(1) In considering the approval of credit facilities to any of its directors, executive officers or persons related to them, under section 15, a non-bank financial institution shall satisfy itself that

(a) the person to whom the credit facility is given has credit worthiness which is not less than that normally required by the institution from other persons to whom credit facilities are given;

(b) the terms of the credit facility are not less favourable to the institution than those normally offered to other persons;

(c) the giving of the credit facility is in the interests of the non- bank financial institution;

(d) the credit facility has been approved by all other directors of the institution at a duly constituted meeting of the directors where not less than three quarters of the directors of the institution were present; and

(e) the approval has been recorded in the minutes of that meeting.

(2) A non-bank financial institution which contravenes subsection (1) shall pay to the Bank a penalty of not more than one thousand penalty units or be subject to sanctions that the Bank may determine.