PART I | Short title and commencement |
| 1. This Act may be cited as the Deposit Insurance Act 2005 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint. |
2.—(1) In this Act, unless the context otherwise requires —| “account with the electronic service”, in relation to any person, means a computer account within the electronic service which is assigned by the Authority to that person for the storage and retrieval of electronic records relating to that person; |
| “Agency” or “deposit insurance agency” means the company designated by the Minister under section 12 to be the deposit insurance agency; |
| “appointed day” means the date of commencement of this Act; |
| “authentication code”, in relation to any person, means an identification or identifying code, a password or any other authentication method or procedure which is assigned to that person for the purposes of identifying and authenticating the access to and use of the electronic service by that person; |
| “Authority” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act (Cap. 186); |
| “bank” has the same meaning as in section 2(1) of the Banking Act (Cap. 19); |
| “bank in Singapore” has the same meaning as in section 2(1) of the Banking Act; |
| “book” includes any record, register, document or other record of information, and any account or accounting record, however compiled, recorded or stored, whether in written or printed form or on microfilm or in electronic form or otherwise; |
| “Chief Executive” means the Chief Executive of the Agency appointed under section 18 and includes any person acting in that capacity; |
| “client account”, in relation to a depositor, means an account maintained by the depositor with a Scheme member for the purpose of holding moneys held by the depositor for a client of the depositor, whether or not other moneys may be held in the account; |
| “company” has the same meaning as in section 4(1) of the Companies Act (Cap. 50); |
| “corporation” has the same meaning as in section 4(1) of the Companies Act; |
| “CPFIS” means the Central Provident Fund Investment Scheme introduced by the Central Provident Fund Board under the Central Provident Fund (Investment Schemes) Regulations; |
“deposit” means a sum of money paid on terms —| (a) | under which it will be repaid, with or without interest or a premium, or with any consideration in money or money’s worth, either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it; and | | (b) | which are not referable to the provision of property or services or to the giving of security; |
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| “deposit-taking business” has the same meaning as in section 4B of the Banking Act (Cap. 19); |
| “depositor” means any person who is entitled to repayment of a deposit, whether or not the deposit is made by him; |
| “electronic record” has the same meaning as in section 2 of the Electronic Transactions Act (Cap. 88); |
| “electronic service” means the electronic service provided by the Authority under section 59; |
| “exempt member” means a full bank or finance company which has been exempted by the Authority under section 6 from the requirement to be a Scheme member; |
| “failed Scheme member” means a Scheme member in respect of which the Authority has determined that compensation will be paid out of the Fund to insured depositors; |
| “finance company” has the same meaning as in section 2 of the Finance Companies Act (Cap. 108); |
| “full bank” means any bank holding a licence granted by the Authority under the Banking Act (Cap. 19) which permits the bank to carry on the full range of banking business; |
| “Fund” means the Deposit Insurance Fund established under section 9; |
| “insured deposit” has the meaning as specified in the First Schedule; |
| “insured deposit base” has the meaning assigned to it in section 3; |
“insured depositor” means any of the following depositors: | (a) | an individual, except an individual who places a deposit in an account with a Scheme member in the name of a partnership or sole proprietorship; | | (b) | a charity as defined in section 2(1) of the Charities Act (Cap. 37), which is —| (i) | registered under section 5 of that Act; | | (ii) | specified in the Schedule to that Act; or | | (iii) | excepted by regulations made under that Act; |
| | (c) | such other person or class of persons as may be prescribed, |
| (i) | in the case of a deposit held by a trustee under a trust, a beneficiary of the trust who is a person specified in paragraph (a), (b) or (c) or the estate of a deceased person; and | | (ii) | in the case of a deposit held by a depositor in a client account, the depositor’s client who is a person specified in paragraph (a), (b) or (c) and whose moneys are held in the client account; |
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| “liquidator” has the same meaning as in section 4(1) of the Companies Act (Cap. 50); |
| “officer” has the same meaning as in section 2(1) of the Banking Act (Cap. 19); |
