Cap. 574 Art. 13Limitations on ordinary operations.

(1)The total amount outstanding of loans, equity investments and guarantees made by the Bank in its ordinary operations in favour of a single individual or a group of connected clients shall not at any time exceed twenty-five (25) per centum of the total amount of its unimpaired subscribed capital, reserves and surplus included in its ordinary capital resources, exclusive of other reserves not available for ordinary operations.

(2) In the case of funds invested in equity capital out of the ordinary capital resources of the Bank, the total amount invested shall not exceed ten (10) per centum of the aggregate amount of the unimpaired paid-in capital stock of the Bank together with the reserves and surplus included in its ordinary capital resources, exclusive of the reserves not available for ordinary operations.

(3) The amount of any equity investment shall not exceed such percentage of the equity capital of the enterprise or company concerned as the Board shall in each specific case determine to be appropriate. The Bank shall not seek to obtain by such an investment a controlling interest in the enterprise or company concerned, except where necessary to safeguard the investment of the Bank.

(4) Any equity financing shall be made only after the Board, by a vote of a majority of the total number of Directors, shall have determined that the Bank is in a position to participate. The Board shall approve such equity investment on a case-by-case basis.