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REPRINT
PUBLISHED BY
THE COMMISSIONER OF LAW REVISION, MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH MALAYAN LAW JOURNAL SDN BHD AND PERCETAKAN NASIONAL MALAYSIA BHD
2006
Act 9
BANK PERTANIAN MALAYSIA
ACT 1969
Incorporating all amendments up to 1 January 2006 009e.fm Page 1 Monday, March 27, 2006 11:18 AM
PREPARED FOR PUBLICATION BY
MALAYAN LAW JOURNAL SDN BHD
AND PRINTED BY
PERCETAKAN NASIONAL MALAYSIA BERHAD
KUALA LUMPUR BRANCH
2006
2
BANK PERTANIAN MALAYSIA ACT 1969
Date of Royal Assent ... ... ... ... ... 22 April 1969 Date of publication in the Gazette ... ... ... 1 May 1969 PREVIOUS REPRINTS
First Reprint ... ... ... ... ... 1992
Second Reprint ... ... ... ... 1999
009e.fm Page 2 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 3
LAWS OF MALAYSIA
Act 9
ARRANGEMENT OF SECTIONS
BANK PERTANIAN MALAYSIA ACT 1969
PART I
PRELIMINARY
Section
1. Short title
2. Application
3. Interpretation PART II
ESTABLISHMENT, CAPITAL AND
ADMINISTRATION OF THE BANK
4. Establishment of the Bank
5. Office of the Bank
6. Objects
7. Capital
8. Board of Directors
9. Terms of appointment of Chairman and directors
10. Appointment and duties of General Manager 10A. Appointment of committees and subcommittees
10B. Discipline of officers and employees
10C. Surcharge
10D. Establishment of Disciplinary Appeal Board
10E. Termination in the public interest
11. Direction by the Minister 009e.fm Page 3 Monday, March 27, 2006 11:18 AM
4 Laws of Malaysia ACT 9
PART III
MEETINGS OF THE BOARD
Section
12. Meetings of the Board
13. Disclosure of director's interest in contract PART IV
POWERS, FUNCTIONS AND
THE BUSINESS OF THE BANK
14. Power to borrow
15. Authorized business of the Bank
16. Business which the Bank may not transact
17. Loans and lending
18. Bank may sell or dispose of crops and produce
19. Examination of application of loan, moneys and credit
20. Sums improperly applied
21. Cancellation or modification of approval of guarantee
22. Refusal to give sums not yet advanced PART V
GENERAL RESERVE FUND OF THE BANK
23. Maintenance of General Reserve Fund
24. Exhibition of audited balance sheet PART VI
ACCOUNTS AND AUDIT
25. Audit
26. Preparation and publication of annual report and balance sheet PART VII
OFFICERS AND EMPLOYEES OF THE BANK
27. Officers and employees
28. Borrowing from Bank by staff
29. Restrictions on payments of loans and advances to staff 009e.fm Page 4 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 5
Section
30. Provident fund
31. Officers on secondment or transfer from Federal or State service PART VIII
PENALTIES AND PROSECUTION
32. Penalties
33. Fiat of Public Prosecutor
34. Jurisdiction PART IX
GENERAL
35. Penal Code
36. Preservation of secrecy
37. Power to appoint attorney
38. Power to make regulations 38A. Power to make disciplinary regulations
009e.fm Page 5 Monday, March 27, 2006 11:18 AM
009e.fm Page 6 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 7
LAWS OF MALAYSIA
Act 9
BANK PERTANIAN MALAYSIA ACT 1969
An Act to incorporate the Bank Pertanian Malaysia to organize, provide, supervise and co-ordinate the grant of credit for agricultural purposes in Malaysia.
[Throughout Malaysia--1 August 1969, P.U.(B)187/1969] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows:
PART I
PRELIMINARY
Short title
1. This Act may be cited as the Bank Pertanian Malaysia Act
1969. Application
2. This Act shall apply throughout Malaysia. Interpretation
3. In this Act unless the context otherwise requires-- "agriculture" includes any activity in agriculture, horticultural or forestry production, fisheries, and the use of land for any purpose of husbandry;
"agricultural production" means any agricultural or horticultural produce, processed or otherwise, including farm and farmyard animals whether alive or slaughtered, the flesh or hide of such animals, dairy produce, poultry and eggs, fish and fishery products;
009e.fm Page 7 Monday, March 27, 2006 11:18 AM
8 Laws of Malaysia ACT 9
"Bank" means Bank Pertanian Malaysia;
"Board" means the Board of Directors of Bank Pertanian Malaysia;
"Chairman" means the Chairman of Bank Pertanian Malaysia; "director" means a director appointed under section 8 and includes the Chairman;
"General Manager" means the General Manager of Bank Pertanian Malaysia;
"giro service" means a service for the transfer of payment between accounts on the instruction of depositor or depositors; "husbandry" includes the keeping or breeding of livestock, poultry or bees and the growing of fruit, vegetables and the like; "marketing" means the sale, export, processing, purchase, storage, collection, assembling and the transport for purposes of purchase and sale of any agricultural produce and includes advertising and financing of operations for such agricultural produce for the purpose of trade;
"Minister" means the Minister charged with the responsibility of Bank Pertanian Malaysia.
