/QUESTION ONE

Discuss FIVE (5) regulatory challenges faced by Islamic banking in Malaysia.

/ QUESTION TWO

Zizie Bhd. company approaches Bank Gadaian Bhd. for credit facilities and offers the following assets owned by Zizie Bhd. company as security. Describe how each of the following assets can be taken by Bank Gadaian Bhd. as security:

1. Stok dan saham syarikat Zizie Bhd.

Stock and shares of Zizie Bhd.company.

(12 markah/marks)

1. Polisi-polisi insuran yang dimiliki oleh syarikat Zizie Bhd.

Insurance policies which belong to Zizie Bhd. company.

(3 markah/marks)

1. Pengarah syarikat Zizie Bhd. akan memberi jaminan ke atas pinjaman tersebut.

Director of Zizie Bhd. company will guarantee the credit facilities.

(10 markah/marks)

/QUESTION THREE

Gina obtained a loan from Europe Finance Co. (EFC) and had to produce some share certificates to EFC as a security. EFC had drawn a crossed cheque "Account Payee" payable to Gina with a sum of RM15,000.00. Gina wanted to deposit the cheque with Bank Neon Sdn. Bhd. (BNSB) but she did not have any account with BNSB. Gina influenced the BNSB officer to put the cheque in her friend's account, Ramya. Ramya promised the BNSB officer that the money would be given to Gina as Gina was the payee of the cheque. The bank officer agreed to put the cheque in Ramya's account.

In the meantime, Ramya also had put two cheques in her account, one with a crossing of "Not Negotiable" in a value of RM5,000.00 and the other one was a special crossing with the name of IceBank Bhd worth RM3,000.00. Upon realizing that the share certificates given by Gina were forged, EFC sued BNSB for negligently depositing Gina cheques into Ramya's account. BNSB also has been sued by Tan, the real owner of crossed cheque "Not Negotiable" for crediting Ramya's account. Tan claimed that the cheque was stolen from him before it was negotiated to Ramya. IceBank Bhd refused to pay BNSB as BNSB had negligently credited special crossing cheque in IceBank Bhd's name, in the account of BNSB.

Advised all parties involved. Support your answer with relevant provisions and case law.

(25 markah/marks)

/QUESTION FOUR

Ihsan Private Limited Company (IPLC) from Malaysia wanted to buy tiles of quality A from Ballazza Ceramica (BC) from Italy. IPLC had instructed the Nasional Bank Malaysia (NBM) in Malaysia to issue an irrevocable letter of credit in favour of BC. Banca Italiana (BI) in Italy was the correspondent bank and BC presented a draft with document through it, which look regular on face of it. On receiving the goods, IPLC found that the tiles were not of expected quality. IPLC then applied injunction restraining NBM from making payment even though all conditions in letter of credit has been fulfilled and alleged CC of fraud. When NBM failed to make the payment, BC sued BI for the payment.

Advise the parties above by referring to Uniform custom practice (UCP) and relevant cases.