Mutual Banks Act, 1993 (Act No. 124 of 1993)

Regulations

Regulations relating to Mutual Banks

Chapter III : Application Procedures

35. Conditions subject to which negotiable certificates of deposit may be issued - section 54(2) of the Act
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Negotiable certificates of deposit may be issued by a mutual bank subject to the following conditions:

 

(a)The certificates shall not be issued for a period exceeding five years;

 

(b)the total amount of negotiable certificates of deposit issued by a mutual bank for a period not exceeding 12 months and not yet repaid, shall not exceed twenty per cent (20 %) of the total amount of all its deposit liabilities;

 

(c)subject to the provisions of paragraph (b) above, the total amount of negotiable certificates of deposit issued by a mutual bank and not yet repaid, may not exceed forty per cent (40 %) of the total amount of the mutual bank's liabilities in respect of deposits, including negotiable certificates of deposit.