Clause 16

In anticipation of the raising of a loan under the authority of this Act the Minister may, if he thinks fit, authorise acceptance by the Authority of advance deposits.

Advance deposits shall be applied to the purchase of stock or bearer bonds of the first loan issued by Singapore after the date on which such deposits were received by the Authority unless a depositor gives notice in writing within seven days after the date of issue of such loan that he wishes advance deposits or part thereof made by him to be repaid.

Where a depositor gives notice that he wishes the whole or part of the advance deposits made by him to be repaid the deposits or that part of them as the case may be shall be repaid to him immediately, but no interest shall be payable on them.

Advance deposits that are applied to the purchase of stock or bearer bonds in accordance with subsection (2) of this section shall carry interest at the rate applicable to such stock or bearer bonds calculated from the date the deposit was received by the Authority and that interest shall be a charge on the Consolidated Fund.