| “premium year”, in relation to the determination and payment of premium contributions, means such period as may be prescribed by the Authority as a premium year under section 21(4); |
“quantification date” means —| (a) | the date on which a Scheme member is wound up; or | | (b) | where a Scheme member is not wound up, the date on which the notice of payment of compensation is published in the Gazette under section 30(4); |
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| “relevant insured deposits” has the meaning assigned to it in section 3; |
| “Rules” means any rules issued by the Agency under section 19; |
| “Scheme” means the Deposit Insurance Scheme established under section 4; |
| “Scheme member” means a member of the Scheme; |
| “securities” has the same meaning as in section 2(1) of the Securities and Futures Act (Cap. 289); |
| “Supplementary Retirement Scheme” has the same meaning as in section 2(1) of the Income Tax Act (Cap. 134). |
(2) For the purposes of the definition of “deposit”, money is paid on terms which are referable to the provision of property or services or to the giving of security if, and only if —| (a) | it is paid by way of advance or part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is or are not in fact sold, hired or otherwise provided; | | (b) | it is paid by way of security for the performance of a contract or by way of security in respect of loss which may result from the non-performance of a contract; or | | (c) | without prejudice to paragraph (b), it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise. |
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| Meaning of “insured deposit base” and “relevant insured deposits” |
3.—(1) In this Act, unless the context otherwise requires, “insured deposit base”, in relation to a Scheme member, means the aggregate of the amount of the relevant insured deposits of all the insured depositors of the Scheme member.(2) For the purposes of subsection (1), “relevant insured deposits”, in relation to an insured depositor of a Scheme member, means the aggregate of the amount of —| (a) | any insured deposit placed with the Scheme member and —| (i) | held by that insured depositor in his own right or in his own right jointly with one or more persons in a joint account; | | (ii) | held by a depositor as a trustee under a trust and the books of the Scheme member disclose that the insured depositor is a beneficiary of that trust and the share of the insured depositor in the insured deposit under that trust; | | (iii) | held by a depositor as a trustee under a trust and the books of the Scheme member disclose that the insured depositor is a beneficiary of that trust and the total number of beneficiaries of that trust; | | (iv) | held by a depositor as a trustee under 2 or more trusts and the books of the Scheme member disclose that the insured depositor is a beneficiary of any of the trusts and the share of the insured depositor in the insured deposit under that trust; | | (v) | held by a depositor as a trustee under 2 or more trusts and the books of the Scheme member disclose that the insured depositor is a beneficiary of any of the trusts, the part of the insured deposit under that trust and the total number of beneficiaries of that trust; | | (vi) | held by a depositor in a client account for the insured depositor and the books of the Scheme member disclose that the insured depositor is a client of the depositor and the share of the client in the insured deposit; and | | (vii) | held by a depositor in a client account for the insured depositor and the books of the Scheme member disclose that the insured depositor is a client of the depositor and the total number of clients in the client account, |
| up to a maximum of $20,000; and |
| | (b) | any moneys, denominated in Singapore dollars, placed by that insured depositor with the Scheme member under the CPFIS, up to a maximum of $20,000. |
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(3) For the purposes of subsection (2) —| (a) | a reference to an insured deposit includes a reference to part of the insured deposit; | | (b) | where an insured depositor holds an insured deposit in his own right jointly with one or more depositors in a joint account, each of the depositors, whether or not he is an insured depositor, shall be deemed to have an equal share in the insured deposit unless there is an express provision to the contrary in the books of the Scheme member; | | (c) | where an insured deposit is held by a depositor as a trustee under a trust for 2 or more beneficiaries, each of the beneficiaries, whether or not he is an insured depositor, shall be deemed to have an equal share in the insured deposit, unless there is an express provision to the contrary in the books of the Scheme member; and | | (d) | where an insured deposit is held by a depositor in a client account for 2 or more clients, each of the clients, whether or not he is an insured depositor, shall be deemed to have an equal share in the insured deposit, unless there is an express provision to the contrary in the books of the Scheme member. |
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