Singapore legislation
Clause 9
Clause 9
Amendment of section 49I
Section 49I of the principal Act is amended by deleting subsection (2) and substituting the following subsections:“(2) Subject to this Part, the fidelity fund shall be applied for the purpose of paying to the Official Assignee or a trustee in bankruptcy within the meaning of the Bankruptcy Act (Cap. 20) an amount not greater than the amount that the Official Assignee or the trustee in bankruptcy, as the case may be, certifies is required in order to make up or reduce the total deficiency arising because the available assets of a bankrupt who is a member of a Futures Exchange are insufficient to satisfy any debts arising from dealings in futures contracts that have been proved in the bankruptcy by creditors of the bankrupt member.(2A) Subsection (2) shall apply in the case of a member of a Futures Exchange who has made a voluntary arrangement with his creditors under Part V of the Bankruptcy Act in like manner as that subsection applies in the case of a member who has become bankrupt.(2B) For the purposes of subsection (2A) —
a reference to a trustee in bankruptcy in subsection (2) shall be deemed to be a reference to a nominee within the meaning of Part V of the Bankruptcy Act;
a reference to debts proved in bankruptcy in subsection (2) shall be deemed to be a reference to debts provable in relation to a voluntary arrangement within the meaning of Part V of the Bankruptcy Act; and
a reference to the bankrupt in subsection (2) shall be deemed to be a reference to the person who made the voluntary arrangement under Part V of the Bankruptcy Act.(2C) Subject to this Part, the fidelity fund shall be applied for the purpose of paying to a liquidator of a member that is being wound up an amount not greater than the amount that the liquidator certifies is required to make up or reduce the total deficiency arising because the available assets of the member are insufficient to satisfy any debts arising from dealings in futures contracts that have been proved in the liquidation of the member.(2D) Where a claim has been made for compensation in respect of a pecuniary loss under subsection (1), no claim for a payment under subsection (2) or (2C) shall be made in respect of the same pecuniary loss.(2E) Where a claim has been made for a payment in respect of a deficiency referred to in subsection (2), no claim for compensation under subsection (1) or for a payment under subsection (2C) shall be made in respect of the same deficiency.(2F) Where a claim has been made for a payment in respect of a deficiency referred to in subsection (2C), no claim for compensation under subsection (1) or for a payment under subsection (2) shall be made in respect of the same deficiency.(2G) Moneys paid under subsection (2) or (2C) may only be applied by the Official Assignee, trustee in bankruptcy, nominee or liquidator, as the case may be, for the purpose of satisfying debts arising from dealings in futures contracts, and for no other purpose.(2H) Subject to the provisions of this section, the amount or the sum of the amounts that may be paid out of the fidelity fund under this Part for the purpose of —
compensating pecuniary loss under subsection (1); or (b)making a payment under subsection (2) or (2C), shall not, in respect of each member, exceed the prescribed amount.(2I) Subject to the provisions of this section —
the amount that may be paid out of the fidelity fund to each claimant under subsection (1); or
the amount that the Official Assignee, a trustee in bankruptcy, a nominee or a liquidator may pay to each creditor of a member from any amount paid to the Official Assignee, trustee in bankruptcy, nominee or liquidator, as the case may be, under subsection (2) or (2C), shall not exceed the prescribed amount.(2J) For the purposes of subsections (2H) and (2I), any amount paid from the fidelity fund shall, to the extent to which the fund is subsequently reimbursed therefor, be disregarded.”.