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(1) A company which is a manager of a unit trust or is a subsidiary or holding company of the manager shall not

(a) borrow money on behalf of the unit trust for the purpose of acquiring securities or other property for the unit trust;

(b) lend money that is subject to the unit trust to a person to enable that person to purchase units of the unit trust;

(c) mortgage, charge or impose any other encumbrance on any securities or other property subject to the unit trust; or

(d) engage in a transaction which in the opinion of the Commission is not in the interest of the holders of the units of the unit trust.

(2) Paragraphs (a) and (c) do not apply to borrowings made on behalf of the trust solely for the purpose of meeting obligations to redeem units from the holders when requested.

(3) The borrowings under subsection (2) are subject to the conditions 2ind restrictions determined by the Commission.

(4) A company that contravenes subsection (1) and every officer of the company who acted in breach of this section, is liable to pay to the Commission

(a) in the case of the company, an administrative penalty of one thousand penalty units; and

(b) in the case of an officer, an administrative penalty of five hundred penalty units.