Singapore legislation
Section 27
Section 27
Restrictions on holding immovable property by finance companies
(1)
A finance company must not purchase or acquire any immovable property, or any right, title or interest therein exceeding in the aggregate at any one time 25% of the finance company’s capital funds, except as may be reasonably necessary for the purpose of conducting its business or of housing or providing amenities for its staff.
(2)
Subsection (1) does not prevent a finance company —
from letting part of any building which is used for the purpose of conducting its business; or
from securing a debt on any immovable property and in the event of default in payment of the debt, from holding that immovable property for realisation by sale or auction at the earliest suitable moment.
(3)
This section does not apply to such property as may from time to time be approved by the Authority.
(4)
The Registrar of Titles in issuing any certificate of title or registering any assurance in the Land Titles Registry or any purchaser is exonerated from enquiring as to any matter or fact relating to the title of a finance company to, or to the power of a finance company in dealing with, any immovable property, or any right, title and interest therein, which has been purchased or acquired in contravention of the prohibition contained in this section and is protected from the effect of notice of any such matter or fact.