Singapore legislation
Section 20
Section 20
Scheme or arrangement which is deemed only to partake of nature of chit fund prohibited
(1)
Every scheme or arrangement by whatever name called —
which is not based wholly on the essential terms and conditions set out in section 24; or
which is based on terms and conditions inconsistent wholly or in part with those essential terms and conditions,is, for the purposes of this Act, deemed only to partake of the nature of a chit fund.
(2)
Regulations made under this Act may describe or define what schemes or arrangements are deemed only to partake of the nature of a chit fund for the purposes of this section.
(3)
Any person who promotes or conducts, or aids, assists, or takes any part in the promotion or conduct of any scheme or arrangement which only partakes of the nature of a chit fund within the meaning of this Act shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 3 years or to both.
(4)
No right or claim under any scheme or arrangement which only partakes of the nature of a chit fund within the meaning of this Act or the regulations made under this Act is, without affecting subsection (1), enforceable by action in any court.