Singapore legislation
Section 228
Section 228
Extortionate credit transactions
(1)
This section applies where a company is in judicial management or is being wound up, and the company is or has been a party to a transaction for or involving the provision to that company of credit.
(2)
The Court may, on the application of the judicial manager or liquidator of the company, make an order with respect to the transaction if the transaction is or was extortionate and was entered into within 3 years before the commencement of the judicial management or winding up, as the case may be.
(3)
For the purposes of this section, a transaction is presumed to be extortionate, unless the contrary is proved, if, having regard to the risk accepted by the person providing the credit —
the terms of it are or were such as to require grossly exorbitant payments to be made (whether unconditionally or in certain contingencies) in respect of the provision of the credit; or
it is harsh and unconscionable or substantially unfair.
(4)
An order under this section may contain one or more of the following:
provision setting aside the whole or part of any obligation created by the transaction;
provision varying the terms of the transaction or varying the terms on which any security for the purposes of the transaction is held;
provision requiring any person who is or was party to the transaction to pay the company or the liquidator any sums paid to that person, by virtue of the transaction, by the company;
provision requiring any person to surrender to the company or the liquidator any property held by the person as security for the purposes of the transaction;
provision directing accounts to be taken between any persons.