| (16) |
Conditions subject to which negotiable certificates of deposit, promissory notes or instruments of similar characteristics may be issued |
The issue of negotiable certificates of deposit, promissory notes or instruments of similar characteristics specified in a directive issued by the Registrar from time to time in terms of section 6(6) of the Act, and contemplated in section 79(1)(c) of the Act, shall be subject to the conditions specified below:
| (a) |
The instruments shall not be issued for a period exceeding ten years, which period is the original maturity of the instrument, unless— |
| (i) |
the instruments are issued in accordance with conditions specified by the Registrar; or |
| (ii) |
on prior application, the Registrar has in writing authorized a deviation from the prescribed period. |
| (b) |
The total amount relating to such instruments issued by a bank for a period not exceeding 12 months, which period is the original maturity of the instrument, and not yet repaid at the reporting date, shall not exceed twenty per cent of the total amount of funding related liabilities to the public, determined in accordance with the requirements specified in subregulation (15)(b), as at the reporting date immediately preceding the current reporting date. |
| (c) |
Notwithstanding the provisions of paragraph (b) above, the total amount relating to such instruments issued by a bank and not yet repaid at the reporting date may not exceed thirty per cent of the total amount of funding related liabilities to the public, determined in accordance with the requirements specified in subregulation (15)(b), as at the reporting date immediately preceding the current reporting date. |
Housing Development Agency Act, 2008