PART II
ESTABLISHMENT, CAPITAL AND
ADMINISTRATION OF THE BANK
Establishment of the Bank
4. A body corporate by the name of "Bank Pertanian Malaysia" with perpetual succession and a common seal, and power to acquire and hold movable or immovable property and to dispose thereof or otherwise deal therewith such property, and which may sue and be sued in its own name is established.
Office of the Bank
5. The Bank shall have its head office in Kuala Lumpur, and may open branches and appoint agents and correspondents within Malaysia.
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Bank Pertanian Malaysia 9
Objects
6. The objects of the Bank shall be-- (a) to promote sound agricultural development in Malaysia or any part thereof;
(b) to co-ordinate and supervise the grant of credit from public funds for agricultural purposes by the various persons or bodies of persons whether incorporate or unincorporate;
(c) to provide loans, advances and other credit facilities for the development of agriculture including production and marketing;
(d) to mobilize savings with particular regard to the agricultural sector and in furtherance of this object to accept savings and time deposits.
Capital
7. (1) The authorized capital of the Bank shall be fifty million ringgit of which ten million ringgit shall be subscribed and paid up by the Government on the establishment of the Bank. (2) The paid up portion of the authorized capital may be increased by such amount and in such a manner as the Board shall decide from time to time with the approval of the Minister and the concurrence of the Minister of Finance:
Provided that the payment of such increase in capital may be made by way of such transfers as the Board may with the approval of the Minister and the concurrence of the Minister of Finance, from time to time decide, including transfers from the General Reserve Fund of the Bank and other sources as the Minister on the recommendation of the Board may approve. Board of Directors
8. (1) There shall be a Board of Directors constituted under subsection (2) which shall be responsible for carrying out the functions of the Bank and the general administration of the affairs and business of the Bank.
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10 Laws of Malaysia ACT 9
(2) The Board of Directors shall consist of a Chairman appointed by the Yang di-Pertuan Agong and not less than six and not more than eight directors to be appointed by the Minister: Provided that at least three of the directors appointed by the Minister shall be persons not holding any public office. (3) The directors appointed under subsection (2) shall be persons of standing, experience and capacity in matters relating to agriculture and finance, but as directors of the Bank shall not act as delegates on the Board from any agricultural, commercial, financial, industrial or other interests with which they may be connected.
(4) Where a director appointed is a public officer-- (a) the prohibition mentioned in subsection (3) shall not apply; and
(b) there shall be appointed an alternate director in addition thereto.
Terms of appointment of Chairman and directors
9. (1) The Chairman shall be appointed for a term not exceeding five years and shall be eligible for reappointment. (2) Subject to subsection (1), a director shall hold office for a term not exceeding three years and shall be eligible for reappointment.
(3) The Chairman and the directors shall be paid by the Bank such remuneration and allowances as may be determined by the Minister.
(4) During the temporary incapacity from illness or during the temporary absence from Malaysia of the Chairman or any director, the Yang di-Pertuan Agong or the Minister, (by whom that person was appointed pursuant to subsection 8(2)) may appoint another person to be a temporary Chairman or director. (5) The Yang di-Pertuan Agong or the Minister, may terminate the appointment of the Chairman or any director if he-- 009e.fm Page 10 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 11
(a) is guilty of serious misconduct in relation to his office; (b) is absent, except on leave, from all meetings of the Board held during two consecutive months or during any three months in any period of twelve months;
(c) fails to comply with his obligations under subsection 13(1).
(6) No person shall be appointed or shall remain as Chairman or director of the Bank if--
(a) he becomes of unsound mind or otherwise incapable of carrying out his duties;
(b) he becomes bankrupt or suspends payment or
compounds with his creditors;
(c) he is convicted by a court of law in Malaysia of an offence and sentenced to imprisonment for a term of not less than two years, or of any offence involving fraud or dishonesty and has not received a free pardon; (d) he is a director or salaried official of any bank licensed under the provisions of the Banking and Financial Institutions Act 1989 [Act 372].
