Singapore legislation
Section 62
Section 62
Priority of specified liabilities inter se
(1)
Despite the provisions of any written law or rule of law relating to the winding up of companies, in the event of a winding up of a bank, the following liabilities in Singapore of the bank, among themselves, rank in the following order of priority:
firstly, any premium contributions due and payable by the bank under the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011;
secondly, liabilities incurred by the bank in respect of insured deposits, up to the amount of compensation paid or payable out of the DI Fund by the Agency under the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 in respect of such insured deposits;
thirdly, deposit liabilities incurred by the bank with non‑bank customers other than those specified in paragraph (b), which are incurred —
in Singapore dollars; or
on terms under which the deposit liabilities may be discharged by the bank in Singapore dollars;
fourthly, deposit liabilities incurred by the bank with non‑bank customers other than liabilities mentioned in paragraphs (b) and (c);
fifthly, any sum claimed by the trustee of a resolution fund (within the meaning of section 98 of the Monetary Authority of Singapore Act 1970) from the bank under section 103, 104, 105 or 106 of that Act.
(2)
The liabilities in each class specified in subsection (1) —
rank in the order specified in subsection (1) but as between liabilities of the same class rank equally between themselves; and
be paid in full unless the assets of the bank are insufficient to meet them in which case they abate in equal proportions between themselves.
(3)
For the purposes of this section, “deposit liabilities”, in relation to a bank, means the liabilities of the bank in respect of —
sums of money paid to the bank on terms —
under which they will be repaid, with or without interest or at a premium, or with any consideration in money or money’s worth, either on demand or at a time or in circumstances agreed by or on behalf of the persons making the payments and the bank; and
which are not referable to the provision of property or services or to the giving of security; and
such other product as may be prescribed,but does not include —
in the case of a bank incorporated in Singapore, liabilities of the bank arising from loans —
granted by creditors whose claims are fully subordinated to the claims of all un-subordinated creditors; and
the terms of which comply with the criteria for the treatment of the liabilities as capital in determining whether the bank complies with the capital adequacy requirements under section 10, whether or not the entire amount of such liabilities is treated as capital in the determination; and
liabilities of the bank in respect of such other product as may be prescribed.
(4)
For the purposes of subsection (3)(a)(ii), money is paid on terms which are referable to the provision of property or services or to the giving of security if, and only if —
it is paid by way of advance or part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is or are not in fact sold, hired or otherwise provided;
it is paid by way of security for the performance of a contract or by way of security in respect of loss which may result from the non-performance of the contract; or
it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise.
(4A)
To avoid doubt, any liability of a bank excluded from the definition of “deposit liabilities” in subsection (3) ranks pari passu with all other unsecured liabilities of the bank.
(5)
In this section, “Agency”, “DI Fund” and “insured deposit” have the same respective meanings as in section 2(1) of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011.