Bank Pertanian Malaysia Act 1969 (Act 9)

8/8/2019 Bank Pertanian Malaysia Act 1969 (Act 9)

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LAWS OF MALAYSIA

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PUBLISHED BYTHE COMMISSIONER OF LAW REVISION , MALAYSIA

UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968IN COLLABORATION WITH MALAYAN LAW JOURNAL SDN BHD AND

PERCETAKAN NASIONAL MALAYSIA BHD2006

Act 9

BANK PERTANIAN MALAYSIAACT 1969

Incorporating all amendments up to 1 January 2006

009e.fm Page 1 Monday, March 27, 2006 11:18 AM

http://perjanjian.org

Adam Haida & Cohttp://peguam.org


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PREPARED FOR PUBLICATION BYMALAYAN LAW JOURNAL SDN BHD

AND PRINTED BYPERCETAKAN NASIONAL MALAYSIA BERHAD

KUALA LUMPUR BRANCH2006

2

BANK PERTANIAN MALAYSIA ACT 1969

Date of Royal Assent 22 April 1969

Date of publication in the Gazette 1 May 1969

P REVIOUS R EPRINTS

First Reprint 1992

Second Reprint 1999





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Bank Pertanian Malaysia 3

LAWS OF MALAYSIA

Act 9

ARRANGEMENT OF SECTIONS


PART I

PRELIMINARY

Section

1. Short title

2. Application

3. Interpretation

PART II

ESTABLISHMENT, CAPITAL ANDADMINISTRATION 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 directors10. 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





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4 Laws of Malaysia ACT 9

PART III

MEETINGS OF THE BOARD

Section

12. Meetings of the Board

13. Disclosure of directors interest in contract

PART IV

POWERS, FUNCTIONS ANDTHE 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





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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





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LAWS OF MALAYSIA

Act 9


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 Malaysia1 August 1969, P.U.(B)187/1969 ]

BE IT ENACTED by the Seri Paduka Baginda Yang di-PertuanAgong with the advice and consent of the Dewan Negara andDewan 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 Act1969.

Application

2. This Act shall apply throughout Malaysia.

Interpretation

3. In this Act unless the context otherwise requires

agriculture includes any activity in agriculture, horticulturalor 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 andfarmyard animals whether alive or slaughtered, the flesh or hideof such animals, dairy produce, poultry and eggs, fish and fishery

products;





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Bank means Bank Pertanian Malaysia;

Board means the Board of Directors of Bank PertanianMalaysia;

Chairman means the Chairman of Bank Pertanian Malaysia;

director means a director appointed under section 8 andincludes 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 includesadvertising and financing of operations for such agricultural

produce for the purpose of trade;

Minister means the Minister charged with the responsibilityof Bank Pertanian Malaysia.

PART II

ESTABLISHMENT, CAPITAL ANDADMINISTRATION OF THE BANK

Establishment of the Bank

4. A body corporate by the name of Bank Pertanian Malaysiawith perpetual succession and a common seal, and power toacquire and hold movable or immovable property and to disposethereof or otherwise deal therewith such property, and which maysue and be sued in its own name is established.

Office of the Bank

5. The Bank shall have its head office in Kuala Lumpur, andmay open branches and appoint agents and correspondents withinMalaysia.





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Objects

6. The objects of the Bank shall be

(a) to promote sound agricultural development in Malaysiaor 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 facilitiesfor the development of agriculture including productionand marketing;

(d) to mobilize savings with particular regard to theagricultural sector and in furtherance of this object toaccept savings and time deposits.

Capital

7. (1) The authorized capital of the Bank shall be fifty millionringgit of which ten million ringgit shall be subscribed and paidup by the Government on the establishment of the Bank.