Appointment and duties of General Manager
10. (1) The Board shall appoint a General Manager who shall be responsible for the day to day administration and management of the affairs of the Bank and may, subject as is expressly stated in this Act, give decisions and exercise all powers and do all acts which may be exercised or done by the Bank.
(2) The General Manager shall be answerable to the Board for his acts and decisions.
(3) The General Manager shall devote the whole of his professional time to the service of the Bank:
Provided that he may if so appointed with the approval of the Minister--
(a) act as a member of any committee or commission appointed by Government to enquire into any matter 009e.fm Page 11 Monday, March 27, 2006 11:18 AM
12 Laws of Malaysia ACT 9
affecting agriculture and agricultural production, finance and credit and related matters in Malaysia; (b) become a director, governor or member of the board by whatsoever name called of any international bank or agricultural institution of international character; (c) become a director of any corporation in Malaysia in which the Bank may participate; or
(d) become a director or member of the board of
management by whatsoever name called of any
statutory authority.
Appointment of committees and subcommittees
10A. (1) The Board may appoint committees for any purpose arising out of or connected with any of its powers, duties and functions under this Act; any committee so appointed shall include not less than one member of the Board, and there may be appointed to such committee such other persons as the Board may think fit.
(2) Any committee appointed under subsection (1) may appoint one or more subcommittees; any subcommittee so appointed shall include not less than one member of the committee appointing it, and there may be appointed to such subcommittee such other persons as the committee appointing it may think fit.
(3) Any committee or subcommittee so appointed shall conform to any instructions from time to time given to it by the Board, and the Board may at any time discontinue or alter the constitution of any committee or subcommittee so appointed. (4) There may be paid to members of any committee or subcommittee such remuneration or allowances as the Board may from time to time determine with the approval of the Minister. (5) The Board, a committee or subcommittee may, respectively, invite any person who, in its opinion, is possessed of special knowledge of advantage to it, to attend any meeting of the Board, committee or subcommittee and the person so invited shall not be entitled to vote at any such meeting.
009e.fm Page 12 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 13
(6) Any minutes of any meeting of any committee or subcommittee shall, if duly signed, be receivable in evidence in all legal proceedings without further proof and every such meeting shall be deemed to have been duly convened and held and all members of the committee or subcommittee present at such meeting shall be deemed to have been duly qualified to act. Discipline of officers and employees
10B. (1) There shall be a Disciplinary Committee of the Bank which shall consist of two members to be elected by and from the members of the Board, one of whom shall be elected chairman, and the General Manager appointed under subsection 10(1). (2) The disciplinary authority in respect of every officer and employee of the Bank other than the General Manager shall be the Disciplinary Committee of the Bank established under subsection (1).
(3) The disciplinary authority in respect of the General Manager shall be the Disciplinary Committee which shall consist of the Secretary General of the Ministry of Agriculture and Agro- Based Industry as chairman and two members to be elected by and from the members of the Board.
(4) The General Manager shall not be a member of the Disciplinary Committee in any proceedings before it in which he is the complainant; his place shall be taken by a member to be elected by and from the members of the Board.
(5) In the exercise of its disciplinary functions, the Disciplinary Committee shall have the power to impose such disciplinary punishment as may be provided for under any regulations that may be made under section 38A.
(6) The Disciplinary Committee may, subject to subsection (7), delegate any of its disciplinary functions, powers or duties to any committee of officers or employees of the Bank, in respect of any particular officer or employee of the Bank or in respect of any class or category of officers or employees of the Bank, and the committee delegated with such functions, powers or duties shall carry out, exercise or discharge them under the direction and control of the Disciplinary Committee which shall have the power to review, rescind or vary any decision or finding of such committee.
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14 Laws of Malaysia ACT 9
(7) No delegation shall be made under subsection (6) so as to enable an officer or employee of the Bank to be a member of a committee which may exercise any disciplinary authority over an officer or employee who is superior to him in rank. (8) A decision of the Disciplinary Committee established under subsection (1) shall be appealable to the Disciplinary Appeal Board established under section 10D.
