Section 20: Business which the Bank may not transact

20. Business which the Bank may not transact. The Bank shall not, except as authorised under this Act— (1) engage in trade or otherwise have a direct interest in any commercial, industrial or other undertaking except such interest as it may in any way acquire in the course of the satisfaction of any of its claims, but all such interest shall be disposed of at the earliest possible moment ; (2) purchase its own shares or the shares of any other bank or of any company, or grant advances or loans upon the security of any such shares ; 2[(3) advance money on the mortgage, or otherwise on the security, of immovable property or documents of title relating thereto, except where such advance is made to any of its officers or servants for building a house for his personal use against the security of the said house ; (3A) become the owner of any immovable property except where ownership is necessary for the use of such property by the Bank, or 3[for the purpose of use for shariah complaint instruments] for the residence, recreation or welfare of its officers or servants;] (4) make unsecured advances and loans; (5) draw or accept bills payable otherwise than on demand ; and 4[(5A) undertake any quasi-fiscal operations or development finance activities.] 5[* * * * * * *]

Effective date: 1956-04-18

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