(2) The paid up portion of the authorized capital may beincreased by such amount and in such a manner as the Board shalldecide from time to time with the approval of the Minister and theconcurrence of the Minister of Finance:

Provided that the payment of such increase in capital may bemade by way of such transfers as the Board may with theapproval of the Minister and the concurrence of the Minister of Finance, from time to time decide, including transfers from theGeneral Reserve Fund of the Bank and other sources as theMinister 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 thefunctions of the Bank and the general administration of the affairsand business of the Bank.





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(2) The Board of Directors shall consist of a Chairmanappointed by the Yang di-Pertuan Agong and not less than six andnot more than eight directors to be appointed by the Minister:

Provided that at least three of the directors appointed bythe 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 notact as delegates on the Board from any agricultural, commercial,financial, industrial or other interests with which they may beconnected.

(4) Where a director appointed is a public officer

(a) the prohibition mentioned in subsection (3) shall notapply; and

(b) there shall be appointed an alternate director in additionthereto.

Terms of appointment of Chairman and directors

9. (1) The Chairman shall be appointed for a term notexceeding five years and shall be eligible for reappointment.

(2) Subject to subsection (1), a director shall hold office for aterm not exceeding three years and shal l be el igible for reappointment.

(3) The Chairman and the directors shall be paid by the Bank such remuneration and allowances as may be determined by theMinister.

(4) During the temporary incapacity from illness or during thetemporary absence from Malaysia of the Chairman or anydirector, the Yang di-Pertuan Agong or the Minister, (by whomthat person was appointed pursuant to subsection 8(2)) mayappoint another person to be a temporary Chairman or director.

(5) The Yang di-Pertuan Agong or the Minister, may terminatethe appointment of the Chairman or any director if he





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(a) is guilty of serious misconduct in relation to his office;

(b) is absent, except on leave, from all meetings of theBoard held during two consecutive months or duringany three months in any period of twelve months;

(c) fails to comply with his obligations under subsection13(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 anoffence and sentenced to imprisonment for a term of not less than two years, or of any offence involvingfraud or dishonesty and has not received a free pardon;

(d) he is a director or salaried official of any bank licensedunder the provisions of the Banking and FinancialInstitutions Act 1989 [ Act 372 ].

Appointment and duties of General Manager

10. (1) The Board shall appoint a General Manager who shall beresponsible for the day to day administration and management of the affairs of the Bank and may, subject as is expressly stated inthis Act, give decisions and exercise all powers and do all actswhich 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 theMinister

(a) act as a member of any committee or commissionappointed by Government to enquire into any matter





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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 inwhich the Bank may participate; or

(d) become a director or member of the board of management by whatsoever name called of anystatutory authority.

Appointment of committees and subcommittees

10A. (1) The Board may appoint committees for any purposearising out of or connected with any of its powers, duties andfunctions under this Act; any committee so appointed shallinclude not less than one member of the Board, and there may beappointed to such committee such other persons as the Board may

think fit.

(2) Any committee appointed under subsection (1) mayappoint one or more subcommittees; any subcommittee soappointed shall include not less than one member of thecommittee appointing it, and there may be appointed to suchsubcommittee such other persons as the committee appointing itmay think fit.

(3) Any committee or subcommittee so appointed shallconform to any instructions from time to time given to it by theBoard, and the Board may at any time discontinue or alter theconstitution 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 mayfrom 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 specialknowledge of advantage to it, to attend any meeting of the Board,committee or subcommittee and the person so invited shall not beentitled to vote at any such meeting.





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(6) Any minutes of any meeting of any committee or subcommittee shall, if duly signed, be receivable in evidence inall legal proceedings without further proof and every suchmeeting shall be deemed to have been duly convened and heldand all members of the committee or subcommittee present atsuch 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 themembers 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 andemployee of the Bank other than the General Manager shall be theDisciplinary Committee of the Bank established under subsection(1).

(3) The disciplinary authority in respect of the GeneralManager 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 byand from the members of the Board.

(4) The General Manager shall not be a member of theDisciplinary Committee in any proceedings before it in which heis the complainant; his place shall be taken by a member to beelected by and from the members of the Board.

