Revaluation of fixed assets

(1) No licensee shall revalue its fixed assets upward without the prior permission in writing of the Central Bank. Where the Central Bank agrees to any revaluation of fixed assets, any surplus over the acquisition cost of the assets arising from the revaluation must be shown separately on the shareholders’ equity section on the books of a local licensee, or on the assigned capital section of a foreign licensee, as a revaluation reserve and shall remain there until it is either realized through sale of the revalued assets or it is reduced by subsequent revaluations in the relevant asset values. (2) If fixed assets have suffered a permanent diminution in value as determined by an independent evaluator approved by the Central Bank and the estimated value of fixed assets is below the undepreciated cost of these assets, the licensee shall establish such provisions or reserves in respect of the diminution in value of such assets as may be specified by the Central Bank. (3) The revaluation reserve mentioned in sub-section (1) shall not be included as fully paid-up capital for purposes of computing the minimum capital requirements as provided in sections 36. (4) Any licensee who contravenes any of the provisions of this section shall, on being called upon in writing by the Central Bank, pay a fine not exceeding ten thousand dollars for each day of such failure to comply. 111