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Monetary Authority of Singapore (Amendment) Bill

Bill No. 36/1972

Read the first time on 24th October 1972.

An Act to amend the Monetary Authority of Singapore Act (Chapter 195 of the Revised Edition).

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

Short title

1. This Act may be cited as the Monetary Authority of Singapore (Amendment) Act, 1972.

Amendment of section 5

2. Subsection (1) of section 5 of the Monetary Authority of Singapore Act (hereinafter referred to as “the principal Act”) is hereby amended by deleting the word “thirty” appearing therein and substituting therefor the words “one hundred”.

Amendment of section 17

3. Section 17 of the principal Act is hereby amended —

(a)

by inserting immediately after subsection (2) thereof the following new subsection: —

“(2A) The Authority may, by notification in the Gazette, declare that appointments and promotions to such posts or classes of posts as it thinks fit, and the termination of appointment, dismissal, and disciplinary control of persons appointed to such posts, shall be vested in the Authority and, upon such notification, the Authority shall exercise such functions on the advice of the Public Service Commission.”;

(b)

by deleting subsection (4) thereof; and

(c)

by deleting the expression “, with the approval of the Public Service Commission,” appearing in the first and second lines of subsection (6) thereof.

Amendment of section 21

4. Section 21 of the principal Act is hereby amended —

(a)	by deleting the expression “relating to banking, investment or financial affairs” appearing in the fourth and fifth lines of subsection (2) thereof and substituting therefor the words “or any public officer”; and
(b)	by inserting immediately after the expression “Commissioner for Finance Companies,” wherever it appears in subsection (4) thereof in each case the expression “Commissioner of Chit Funds,”.

Amendment of section 22

5. Section 22 of the principal Act is hereby amended —

(a)

by inserting immediately after paragraph (e) thereof the following new paragraphs: —

“(f)

purchase, sell, discount and rediscount bills of exchange and promissory notes arising out of bona fide commercial transactions bearing two or more good signatures and maturing within three months (exclusive of days of grace) from the date of acquisition;

(g)

grant advances to such financial institutions or class of financial institutions as the Authority may from time to time approve for periods not exceeding three months against —

(i)

Treasury Bills of the Government and securities of the Government;

(ii)

gold coin or bullion;

(iii)

such bills of exchange and promissory notes as are eligible for purchase, discount or rediscount by the Authority up to seventy-five per centum of their nominal value;

(iv)

warehouse warrants or their equivalent (securing possession of goods), in respect of goods duly insured and with a letter of hypothecation from the owner:

Provided that no such advance shall exceed sixty per centum of the current market value of the goods in question;”; and

(b)

by re-numbering the existing paragraphs (f), (g), (h), (i), (j), (k), (l), (m), (n), (o) and (p) thereof as paragraphs (h), (i), (j), (k), (l), (m), (n), (o), (p), (q) and (r) respectively.

New sections 24A and 24B

6. The principal Act is hereby amended by inserting immediately after section 24 thereof the following new sections: —

“Special loans to banks and financial institutions

24A. The Authority may, if it thinks such action is necessary to safeguard monetary stability, make a loan or advance to a bank carrying on business under the Banking Act (Cap. 182) or to such financial institutions or class of financial institutions as the Authority may from time to time approve against such form of security as the Authority may consider sufficient.

Power to issue directions to financial institutions

24B.—(1) The Authority may, if it thinks it necessary in the public interest, request information from and make recommendations to such financial institutions as the Authority may from time to time approve and may issue directions for the purpose of securing that effect is given to any such request or recommendation.

(2) Before issuing any direction under subsection (1) of this section the financial institution or financial institutions concerned shall, unless the Authority in respect of any particular direction decides that it is not practicable or desirable, be given an opportunity to make representations with regard to the proposed direction within such time as the Authority shall specify.

(3) Upon receipt of any representations referred to in subsection (2) of this section the Authority shall consider them and, may —

(a)	reject such representations; or
(b)	amend or modify the proposed direction in accordance with the representations, or otherwise,

and in either event, it shall thereupon issue a direction in writing, to such financial institution or financial institutions, as the case may be, requiring that effect be given to the proposed direction or to the proposed direction as subsequently amended or modified by it within a reasonable time, and the financial institution or financial institutions, as the case may be, shall comply with such direction.

(4) Any financial institution that fails or refuses to comply with a direction given under this section shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding five thousand dollars.”.