(1) A suitable guarantee shall satisfy the following requirements:
(a) it is in a form approved by the Controller;
(b) it is issued payable to the Controller for the benefit of persons holding qualified rights of payment against the licensed certification authority;
(c) it is in an amount specified in subregulation (2) or (3), as the case may be;
(d) it states that it is issued for the purposes of the Act and these Regulations; and
(e) it specifies a term of effectiveness extending at least as long as the term of the licence to be issued to the certification authority.
(2) A suitable guarantee shall be in an amount equal to or exceeding the greater of either -
(a) 100 per centum of the largest recommended reliance limit of a certificate to be issued by the certification authority during the term of the certification authority's licence; or
(b) 35 per centum of the total recommended reliance limits of all certificates issued by the licensed certification authority, which certificates have not expired or been revoked.
(3) Notwithstanding subregulation (2), the Controller may, on a request in writing by the certification authority and if the Controller thinks it is reasonable in the circumstances to do so, specify an amount that is less than the amount determined under subregulation (2) to be the suitable guarantee provided that the amount so specified shall not be less than two million ringgit.
(4) A suitable guarantee may in addition provide that the total annual liability on the guarantee to all persons making claims based on it may not exceed the face amount of the guarantee.
(5) The Controller shall hold the suitable guarantee for the period for which the licence is issued and as provided under regulation 24.
