PART IV | Limits for unsecured credit and credit facilities |
15.—(1) No licensed trust company shall grant any unsecured advance, unsecured loan or unsecured credit facility —| (a) | to a director of the licensed trust company, other than a director who is its employee; or | | (b) | to any other officer or an employee of the licensed trust company (including a director who is its employee) which in the aggregate, and on which the outstanding at any one time, exceeds $3,000 or such other amount as may be prescribed. |
(2) In this regulation —| “director”, in relation to a licensed trust company, means a director of the licensed trust company and includes the spouse, father, step-father, mother, step-mother, son, step-son, daughter, step-daughter, brother or sister, of a director; |
“unsecured credit facility” includes —| (a) | any advance, loan or credit facility made by the licensed trust company to its officer or employee, as the case may be, without security, whether it has been drawn down or not; | | (b) | in respect of any advance, loan or credit facility made by the licensed trust company to its officer or employee, as the case may be, with security, any part thereof which at any time exceeds the market value of the assets constituting that security or, where the Authority is satisfied that there is no established market value for those assets, the value of those assets based on a valuation approved by the Authority; and | | (c) | any guarantee or performance bond entered into by the licensed trust company, or the provision of any security by the licensed trust company, in connection with any loan, advance or credit facility made by another party to its officer or employee, as the case may be. |
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| (3) Any person who contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000. |
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16.—(1) A licensed trust company shall not, directly or indirectly, publish, circulate or distribute any advertisement which contains any inaccurate or misleading statement or presentation, or any exaggerated statement or presentation that is calculated to exploit a person’s lack of experience and knowledge.| (2) Any licensed trust company which contravenes paragraph (1) shall be guilty of an offence. |
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| Prohibition of certain trades |
17.—(1) A licensed trust company shall not —| (a) | as a trustee, enter into any transaction on behalf of a trust; or | | (b) | as a provider of trust administration services, cause the trustee to enter into any transaction, |
| being a transaction to which any of the following is a party: |
| (i) | the licensed trust company; | | (ii) | where the transaction is a personal transaction of a resident manager of the licensed trust company, such resident manager of the licensed trust company; | | (iii) | where the transaction is a personal transaction of a director of the licensed trust company, such director of the licensed trust company. |
| (2) Any licensed trust company which contravenes paragraph (1) shall be guilty of an offence. |
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| Unclaimed moneys to be paid into court |
18.—(1) For the purposes of section 60(1) of the Act, a licensed trust company shall make payment of unclaimed moneys and assets into court in accordance with that section and not later than 3 months after the end of the calendar year in which the period of 6 years, from the time such moneys and assets became payable to the person entitled to them, expires.| (2) Any licensed trust company which contravenes paragraph (1) shall be guilty of an offence. |
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