No.12 BANKING Al-.!br-'DMENT (4) Any asset held by or liability accnting to a special purpose vehicle fonned by a banking institution or controlling company shall be deemed to be held by or to have accrued to the institution or company that formed it.". 23 Amendment of section 35 of Cap. 24:20 Section 35 ("Restriction on extending of credit to officers, employees and certain shareholders and relatives") of the principal Act is amended(a) (b) (c) in subsection (1) by the repeal of the definition of "relative"; in subsection (2)(i) in paragraph (a) by the deletion of "officers" and the substitution of "principal officers"; (ii) in paragraph (c) by the deletion of "relative" and the substitution of "close relative"; by the insertion after subsection (2) of the following subsections"(3) A banking institution shall not extend credit exceeding such amount as may be prescribed to any of its directors, shareholders or principal officers, or to a close relative or associate of any of those persons (hereinafter referred to as "insiders"), unless(a) the transaction has been approved by the board of the banking institution (without the participation of any director or principal officer to whom the credit is sought to be extended in the decision to approve the extension of the credit); and (b) the credit does not exceed ten per centum of the paid-up equity capital of the banking institution; and (c) the credit is covered by one hundredper centum collateral; and (d) the credit is deducted from the paid-up equity capital of the banking institution. (4) Where a banking institution extends credit, exceeding such amount as may be prescribed, to any insider, it shall without delay inform the Registrar of that fact and provide the Registrar with such information concerning the credit as the Registrar may reasonably requtre. (5) For the avoidance of doubt, subsections (3) and (4) does not apply to the extension of credit to any employee of the banking institution as part of the employee's conditions of service that are applicable to other employees generally. (6) Any contract or arrangement whereby a banking institution extends credit to any person in contravention of this section shall be voidable at the instance of(a) the board of the banking institution; or (b) the Registrar; and the credit shall be repayable to the concerned banking institution together with interest (at the banking institution's prevailing lending rate) by any person in whose favour it was made within the period stipulated by the board or the Registrar, as the case may be. (7) Subject to section 73(a) a banking institution which contravenes subsection (2), (3) or (4); 238 2015