(9) A decision of the Disciplinary Committee established under subsection (3) shall be appealable to the Minister. (10) The Disciplinary Appeal Board or the Minister, may confirm, reverse or vary the decision of the Disciplinary Committee. (11) A decision of the Disciplinary Appeal Board or the Minister under subsection (10) shall be final and conclusive. Surcharge
10C. (1) If it appears to the Disciplinary Committee that any person who is or was in the employment of the Bank-- (a) has failed to collect any moneys owing to the Bank for the collection of which he is responsible;
(b) is or was responsible for any payment of Bank moneys which ought not to have been made or for any payment of moneys which is not duly vouched;
(c) is or was responsible, directly or indirectly, for any deficiency in, or for the destruction of, any moneys, stamps, securities, stores or other property of the Bank;
(d) being or having been an accounting officer, fails or has failed to keep proper accounts or records;
(e) has failed to make any payment, or is or was
responsible for any delay in the payment, of Bank moneys to any person to whom such payment is due
under any contract, agreement or arrangement entered into between that person and the Bank,
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Bank Pertanian Malaysia 15
the Disciplinary Committee shall serve on him a written notice calling on him to show cause why he should not be surcharged, and if a satisfactory explanation is not, within fourteen days from the date of service of the notice as aforesaid, furnished to the Disciplinary Committee with regard to the failure to collect, payment which ought not to have been made, payment not duly vouched, deficiency or destruction, or failure to keep proper accounts or records, or failure to make payment, or delay in making payment, the Disciplinary Committee may surcharge against the said person a sum not exceeding the amount of any such amount not collected, such payment, deficiency, or loss or the value of the property destroyed; and with regard to the failure to keep proper accounts or records, or the failure to make payment, or the delay in making payment, the Disciplinary Committee may surcharge against the said person such sum as the Committee may think fit.
(2) The chairman shall cause the General Manager to be notified of any surcharge made under subsection (1) and the General Manager shall thereupon notify the person surcharged. (3) The Disciplinary Committee may at any time withdraw any surcharge in respect of which a satisfactory explanation has been received or if it otherwise appears that no surcharge should have been made, and the chairman shall at once cause the General Manager to be notified of such withdrawal.
(4) The amount of any surcharge made under subsection (1) and not withdrawn under subsection (3) shall be a debt due to the Bank from the person against whom the surcharge is made and may be sued for and recovered in any court at the suit of the Bank and may also be recovered by deduction--
(a) from the salary of the person surcharged if the Disciplinary Committee so directs; or
(b) from the pension of the person surcharged if the Disciplinary Committee so directs,
by equal monthly instalments not exceeding one-fourth of the total monthly salary or pension, of the person.
Establishment of Disciplinary Appeal Board
10D. (1) There shall be a Disciplinary Appeal Board of the Bank which shall consist of the following members:
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16 Laws of Malaysia ACT 9
(a) the Chairman, who shall be the chairman of the Disciplinary Appeal Board and shall have a casting vote; and
(b) three members of the Board, not being members of the Disciplinary Committee whose decision is the subject matter of the appeal, to be appointed by the chairman of the Disciplinary Appeal Board with the approval of the Board for the purpose of the appeal.
(2) When the Disciplinary Appeal Board considers an appeal made under section 10B, a member of the Disciplinary Committee against whose decision the appeal is made who is also a member of the Board shall not be present or in any way participate in any proceedings relating to the appeal.
Termination in the public interest
10E. (1) Where the Board finds or where representations are made to the Board that it is desirable that the service of an officer or employee be terminated in the public interest, the Board may call for a full report from the superior officer of the officer or employee against whom the representations are made which shall contain particulars relating to the work and conduct of the officer or employee.
(2) If, after considering the report received under subsection (1), the Board is satisfied that, having regard to the conditions of service, the usefulness of the officer or employee, the work and conduct of the officer or employee and all the other circumstances of the case, it is desirable in the public interest so to do, the Board may terminate the service of the officer or employee with effect from such date as the Board shall specify. (3) It shall be lawful for the appropriate Disciplinary Committee to recommend to the Board that the service of an officer or employee be terminated in the public interest notwithstanding that disciplinary proceedings have not been carried out under this Act and the Board may so terminate the service of the officer or employee.
(4) Notwithstanding anything in this Act and any other law to the contrary, in terminating the service of an officer or employee in the public interest under this section, the officer or employee may not be given any opportunity of being heard and an officer or 009e.fm Page 16 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 17
employee whose service has been terminated in the public interest under this section shall not be regarded as having dismissed, regardless of whether the termination of service of the officer or employee involved an element of punishment or was connected with conduct in relation to his office which the Board regards as unsatisfactory or blameworthy.
Direction by the Minister
11. The Minister may issue directives not inconsistent with the provisions of this Act to the Board regarding the policy to be pursued by the Bank and any such directive shall become binding on the Board which shall forthwith take all steps necessary or expedient to give effect thereto.
