18. The principal Act is amended by inserting, immediately after section 70H, the following Part:“PART VB Interpretation of this Part |
70I. In this Part, unless the context otherwise requires —“claimant” means any person who claims to be entitled to, or to be authorised to receive, any transferred unclaimed client money; |
“Fund” means the Unclaimed Money Fund maintained and administered by the Society under section 70J; |
“transfer date” means —(a) | in relation to any transferred unclaimed client money, the date on which the Society approves an application for the payment of that money into the Fund under section 70K; and | (b) | in relation to any transferred unclaimed intervention money, the date on which that money is paid into the Fund under paragraph 11(3) of the First Schedule; |
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“transferred unclaimed client money” means any money paid into the Fund under section 70K; |
“transferred unclaimed intervention money” means any money paid into the Fund under paragraph 11(3) of the First Schedule; |
“trust account” means a trust account within the meaning of any rules made under section 72(1). |
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70J.—(1) The Society must maintain and administer, in accordance with this section, a fund called the Unclaimed Money Fund.(2) Subject to any limitation prescribed by rules made under section 70N, any transferred unclaimed client money or transferred unclaimed intervention money paid into the Fund vests in the Society, and belongs to the Society absolutely, with effect from the transfer date of that money. |
(3) Subject to any limitation prescribed by rules made under section 70N —(a) | any moneys that form part of the Fund and are not immediately required for any other purpose may be invested by the Society; | (b) | the following moneys in the Fund may be used to fund pro bono services provided by the Society or by any wholly‑owned subsidiary of the Society:(i) | any interest, dividends and other accretions of capital arising from the investment of moneys that form part of the Fund; | (ii) | such transferred unclaimed client money and transferred unclaimed intervention money as may be prescribed by rules made under section 70N; |
| (c) | such transferred unclaimed client money and transferred unclaimed intervention money, as may be prescribed by rules made under section 70N, may be used to make payments to claimants under section 70L; | (d) | such transferred unclaimed intervention money, as may be prescribed by rules made under section 70N, may be used to make payments to claimants under paragraph 11(5) of the First Schedule; and | (e) | any interest, dividends and other accretions of capital arising from the investment of moneys that form part of the Fund may be used to pay any costs, charges and expenses of —(i) | establishing, maintaining, administering and applying the Fund; and | (ii) | administering this Part. |
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(4) Except with the prior written approval of the Minister, the Society must not invest or use any moneys that form part of the Fund other than in accordance with subsection (3). |
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Transfer of unclaimed client money to Fund |
70K.—(1) A solicitor or Singapore law practice may apply to pay into the Fund any money that is held by the solicitor or Singapore law practice for or on account of a client (except any money held in a trust account), if that solicitor or Singapore law practice —(a) | intends to pay the money to the client; but | (b) | is unable to do so, despite making such reasonable efforts as the Society may require. |
(2) The Society may approve an application made under subsection (1), subject to any conditions imposed by the Society, if the solicitor or Singapore law practice making the application satisfies such requirements as may be prescribed under section 70N for the purposes of this subsection. |
(3) No action to recover any transferred unclaimed client money (or any interest, dividends and other accretions of capital arising from the investment of such money) may be brought, on or after the transfer date of the transferred unclaimed client money, against —(a) | the Society; or | (b) | any wholly-owned subsidiary of the Society to which any money is transferred under section 70J(3)(b). |
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(4) No action to recover any transferred unclaimed client money (or any interest, dividends and other accretions of capital arising from the investment of such money) may be brought, after the expiry of 6 years after the transfer date of the transferred unclaimed client money, against —(a) | the solicitor or Singapore law practice that paid the transferred unclaimed client money into the Fund under subsection (1); or | (b) | any solicitor or Singapore law practice that held that money for or on account of a client at any time before that money was paid into the Fund. |
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(5) To avoid doubt —(a) | subsection (3) does not affect any limitation period that expires before the transfer date; and | (b) | subsection (4) does not affect any limitation period that expires before the limitation period under that subsection. |
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(6) In this section, “client” includes, in addition to any person mentioned in the definition of “client” in section 2(1) —(a) | a person for, or on behalf of, whom is held any money that was transferred, directly or indirectly to a solicitor or Singapore law practice from another solicitor or Singapore law practice; and | (b) | the estate or personal representative of a deceased client. |