(5) In the exercise of its disciplinary functions, theDisciplinary Committee shall have the power to impose suchdisciplinary punishment as may be provided for under anyregulations that may be made under section 38 A .

(6) The Disciplinary Committee may, subject to subsection(7), delegate any of its disciplinary functions, powers or duties toany 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, andthe committee delegated with such functions, powers or dutiesshall carry out, exercise or discharge them under the direction andcontrol of the Disciplinary Committee which shall have the power to review, rescind or vary any decision or finding of suchcommittee.





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(7) No delegation shall be made under subsection (6) so as toenable an officer or employee of the Bank to be a member of acommittee which may exercise any disciplinary authority over anofficer or employee who is superior to him in rank.

(8) A decision of the Disciplinary Committee establishedunder subsection (1) shall be appealable to the DisciplinaryAppeal Board established under section 10 D .

(9) A decision of the Disciplinary Committee establishedunder 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 theMinister 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 moneyswhich ought not to have been made or for any paymentof moneys which is not duly vouched;

(c) is or was responsible, directly or indirectly, for anydeficiency in, or for the destruction of, any moneys,stamps, securities, stores or other property of theBank;

(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 wasresponsible for any delay in the payment, of Bank moneys to any person to whom such payment is dueunder any contract, agreement or arrangement enteredinto between that person and the Bank,





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the Disciplinary Committee shall serve on him a written noticecalling on him to show cause why he should not be surcharged,and if a satisfactory explanation is not, within fourteen days fromthe date of service of the notice as aforesaid, furnished to theDisciplinary Committee with regard to the failure to collect,

payment which ought not to have been made, payment not dulyvouched, deficiency or destruction, or failure to keep proper accounts or records, or failure to make payment, or delay inmaking payment, the Disciplinary Committee may surchargeagainst the said person a sum not exceeding the amount of anysuch amount not collected, such payment, deficiency, or loss or the value of the property destroyed; and with regard to the failureto keep proper accounts or records, or the failure to make

payment, or the delay in making payment, the DisciplinaryCommittee may surcharge against the said person such sum as theCommittee may think fit.

(2) The chairman shall cause the General Manager to benotified of any surcharge made under subsection (1) and theGeneral 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 shouldhave been made, and the chairman shall at once cause the GeneralManager 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 theBank from the person against whom the surcharge is made andmay 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 theDisciplinary Committee so directs; or

(b) from the pension of the person surcharged if theDisciplinary Committee so directs,

by equal monthly instalments not exceeding one-fourth of thetotal 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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(a) the Chairman, who shall be the chairman of theDisciplinary Appeal Board and shall have a castingvote; and

(b) three members of the Board, not being members of theDisciplinary Committee whose decision is the subjectmatter of the appeal, to be appointed by the chairmanof the Disciplinary Appeal Board with the approval of the Board for the purpose of the appeal.

(2) When the Disciplinary Appeal Board considers an appealmade under section 10 B , a member of the Disciplinary Committeeagainst 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 aremade 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 shallcontain 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 andc o n d u c t o f t h e o f f i c e r o r e m p l o y e e a n d a l l t h e o t h e r circumstances of the case, it is desirable in the public interest soto 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 DisciplinaryCommittee to recommend to the Board that the service of anofficer or employee be terminated in the public interestnotwithstanding that disciplinary proceedings have not beencarried out under this Act and the Board may so terminate theservice of the officer or employee.

(4) Notwithstanding anything in this Act and any other law tothe contrary, in terminating the service of an officer or employeein the public interest under this section, the officer or employeemay not be given any opportunity of being heard and an officer or





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employee whose service has been terminated in the public interestunder 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 connectedwith conduct in relation to his office which the Board regards asunsatisfactory 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 bindingon 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 theabsence of the Chairman, a director elected by the directors

present at the meeting, shall preside.

(2) The Chairman shall summon Board meetings as often asrequired 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 theBoard shall form a quorum.

