Chit Funds Bill

Bill No. 21/1971

Read the first time on 19th October 1971.
An Act to provide for the licensing and regulation of chit funds.
Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows: —
Short title and commencement
1.—(1)  This Act may be cited as the Chit Funds Act, 1971, and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.
(2)  The Minister may appoint different dates for the coming into operation of the different Parts or provisions of this Act.
2.  In this Act, unless the context otherwise requires —
“agreement” means the document which contains the terms and conditions agreed to and adopted by the subscribers and the chit fund company;
“chit fund” means a scheme or arrangement based wholly on the terms and conditions set out in section 24 of this Act or the regulations made thereunder or any scheme or arrangement that is deemed to be a chit fund under section 19 of this Act but does not include any scheme or arrangement which only partakes of the nature of a chit fund within the meaning of section 20 of this Act;
“chit fund amount” means the pool or the aggregate of the contributions payable on any specified day or in respect of any specified interval;
“chit fund business” means the business of carrying on chit funds;
“chit fund company” means a company which carries on chit fund business and holds a valid licence granted under section 7 of this Act. All branches and offices in Singapore of such company shall be deemed to be one chit fund company for the purposes of this Act;
“Commissioner” means the person appointed under section 3 of this Act to hold office of Commissioner of Chit Funds;
“contribution” means the sum of money payable periodically by each subscriber under the agreement;
“essential terms and conditions” means the terms and conditions specified in section 24 of this Act;
“interest” means that amount of money which the subscriber agrees to forego in order to purchase the chit fund amount;
“Minister” means the Minister charged with the responsibility for finance;
“prize” or “prize amount” means the difference between the chit fund amount and the interest;
“public company” means a company limited by shares incorporated in Singapore other than a private company;
“rebate” means the share of the interest payable to each subscriber;
“subscriber” includes any person who has agreed to participate in a chit fund or has signed the agreement in token thereof.