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Post Office Savings Bank of Singapore (Amendment) Bill

Bill No. 19/1983

Read the first time on 20th December 1983.

An Act to amend the Post Office Savings Bank of Singapore Act, 1971 (No. 13 of 1971).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

Short title and commencement

1. This Act may be cited as the Post Office Savings Bank of Singapore (Amendment) Act 1983 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

Repeal and re-enactment of section 4

2. Section 4 of the Post Office Savings Bank of Singapore Act, 1971 (referred to in this Act as the principal Act) is repealed and the following section substituted therefor:

“Functions of the Bank

4. The functions of the Bank shall be —

(a)	to carry on the general business of a savings bank and to promote saving and encourage thrift; and
(b)	to mobilise domestic savings for the purpose of public development.”.

Repeal and re-enactment of section 5

3. Section 5 of the principal Act is repealed and the following sections substituted therefor: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 Bank

5A.—(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.”.

Amendment of section 27

4. Section 27 of the principal Act is amended by inserting, immediately after the word “shall”, the words “, and on current accounts may,”.

Amendment of section 29

5. Section 29 of the principal Act is amended by deleting the words “loans given to persons having an account at the Bank” and substituting the words “advances, loans or credit facilities”.

Repeal and re-enactment of section 39

6. Section 39 of the principal Act is repealed and the following section substituted therefor:

“Investment of funds

39.—(1) The Bank may invest its moneys in the following ways:

(a)	in bonds, stocks and other securities of the Government;
(b)	on mortgages of estates or interests in immovable property in Singapore;
(c)	on deposits with the Monetary Authority of Singapore or with banks licensed under the Banking Act (Cap. 182); and
(d)	with the written approval of the Minister, in any shares and securities where the Minister considers such investments to be in the economic interest of Singapore.

(2) Any sum of money that may from time to time be required for the repayment of deposits in the Bank or for the payment of interest thereon or expenses incurred by the Bank, may be raised by the sale or disposal of the investments mentioned in subsection (1):

Provided that any sum of money required for those purposes may, with the approval of the Minister for Finance, be advanced to the Bank by the Accountant-General out of the Consolidated Fund until the sum can be raised by the sale or disposal of such investments, and the Bank shall pay all interest due on such advances.”.

New section 46

7. The principal Act is amended by inserting, immediately after section 45, the following section:

“Protection under Bills of Exchange Act

46. In the performance of its functions under this Act (Cap. 28), the Bank shall be accorded the protection of a banker under the Bills of Exchange Act.”.

Validity of previous acts not affected

8. Nothing in this Act shall affect the validity of any act or thing done by the Post Office Savings Bank of Singapore before the commencement of this Act in purported execution of its powers under the principal Act.