(5) All decisions at a meeting of the Board shall be adopted bya simple majority of votes of directors present and voting:

Provided that if upon any question the votes are equallydivided, the Chairman or the person presiding shall have a castingvote.

Disclosure of directors interest in contract

13. (1) A director who is directly or indirectly interested in acontract made, or proposed to be made, by the Bank shall disclose





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the nature of his interest at the first meeting of the Board at whichhe is present after the relevant facts have come to his knowledge.

(2) A disclosure under subsection (1) shall be recorded in theminutes 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 onthe ground of the contravention by a member of the Board of thissection.

PART IV

POWERS, FUNCTIONS ANDTHE BUSINESS OF THE BANK

Power to borrow

14. For the purpose of carrying out its functions under this Actthe 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 agriculturalcredit institution of an international character such sums as may

be required by the Bank and on such terms and subject to suchconditions as may be agreed between the Bank and the lender andapproved 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 advancemoney with or without security; purchase, sell,discount and rediscount inland bills of exchange and

promissory notes bearing two or more good signaturesdrawn or issued for the purpose of financingagricultural operations or the marketing of crops;





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(b) in respect of agricultural operations and marketing of agricultural productions, grant and issue letters of credit;

(c) acquire, hold, issue on commission, underwrite anddeal with stock bonds, funds, obligations, securitiesand investment of all kinds;

(d) receive money and valuables on deposit for safecustody;

(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 isauthorized to carry on, or possessed of propertysuitable for the purposes of the Bank;

(g) issue on commission, subscribe for, take, acquire andhold, sell, exchange, and deal in shares, stocks, bonds,obligations or securities of the Federal or any StateGovernment or such other public institution as the

Minister on the recommendation of the Board mayapprove;

(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 allrights in respect of, lease, mortgage, sell, dispose of,turn to account, and otherwise deal with property,movable and immovable irrespective of the titlethereof, 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 a ll of theobjects of the Bank, and to obtain from any suchGovernment or authority any rights, privileges andconcessions which the Bank may think it desirable toobtain and to carry out, exercise, and comply with anysuch arrangements, rights, privileges and concessions;

(k) accept savings and time deposits;





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(l) make advances for the purpose of assisting thegrowing or marketing or development of primary

produce to individuals, co-operatives, authorities andsuch other organizations as approved by the Board

being organizations engaged in farming, agricultural,horticultural, husbandry, pastoral, grazing, or fishingoperations;

(m) purchase, sell, and discount Treasury bills of theGovernment or of the Government of any Stateauthorized to issue Treasury bills;

(n) with the approval of the Minister, acquire, hold andsell shares of any corporation set up with the approvalof or under the authority of the Government or of theGovernment of any State, for the purpose of

promoting the development of agriculture in Malaysiaor 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 aninternational 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 theBoard or by the Banks officers or employees exceptin relation to any loan made by the Bank under section28.

(2) Nothing in this Act shall authorize the Bank to

(a) accept any money on deposit or loan which is





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repayable on demand by cheque, draft, order or anyother 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 maymake 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 thecultivation of crops on any land the expenses of reaping andrendering merchantable such crops shall be borne by the person towhom the loan or advance is made, and all such crops and produce

reaped or gathered from the land shall until such loan or advancehas been repaid, be sold, disposed of, or otherwise dealt with asthe Bank may so direct and, until so sold or disposed of shall beheld by the person obtaining the loan in trust for the Bank:

Provided that the power of the Bank to sell, to dispose of, or todeal with such crops and produce as prescribed in this subsectionshall only be exercised by the Bank

(i) where the person to whom the loan or advance wasmade fails without reasonable cause to comply withany of the provisions of this Act or commits a breachof any of the terms or conditions under which the loanor 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 producefor the disposal or sale of such produce where loans or advanceshave been made under the provisions of this Act to the owner of such produce. The agreement shall provide for the sale without





