Singapore legislation
Section 356
Section 356
Interest on debts
(1)
Where interest on a debt was not previously reserved or agreed, interest is allowed on the debt at a rate not exceeding the prescribed rate of interest in the following circumstances:
in any case where the debt is due by virtue of a written instrument and payable at a certain date, interest is allowed for the period starting on (and including) the day after that date and ending on (and including) the date of the bankruptcy order;
in any other case, if a demand for payment was made in writing by or on behalf of the creditor before the making of the bankruptcy application, and notice was given that interest would be payable from the date of the demand to the date of the payment, interest is allowed for the period starting on (and including) the day after the date of the demand and ending on (and including) the date of the bankruptcy order.
(2)
For the purposes of distribution of dividend —
where a debt which has been proved in a bankruptcy includes interest, and the rate of such interest was previously agreed or reserved, the interest is calculated —
for the period starting on (and including) the date the interest was payable and ending on (and including) the date of the bankruptcy order; and
at the rate previously agreed or reserved; and
where a debt which has been proved in a bankruptcy includes interest, and the rate of such interest was not previously agreed or reserved, the interest is calculated —
for the period starting on (and including) the date the interest was payable and ending on (and including) the date of the bankruptcy order; and
at the prescribed rate of interest.
(3)
Interest on preferential debts ranks equally with interest on other debts.
(4)
In this section, “interest” includes any pecuniary consideration in lieu of interest and any penalty or late payment charge by whatever name called.