PART III
MEETINGS OF THE BOARD
Meetings of the Board
12. (1) At every meeting of the Board the Chairman, or in the absence of the Chairman, a director elected by the directors present at the meeting, shall preside.
(2) The Chairman shall summon Board meetings as often as required but not less frequently than once a month. (3) Three directors may requisition a meeting of the Board. (4) Four members of the Board present at a meeting of the Board shall form a quorum.
(5) All decisions at a meeting of the Board shall be adopted by a simple majority of votes of directors present and voting: Provided that if upon any question the votes are equally divided, the Chairman or the person presiding shall have a casting vote.
Disclosure of director's interest in contract
13. (1) A director who is directly or indirectly interested in a contract made, or proposed to be made, by the Bank shall disclose 009e.fm Page 17 Monday, March 27, 2006 11:18 AM
18 Laws of Malaysia ACT 9
the nature of his interest at the first meeting of the Board at which he is present after the relevant facts have come to his knowledge. (2) A disclosure under subsection (1) shall be recorded in the minutes of the Board and, after disclosure, the director-- (a) shall not take part in any deliberation or decision of the Board with respect to that contract; and
(b) shall be discharged for the purpose of constituting a quorum of the Board for any such deliberation or
decision.
(3) No act or proceeding of the Board shall be questioned on the ground of the contravention by a member of the Board of this section.
PART IV
POWERS, FUNCTIONS AND
THE BUSINESS OF THE BANK
Power to borrow
14. For the purpose of carrying out its functions under this Act the Bank may, with the prior written approval of the Minister of Finance, borrow from any Federal or State monetary, co- operative, development, marketing or like institution, board, authority or other organization or international bank or agricultural credit institution of an international character such sums as may be required by the Bank and on such terms and subject to such conditions as may be agreed between the Bank and the lender and approved by the Minister of Finance.
Authorized business of the Bank
15. Notwithstanding any written law relating to borrowing business the Bank may--
(a) borrow, raise or take up money, lend or advance money with or without security; purchase, sell,
discount and rediscount inland bills of exchange and promissory notes bearing two or more good signatures drawn or issued for the purpose of financing
agricultural operations or the marketing of crops; 009e.fm Page 18 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 19
(b) in respect of agricultural operations and marketing of agricultural productions, grant and issue letters of credit;
(c) acquire, hold, issue on commission, underwrite and deal with stock bonds, funds, obligations, securities and investment of all kinds;
(d) receive money and valuables on deposit for safe custody;
(e) transact all manner of agency business;
(f) acquire and undertake the whole or any part of the business, property and liabilities of any person or company carrying on any business which the Bank is authorized to carry on, or possessed of property
suitable for the purposes of the Bank;
(g) issue on commission, subscribe for, take, acquire and hold, sell, exchange, and deal in shares, stocks, bonds, obligations or securities of the Federal or any State Government or such other public institution as the Minister on the recommendation of the Board may
approve;
(h) carry on the business of godown keepers or
warehousemen and to hire, purchase, erect or
otherwise acquire warehouses or godowns for any of the purposes of the Bank;
(i) acquire, improve, manage, work, develop, exercise all rights in respect of, lease, mortgage, sell, dispose of, turn to account, and otherwise deal with property, movable and immovable irrespective of the title
thereof, and produce of all kinds and in particular agricultural produce;
(j) enter into any arrangements with the Federal or any State Government or authorities, municipal, local or otherwise that may seem conducive to any or all of the objects of the Bank, and to obtain from any such
Government or authority any rights, privileges and concessions which the Bank may think it desirable to obtain and to carry out, exercise, and comply with any such arrangements, rights, privileges and concessions; (k) accept savings and time deposits;
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20 Laws of Malaysia ACT 9
(l) make advances for the purpose of assisting the growing or marketing or development of primary
produce to individuals, co-operatives, authorities and such other organizations as approved by the Board being organizations engaged in farming, agricultural, horticultural, husbandry, pastoral, grazing, or fishing operations;
(m) purchase, sell, and discount Treasury bills of the Government or of the Government of any State
authorized to issue Treasury bills;
(n) with the approval of the Minister, acquire, hold and sell shares of any corporation set up with the approval of or under the authority of the Government or of the Government of any State, for the purpose of
promoting the development of agriculture in Malaysia or any part thereof;
(o) maintain accounts with other banks within Malaysia; (p) act as correspondent, or agent for any international bank or agricultural credit institution of an
international character;
(q) operate giro services;
(r) do generally all such things as may be necessary for the purpose of carrying out the functions of the Bank. Business which the Bank may not transact
16. (1) The Bank may not-- (a) except as provided in paragraph 15(n) purchase the shares of any corporation, including the shares of any banking company or subsidiary company thereto;
(b) accept for discount or as security for an advance made by the Bank, bills or notes signed by members of the Board or by the Bank's officers or employees except in relation to any loan made by the Bank under section
28. (2) Nothing in this Act shall authorize the Bank to-- (a) accept any money on deposit or loan which is
009e.fm Page 20 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 21
repayable on demand by cheque, draft, order or any other instrument drawn by the depositor on the Bank; (b) deal in--
(i) gold; or
(ii) foreign currency.
