Singapore legislation
Clause 320
Clause 320
Restriction on borrowing by investment companies
(1)
An investment company shall not borrow an amount if that amount, or the sum of that amount and amounts previously borrowed by it and not repaid exceeds an amount equivalent to fifty per centum of its net tangible assets.[Aust.s. 335.]
(2)
An investment company shall not borrow an amount otherwise than by the issue of debentures if that amount, or the sum of that amount and amounts previously borrowed by it otherwise than by the issue of debentures and not repaid, exceeds an amount equivalent to twenty-five per centum of its net tangible assets.
(3)
In subsection (2) of this section “debentures” does not include a debenture —
that is redeemable, except at the option of the borrower exercised not earlier than two and one half years after the date of issue of the debenture, within less than five years after that date; or
that is issued to a banking corporation as security for an overdraft.