Singapore legislation

Regulation 21

of Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024

Regulation 21

Secured liabilities in relation to reverse transfer and onward transfer

Subregulation 1

This regulation applies where, under a contract to which a transferee is a party, one party owes to the other a liability that is secured against any property or rights.

Subregulation 2

A reverse transfer under section 70 of the Act of a part (but not the whole) of the business of a transferor that was transferred to a transferee under a certificate of transfer must not provide for —

(a)

the transfer of the liability without the benefit of the security;

(b)

the transfer of the benefit of the security without the liability; or

(c)

the transfer of the property or rights without the liability and benefit of the security.

Subregulation 3

An onward transfer under section 72 of the Act of a part (but not the whole) of the business of a transferor that was transferred to a transferee under a certificate of transfer must not provide for —

(a)

the transfer of the liability without the benefit of the security;

(b)

the transfer of the benefit of the security without the liability; or

(c)

the transfer of the property or rights without the liability and benefit of the security.

Subregulation 4

For the purposes of paragraph (1), it is immaterial —

(a)

whether or not the liability is secured against all, or substantially all, of the properties and rights of the transferee;

(b)

whether or not the liability is secured against specified properties or rights; and

(c)

whether or not the property or rights against which the liability is secured is or are owned by the person who owes the liability.