T19 – 5R Strategic Consultancy Sdn Bhd

Certificate in Credit
Test 19

Name

The credit related provisions of the FSA 2013 can be categorised into the following broad areas

I. Granting of Credit
II. Obligation of directors and officers of licensed business
III. Contravention and offences under the provisions of the Act.
IV. Prudential Standard

I and III

I, II and III

II, III and IV

All the above

The same securities can be taken in different forms. For examples, shares can be taken as a security by way of __________

I. Assignment
II. Pledge
III. Charge
IV. Hypothecation

All of the above

II, III and IV only

I, II and III only

I and II only

Who is the owner of the Limited Liability Companies?

Shareholders

Main Shareholders

Preference Shareholders

Ordinary Shareholders

Which of the following best describes a Code of Ethics?

A legally binding set of rules that govern employee behavior

Moral principles or values deem to be good for a group and generally accepted and practice voluntarily as a guide for good conduct

Set of checklist for compliance with rules and regulation

A technical manual that outline how to perform a task correctly and safely

Which of the following components of CAMPARI measure the financial commitment of the borrower?

Character

Margin

Repayment

Amount

Compute the amount of stamp duty payable on transfer (Adjudication of the memorandum of transfer) of land title market value RM530,000.00

RM9,900

RM15,900

RM11,900

RM26,500

What is the main objective of the Credit Guarantee Corporation Malaysia Berhad?

To guarantee small scale enterprises to gain access to credit facilities from financial institutions

To help Bumiputra gain access to credit facilities from financial institutions

To assist small and medium scale enterprises to gain access to credit facilitation from financial institutions

To guarantee working capital loan extended by financial institution to small scale enterprises

Under NLC 1965, uniform system governing all dealings in land applicable only

in Peninsular Malaysia only

to land for which documents of title has been issued

in respect of land without the issuance of documents of title

in Peninsular Malaysia, Sabah and Sarawak

Which statement about ethics and the law is TRUE?

Ethics and law are always the same

Legal compliance guarantees ethical conduct

All ethical actions are always legal

Ethical behavior may go beyond legal requirements

What is the primary role of the Banking System?

Provide a mechanism for individual and entities to save surplus funds for future events

Mobilise long-term and short-term fund in the economy

Gather deposits and disburse loans through products that meet specific depositor and borrower needs

Provide a mechanism for the effectiveness implementation of the monetary policy

Which of the following is the primary regulator of banking institutions in Malaysia?

Bank Negara Malaysia

Credit Guarantee Corporation

Securities Commission Malaysia

Bursa Malaysia

Under Sec. 143 of FSA 2013, a licensed person may disclosed information without customer consent in all the following EXCEPT

When requested by another bank for marketing purpose

When required by Bank Negara Malaysia

When necessary for due diligence in a merger

When required by a court order

Charge is a form of security. A 'perfected charge' refers to:

First charge

Equitable charge

Fixed charge

Legal charge

A business name registered with SSM but not incorporated is most likely a:

Sole proprietorship

Public company

Statutory body

LLP

Loans rescheduled or restructured by Agensi Kaunseling dan Pengurusan Kredit (AKPK) may be immediately reclassified as non-impaired once:

The customer and banking institutions have agreed to the new terms and conditions

It has been continuously performing based on its restructure terms for the period set by the institution in its policy

The total installments in arreas fully paid

The total installments in arrears falls below three months

When a borrower has multiple active loans in CCRIS, it may indicate:

Zero liability

No risk

Strong credit

Possible over-leveraging

A side from BNM, the banking system in Malaysia comprises the following

Commercial Banks, Islamic Bank, Discount Houses, Representative Officers of Foreign Banks and Offshore Bank

Commercial Banks, Islamic Bank, Offshore Bank, Discount House and Kuala Lumpur Inter-Bank Marketers of Foreign Banks and Offshore Bank

Financial Institutions, Islamic Banks and Development Financial Institutions

Commercial Banks, Islamic Banks, Offshore Bank and Prescribe DFIs

Verification of company ownership is done via:

Form 24, 49, Constitution

BNM website

MyKad

Income tax return

A winding-up order is most relevant to:

Partnerships

Companies

Natural persons

Sole proprietors

Labuan Financial Services Authority (LFSA) regulates:

Deposit insurance

Off-shore financial services

Islamic banking

Housing finance

The stamp duty payable on principle documents is

Variable rate

Ad-valorem

Progressive scale

Nominal

Under Section 47 of the FSA 2013, Bank Negara Malaysia may issue prudential standards to licensed persons on all the following matters except:

Credit risk management

Customer complaint handling

Capital adequacy

Corporate governance

Which of the following are the duties of Marketing Officer?