Loans and lending
17. In the exercise of its powers and functions the Bank may make loans and advances on such terms and conditions and for such purpose as the Bank may impose.
Bank may sell or dispose of crops and produce
18. (1) When any loan or advance has been granted for the cultivation of crops on any land the expenses of reaping and rendering merchantable such crops shall be borne by the person to whom the loan or advance is made, and all such crops and produce reaped or gathered from the land shall until such loan or advance has been repaid, be sold, disposed of, or otherwise dealt with as the Bank may so direct and, until so sold or disposed of shall be held by the person obtaining the loan in trust for the Bank: Provided that the power of the Bank to sell, to dispose of, or to deal with such crops and produce as prescribed in this subsection shall only be exercised by the Bank--
(i) where the person to whom the loan or advance was made fails without reasonable cause to comply with any of the provisions of this Act or commits a breach of any of the terms or conditions under which the loan or advance was granted; or
(ii) where the sale, disposal or dealing of the crops and produce is in relation to the repayment of the loan or advance.
(2) The Bank may enter into written agreement with any person dealing in or processing any kind of agricultural produce for the disposal or sale of such produce where loans or advances have been made under the provisions of this Act to the owner of such produce. The agreement shall provide for the sale without 009e.fm Page 21 Monday, March 27, 2006 11:18 AM
22 Laws of Malaysia ACT 9
undue delay of such produce and the immediate payment to the Bank of the proceeds of such sale or such part thereof as the Bank shall require and not exceeding the sum advanced or loaned together with interest and reasonable charges thereupon; and the proceeds of the disposal or sale less the sum due rightfully to the Bank as aforesaid shall be credited to the account of the owner to whom the loan or advance has been made.
Examination of application of loan, moneys and credit
19. (1) Where the Bank has made a loan or advance credit or has guaranteed any loan of money under the provisions of this Act, the Bank shall--
(a) provide such supervision as may be necessary to ensure that the loan or advance is effectively utilized for the purpose for which it was made; and
(b) require financial statements to be submitted by the person, body or authority in receipt of the loan or advance in such detail and at such intervals of time as the Bank may specify and this requirement shall be complied with by the recipient.
(2) The Bank may authorize in writing any of its officers or any other person to make such examination, as the Bank may direct and the person, body or authority in receipt of the loan or advance shall produce to such officer or such other person all such books, documents and other things and matters as may be necessary for the purpose of the examination.
Sums improperly applied
20. If any sum whether constituting the whole loan, advance or guarantee or any part thereof appears to the Bank not to have been applied for the purpose for which it was granted or made, the Bank may require the person, body or authority to whom the loan or advance was made, within such time as may be specified in the requirement, to--
(a) apply the sum for the said purpose; or
(b) repay the sum together with the interest, if any, due thereon and other reasonable charges, if any, to the Bank.
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Bank Pertanian Malaysia 23
Cancellation or modification of approval of guarantee
21. The Bank may, at its discretion and without assigning any reason therefor at any time after the approval of a loan or advance or guarantee and before the actual repayment of the money or completion of the guarantee, cancel or modify such approval and withhold payment of the whole or any part of the money or refuse to enter into such a guarantee.
Refusal to give sums not yet advanced
22. In any case where the Bank has approved the making or grant of a loan by instalments, or has guaranteed such a loan, and any part of such loan has not been advanced, then without prejudice to any remedy, the Bank may refuse to advance the said part not yet advanced if--
(a) any sum of money whether principal or interest due in respect of any loan or advance made under this Act remains unpaid;
(b) in the opinion of the Bank, any prior loan made under this Act has not been applied for the purpose for which it was made or granted or has not been expended with due care and economy;
(c) the borrower has become insolvent or has been sentenced to a term of imprisonment without the
option of the payment of a fine or convicted of any offence involving fraud or dishonesty or has assigned his estate for benefit of creditors;
(d) there has been a breach or non-observance of any condition attached to the loan or advance; or
(e) in the opinion of the Bank, the sum already advanced or loaned was not applied to the purpose for which it was granted or made within a reasonable time.
