Section 44, The Banking Act, 2019

(1) In considering an application for credit facility to aninsider under section 42 a bank or financial holding company shall satisfy itself that- (a) the person to whom the credit facility is given has credit worthiness which is not less than that normally required by the bank or financial holding company for other persons to whom credit facilities are given and any collateral which is provided has been evaluated on the Limits on exposures to insiders on a consolidated basis. Requirements for lending to insiders and their related interests. same terms and procedures normally required by the bank or financial holding company for other persons to whom credit facilities are given; (b) theterms and conditions of thecredit facility are not less favourable to the bank or financial holding company than those normally offered to other persons not related to the bank or financial holding company; (c) the advance of the credit facility is in the interest of the bank or financial holding (2) The credit facility shall be approved by all other directors of the Board of thebank or financial holding company at a duly constituted meeting of the board where not less than three quarters of all the directors of the Board of the bank or financial holding company are present and the approval shall be recorded in theminutes of that meeting. (3) The management of a bank or financial holding company shall report to the Board of directors and to the Central Bank each credit facility to an insider or their related interests and each credit facility shall be classified according to the directive on asset classification. (4) A bank or fi nanci al holdi ng company who contravenes this section is liable to an administrative penalty.