bank may charge interest on loans and advances made to depositors and other customers at such rate as the Board may determine from time to time with the approval of the Minister.
Power to borrow
For the purpose of carrying out its functions under this Act, the Bank may, with the approval of the Minister, borrow from the Government, the Government of any State or from any bank or financial institution such sums as may be required by the Bank on such terms and subject to such conditions as may be agreed between the lender and the Bank and approved by the Minister.
Borrowing by staff
(1) Subject to subsection (2), the Bank shall not lend or advance money to an officer or employee except— (a) for the purchase, erection, alteration, and renovation of a house in which he resides or intends to reside under rules approved by the Board; (b) to discharge a mortgage or encumbrance on such a house; or (c) for the purchase of a vehicle. (2) When the Bank is satisfied that special or compassionate circumstances exist, it may approve a loan or advance to an officer or employee on such terms and conditions as the Board deems appropriate.
Restriction on loans and advances
The Bank shall not grant a loan or advance to any director or person for whom a director is a guarantor.
Investment of funds
(1) Subject to the provisions of this Act, the funds of the Bank shall, as far as practicable and except for such sums as may be assigned to be kept in hand for the general purposes of the Bank, be invested in— (a) securities of the Government; (b) other investments authorized by or under the Trustee Act 1949 [Act 208]; (c) loans for housing for depositors and other customers in accordance with the general directions of the Minister; (d) other loans and advances to depositors and other customers for such purposes as may be approved by the Minister; and (e) other securities and investments as the Board may from time to time decide: Provided that, subject to any variation which the Minister may make under subsection (2), securities held under paragraph (a) shall not be less than 70 per cent, and securities and investments held under paragraph (e) shall not exceed 10 per cent, of the funds available in any one year for investment and not needed for immediate use by the Bank. (2) The Minister may, after consultation with the Board, vary the percentage specified in the proviso to subsection (1). (3) No investment shall be made by the Bank outside Malaysia.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Text as at 1 December 2011 (LOM reprint); amendments made after that date may not be incorporated. Read the official text ↗
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).