I. Assesses and makes a decision on the loan application
II. Ensures that loan terms are made in accordance with the basic risk criteria
III. Make decision based on Principle of Lending after a through assessment of the borrower's credit risk
IV. Disburse loans in accordance with loan documentation and bank policy

III and IV

I and III

All the above

I and II

Covenant can be described and categorised as

I. Financial Covenants
II. Events of Default Covenants
III. Specific Covenants
IV. Non-Financial Covenants

I, III and IV

None of the above

I and IV

II and III

Credit process involves risk taking. What is the most necessary step for risk management?

Identify risk

Control risk

Eliminate risk

Mitigate risk

The Credit Facilities should be structured appropriately in order to meet the following except

The requirements and repayment ability of the borrower

To address the risks identified

The purposes as recommended by the Credit Officer

The purpose of the facilities

Which of the following has the characteristic of perpetual succession?

Private limited company

Sole proprietorship

Partnership

Joint account holders

The process of confirming the borrower's declared information is called

Credit Verification

Information Verification

Scope of Credit Information

Credit Information

CTOS derives its data from:

Bursa Malaysia

CCRIS

Public records and legal documents

Bank Negara Malaysia

Sections 133 and 133A of the Companies Act 1965 are not applicable to

Public unlisted company

Non-public listed company

Exempt private company

Public listed company

Lenders need to assess the sufficiency of shareholders or owners’ financial commitment in their business. Financial commitment of the shareholder/owner is often measured by the following:

I. Shareholder’s funds in the business
II. Subordinated loans to the business
III. Third party collateral provided by the owner themselves
IV. Personal net worth of the shareholder

I, Il and III

II, Ill and IV

I, II. Ill and IV

I, Ill and IV

Based on the following information, compute the net worth of the individual

House RM500,000
Home Loan RM300,000
Car RM100,000
Deposits RM10,000
Cash RM5,000
Car Loan RM80,000
Credit Card RM40,000

RM5,000

RM615,000

RM195,000

RM15,000

Which of the following have no legal capacity to borrow?

I. A minor
II. Individual below 21 year
III. Individual adjudicated bankrupt
IV. A discharge bankrupt

All the above

II and IV

I, II and IV

I and III

Select the factor that may directly affect the net value of a client/borrower's tangible assets

contingent liabilities

collateral encumbrance

debt service ratio

margin of financing

Which of the following are common management lifestyle?

I. Aggressive
II. Prudent
III. Thrifty
IV. Extravagant

III and IV

II and III

I and II

I and IV

Code of Conduct mainly focus on?

Overall supervision and contract

Moral and values

Behavior at work

Professional standards

Which of the following age group have the legal capacity to borrow?

18 years and above

21 years and above

18 - 55 years

21 - 55 years

Which of the following are not categorised as a form of security?

I. Lien
II. Power of attorney
III. Assignment
IV. Loan agreement

I and II only

II and III only

II and IV only

Ill and IV only

Which clauses in the 'object clause’ of the company's Memorandum of Association need to he checked by lenders?

I. The nature of businesses the company can engage in
II. The directors will form a Board of Directors
IIl. The shareholder's liability is limited tv the extent of the company's issued share capital
IV. To see if there is any mention of specific restrictions against borrowing or changing of company asset

II and IV only

II and III only

I, III and IV only

I and IV only

Which type of security need to be registered with Companies Commission of Malaysia

Corporate Fixed Deposit

Stock and Shares

Quoted Shares

Fixed Deposit in the name of directors

Certificate in CreditTest 19

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Certificate in Credit
Test 19