Chit Funds Act 1971 · 2020 Revised Edition · Part 7 · Miscellaneous Provisions
54. Redemption of securities held by chit fund company
Feedback & supportLast amended by an amending law of 2018.
As soon as practicable after the making of an order for the winding up of a chit fund company, the liquidator of the company —
chit fund company
“chit fund company” means a company which carries on chit fund business and holds a valid licence granted under section 7. All branches and offices in Singapore of the company are deemed to be one chit fund company for the purposes of this Act;
must publish in the Gazette a notice requiring every debtor of the chit fund company to redeem any property the debtor has deposited with the company as security for any loan that he or she has obtained from the chit fund company; and
must also send by registered post the notice to every debtor whose security is held by the chit fund company and whose name is mentioned in the statement of affairs made out under section 141 of the Insolvency, Restructuring and Dissolution Act 2018.
The notice must specify the latest date up to which any security may be redeemed, which date must not be less than 3 months from the date of the notice.
After the latest date for redeeming any security held by the chit fund company specified in the notice, the liquidator may proceed to realise any security held by the chit fund company forthwith, despite any agreement setting out any other period of redemption previously entered into between the chit fund company and the debtor.
agreement
“agreement” means the document which contains the terms and conditions agreed to and adopted by the subscribers and the chit fund company;