CA-8.4.8
Past version: Effective from 01 Jul 2007 to 30 Sep 2007
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In the case of a
(a) The lending family takaful fund has assets surplus to those required to meet its own required margin of solvency;
(b) The free loan must not result in the lending takaful fund failing to meet its own required margin of solvency at the time of making the loan and there is reasonable grounds to believe that it will continue to do so in the future;
(c) The making of such loan must not adversely affect the reasonable expectations of the policyholders of the lending takaful fund;
(d) The Reporting Actuary has approved the making of such a loan having considered all circumstances of the fund; and
(e) No repayments of any shareholder free loans can be made by a borrowing takaful fund where amounts are outstanding in respect of any free loans from another family takaful fund.
Amended: January 2007