49. Limit on exposures
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(1) Except with the approval of the Central Bank and subject to such terms and conditions as the Central Bank may determine a licensed financial institution shall not directly or indirectly, incur exposures to —
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(a) any person;
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(b) any member of a borrower group; or
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© any borrower group,
so that the total value of the exposures in respect of such person, member or group, is at any time more than twenty-five per cent of the aggregate amount of the licensed financial institution's capital base, unless prior approval is obtained from the Central Bank.
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(2) The limitation specified in subsection (1) shall not apply to transactions that represent loans to a Participating Government, or to the boards, agencies, or local government bodies of a Participating Government which are guaranteed by the Participating Government.
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(3) In applying subsection (1), where the Central Bank determines that the interests of 2 or more persons are connected, the total indebtedness of the persons shall be aggregated and deemed to be the indebtedness of a single person.
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(4) In making a determination under subsection (3), the Central Bank may take into account whether the financial soundness of any of the persons may affect the financial soundness of the other or others, or the same factors may affect the financial soundness of some or all of them, or if as a result of the structure of their relationship the other person is in fact ultimately responsible for, or benefits from, the exposure outstanding.
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(5) A licensed financial institution shall, within fourteen days of exceeding the limit on exposures in subsection (1), report such exposures to the Central Bank and shall provide a written plan for remedying the breach within 30 days.
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(6) The aggregate of large exposures of a licensed financial institution shall not exceed 400% of its capital base, or such other percentage as the Central Bank may determine.