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THE BANK OF PUNJAB ACT, 1989 THE BANK OF PUNJAB ACT, 1989 18. Business which the Bank is authorized to transact. The Bank is authorized to carry on and transact the several kinds of business hereinafter specified, namely: (1) The advancing and lending of money, and opening of cash-credits upon the security of---- (a) stocks, funds and securities in which a trustee is authorized to invest trust money by any law for the time being in force in Punjab and shares of the State Bank of Pakistan; (b) participation term certificates or other securities for money issued under the authority of any law for the time being in force in Punjab by, or on behalf of, a local Authority; . (c) goods which or the documents of title to which are deposited with, or assigned to, the Bank as security for such advances,. loans or credits; (d) subject to such directions as may be issued by the Board, participation term certificates of companies with limited liability; (e) shares of companies with limited liability, in accordance with such directions in this regard as may be issued from time to time, by the State Bank of Pakistan; (f) goods which are hypothecated to the Bank as security for such advances, loans or credits; (g) accepted bills of exchange and promissory notes endorsed by the payees and joint and several promissory notes of two or more persons or firms unconnected with each other in general partnership; (h). immovable property or documents of title relating thereto, subject to such directions as may be issued by the Board; (i) subject to such directions as may be issued by the Board, crops: . Provided that any advances or loans which are guaranteed by the Government may be made without any specific security. (2) The selling and realization of proceeds of sale of any such promissory notes, participation term certificates, stock receipts, bonds, annuities; stocks, shares, securities or goods which, or the documents of title to which, have been deposited with, or pledged hypothecated, assigned or transferred to, the Bank as security for such advances, loans or credits or which are held by the Bank or over which the Bank is entitled to any lien or charge in respect of any such advance of loan or credit or any debt or claim of the Bank, and which have not been. redeemed in elite tune in accordance with the terms and conditions if any of such deposit, pledge, hypothecation, assignment or transfer; (3) the advancing and lending of money to Courts of Wards upon tree security of estates in their charge or under their superintendence and the realization, of such advances or loans and any interest due thereon: Provided that, no such advance or loan shall be made without previous sanction of the Government; (4) the drawing, accepting, discounting, buying and selling of bills of exchange and other negotiable securities: (5) the investing of the funds of the Bank in, or the underwriting of, any stocks, funds, shares, securities, participation term certificates, bonds or scrips or other securities for money issued by a public- limited company or any corporation established by or under any law for the time being in force or under the authority of the Government or the State Bank of Pakistan, converting and covering the same into money when required, and altering and transposing any such investment for or into any other of such investment; [Subs: for, "scripts", by The Bank of Punjab (Amendment) Act, 8 of 1991, .S. G] (6) the issuing of letters of credit,, (7) the buying and selling of gold and .silver whether coined or uncoined; (8) the receiving of deposits and keeping cash accounts on such terms as may be agreed on; (9) the acceptance of the charge of place, jewels, title deeds or other valuable goods on such terms as may be agreed on; (10) the managing, selling and realizing of all property whether movable or immovable which may in any way come into the possession of the Bank in satisfaction or part satisfaction of any of its claims, and acquisition arid holding, and generally the dealing with; any right, title or interest in any property movable or immovable which may be Bank's security for any advance or loan or may be connected with any such security; Provided that the bank shall not take over the management of any such property except in pursuance of any agreement with the debtor or of an order, judgment or decree of a court of competent jurisdiction; (11) the transaction of pecuniary agency business on commission and the entering. into of contracts of indemnity, surety-ship or guarantee with specific security or otherwise, and, the underwriting, participating in, and carrying out of the issue of any stock, shares, participation term certificates and others securities; (12) the administration ,of estates ~ for any purpose whether as an executor, trustee or otherwise and the acting as agent on commission in the transaction of the following kinds of business, namely: (a) the buying, selling, transferring and taking charge of . any securities or any shares in any public company; (b) the receiving of the proceeds whether principal, interest or dividends of any securities or shares; [Subs. by The. Bank of Punjab (Amendment) Act, 8 of 1991, S. 6 (2)] (c) the remittance of such proceeds by public or private bills of exchange, payable either in Pakistan or elsewhere; . (13) the drawing of bills of exchange and the granting of letters of credit payable out of Pakistan; (14) the buying of bills of exchange payable out of Pakistan; (15) the borrowing of money for the purpose of the Bank's business, and the giving of security for honey so borrowed by pledging assets or otherwise; (16) the paying, receiving, collecting and remitting money, bullion and securities under any agreement with the State Bank of Pakistan as its agent on behalf of Government undertaking and transacting any business which the State Bank of Pakistan may from time to time entrust to it; (17) the establishing and discontinuing of branches and agencies; . . (18) the act wring, maintaining and transferring of the Bank's residential and business premises; (19) the taking over of the business, including the capital assets and liabilities of any other bank, with the sanction of the Government; (20) the granting of advances or loans to any other bank for the purpose of averting or facilitating its winding up; (21) with the previous permission in writing of the Government and the State Bank of Pakistan: (a) the investing of the funds of the Bank in any bank incorporated outside Pakistan; and (b) participating in the management and administration of any such bank in which the funds of the Bank have been invested; (22) the advancing of money on non-interest basis and according to the various common modes of financing; [Subs. by The Bank of Punjab (Amendment) Act, 8 of 101, S. G (3).] (23) the undertaking of lease financing; and (24) generally, the doing of all such matters and things as may be incidental or subsidiary to the transacting of the various kinds of business including foreign exchange business, hereinbefore specified. Explanation. The expressions, "granting of advances or loans" or "advancing and lending of money" and their cognate expressions shall include financing on the basis of various approved modes of common interest based financing like financing by lending, trade related modes of financing; and investment type modes of financing.. [Explanation added by The Bank of Punjab (Amendment) Act, 8 of 1991, S. 6 (4).]