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Application for payment of transferred unclaimed client money |
70L.—(1) Despite section 70K(3), at any time within 6 years after the transfer date of any transferred unclaimed client money, any claimant may apply to the Society for the payment of the whole or part of the amount of that money that the claimant claims to be entitled to, or to be authorised to receive.(2) On an application under subsection (1), the Society must pay the relevant amount to the claimant from the Fund if such requirements, as may be prescribed by rules made under section 70N for the purposes of this subsection, are satisfied. |
(3) Subject to subsection (6), the relevant amount mentioned in subsection (2) is —(a) | the amount of any money paid into the Fund under section 70K that a solicitor or Singapore law practice is required, under a court order, to pay the claimant; or | (b) | the amount declared in a statutory declaration (made by any solicitor, or by a solicitor on behalf of any Singapore law practice, mentioned in subsection (4)(b)) to be the amount of any money paid into the Fund under section 70K that the claimant is entitled to or is authorised to receive. |
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(4) A payment to a claimant under subsection (2) discharges the following from liability to the claimant for the amount paid:(a) | the Society; | (b) | any solicitor or Singapore law practice that —(i) | paid the transferred unclaimed client money, which the claimant claims to be entitled to, or to be authorised to receive, into the Fund; or | (ii) | held the money mentioned in sub-paragraph (i) at any time before that money was paid into the Fund. |
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(5) Despite section 70K(3) and subsection (1), if any claimant applies to the Society, after the expiry of 6 years after the transfer date of any transferred unclaimed client money, for the payment of any amount of that money that the claimant claims to be entitled to, or to be authorised to receive, the Society may pay the whole or any part of that amount to the claimant from the Fund. |
(6) No interest is payable on any transferred unclaimed client money by the Society to any claimant under this section. |
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70M.—(1) Money may be paid into the Fund under section 70K(1) or paragraph 11(3) of the First Schedule, despite any rules made under section 73D of the Conveyancing and Law of Property Act (Cap. 61).(2) No breach of trust or other legal liability arises by virtue only of the payment into the Fund of any transferred unclaimed client money or transferred unclaimed intervention money, or the investment or use of money that forms part of the Fund, in accordance with this Part or paragraph 11 of the First Schedule. |
(3) To avoid doubt, this Part and paragraph 11 of the First Schedule do not affect any right to any money that has accrued to the Government on the death of a person who dies intestate without next of kin, before the transfer date of that money. |
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70N.—(1) The Council may, with the approval of the Minister, make rules for the purposes of this Part.(2) Without limiting subsection (1), the rules made under that subsection may prescribe —(a) | any limitation for the purposes of section 70J(2) or (3), and the classes of transferred unclaimed client money and transferred unclaimed intervention money (as the case may be) to which section 70J(3)(b)(ii), (c) or (d) applies; | (b) | any information or declaration that must be provided with an application under section 70K(1); | (c) | any requirements for the purposes of section 70K(2); | (d) | any requirements for the purposes of section 70L(2); | (e) | any action that the Society may take to ascertain whether the rules made under this section are being complied with, which action may include imposing a requirement that a solicitor or Singapore law practice that pays any transferred unclaimed client money into the Fund under section 70K must —(i) | continue to keep and maintain such records relating to the money as the Society may require; and | (ii) | produce to the Society those records and such other information as the Society may, from time to time, require for the administration of this Part; and |
| (f) | any other thing that may be prescribed for the purposes of this Part. |
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(3) Disciplinary proceedings may be taken against any solicitor who contravenes any rules made under this section. |
(4) The Director of Legal Services may exercise, against any law firm, any limited liability law partnership and any law corporation that contravenes any rules made under this section, the powers under sections 133, 145 and 161, respectively. |
(5) This Part and any rules made under subsection (1) apply, with such modifications as may be prescribed under subsection (6), to —(a) | any regulated foreign lawyer; and | (b) | any Joint Law Venture or its constituent foreign law practice, any Qualifying Foreign Law Practice or any licensed foreign law practice. |
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(6) The Minister may make rules to prescribe the modifications to be made, for the purposes of subsection (5), to this Part and any rules made under subsection (1).”. |
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