TREASURY BILLS (LOCAL) ACT 1946

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 188 TREASURY BILLS (LOCAL) ACT 1946 As at 1 November 2012 2 TREASURY BILLS (LOCAL) ACT 1946 First enacted ... ... ... ... … ... 1946 (Ordinance No. 9 of 1946) ... ... … ... ... ... ... 1977 (Act 188 w.e.f. 1 October 1977) Revised Latest amendment made by Act A747 which came into operation on … ... ... ... ... 1 January 1990 PREVIOUS REPRINTS First Reprint ... ... ... ... ... 2001 Second Reprint ... ... ... ... ... 2006 3 LAWS OF MALAYSIA Act 188 TREASURY BILLS (LOCAL) ACT 1946 ARRANGEMENT OF SECTIONS Section 1. Short title 1A. Interpretation 2. Power to borrow by the issue of Treasury Bills 3. Charge upon general revenue and assets 4. Terms and payment of Treasury Bills 4A. Transfers of Treasury Bills 5. Appropriation for repayment of Treasury Bills 6. Repayment 7. Participating investing institutions and primary investing institutions 8. Depository institutions 9. Duties and obligations of depository institutions in relation to transfers effected under subsection 8(2) 10. Bank’s power to require information, inspect and take copies 11. Maintenance of secrecy by the Bank 12. False entries, etc., in books, documents, etc. 13. Contravention of Act, penalty therefore and criminal liability of institutions, directors, etc. 14. Civil liability not affected by prosecution or non-prosecution, etc. 15. Rules 16. Liability of Government in respect of Treasury Bills 17. Minister’s power to amend Schedule A or B 4 Laws of Malaysia Section 18. Repeal SCHEDULE A SCHEDULE B Act 188 5 LAWS OF MALAYSIA Act 188 TREASURY BILLS (LOCAL) ACT 1946 An Act to provide for the borrowing of money by the issue of Treasury Bills in Malaysia. [Peninsular Malaysia—24 June 1946; Sabah and Sarawak—1 January 1964] Short title 1. This Act may be cited as the Treasury Bills (Local) Act 1946. Interpretation 1A. (1) In this Act, unless the context otherwise requires — “Bank” means Bank Negara Malaysia established under the Central Bank of Malaysia Act 1958 [Act 519]; “customer’s account” means an account maintained by a depository institution in respect of a transferor or a transferee under subsection 8(5); “depository institution” means a participating investing institution authorized by the Bank under subsection 8(1); “financial institution” means— (a) any licensed bank, licensed merchant bank, licensed finance company, or licensed discount house, as those terms are defined in the Banking and Financial Institutions Act 1989 [Act 372]; 6 Laws of Malaysia Act 188 (b) any State Government; (c) any statutory body; or (d) any fund, scheme, organization, body corporate or unincorporate, or any other person, as may be specified in writing by the Minister of Finance; “participating investing institution” means a financial institution authorized by the Bank under subsection 7(1); “primary investing institution” means a participating investing institution appointed by the Bank under subsection 7(2); “statutory acknowledgement receipt” means an acknowledgement receipt in the form in Schedule A issued under subsection 8(6); “statutory body” means any body or authority established, appointed or constituted by any written law, and includes any local authority; “statutory monthly statement” means a monthly statement in the form in Schedule B issued under subsection 9(2); “Treasury Bill” means a Treasury Bill issued under sections 2 and 4 or a Treasury Bill held by any person pursuant to a transfer thereof, or of a part of it, under this Act; “Treasury Bill customer” means a person who makes a transfer or takes a transfer of a Treasury Bill under subsection 8(2). (2) Where any record or account is required to be maintained under this Act by the Bank or by any participating investing institution, whether acting in its capacity as a primary investing institution or a depository institution or otherwise, the same shall be maintained in such manner or such means as the Bank may determine or specify, including its maintenance in writing or by means of any visual recording (of still or moving images), or any sound recording or any electronic, magnetic, mechanical, or other recording whatsoever, on any substance, material, thing or article. Treasury Bills (Local) 7 (3) The functions, powers and duties conferred upon the Bank under this Act shall be performed, exercised and discharged by the Bank on behalf of the Minister of Finance. Power to borrow by the issue of Treasury Bills 2. (1) The Minister of Finance may borrow moneys by the issue, from time to time as he may deem expedient, in Malaysia, of Treasury Bills in the form of entries in the records of the Bank under subsection 7(3). The sums so borrowed shall be such that the amount of Treasury Bills issued and outstanding at any time shall not exceed five thousand million ringgit. (1A) The Yang di-Pertuan Agong may, from time to time, by order, alter the amount specified in subsection (1); and every such order shall, as soon as possible after its publication in the Gazette, be laid by the Minister of Finance before the Dewan Rakyat. (2) The moneys received for Treasury Bills issued under this Act shall be applied, and are hereby appropriated, to the following purposes: (a) repayment of the moneys received under this Act, to such extent as the Minister of Finance may determine; (b) payment, with the prior approval of the Dewan Rakyat signified by resolution, into the Development Fund specified in the Second Schedule to the Financial Procedure Act 1957 [Act 61], for the purposes of such Fund. Charge upon general revenue and assets 3. (1) The principal moneys represented by the Treasury Bills issued under this Act are hereby charged upon and shall be payable out of the general revenues and assets of Malaysia. 