Singapore legislation
Clause 17
Clause 17
Demand deposits, dealings in foreign exchange, etc., by finance companies
(1)
No finance company shall —
accept any deposit which is repayable on demand by cheque, draft or order;
deal in gold or foreign exchange of whatever kind; or
grant unsecured advances, unsecured loans or unsecured credit facilities which in the aggregate and outstanding at any one time exceed the sum of one thousand dollars to —
a firm in which it or any of its directors is interested as partner, manager or agent, or to any individual or firm of whom, or of which, any of its directors is a guarantor; or
any other person or body of persons whether incorporated or not.
(2)
In paragraph (c) of subsection (1) of this section, the expressions “unsecured advances”, “unsecured loans” or “unsecured credit facilities” mean advances, loans or credit facilities made without security or, in respect of any advance, loan or credit facility made with security, any part thereof which at any time exceeds the market value of the assets constituting that security, or where the Commissioner is satisfied that there is no established market value, on the basis of a valuation approved by the Commissioner.
(3)
In sub-paragraph (i) of paragraph (c) of subsection (1) of this section, the word “directors” includes the wife, husband, father, mother, son or daughter of a director.
(4)
All the directors of a finance company shall be liable jointly and severally to indemnify a finance company against any loss arising from the making of any unsecured advance, loan or credit facility under sub-paragraph (i) of paragraph (c) of subsection (1) of this section.