Development Loan Bill

“advance deposits” means such deposits as are received under section 21;

“Authority” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act (Cap. 195);

“bearer bond” means a bearer bond issued under this Act;

“book-entry Government security” means any stock or bond issued in Singapore under Part IV in the form of an entry on the records of the Authority;

“local stock” means any stock or book-entry Government security issued in Singapore under this Act or any stock issued under any of the written laws set out in the Schedule;

“regulations” means regulations made under this Act and, in relation to any particular issue of stock, bearer bonds or book-entry Government securities, includes any notification in the Gazette varying such regulations in relation to that issue;

“trustee stock” means any of the securities mentioned in any written law for the time being in force relating to trustees.

The interest upon the principal moneys represented by stock, bearer bonds or book-entry Government securities issued under this Act shall be paid half-yearly at the office of the Authority as shall be specified in the regulations relating to the issue of the stock, bearer bonds or book-entry Government securities.

The Minister shall, in each half-yearly period ending with the day on which interest on stock, bearer bonds or book-entry Government securities issued under this Act falls due, appropriate out of the Consolidated Fund a sum equal to the appropriate half-year’s interest on the whole of the stock, bearer bonds or book-entry Government securities so issued in order that the interest for that half-year may be paid therefrom.

Stock, bearer bonds or book-entry Government securities issued under this Act shall be redeemable at par on such dates as may be specified in the regulations relating to the issue of stock, bearer bonds or book-entry Government securities, after which dates all the interest on the principal moneys represented thereby shall cease and determine, whether payment of the principal moneys has been demanded or not.

Redemption proceeds of book-entry Government securities shall be disposed of in accordance with the instructions from the depositor for whose account the securities shall have been maintained by the Authority.

Commencing not later than two years after the date on which interest on stock, bearer bonds or book-entry Government securities issued under this Act commences to run, the Minister shall in each half-year ending on the day on which interest on the stock, bearer bonds or book-entry Government securities falls due in addition to the sum appropriated in accordance with section 15(2), appropriate out of the Consolidated Fund for the formation of a sinking fund a sum equal to one-half of the annual contributions specified in the regulations relating to the issue of the stock, bearer bonds or book-entry Government securities.

Notwithstanding subsection (1), the Minister may from time to time appropriate out of the Consolidated Fund money for the purpose of making additional contributions to the sinking fund established under subsection (1):Provided that the total amount in the sinking fund with the additional contributions does not exceed the outstanding principal moneys represented by the stock, bearer bonds and book-entry Government securities.

The Minister may at any time apply all or any part of the moneys in the sinking fund created under this section to the purchase of trustee stock or local stock or of any other stock, fund, security or investment mentioned in section 7(3) of the Financial Procedure Act (Cap. 68).

The Accountant-General shall in each year pay into the sinking fund created under this section a sum equal to the annual interest that would have been payable on any local stock purchased under subsection (3) if such stock had not been purchased as aforesaid.

If at any time the Minister is satisfied that the value of the sinking fund established under subsection (1) will be sufficient with further accumulations of interest and net income from investments of moneys in the sinking fund but without further payment of contributions under subsections (1) and (2) to enable the loan to be redeemed out of the proceeds of the sinking fund when it falls due to be redeemed, the Minister may suspend further payments of such contributions to the sinking fund, except that the Minister may at any time recommence payment of such contributions if he considers this to be necessary.

For the purposes of subsection (5), the net income from investments shall be the amount ascertained by adding to, or deducting from, the income received from investments of moneys in the sinking fund any profit derived or loss sustained, as the case may be, from the realisation of such investments.

The Minister may from time to time raise, in the manner hereinafter provided, a sum of money not exceeding in the whole the sum of $35,000 million to be applied in the manner provided in this Act.

The loan hereby authorised or any part of it may be raised in Singapore by the issue of stock, bearer bonds or book-entry Government securities under the provisions of Parts III and IV.

Stock issued under this Act shall be issued by the Authority upon such terms as may be prescribed in the regulations and shall be authenticated either by the signature of the Minister or by facsimile of his signature or in such manner as may be approved by the Minister.

Stock issued under this Act shall be in such form as the Minister may from time to time approve.

All stock issued under this Act shall be entered in a register to be kept by the Authority.

All stock issued under this Act and the right to receive the principal moneys and interest represented by it shall be transferable by an instrument of transfer registered by the Authority.

No stock issued under this Act shall be registered except in the name of an individual person or persons or of a corporation.

Bearer bonds issued under this Act shall be issued by the Authority upon such terms as may be prescribed in the regulations and shall be authenticated either by the signature of the Minister or by facsimile of his signature or in such manner as may be approved by the Minister.