PART V
GENERAL RESERVE FUND OF THE BANK
Maintenance of General Reserve Fund
23. At the end of each financial year the net profit of the Bank for that year shall be determined after allowing for the expenses of 009e.fm Page 23 Monday, March 27, 2006 11:18 AM
24 Laws of Malaysia ACT 9
operation and after provision has been made for bad and doubtful debts, depreciation in assets, contributions to staff and pension funds and such other contingencies. The net profit for the year shall be placed to the credit of the General Reserve Fund of the Bank.
Exhibition of audited balance sheet
24. The Bank shall exhibit throughout the year in a conspicuous position in every office and branch of the Bank a copy of its last audited balance sheet, as soon as it is available, together with the full and correct names of the directors of the Bank, and shall publish its last audited balance sheet in at least one local daily newspaper in the national language and at least one local daily English newspaper; and within six months after the close of its financial year forward to the Minister a copy of its last audited balance sheet and profits and loss account.
PART VI
ACCOUNTS AND AUDIT
Audit
25. The accounts of the Bank shall be audited by the Auditor General or any other auditor appointed by the Board with the approval of the Minister of Finance.
Preparation and publication of annual report and balance sheet
26. (1) The Bank shall within three months from the close of its financial year transmit to the Minister a copy of the Annual Report of the Bank on the working of the Bank throughout the year and such report shall be published by the Bank.
(2) The Minister shall cause a copy of every such report to be laid before each House of Parliament.
009e.fm Page 24 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 25
PART VII
OFFICERS AND EMPLOYEES OF THE BANK
Officers and employees
27. (1) The Bank may appoint such officers and employees as it may consider necessary for the efficient conduct of the business of the Bank.
(2) Officers and employees of the Bank shall hold office for such period or periods, receive such salaries and allowances and be subject to such other terms and conditions of service as may be determined by the Board with the approval of the Minister and subject to the concurrence of the Minister of Finance. Borrowing from Bank by staff
28. (1) Subject to subsections (2) and (3) the Bank shall not lend money to an officer or employee.
(2) The Bank may lend money to an officer or employee-- (a) for the purchase, erection, alteration, renovation or enlargement 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.
(3) Where the Board is satisfied that special or compassionate circumstances exist or the purpose is appropriate, it may approve a loan by the Bank to an officer or employee on such terms and conditions as the Board thinks appropriate; and such loan shall not exceed at any one time an amount equal to three months' all- in-salary of the officer or employee.
Restrictions on payments of loans and advances to staff
29. The Bank shall not grant an advance, loan or credit facility of an unsecured nature to any director, any firm in which any of its directors is interested as partner, manager or agent or director, any 009e.fm Page 25 Monday, March 27, 2006 11:18 AM
26 Laws of Malaysia ACT 9
individual or firm of whom or of which any of the Bank's directors is a guarantor, or any of the Bank's officers or employees save as provided in this Act.
Provident fund
30. The Board may with the approval of the Minister and subject to the concurrence of the Minister of Finance, make rules for the establishment and management of a contributory provident fund for the officers and employees appointed under subsection 27(1) or for the payment of pensions allowances or gratuities to the said officers and employees on retirement or otherwise ceasing to hold office as such officers and employees.
In this section, subsection 27(2), sections 28 and 29 the expression "officer" includes the General Manager.
Officers on secondment or transfer from Federal or State service
31. The appointments of officers or employees of the Bank who have been seconded or transferred to the service of the Bank from, or previously from, the service of the Federal or any State Government or other public authority approved by the Board may, subject to any Federal or State law, be made in accordance with such arrangements as to pensions and allowance for previous service as the Board may determine.
PART VIII
PENALTIES AND PROSECUTION
Penalties
32. Any person shall be guilty of an offence and shall on conviction be liable to a fine of two thousand ringgit or to imprisonment for a term not exceeding one year or to both, if he-- (a) obtains a loan or advance or guarantee from the Bank under or by means of any wilful misrepresentation; (b) wilfully applies any loan or advance made to him by the Bank to any purpose or purposes other than those for which it was made; or
009e.fm Page 26 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 27
(c) having obtained the loan, advance or guarantee from the Bank wilfully destroys any security given in
relation to such loan, advance or guarantee.
Fiat of Public Prosecutor
33. No prosecution for any offence arising out of the provisions of this Act or in connection with any loan made hereunder shall be instituted except with the consent in writing of the Public Prosecutor.