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undue delay of such produce and the immediate payment to theBank of the proceeds of such sale or such part thereof as the Bank shall require and not exceeding the sum advanced or loanedtogether with interest and reasonable charges thereupon; and the

proceeds of the disposal or sale less the sum due rightfully to theBank as aforesaid shall be credited to the account of the owner towhom 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 hasguaranteed any loan of money under the provisions of this Act, theBank shall

(a) provide such supervision as may be necessary toensure that the loan or advance is effectively utilizedfor 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 asthe Bank may specify and this requirement shall becomplied 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 maydirect and the person, body or authority in receipt of the loan or advance shall produce to such officer or such other person allsuch books, documents and other things and matters as may benecessary 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 beenapplied 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 therequirement, to

(a) apply the sum for the said purpose; or

(b) repay the sum together with the interest, if any, duethereon and other reasonable charges, if any, to theBank.





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Cancellation or modification of approval of guarantee

21. The Bank may, at its discretion and without assigning anyreason therefor at any time after the approval of a loan or advanceor guarantee and before the actual repayment of the money or completion of the guarantee, cancel or modify such approval andwithhold payment of the whole or any part of the money or refuseto enter into such a guarantee.

Refusal to give sums not yet advanced

22. In any case where the Bank has approved the making or grantof a loan by instalments, or has guaranteed such a loan, and any

part of such loan has not been advanced, then without prejudice toany remedy, the Bank may refuse to advance the said part not yetadvanced if

(a) any sum of money whether principal or interest due inrespect of any loan or advance made under this Actremains unpaid;

(b) in the opinion of the Bank, any prior loan made under

this Act has not been applied for the purpose for whichit was made or granted or has not been expended withdue care and economy;

(c) the borrower has become insolvent or has beensentenced to a term of imprisonment without theoption of the payment of a fine or convicted of anyoffence involving fraud or dishonesty or has assignedhis estate for benefit of creditors;

(d) there has been a breach or non-observance of anycondition attached to the loan or advance; or

(e) in the opinion of the Bank, the sum already advancedor loaned was not applied to the purpose for which itwas 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





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operation and after provision has been made for bad and doubtfuldebts, depreciation in assets, contributions to staff and pensionfunds and such other contingencies. The net profit for the year shall be placed to the credit of the General Reserve Fund of theBank.

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 lastaudited balance sheet, as soon as it is available, together with thefull and correct names of the directors of the Bank, and shall

publish its last audited balance sheet in at least one local dailynewspaper in the national language and at least one local dailyEnglish newspaper; and within six months after the close of itsfinancial 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 theapproval of the Minister of Finance.

Preparation and publication of annual report and balancesheet

26. (1) The Bank shall within three months from the close of itsfinancial year transmit to the Minister a copy of the Annual Reportof the Bank on the working of the Bank throughout the year andsuch report shall be published by the Bank.

(2) The Minister shall cause a copy of every such report to belaid before each House of Parliament.





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PART VII

OFFICERS AND EMPLOYEES OF THE BANK

Officers and employees

27. (1) The Bank may appoint such officers and employees as itmay consider necessary for the efficient conduct of the businessof 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 bedetermined by the Board with the approval of the Minister andsubject 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 lendmoney 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 intendsto reside, under rules approved by the Board;

(b) to discharge a mortgage or encumbrance on such ahouse; 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 approvea loan by the Bank to an officer or employee on such terms andconditions as the Board thinks appropriate; and such loan shallnot 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 itsdirectors is interested as partner, manager or agent or director, any





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individual or firm of whom or of which any of the Banks directorsis a guarantor, or any of the Banks officers or employees save as

provided in this Act.

Provident fund

30. The Board may with the approval of the Minister and subjectto the concurrence of the Minister of Finance, make rules for theestablishment and management of a contributory provident fundfor the officers and employees appointed under subsection 27(1)or for the payment of pensions allowances or gratuities to the saidofficers and employees on retirement or otherwise ceasing to holdoffice as such officers and employees.

