Singapore legislation
Clause 43
Clause 43
Limits on lending powers of chit fund company
(1)
No chit fund company shall lend to any person other than to a subscriber who has not purchased the chit fund amount.
(2)
A chit fund company may lend to a subscriber who has not purchased the chit fund amount but the amount so lent shall not exceed seventy-five per cent of the aggregate contributions already paid by that subscriber or such other percentage as may be specified in regulations made under this Act.
(3)
A chit fund company that lends to a subscriber under subsection (2) of this section shall not be deemed to be a moneylender under the Moneylenders Act and that Act (Cap. 220) shall not accordingly apply to any transaction under this section.