8 Laws of Malaysia Act 188 (2) The proceeds of such Bills shall be paid into the Consolidated Fund. Terms and payment of Treasury Bills 4. (1) Every Treasury Bill issued under this Act shall be for such amount and upon such terms as may be determined by the Minister of Finance. (2) The Bank shall, before each issue of Treasury Bills aforesaid, fix and determine the time at which the Treasury Bills are to be issued and, subject to subsection (3), the time at which such Bills shall become payable. (3) Every Treasury Bill shall be payable not later than one year from the date of its issue. Transfers of Treasury Bills 4A. Every Treasury Bill, or any part of it, may be transferred in accordance with the provisions of this Act and in no other manner. Appropriation for repayment of Treasury Bills 5. The Minister of Finance shall appropriate out of the Consolidated Fund the necessary sum to pay the principal moneys represented by the Treasury Bills when they fall due. Repayment 6. The principal moneys represented by a Treasury Bill shall be repaid when it falls due in the manner provided under subsection 7(5) or subsection 8(4), as may be applicable. Treasury Bills (Local) 9 Participating investing institutions and primary investing institutions 7. (1) The Bank may authorize in writing any financial institution to be a participating investing institution. (2) The Bank may appoint in writing any participating investing institution to be a primary investing institution. (3) The Bank may issue only to a primary investing institution a Treasury Bill under section 4, and the Bank shall maintain an entry in its records of every such treasury Bill. (4) A participating investing institution shall maintain a single account with the Bank— (a) of all transfers of Treasury Bills to itself by another participating investing institution or by itself to another participating investing institution; and (b) where the participating investing institution has been appointed a primary investing institution under subsection (2), there shall be included in such single account mentioned in paragraph (a) an account of all the Treasury Bills issued to it under subsection (3). (5) The Bank shall repay to the participating investing institution the principal moneys represented by each Treasury Bill standing in its account under subsection (4) on the date the Treasury Bill falls due, by such means and in such manner as may be determined by the Bank. (6) The Bank shall maintain records of the account of a participating investing institution, and such records shall be the sole and conclusive evidence of the state of such account, and of all the particulars and details thereof, and the same shall be binding on the Bank, the participating investing institution and on any other person having any interest therein. 10 Laws of Malaysia Act 188 Depository institutions 8. (1) The Bank may authorize in writing any participating investing institution to be a depository institution. (2) Any person, other than a participating investing institution, desiring either to make a transfer or take a transfer of a Treasury Bill shall do so only through a depository institution. (3) A depository institution shall maintain with the Bank, in addition to the account maintained by it under subsection 7(4) a separate single account in respect of all transfers effected through it under subsection (2). (4) The Bank shall repay to a depository institution the principal moneys represented by each Treasury Bill standing in the depository institution’s account under subsection (3) on the date the Treasury Bill falls due, by such means and in such manner as may be determined by the Bank. (5) A depository institution shall maintain a customer’s account in respect of every transferor and transferee who is a party to any transfer effected through the depository institution under subsection (2), except where a customer’s account in respect of a transferee is maintained by another depository institution, in which case the first mentioned depository institution shall have the Treasury Bill transferred into the transferee’s account with the second mentioned depository institution. (6) Where a transfer of a Treasury Bill is made by any person under subsection (2), the following procedure shall be complied with by the respective depository institutions: (a) the depository institution by which the transfer is made shall forthwith issue— (i) to the transferor a statutory acknowledgement receipt in the form in Schedule A in respect of the transfer; and Treasury Bills (Local) (ii) 11 to the transferee a statutory acknowledgement receipt in the form in Schedule A in respect of the transfer, if such depository institution maintains a customer’s account in respect of the transferee’s Treasury Bills; and (b) if another depository institution maintains a customer’s account in respect of the transferee’s Treasury Bills, the depository institution mentioned in paragraph (a) shall forthwith notify such other depository institution of the transfer and such other depository institution shall forthwith issue to the transferee a statutory acknowledgement receipt in the form in Schedule A in respect of the transfer. (7) A statutory acknowledgement receipt shall not be capable of being negotiated or dealt with in any manner whatsoever, and shall be used solely between the depository institution which issued it and the Treasury Bill customer to whom it was issued as evidence of the transfer of a Treasury Bill under subsection (2) to which it relates. (8) Where the amount in the account maintained by a depository institution with the Bank under subsection (3) is affected by a transfer effected through it under subsection (2), the depository institution shall communicate forthwith to the Bank information of any change in such amount caused by the transfer. Duties and obligations of depository institutions in relation to transfers effected under subsection 8(2) 9. (1) A depository institution shall maintain an account in respect of each Treasury Bill customer. (2) A depository institution shall