Clause 66

by deleting the word “and” at the end of subsection (1)(b)(v) of section 15, and by inserting immediately thereafter the following sub-paragraph:“(vi)is contravening or has contravened any provision of the Deposit Insurance Act 2005 or any rules issued by the deposit insurance agency under the Deposit Insurance Act 2005; and”; and

by inserting, immediately after section 43, the following sections:“Priority of specified liabilities44.—

Where a finance company becomes unable to meet its obligations or becomes insolvent or suspends payment, the assets of the finance company shall be available to meet the liabilities in Singapore of the finance company specified in section 44A.(2) The liabilities in Singapore specified in section 44A shall have priority over all unsecured liabilities of the finance company other than the preferential debts specified in section 328(1) of the Companies Act (Cap. 50).Priority of specified liabilities inter se44A.—

Notwithstanding the provisions of any written law or rule of law relating to the winding up of companies, in the event of a winding up of a finance company, the following liabilities in Singapore of the finance company shall, amongst themselves, rank in the following order of priority:

firstly, any premium contributions due and payable by the finance company under the Deposit Insurance Act 2005;

secondly, liabilities incurred by the finance company under the Deposit Insurance Act 2005 in respect of insured deposits, up to the amount of compensation paid or payable out of the Fund by the Agency under the Deposit Insurance Act 2005 in respect of such insured deposits.(2) The liabilities in each class specified in subsection (1) shall —

rank in the order specified but as between liabilities of the same class, such liabilities shall rank equally between themselves; and

be paid in full unless the assets of the finance company are insufficient to meet them in which case they shall abate in equal proportions between themselves.”.