Section 7

any existing account between POSB or, as the case may be, Credit POSB and a customer shall be transferred to the Bank on the transfer date and shall become, on and from the transfer date, an account between the Bank and such customer with the same rights (except for such rights as may be accorded to any existing account between POSB and its customer, whether under contract or otherwise under the repealed section 27 of the Post Office Savings Bank of Singapore Act (Cap. 237)) and subject to the same obligations and incidents (including rights of compensation and set-off) as would have been applicable thereto if such account between POSB or, as the case may be, Credit POSB and the customer had continued and such account shall be deemed for all purposes to be a single continuing account, except that nothing herein shall affect any right of the Bank or of the customer on or after the transfer date to vary the conditions or incidents subject to which any account is kept;

any existing instruction, order, direction, mandate, notice, representation, power of attorney, authority, consent or undertaking (whether in writing or not and whether or not in relation to an account) given to POSB or, as the case may be, Credit POSB, either alone or jointly with another person, shall apply and have effect, on and from the transfer date, as if given to the Bank or, as the case may be, to the Bank jointly with such other person;

any instruction, order, direction, mandate, notice, representation, power of attorney, authority, consent or undertaking (whether in writing or not) which is given to POSB or, as the case may be, Credit POSB, either alone or jointly with another person, on or after the transfer date and which, if given as aforesaid prior to the transfer date would have related to an existing account between POSB or, as the case may be, Credit POSB and a customer shall apply and have effect as if given to the Bank or, as the case may be, to the Bank jointly with such other person;

any security which is, immediately before the transfer date, held by or in favour of POSB or, as the case may be, Credit POSB as security for the payment or discharge of any liability shall, on and from the transfer date, be held by or in favour of the Bank and be available to the Bank as security for the payment or discharge of such liability;

where any security such as is mentioned in paragraph (d) extends to future advances or future liabilities, the security shall, on and from the transfer date, be held by or in favour of the Bank, and be available to the Bank, as security for future advances by, or future liabilities to, the Bank to the same extent and in the same manner in all respects as if it had been originally granted in favour of, and had originally extended to future advances by or future liabilities to, the Bank;

where any security such as is mentioned in paragraph (d) was granted for a stated maximum amount, the security shall, on and from the transfer date, have the same effect in favour of the Bank up to such maximum amount in all respects as if it had been originally granted in favour of the Bank for such maximum amount;

the Bank shall, in relation to any security such as is mentioned in paragraph (d) and to the liabilities thereby secured, be entitled to the same rights and priorities and subject to the same obligations and incidents on and from the transfer date as POSB or, as the case may be, Credit POSB would have been entitled and subject to if the security had continued to be held by it or in its favour;

without prejudice to the generality of paragraph (d), in any case where any existing liability subsists between POSB or, as the case may be, Credit POSB and the Bank in respect of which POSB or, as the case may be, Credit POSB or the Bank, or a nominee of or an agent or a trustee for POSB or, as the case may be, Credit POSB or the Bank hold security, that liability shall, for the purpose of enforcing or realising that security, be deemed to continue and have effect notwithstanding the vesting of the respective undertakings in the Bank;

the custody or possession of any document, goods or other property held by POSB or, as the case may be, Credit POSB, or by an agent for or nominee of POSB or, as the case may be, Credit POSB, as a bailee, depositary or custodian shall, on and from the transfer date and by virtue of this Act, be transferred to the Bank or, as the case may require, be held by such agent or nominee as agent for or nominee of the Bank, and the rights and obligations of POSB or, as the case may be, Credit POSB under any contract of bailment, deposit or custodianship relating to such document, goods or property, or under any other contract or arrangement (whether in writing or not) or deed or other instrument or document regulating custody or possession of the same, shall by virtue of this Act be transferred on the transfer date to the Bank; and

any negotiable instrument or order for payment of money, whether drawn, given, accepted or endorsed before, on or after the transfer date, which is expressed to be drawn on, or given to, or accepted or endorsed by, POSB or, as the case may be, Credit POSB, or payable at any place of business of POSB or, as the case may be, Credit POSB, shall have the same effect on and from the transfer date (or, if it be later, the date upon which it is drawn, given, accepted or endorsed) as if it had been drawn on, or given to, or accepted or endorsed by the Bank, or payable at the same place of business of the Bank.

where the account relates to a staff loan granted to the customer under his employer’s staff loan scheme administered or funded by POSB, Credit POSB or the Bank, to that employer of the customer for the purposes relating to that loan and any security therefor; and

where the account relates to a loan secured by any property or other asset, to the insurer or proposed insurer of that property or other asset for the purposes relating to the insurance of that property or asset,and the customer shall be deemed to have given his written permission for all such disclosures.