Kn. P.U. 6/1999 THE COUNCIL OF RELIGION OF ISLAM AND MALAY CUSTOM, KELANTAN (CONDUCT AND DISCIPLINE) RULES 1999
Rule 12. Borrowing money.
(1) No officer or servant may borrow from any person or stand as surety to any borrower, or in any manner place himself under a pecuniary obligation to any person-
(a) who is directly or indirectly subject to his official authority;
(b) with whom the officer or servant has or is likely to have official dealings;
(c) who resides or possesses land or carries on business within the local limits of his official authority; or
(d) who carries on the business of money lending.
(2) An officer or servant may, however, borrow money from or stand as surety to any person who borrows money from banks, insurance companies, co-operative societies, or finance companies licensed under the Banking and Financial Institutions Act 1989 or incur debt through acquiring goods by means of hire-purchase agreements, provided that-
(a) such banks, insurance companies, co-operative societies or licensed finance companies from which the officer or servant borrows are not directly subject to his official authority;
(b) such borrowing shall not lead to public scandal or be construed that the officer or servant has abused his position as an officer or servant of the Majlis to his private advantage; or
(c) the aggregate of his debts does not or is not likely to cause him serious pecuniary indebtedness as defined under rule 13.
(3) Subject to the provisions of subrule (2), an officer or servant may incur the following debts:
(a) sums borrowed on the security of land charged or mortgaged, where the said sums do not exceed the value of the said land;
(b) overdrafts or other credit facilities as may be approved by any licensed financial institution;
(c) sums borrowed from insurance companies on the security of insurance policies;
(d) sums borrowed from the Majlis or co-operative societies; and
(e) sums due on goods acquired by means of hire-purchase agreements.