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(5) For the purposes of calculating capital adequacy, the amount of exposures that are in excess of the limits under subsection (4) shall be deducted from capital.

51. (1)

Restrictions on lending to employees

Except as provided in this section, all lending to employees shall be subject to the general credit policies of the licensed financial institution and subject to section 50.

(2) Lending on preferential terms to employees of a licensed financial institution shall only be permitted where it forms part of a written employment package or employee benefits plan approved by the board or consistent with a written board policy for employee lending that is in compliance with any prudential standards issued by the Central Bank. (3) A licensed financial institution shall not grant or permit to be outstanding to its employees any unsecured advances or credit facilities which in the aggregate amount for any one employee exceeds fifty per cent of the annual remuneration of such employee.

(4) The aggregate amount of all loans under subsections (1) and (2) shall not exceed twenty per cent of the capital base of the licensed financial institution.

(5) When a licensed financial institution calculates its capital adequacy, any exposures that are in violation of this section shall be deducted from capital.

(6) For purposes of this section, the term “employees” does not include any persons who are considered to be related parties subject to section 50.

Prohibition of advances against security of own shares 52. A licensed financial institution shall not grant any advance against the security of its own shares, the shares of an affiliate, or the shares of a company to which the advance

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