Singapore legislation

Section 21A

of Finance Companies Act 1967

Section 21A

Monthly statements of advances, loans and credit facilities

(1)

Every finance company must send to the Authority, not later than 15 days after the last day of each month, a statement in the form determined by the Authority showing the particulars of all advances, loans and credit facilities granted by the finance company as at the end of that month to —

(a)

any of the directors of the finance company;

(b)

any firm or limited liability partnership in which the finance company or any of its directors is a partner, manager or agent;

(c)

any individual or firm or limited liability partnership of whom or of which any of the directors of the finance company is a guarantor;

(d)

any corporation that is related to the finance company;

(e)

any of the finance company’s officers, employees or other persons receiving remuneration from the finance company (other than persons receiving remuneration in respect of their professional services);

(f)

any private or public company in which the finance company or any of its directors, officers, employees or other persons who receive remuneration from the finance company has an interest as a director, manager, agent or guarantor; or

(g)

any individual in whom, and any firm or limited liability partnership or company in which, any of the directors of the finance company has, directly or indirectly, any interest that is required to be declared under section 21B, other than those advances, loans and credit facilities, the particulars of which have been supplied under paragraphs (a) to (f).

(2)

Where it appears to the Authority, on examination of the particulars supplied by a finance company under subsection (1), that any advance, loan or credit facility has been or may be granted to the detriment of the interests of the depositors of the finance company, the Authority may as it thinks fit by written notice —

(a)

prohibit that finance company from granting any further advance, loan or credit facility to the borrowers which in the Authority’s opinion may be detrimental to the interest of the depositors;

(b)

impose restrictions on that finance company in relation to the grant of any advance, loan or credit facility; or

(c)

direct that finance company to secure repayment of any advance, loan or credit facility.

(3)

In this section —

(a)

“director” includes the wife, husband, mother, father, son or daughter of a director; and

(b)

whether a corporation is related to a finance company is to be construed in accordance with section 6 of the Companies Act 1967.

Read in full context — Finance Companies Act 1967 →