Chit Funds (Deposits of Percentage of Paid-up Capital and of Security) Regulations 1972

These Regulations are the Chit Funds (Deposits of Percentage of Paid-up Capital and of Security) Regulations 1972.

A chit fund company must at all times have in respect of its business a deposit in cash with the Monetary Authority of Singapore constituted under the Monetary Authority of Singapore Act 1970 to the value of not less than 50% of the paid-up capital of that company and such deposit must be retained by the Authority until the company ceases to hold a licence under the Act.

Immediately after the signing of the agreement by the last intending subscriber, the chit fund company must, as security for the due discharge of its duty and liability under the agreement, deposit cash to the value of the chit fund amount or securities guaranteed by the Government valued at the equivalent of the chit fund amount, in such bank as may be approved for that purpose by the Authority.

The security furnished under regulations 2 and 3 must not —

be liable to be attached in execution of a decree or otherwise; or

be alienated in any manner whatsoever and any such alienation by way of transfer or charge, mortgage or other encumbrance is void.