Clause 29

No bank shall make any loans or advances exceeding in the aggregate thirty per centum of the amount of its deposits in Singapore (including the deposits and borrowings from any other bank at that bank) on the security of immovable property for the purpose of purchasing, improving or altering the immovable property:Provided that any bank whose business is principally in such loans or advances may, with the prior written consent of the Commissioner, make such loans or advances in an aggregate amount up to, but not in excess of sixty per centum of the amount of its deposits in Singapore (including the deposits and borrowings from any other bank at that bank).

A loan or advance secured solely by a mortgage, dead of trust, or other such instrument upon immovable property or by notes or other obligations which are so secured, shall, for the purpose of subsection (1) of this section, be a loan or advance secured by immovable property; a loan or advance secured in part by mortgage, deed of trust, or other instrument upon immovable property, or by notes or other obligations which are so secured, or by any other form of security, shall, for the purposes of this subsection, be a loan or advance secured by immovable property to the extent, but only to the extent, of the value of that immovable property as a security as determined by the Commissioner.

Nothing in this section shall be construed to prohibit any bank from accepting as security for a loan or advance made in good faith without security or upon security subsequently found to be inadequate, a mortgage, deed of trust, or other instrument upon immovable property, or notes or other obligations which are so secured.

The provisions of this section shall not apply to the Development Bank of Singapore, Limited.

Any bank which contravenes the provisions of subsection (1) of this section shall be guilty of an offence under this Act.