Moneylending Agreement Schedule J

25 Paragraph 23: Prohibition of expenditure charges on lenders` loans That provision was, as in the previous section, with the exception of the amendment of the term `any agreement` to a `money lending agreement`. Payment “of an amount due to costs, fees or expenses other than stamp duty, legal fees and legal fees associated with the negotiation or granting of the proposed loan or loan is illegal” 37 Some FREQUENTLY ASKED QUESTIONS What is the effect of the money loan agreement signed before November 1, 2003? The old money lending agreement will not be enforceable: Section 10P(3), Moneylenders Act 1951. (ii) was president, vice-president, secretary or treasurer of a corporation that was lending money or that had been directly affected.23 Any money lending agreement between a money lender and a borrower or borrower intended for the payment of an amount by the borrower or the intended borrower to the lender on the basis of costs, fees or expenses other than stamp duty, fees payable by law and legal fees associated with or related to the negotiation or granting of the loan or loan or loan or loan project proposed is illegal. and if an amount is paid by a borrower or a prospective borrower to a lender, given that such amount may be recovered in the form of a debt owed to the borrower or the expected borrower for or as a result of such costs, charges or expenses not as set out above, or in the case of the completion of the loan, this is not the case, it shall be set off against the amount actually lent, that amount shall be deemed to have been reduced accordingly. 3 Definitions The definition of “money lender” has been expanded. Previously, it was a “money lender” means any person whose business is that of lending money or who pursues, promotes or advertises that business or claims in any way to be the owner of that business, whether that person also owns or earns property or money from sources other than the loan of money and whether or not that person carries on the business as a principal or agent” (5) The preceding provisions of this Sections apply to any transaction, regardless of its form, that is essentially a withdrawal of money by a money lender. 13 Prosecution of Lenders Who Do Not Enter into an Agreement Lenders must enter into a money loan agreement with the borrower, and that contract must be in a prescribed form. Any lender who contravenes this section is guilty of a criminal offence – s 10P Provided that, in each of these cases, the lender is required to compensate the borrower or any other person disadvantaged under this section, and that nothing in this subsection validates a contract or guarantee of the loan of money in favor of a procedure or applies to a procedure, initiated by an assignee or value holder who is himself a money lender. 3. Any contract for the loan of money not certified under this Division is void, has no effect and is unenforceable. *11. (1) No advertisement may be issued or published through a lender operated by a money lender or published or published by the money lender unless the Registrar has granted an authorization to advertise such advertising.

20 New Section 10P – deals with lenders and borrowers who must enter into a loan agreement in the prescribed form. Violation of this article is a criminal offence. And if it does not correspond to the prescribed form, it is null and void and has no effect. New Part V – Management of Money Lending Operations 17. (1) A money lending agreement entered into on or after the coming into force of this Act respecting the lending of money by a money lender is illegal to the extent that it provides, directly or indirectly, for the payment of compound interest or an increase in the rate or amount of interest as a result of any delay in the payment of amounts due under the money loan agreement, 29 It is a criminal offence: If not in the prescribed form, any waiver, amendment, amendment, amendment, modification, modification, modification, addition or omission of any provision of Schedule J or K without the prior consent of the Registrar will void the agreement and will have no effect and will be unenforceable. No lender may collect a payment under any name unless required to do so by the money loan agreement – Rule 10(4)(4) (4) Nothing in this section makes valid for any purpose any money loan agreement, guarantee or other transaction that would have been void or unenforceable except for that act. PART VI 27 Figure 2 – Calculation of interest This list has been deleted. Interest rates are now set by Article 17A. To the extent that such a lender agreement may provide that, in the event of late payment on the due date of an amount or payment payable in respect of the lender under the lender in respect of principal or interest, the creditor is entitled to charge simple interest on the unpaid amount or payment, calculated on a day-to-day basis at a rate of eight per cent per annum. from the time of non-payment of the amount or deposit until payment of such amount or payment, and the interest so calculated shall not be calculated for the purposes of this Act as part of the interest charged on the loan. 28 Mandatory forms – Money Lenders (Control and Licensing) Regulations 2003 Entered into force at the same time as the amending Law, i.e.

on 1 November 2003, Regulation No. 10 prescribes the loan-fund agreement. For unsecured money lending operations – Annex J form For secured money lending operations – Form Scheme K A law regulating and controlling the activity of lending money, protecting borrowers of funds lent in connection with such transactions and related matters. (3) In a contract for the loan of money, the interest charged on a secured loan or loan is as follows: an unsecured loan is charged more than those referred to in paragraph 1, this Agreement is void, has no effect and is unenforceable. (4) Every lender who contravenes this section is guilty of a criminal offence under this Act and is liable to a fine not exceeding twenty thousand ringgit or to imprisonment for up to eighteen months, or both. (c) whether, at the time of application, a person who: – (i) was the managing director of a company carrying on the activity of lending funds or was directly (h) the form of money lending agreements to be used by a lender and a borrower, as well as other matters relating to such agreements. .