Section 24: Restrictions on loans and advances

1[24. Restrictions on loans and advances.--(1) No banking company shall-- (a) make any loans or advances against the security of its own shares; or (b) grant unsecured loans or advances to, or make loans and advances on the guarantee of,-- (i) any of its directors; (ii) any of the family members of any of its directors; (iii) any firm or private company in which the banking company or any of the persons referred to in sub-clause (i) or sub-clause (ii) is interested as director, proprietor or partner; or (iv) any public limited company in which the banking company or any of the persons as aforesaid is substantially interested. (2) No banking company shall make loans or advances to any of its directors or to individuals, firms or companies in which it or any of its directors is interested as partner, director or guarantor, as the case may be, without the approval of the majority of the directors of that banking company, excluding the director concerned.]

Effective date: 1962-06-07

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