Singapore legislation
Section 37
Section 37
Reopening of certain transactions
(1)
When proceedings are brought in any court by a licensee for the recovery of a loan or the enforcement of a contract for a loan or any guarantee or security given for a loan, and the court is satisfied that the interest or late interest charged in respect of the loan is excessive and that the transaction is unconscionable or substantially unfair, the court is to reopen the transaction and take an account between the licensee and the person sued.
(2)
In taking an account under subsection (1), the court may reopen any account already taken between the parties to the proceedings and relieve the person sued from payment of any sum in excess of the sum adjudged by the court to be fairly due in respect of such principal, interest and late interest as the court, having regard to the risk and all the facts and circumstances of the case (including facts and circumstances arising or coming to the knowledge of any party after the date of the transaction), may determine to be reasonable.
(3)
In relieving the person sued under subsection (2), the court may, without affecting its power to grant any further or other equitable relief —
order the licensee to repay any excess paid to the licensee;
set aside either wholly or in part, or revise or alter, any guarantee or security given or the contract for the loan; and
if the licensee has disposed of the security, order the licensee to indemnify the borrower or other person sued for the loss of the security.
(4)
Any court has and may exercise the powers referred to in subsections (1), (2) and (3) in relation to proceedings for relief brought by a borrower, a surety or other person liable to repay a loan to a licensee —
despite any provision or agreement to the contrary;
even though the time for repayment of the loan or any instalment thereof may not have arrived; and
even though the licensee’s right of action for the recovery of the loan is barred.
(5)
Where a licensee has filed, in the bankruptcy of a borrower or surety, a proof of debt arising from a loan granted by the licensee, the Official Assignee may exercise such powers as may be exercised by a court under this section when assessing whether the debt or liability is proved and its value.
(6)
Nothing in this section derogates from —
the jurisdiction or powers of any court; or
the powers of the Official Assignee.[23