Regulation 28

to the performance by a third party of certain specified obligations; or

to the change in creditworthiness of the third party;“overseas bank” means a company incorporated, formed or established outside Singapore that carries on banking business only outside Singapore and is not licensed under the Act;“property corporation” means a body corporate where —

more than 50% of the total turnover of the body corporate is derived from property‑related activities; or

more than 50% of the total assets of the body corporate comprises interests in or rights over immovable property situate in Singapore, other than an immovable property or any part of an immovable property that is used —

as premises for the conduct of any business carried on by the body corporate;

for the business of a hotel, hostel, serviced apartment, boarding house, lodging house or dormitory; or

for community, charity or educational purposes;“property‑related activity” means —

the construction of or the causing of the construction of any building on, over or under land in Singapore for the purpose of sale by the person carrying out or causing the construction, of any right or interest in the land that would be appurtenant to the building, other than a building or part of a building constructed for use —

for the business of a hotel, hostel, serviced apartment, boarding house, lodging house or dormitory; or

for community, charity or educational purposes;

the acquisition or holding of any interest in or right over immovable property situate in Singapore for the purpose of rental, or for the purpose of securing a profit from its sale, other than an immovable property or part of an immovable property that is —

used or to be used by the person acquiring or holding the immovable property for occupation by the person or any member of the person’s family or as premises for any business carried on by the person;

used or to be used for the business of a hotel, hostel, serviced apartment, boarding house, lodging house or dormitory; or

used or to be used for community, charity or educational purposes;

the financing of any activity mentioned in paragraph (a) or (b);

the making of loans to any property corporation;

the acquisition or holding as beneficial owner of shares or debentures issued by any property corporation; and

the acquisition or holding as beneficial owner of debentures the payment of principal or interest on which is contingent, directly or indirectly, on the turnover, profits or cashflow from any activity under paragraph (a), (b), (c), (d) or (e);“total eligible assets”, in relation to a merchant bank in Singapore, means the aggregate of —

amounts outstanding to the merchant bank under credit facilities granted to any person other than a bank, a merchant bank or an overseas bank;

amounts of debentures beneficially held by the merchant bank and issued by any other person who is not a bank, a merchant bank or an overseas bank;

amounts paid by the merchant bank for securities transferred to it under a repurchase transaction between the merchant bank and any other party who is not a bank, a merchant bank or an overseas bank, on terms that require the future transfer of equivalent securities by the merchant bank to the other party;

amounts of contingent liabilities incurred by the merchant bank —

in respect of any obligation of a property corporation; or

in respect of any obligation of any other person, where such obligation is undertaken in connection with property‑related activities;

where the merchant bank has entered into any agreement (including a credit derivative agreement) with any other party under which the other party would secure a benefit or avoid a loss where there is —

a failure by a property corporation to perform its obligations;

a decline in the creditworthiness of a property corporation; or

a failure by any person other than a property corporation to perform its obligations where such obligations are undertaken in connection with property‑related activities,the highest amount of such benefit or loss as may be secured or avoided (as the case may be) except to the extent that such amount constitutes part of any amounts under paragraph (d); and

amounts payable to the merchant bank by any person, other than a bank, a merchant bank or an overseas bank, under a bill of exchange or promissory note,but does not include any amounts in respect of —

in the case of a merchant bank incorporated in Singapore, any instrument or transaction described in paragraphs (a) to (f) not forming part of the merchant bank’s business in Singapore, except to the extent that such instrument or transaction forms part of the property sector exposure of the merchant bank; or

in the case of the branches and offices located in Singapore of a merchant bank incorporated outside Singapore, any instrument or transaction described in paragraphs (a) to (f) not forming part of the merchant bank’s business in Singapore.