Singapore legislation

Section 62A

of Banking Act 1970

Section 62A

Priorities for set-off in winding up of bank

Amended by1/20201/2020

(1)

Despite any written law or rule of law relating to the winding up of companies, in the event of the winding up of a bank in Singapore, a liquidator must first set‑off a depositor’s liabilities to the bank against any deposit of the depositor placed with the bank that is accepted —

(a)

in Singapore dollars; or

(b)

on terms under which the deposit may be repaid by the bank in Singapore dollars.

Amended by1/2020

(2)

In this section, “deposit” means —

(a)

a sum of money paid on terms —

(i)

under which it will be repaid, with or without interest or 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 person making the payment and the person receiving it; and

(ii)

which are not referable to the provision of property or services or to the giving of security; and

(b)

any other prescribed product.

Amended by1/2020