In this section, subsection 27(2), sections 28 and 29 the expressionofficer includes the General Manager.

Officers on secondment or transfer from Federal or Stateservice

31. The appointments of officers or employees of the Bank whohave been seconded or transferred to the service of the Bank from,or previously from, the service of the Federal or any StateGovernment or other public authority approved by the Board may,subject to any Federal or State law, be made in accordance withsuch arrangements as to pensions and allowance for previousservice as the Board may determine.

PART VIII

PENALTIES AND PROSECUTION

Penalties32. Any person shall be guilty of an offence and shall onconviction be liable to a fine of two thousand ringgit or toimprisonment 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 bythe Bank to any purpose or purposes other than thosefor which it was made; or





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(c) having obtained the loan, advance or guarantee fromthe Bank wilfully destroys any security given inrelation to such loan, advance or guarantee.

Fiat of Public Prosecutor

33. No prosecution for any offence arising out of the provisionsof this Act or in connection with any loan made hereunder shall beinstituted except with the consent in writing of the PublicProsecutor.

Jurisdiction

34. Notwithstanding the provisions of any other written law aSessions Court shall have jurisdiction to try any offence againstthis 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 theGeneral Manager and any director of the Board) shall be deemedto 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 requiredto do so by any court or under any provisions of any law, nodirector, General Manager, officer, or employee of the Bank shalldisclose to any person any information relating to the affairs of theBank 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 personwhether in Malaysia or any place outside Malaysia, to be its





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attorney and such person so appointed may, subject to theinstrument, do any act or execute any power or function which heis authorized by the instrument to do or execute.

Power to make regulations

38. The Board may, with the approval of the Minister, and inrespect 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 andemployees of the Bank, including the provision of loans to such officers and employees; and

(b) any other matter required by this Act to be prescribedand for the better carrying out of this Act.

Power to make disciplinary regulations

38A. (1) The Board may, with the approval of the Minister, makesuch disciplinary regulations as it deems necessary or expedient to provide for the discipline of the officers and employees of theBank.

(2) The disciplinary regulations made by the Board under thissection may include provisions for the interdiction with reductionin salary or in other remunerat ion, or provisions for thesuspension 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 shallc rea te such d isc ip l inary offences and provide for suchdisciplinary punishments as the Board may deem appropriate, andthe punishments so provided may extend to dismissal or reductionin rank.

(4) The disciplinary regulations made under this section shall,in prescribing the procedure for disciplinary proceedings, providefor an opportunity for the person against whom disciplinary

proceedings are taken to make representations against thedisciplinary charge laid against him before a decision is arrived at

by the Disciplinary Committee except in the following cases:





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(a) where an officer or employee of the Bank is dismissedor reduced in rank on the ground of conduct in respectof which a criminal charge has been proved againsthim;

(b) where the Board, on the recommendations of theMinister charged with the responsibility for homeaffairs, is satisfied that in the interest of the security of Malaysia or any part thereof it is not expedient tocarry 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 anofficer 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 partthereof, 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 thedecision of the Disciplinary Committee.

(6) For the purpose of this section, officer includes theGeneral Manager.





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LAWS OF MALAYSIA

Act 9


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) Act1990

01-08-1990

Act A1048 Bank Pertanian Malaysia (Amendment) Act1999

01-09-1999





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LAWS OF MALAYSIA

Act 9


LIST OF SECTIONS AMENDED

Section Amending authority In force from

7 Act 160 29-08-1975

10 A Act A758 01-08-1990

10 B Act A758 01-08-1990

Act A1048 01-09-1999

10 C Act A758 01-08-1990

10 D Act A1048 01-09-1999

10 E Act A1048 01-09-1999

38 Act A758 01-08-1990

38 A Act A758 01-08-1990

Act A1048 01-09-1999



Bank Pertanian Malaysia Act 1969 (Act 9)

Documents

Transcript of Bank Pertanian Malaysia Act 1969 (Act 9)