Singapore legislation

Schedule 1

Transactions where goods are deemed to be or not to be pawned

FIRST SCHEDULESection 3(4)Transactions where goods are deemed to be or not to be pawnedSale and re-purchase agreement1.—

(1)

This paragraph applies to an agreement between 2 persons, X and Y, where —

(a)

X sells goods to Y for a price; and

(b)

X is required to re-purchase the goods from Y at a higher price.(2) In such an agreement —

(a)

the goods are deemed to be pawned;

(b)

X is deemed to be the pawner;

(c)

the sale price is deemed to be the sum loaned; and

(d)

the difference between the sale price and the re-purchase price is deemed to be the profit taken for the loan.