Clause 4

by inserting, immediately after the word “bank” wherever it appears in subsections (1) and (2), the words “or qualifying finance company”;

by deleting subsection (3) and substituting the following subsection:“(3) Where in a scheme of amalgamation involving 2 or more banks or finance companies whereby the whole or substantially the whole of the undertaking of any bank or finance company is transferred to another bank or finance company, the Minister may, if he thinks fit and on such conditions as he may impose, by order declare that any provisions in the account of the transteror bank or transferor finance company which have been transferred to the transferee bank or transferee finance company shall not be deemed under subsection (2)(b) to be a trading receipt of the transferor bank or transferor finance company; and the provisions so declared shall for the purposes of this section be treated as having been allowed to the transferee bank or transferee finance company as a deduction under this section.”;

by inserting, immediately after the definition of “bank” in subsection (6), the following definition:“ “capital funds” has the same meaning as in the Finance Companies Act [Cap. 108];”;

by deleting the words “or advance made or granted by a bank,” in the first and second lines of the definition of “loan” in subsection (6) and substituting the words “, advance or credit facility made or granted by a bank or qualifying finance company,”;

by inserting, immediately after the definition of “provisions” in subsection (6), the following definition:“ “qualifying finance company” means a company licensed under the Finance Companies Act [Cap. 108] to carry on financing business which has, in the basis period for any year of assessment for which the deduction under this section is first allowed, capital funds of not less than $50 million and a capital adequacy ratio of not less than 12% as determined under that Act;”;

by inserting, immediately after the word “bank” wherever it appears in the definitions of “provisions”, “qualifying profit” and “securities” in subsection (6), the words “or qualifying finance company”;

by inserting, immediately after the words “section 10B” in paragraph (c) of the definition of “securities” in subsection (6), the words “or in any unit trust designated under section 35(7C)”; and

by inserting, immediately after the word “banks” in the marginal note, the words “and qualifying finance companies”.