Jurisdiction
34. Notwithstanding the provisions of any other written law a Sessions Court shall have jurisdiction to try any offence against this Act and to impose the full penalty prescribed therefor. PART IX
GENERAL
Penal Code
35. Any officer appointed under subsection 27(1) (as well as the General Manager and any director of the Board) shall be deemed to be a public servant within the meaning of the Penal Code [Act 574].
Preservation of secrecy
36. Except for the purpose of the proper performance of his duties or the exercise of his functions or when lawfully required to do so by any court or under any provisions of any law, no director, General Manager, officer, or employee of the Bank shall disclose to any person any information relating to the affairs of the Bank or of any customer of the Bank which he has acquired in the performance of his duties or the exercise of his functions. Power to appoint attorney
37. The Bank may by instrument under its seal appoint a person whether in Malaysia or any place outside Malaysia, to be its 009e.fm Page 27 Monday, March 27, 2006 11:18 AM
28 Laws of Malaysia ACT 9
attorney and such person so appointed may, subject to the instrument, do any act or execute any power or function which he is authorized by the instrument to do or execute. Power to make regulations
38. The Board may, with the approval of the Minister, and in respect of paragraph (a) subject to the concurrence of the Minister of Finance, make regulations for all or any of the following matters:
(a) the determination of salary scales and terms and conditions of employment of the officers and
employees of the Bank, including the provision of loans to such officers and employees; and
(b) any other matter required by this Act to be prescribed and for the better carrying out of this Act.
Power to make disciplinary regulations
38A. (1) The Board may, with the approval of the Minister, make such disciplinary regulations as it deems necessary or expedient to provide for the discipline of the officers and employees of the Bank.
(2) The disciplinary regulations made by the Board under this section may include provisions for the interdiction with reduction in salary or in other remuneration, or provisions for the suspension without salary or other remuneration, of an officer or employee of the Bank during the pendency of disciplinary proceedings.
(3) The disciplinary regulations made under this section shall create such disciplinary offences and provide for such disciplinary punishments as the Board may deem appropriate, and the punishments so provided may extend to dismissal or reduction in rank.
(4) The disciplinary regulations made under this section shall, in prescribing the procedure for disciplinary proceedings, provide for an opportunity for the person against whom disciplinary proceedings are taken to make representations against the disciplinary charge laid against him before a decision is arrived at by the Disciplinary Committee except in the following cases: 009e.fm Page 28 Monday, March 27, 2006 11:18 AM
Bank Pertanian Malaysia 29
(a) where an officer or employee of the Bank is dismissed or reduced in rank on the ground of conduct in respect of which a criminal charge has been proved against him;
(b) where the Board, on the recommendations of the Minister charged with the responsibility for home affairs, is satisfied that in the interest of the security of Malaysia or any part thereof it is not expedient to carry out the requirements of this subsection; or (c) where there has been made against an officer or employee of the bank any order of detention,
supervision, restricted residence, banishment or
deportation, or where there has been imposed on an officer or employee of the Bank any form of
restriction or supervision, by bond or otherwise, under any law relating to the security of Malaysia or any part thereof, prevention of crime, preventive detention, restricted residence, banishment, immigration, or protection of women and girls.
(5) The disciplinary regulations made under this section shall provide for the procedure for the hearing of an appeal against the decision of the Disciplinary Committee.
(6) For the purpose of this section, "officer" includes the General Manager.
009e.fm Page 29 Monday, March 27, 2006 11:18 AM
30
LAWS OF MALAYSIA
Act 9
BANK PERTANIAN MALAYSIA ACT 1969
LIST OF AMENDMENTS
Amending law Short title In force from
Act 160 Malaysian Currency (Ringgit) Act 1975 29-08-1975 Act A758 Bank Pertanian Malaysia (Amendment) Act
1990
01-08-1990
Act A1048 Bank Pertanian Malaysia (Amendment) Act 1999
01-09-1999
009e.fm Page 30 Monday, March 27, 2006 11:18 AM
31
LAWS OF MALAYSIA
Act 9
BANK PERTANIAN MALAYSIA ACT 1969
LIST OF SECTIONS AMENDED
Section Amending authority In force from
7 Act 160 29-08-1975
10A Act A758 01-08-1990
10B Act A758 01-08-1990
Act A1048 01-09-1999
10C Act A758 01-08-1990
10D Act A1048 01-09-1999
10E Act A1048 01-09-1999
38 Act A758 01-08-1990
38A Act A758 01-08-1990
Act A1048 01-09-1999
009e.fm Page 31 Monday, March 27, 2006 11:18 AM
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