Singapore legislation
Clause 86
Clause 86
Application of fund
(1)
Subject to this Part, a fidelity fund shall be held and applied for the purpose of compensating persons who suffer pecuniary loss from any defalcation committed by a member company or any of its directors or by any of the employees of such a member company in relation to any money or other property which, whether before or after the commencement of this Act, in the course of or in connection with the business of that company —
was entrusted to or received by a member company or any of its directors or any of the company’s employees for or on behalf of any other person; or
(the member company, being in respect of the money or other property, either the sole trustee or trustees or trustee or trustees with any other person or persons) was entrusted to or received by the member company or any of its directors or any of the company’s employees as trustee or trustees or for or on behalf of the trustees of that money or property.
(2)
Save as otherwise provided in this section, the total amount that may be paid under this Part to all persons who suffer loss through defalcations by a member company or any of its directors or through defalcations by any of the company’s employees shall not, in any event, exceed in respect of that member company the sum of $200,000, but for the purposes of this subsection any amount paid from a fidelity fund shall to the extent to which the fund is subsequently reimbursed therefor be disregarded.
(3)
If, after taking into account all ascertained or contingent liabilities of a fidelity fund, the committee considers that the assets of the fund so permit, the committee may decide to increase the total amount which may be applied from that fund pursuant to subsection (2) and shall inform the Authority accordingly who shall then cause notice of such decision to be published in the Gazette.