Singapore legislation
Clause 36
Clause 36
Repeal of sections 67 to 70 and re-enactment of sections 67, 68 and 69
Sections 67 to 70 of the principal Act are repealed and the following sections substituted therefor:“Restrictions on loans67.—
Subject to subsection (2), a credit society shall not make a loan or allow any credit to any person other than —
a member of the credit society or his immediate family member;
an employee of the credit society; or
another society that is not a member of the credit society, with the written approval of the Registrar.(2) For the purposes of subsection (1), a credit society may make loans or allow credit to persons who are not members of the credit society only to such extent and under such conditions as may be prescribed by its by-laws.(3) In this section, “immediate family member” shall have such meaning as may be prescribed.Restrictions on borrowing68.—
A society may receive loans from persons who are not members of the society only to such extent and under such conditions as may be prescribed by its by-laws and in the Rules.(2) A credit society shall not receive any deposit from any person other than a member of the credit society, or his immediate family member to such extent and under such conditions as may be prescribed by its by-laws.(3) A society which, under its by-laws, has power to borrow money shall determine from time to time at a general meeting —
the maximum liability which it may incur in loans from non-members; and
where the society is a credit society, the maximum liability which it may incur in loans or deposits from its members and their immediate family members.(4) The maximum liabilities determined under subsection (3)(a) and (b) shall be subject to the approval of the Registrar who may, at any time, reduce one or both of the maximum liabilities or impose such conditions as he thinks necessary.(5) In this section, unless the context otherwise requires —“immediate family member” shall have such meaning as may be prescribed;“loan”, in relation to a society, means —
the granting of an advance and other facility by a person to the society whereby the society has access to funds or financial guarantees; or
the incurring by the person of other liabilities on behalf of the society.Investment of funds69.—
A society may invest or deposit its funds in such manner as it thinks fit.(2) Notwithstanding section 63, any person who exercises any power of investment in relation to the funds of a society pursuant to subsection (1) shall, when exercising such power of investment, be subject to the same duty of care imposed on a trustee under section 3A of the Trustees Act (Cap. 337).”.