Singapore legislation

Regulation 13D

of Insurance (Lloyd’s Asia Scheme) Regulations

Regulation 13D

Debt securities

Amended byS 814/2004 wef 01/01/2005

Subregulation 1

A Service Company shall value a debt security as follows:

(a)

where it is listed on any securities exchange, at its market value; or

(b)

where it is not listed on any securities exchange, at its net realisable value.

Subregulation 2

Amended byS 814/2004 wef 01/01/2005

In determining the net realisable value of a debt security that is not listed on a securities exchange, the Service Company shall take into account —

(a)

the prevailing interest rate;

(b)

the likelihood of default by the issuer; and

(c)

the cash flows that are expected to arise from the debt security.