Singapore legislation

Clause 3

of Post Office Savings Bank of Singapore (Amendment) Bill

Clause 3

Repeal and re-enactment of section 5

Section 5 of the principal Act is repealed and the following sections substituted therefor:“Powers of the Bank

5. Subject to section 5A, the Bank shall have the following powers:

(a)

to receive money on savings, current or deposit account;

(b)

to pay and collect cheques drawn by or paid in by its customers;

(c)

to grant any advances, loans or credit facilities to its customers;

(d)

to acquire or dispose of any property, movable or immovable, which the Bank thinks necessary or expedient;

(e)

to buy, sell, discount and re-discount bills of exchange, promissory notes and treasury bills;

(f)

to issue bills and drafts and effect transfers of moneys;

(g)

to appoint agents to act on behalf of the Bank;

(h)

to form or participate in the formation of a company or enter into partnership or an arrangement for the sharing of profits as may be conducive to the functions of the Bank;

(i)

to provide training facilities for its employees or do anything for the purpose of advancing the skill and knowledge of its employees;

(j)

to grant loans to its employees for the purpose specifically approved by the Bank;

(k)

to promote recreational activities for and activities conducive to the welfare of its employees; and

(l)

to do anything incidental to any of its functions and powers.Restrictions on the Bank5A.—

(1)

Notwithstanding any other provisions of this Act, the Bank shall not —

(a)

without the written approval of the Minister, accept accounts from persons other than individuals;

(b)

grant any advances, loans or credit facilities to any individual —

(i)

without any security if such advances, loans or credit facilities in the aggregate and outstanding at any one time exceed the sum of $5,000;

(ii)

solely upon the security of any guarantee or guarantees if such advances, loans or credit facilities in the aggregate and outstanding at any one time exceed the sum of $30,000;

(c)

without the written approval of the Minister, make any advances, loans or credit facilities to any company, partnership, or body corporate or unincorporated except —

(i)

a statutory body;

(ii)

companies in which the Government or a statutory body has a substantial interest, and companies which are related or deemed to be related to those companies by virtue of section 6 of the Companies Act (Cap. 185);

(d)

through any company or undertaking do anything which the Bank is not authorised to do or is prohibited from doing.(2) Except as authorised by this Act, the Bank shall not engage in any commercial, industrial or financial undertaking or acquire any direct interest in the stocks or shares of any trading, industrial or financial company.(3) For the purposes of subsection (1)(c), the Government or a statutory body has a substantial interest in a company if it, either by itself or together with any other statutory body, has an interest or interests in one or more voting shares in the company and the nominal amount of that share, or the aggregate of the nominal amounts of those shares either held by itself or together with any other statutory body, is not less than 20 per cent of the aggregate of the nominal amount of all the voting shares in the company.”.

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