GOVERNMENT FUNDING ACT 1983

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 275 GOVERNMENT FUNDING ACT 1983 As at 1 November 2013 2 GOVERNMENT FUNDING ACT 1983 Date of Royal Assent Date of publication in the Gazette … … … … … … … … 9 March 1982 10 March 1982 PREVIOUS REPRINTS First Reprint … … … … … 2001 Second Reprint … … … … … 2005 Third Reprint … … … … … 2006 3 LAWS OF MALAYSIA Act 275 GOVERNMENT FUNDING ACT 1983 ARRANGEMENT OF SECTIONS Section 1. Short title 2. Interpretation 2A. Instrument issued to be in accordance with Syariah principles 3. Power of Minister to receive investments 4. Application of moneys 5. Period of investments 5A. Terms and conditions for the issue of instrument 6. Certificate of investments 7. Transfers of investments 8. Return 9. Payment 9A. Participating investing institutions and primary investing institutions 9 B. Depository institutions 9 C. Duties and obligations of depository institutions in relation to transfers effected under subsection 9B(2) 9D. Bank’s power to require information, inspect and take copies 9 E. Maintenance of secrecy by the Bank 10. Investments and returns be a charge on Consolidated Fund 11. Investment documents or instruments to be free of stamp duty 12. Bank to act on behalf of Minister and Minister’s power to substitute Accountant General for Bank 13. False entries, etc., in books, documents, etc. 14. Contravention of Act, penalty therefore and criminal liability of institutions, directors, etc. 15. Civil liability not affected by prosecution or non-prosecution, etc. 4 Laws of Malaysia Section 16. Rules 17. Liability of Government in respect of investments 18. (Deleted) SCHEDULE A SCHEDULE B ACT 275 5 LAWS OF MALAYSIA Act 275 *GOVERNMENT FUNDING ACT 1983 An Act to provide for the raising of funds by the Government of Malaysia in accordance with the Syariah principles and to provide for matters incidental thereto or connected therewith. [11 March 1983] 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: Short title 1. This Act may be cited as the *Government Funding Act 1983. Interpretation 2. (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 9B(5); “depository institution” means a participating investing institution authorized by the Bank under subsection 9B(1); “financial institution” means — * NOTE—Previously known as the Government Investment Act 1983–see section 20 of the Government Investment (Amendment) Act 2005 [Act A1242]. 6 Laws of Malaysia ACT 275 (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]; (aa) any institution which is licensed to carry on Islamic banking business under the Islamic Banking Act 1983 [Act 276]; (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; “instrument” means any instrument created and issued under this Act in accordance with Syariah priciples; “investment” means moneys paid by any person under sections 3 and 5; “investment customer” means a person who makes a transfer or takes a transfer of an investment under subsection 9B(2); “Minister” means the Minister charged with the responsibility for finance; “notification” means a notice inviting applications or offers to subscribe for or purchase an instrument; “participating investing institution” means a financial institution authorized by the Bank under subsection 9A(1); “primary investing institution” means a participating investing institution appointed by the Bank under subsection 9A(2); Government Funding 7 “return” includes any form of rental, profit, dividend or benefit, including any fee or gift, payable or to be given in relation to the instrument; “statutory body” means any body or authority established, appointed or constituted by any written law, and includes any local authority; “Syariah Advisory Council” means the Syariah Advisory Council established under subsection 16B(1) of the Central Bank of Malaysia Act 1958. (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. Instrument issued to be in accordance with Syariah principles 2A. Any instruments issued under this Act shall be in accordance with the Syariah principles as approved by the Syariah Advisory Council. Power of Minister to receive investments 3. (1) The Minister is hereby authorized, subject to, and in accordance with, the provisions of this Act, to receive investments and to create and issue instruments evidencing such investments, on behalf of the Government of Malaysia, at such times and up to such maximum amounts as he may from time to time specify, and every maximum amount so specified is hereinafter referred to as an 8 Laws of Malaysia ACT 275 “investment issue” and every such investment issue shall bear such number or other reference as the Minister may determine. (1A) Subject to section 2A, an instrument may be created and issued by such method or by such arrangement or by entering into any transaction with any other person in any manner or form as the Minister deems fit. (2) The total amount of moneys received under subsection (1) not repaid at any one time shall not exceed an amount to be specified from time to time by the Yang di-Pertuan Agong by order published in the Gazette. (3) An order under subsection (2) shall, as soon as possible after its publication, be laid before the Dewan Rakyat. Application of moneys 4. The moneys received under subsection 3(1) shall be applied, and are hereby appropriated, to the following purposes: (a) repayment of the moneys so received, to such extent as the Minister 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 that Fund. Period of investments 5. An investment under subsection 3(1) shall be made for such period as may be determined by the Minister; and at the end of that period the money so invested shall be repaid in the manner hereinafter provided. Government Funding 9 Terms and conditions for the issue of instrument 5A. (1) Subject to sections 3 and 5, the Bank shall set out the terms and conditions of any instrument to be issued. (2) The terms and conditions of an instruments shall include the following: (a) amount; (b) issue date; (c) maturity date; (d) return; (e) repayment of investment; and (f) any other terms and conditions as the Bank deems fit. Certificate of investments 6. Every investment shall be received by the Bank on behalf of the Minister, and the Minister shall issue to the Bank, a certificate of investment as a receipt of such investment, which shall be in such form or manner as may be determined by the Bank, when the maximum amount of an investment issue specified by him under subsection 3(1) has been invested with the Bank. Transfers of investments 7. Every investment, or any part of it, may be transferred in accordance with the provisions of this Act and in no other manner. 10 Laws of Malaysia ACT 275 Return 8. The return payable or to be given on any investment received shall be in accordance with the terms and conditions of the instrument. Payment 9. On the date of maturity of an investment, or on any date as may otherwise be provided in the terms and conditions of the instrument, such sums as are available for payment on the investment shall be paid in accordance with those terms and conditions. Participating investing institutions and primary investing institutions 9A. (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) Only a primary investing institution may make an investment with the Bank, and the Bank shall maintain an entry in its records of every such investment. (4) A participating investing institution shall maintain a single account with the Bank— (a) of all transfers of investments 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 Government Funding 11 account mentioned in paragraph (a) an account of all its investments under subsection (3). (5) The Bank shall pay to the participating investing institution return on each of its investments standing in its account under subsection (4) on the date the return becomes payable under section 8, and shall pay to such institution each of the investments standing in its account under subsection (4) as provided under section 9. (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. Depository institutions 9B. (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 an investment 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 9A(4), a separate single account in respect of all transfers effected through it under subsection (2). (4) The Bank shall pay to a depository institution return on each of the investments standing in the depository institution’s account under subsection (3) on the date the return becomes payable under section 8, and shall pay to such institution the investments standing in its account under subsection (3) on the date of maturity of the respective investments under section 9, by such means and in such manner as may be determined by the Bank. 12 Laws of Malaysia ACT 275 (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 investment transferred into the transferee’s account with the second mentioned depository institution. (6) Where a transfer of an investment is made by any person under subsection (2), the Bank may require any depository institution to issue an acknowledgement receipt in such form and manner as may be determine