Singapore legislation
Regulation 3
of Chit Funds (Deposits of Percentage of Paid-up Capital and of Security) Regulations 1972
Regulation 3
Deposit with bank
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.