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Banks Act, 1990 (Act No. 94 of 1990)

Chapter VII : Provisions relating to aspects of the Conduct of the Business of a Bank

76. Restriction on investments in immovable property and shares, and on loans and advances to certain subsidiaries

 

(1) Subject to the provisions of subsection (2), a bank which invests money in immovable property or in shares of any company, or which lends or advances money to any of its subsidiaries of which the main object is the acquisition and holding or development of immovable property, shall manage its transactions in such investments, loans or advances in such a way that the sum of the amounts—

[Words preceding section 76(1)(a) substituted by section 25 of Act No. 20 of 2007]

(a) invested by it in immovable property, taken at the book value thereof;
(b) invested by it in shares of any company (excluding preference shares which are not convertible into ordinary shares), taken at the price at which they were acquired; and
(c) owing to it by any such subsidiary in respect of a loan or an advance granted by it,

does not at any time exceed a prescribed amount.

 

(2) A bank may with the written approval of the Minister and subject to such conditions as he or she may determine, make investments and grant loans and advances, referred to in subsection (1), to an aggregate amount which exceeds the sum to which it is limited in terms of subsection (1).

 

[Section 76 substituted by section 54 of Act No. 19 of 2003]

 

 


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