Every bearer bond shall, when issued, bind the Government to pay the bearer the principal sum mentioned in that bond and interest thereon in accordance with the terms and conditions of the issue.

Bearer bonds shall be transferable by delivery without endorsement.

“depositary institution” means a financial institution approved by the Authority which regularly accepts in the course of its business book-entry Government securities by way of a custodial service for its customers and maintains accounts in the names of its customers reflecting ownership or interest in such book-entry Government securities;

“depositor” means any person in whose name an account is established and maintained on the records of the Authority;

“pledge” includes a pledge of, or any security interest in, book-entry Government securities as collateral for loans or advances, or to secure deposits of public moneys or the performance of an obligation;

“security interest” means an interest, not being an interest arising from a trust, in property which secures the payment of a debt or performance of an obligation.

The Authority may —

The Authority is authorised to take all action necessary in respect of book-entry Government securities to enable the Authority in its own capacity to perform its obligations as depositary with respect to such securities.

A transfer or a pledge of book-entry Government securities to the Authority or to the Government or to any transferee or pledgee eligible to maintain an appropriate account in its name with the Authority shall be effected, notwithstanding any written law to the contrary, by the Authority making an appropriate entry in its records of the securities transferred or pledged.

The making of an entry in the records of the Authority under subsection (1) shall —

A transfer or a pledge of a book-entry Government security effected in accordance with this section shall have priority over any transfer or pledge involving, or any interest in, the security effected or created in any other manner before, on or after the date of the transfer or pledge in accordance with this section.

Notwithstanding section 11, a transfer or a pledge of book-entry Government securities, or any interest therein, which is maintained by the Authority in an account may be effected by any means that would be effective to effect a transfer or pledge of book-entry Government securities, or any interest therein, if the securities were issued by the Authority in the form of engraved or printed certificates.

The Authority shall be deemed not to be —

Where book-entry Government securities are recorded on the books of a depositary institution for account of the pledgor or transferor thereof and such securities are on deposit with the Authority in an account, such depositary institution shall, for the purposes of effecting delivery of such securities to a purchaser or pledgee, be deemed to be the bailee to which notification of the pledge of the securities may be given or to be the person in possession from which acknowledgment of the holding of the securities may be obtained.

The Authority shall not accept any notice or advice of a transfer or pledge of any book-entry Government security not effected in accordance with section 11 and any such notice or advice shall be void.

The Authority may continue to deal with its depositor in accordance with this Part notwithstanding any transfer or pledge not effected in accordance with section 11.

The Authority shall not be liable for conversion or for participation in any breach of fiduciary duty where the Authority has, in respect of book-entry Government securities maintained in accounts maintained by the Authority, effected pledges or made entries regarding the securities, or transferred or delivered the securities, according to the instructions of its depositor notwithstanding that the depositor had no right to dispose of or take any other action in respect of the securities.

The Authority shall be fully discharged of its obligations under this Part by the transfer or delivery of book-entry Government securities upon the instructions of its depositor.

In anticipation of the raising of a loan under this Act, the Minister may, if he thinks fit, authorise acceptance by the Authority of advance deposits on such terms as the Authority may determine.

Advance deposits shall be applied to the purchase of stock, bearer bonds or book-entry Government securities issued under this Act after the date the deposits were effectively received by the Authority.

Advance deposits shall carry interest at such rate as may be determined by the Authority which shall be calculated from the date the deposit was effectively received by the Authority.

For the purposes of subsection (3), where cheques for the advance deposits cannot be cleared on the day of receipt, interest shall be calculated from the next working day.

If a depositor wishes the whole or part of the advance deposits made by him to be repaid, he shall give not less than two working days’ notice to the Authority of his intention and the deposits or that part of them, as the case may be, shall be repaid to him together with such interest as may be determined by the Authority.

Interest on advance deposits shall be a charge on the Consolidated Fund and shall be paid half-yearly.

The Minister shall, in each half-yearly period ending with the day on which interest on advance deposits received under this Act falls due, appropriate out of the Consolidated Fund a sum equal to the appropriate half-year’s interest on the advance deposits in order that the interest for that half-year may be paid therefrom.

The Authority may, from time to time, by public notice invite the public to apply to take up stock, bearer bonds or book-entry Government securities issued under this Act.

The Authority may refuse any application to take up stock, bearer bonds or book-entry Government securities issued under this Act without assigning any reason.

The Authority may, with the approval of the Minister, make regulations for prescribing anything which may be prescribed under this Act and generally for the purpose of carrying this Act into effect, and in particular may make regulations —

The Authority may, with the approval of the Minister, by notification in the Gazette, vary the regulations in relation to any particular issue of stock, bearer bonds or book-entry Government securities issued under this Act.