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4.10 Encumbered Assets [Article 9.1 (k) of the Regulations]

N 35/2018 STA
  1. 4.10.1The Licensed Person is not permitted to encumber any of its assets without obtaining a Letter of No Objection from the Banking Supervision Department;
  2. 4.10.2The Licensed Person must obtain the Letter of No Objection from the Banking Supervision Department before providing deposits to be held under a lien or encumbrance or as collateral deposits to banks/financial institutions in order to:
    1. a)obtain bank guarantees favouring the Central Bank for licensing purposes;
    2. b)obtain remittance arrangements with local or foreign institutions (via cash deposits or guarantees); and
    3. c)obtain any other type of facilities from financial institutions or banks.
  3. 4.10.3Deposits for labour guarantee or utility services do not require the Licensed Person to obtain the Letter of No Objection from the Banking Supervision Department;
  4. 4.10.4Deposits of excess cash with a bank or financial institution for a fixed term/period by the Licensed Person must be available for liquidation immediately on demand; and
  5. 4.10.5The Licensed Person must not act as a guarantor or a facilitator of any other person, natural or juridical, to avail any credit facility for such person.