Hire-Purchase (Amendment) Bill

Bill No. 37/2004

Read the first time on 1st September 2004.

An Act to amend the Hire-Purchase Act (Chapter 125 of the 1999 Revised Edition).

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

Short title, commencement and application

1.—(1) This Act may be cited as the Hire-Purchase (Amendment) Act 2004 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

(2) This Act shall not apply to hire-purchase agreements entered into before the date of commencement of this Act.

Amendment of section 1

2. Section 1 of the Hire-Purchase Act is amended —

(a)

by deleting the words “the First Schedule” in subsection (3) and substituting the words “any of the Schedules”; and

(b)

by inserting, immediately after subsection (3), the following subsection:

“(4) The Minister may, in any order made under subsection (3), make such transitional and savings provisions as he may consider necessary or expedient.”.

Amendment of section 2

3. Section 2(1) of the Hire-Purchase Act is amended —

(a)

by inserting, immediately after the definition of “action”, the following definition:

“ “business day” means any day other than a Saturday, Sunday or public holiday;”;

(b)

by deleting the definition of “court” and substituting the following definitions:

“ “certificate of entitlement” means a permit issued by the Registrar of Vehicles under section 10A of the Road Traffic Act (Cap. 276);

“court” means a Magistrate’s Court or a District Court;”;

(c)

by inserting, immediately after the definition of “hirer”, the following definition:

“ “motor vehicle” means a motor vehicle within the meaning of the Road Traffic Act;”;

(d)

by deleting the definition of “statutory rebate”; and

(e)

by inserting, immediately after the words “third-party insurance” in the definition of “vehicle registration fees”, the words “and for the issue of a certificate of entitlement”.

Amendment of section 3

4. Section 3 of the Hire-Purchase Act is amended —

(a)

by deleting the words “duly completed in accordance with the form” in subsection (1) and substituting the words “which shall contain the items”;

(b)

by inserting, immediately before the words “showing separately” in subsection (3)(e)(ii), the words “, if any,”;

(c)

by inserting, immediately after the word “deposit” in subsection (3)(e)(vi), the words “, if any”;

(d)

by deleting the word “and” at the end of subsection (3)(e)(viii);

(e)

by deleting the full-stop at the end of sub-paragraph (ix) of subsection (3)(e) and substituting the word “; and”, and by inserting immediately thereafter the following sub-paragraph:

“(x) any other item set out in the Second Schedule.”; and

(f)

by deleting subsection (4).

Amendment of section 4

5. Section 4(1) of the Hire-Purchase Act is amended by deleting the words “14 days” and substituting the words “7 business days”.

Amendment of section 8

6. Section 8 of the Hire-Purchase Act is amended —

(a)	by deleting the words “14 days” in the 1st line of subsection (1) and substituting the words “7 business days”;
(b)	by deleting the words “a payment of $2” in subsection (2)(b) and substituting the words “a reasonable fee, which shall not exceed such amount as may be prescribed,”; and
(c)	by deleting subsection (4).

Amendment of section 11

7. Section 11 of the Hire-Purchase Act is amended by inserting, immediately after the word “interest” in the section heading, the words “of hirer”.

New section 11A

8. The Hire-Purchase Act is amended by inserting, immediately after section 11, the following section:

“Assignments of right, title and interest of owner under hire-purchase agreement

11A.—(1) The hirer under a hire-purchase agreement may, by notice in writing to the owner, require the owner to assign his right, title and interest under the agreement to another person.

(2) As a condition of the assignment of the right, title and interest of the owner under a hire-purchase agreement, the owner may —

(a)

stipulate that all defaults under the agreement shall be made good; and

(b)

require the hirer and assignee —

(i)	to deliver to the owner a form of assignment whereby the assignee agrees to pay to the owner the net balance due under the agreement; and
(ii)	to pay to the owner any reasonable costs incurred by the owner (including legal expenses) in relation to the assignment.

(3) Except as otherwise provided in this section, no payment or other consideration shall be required by an owner for an assignment referred to in subsection (1).

(4) Where an owner fails or refuses to assign his right, title and interest under the hire-purchase agreement as required by the hirer in accordance with this section, the hirer may apply to a court for an order requiring the owner to do so.”.

Amendment of section 13

9. Section 13 of the Hire-Purchase Act is amended —

(a)	by deleting subsection (2); and
(b)	by deleting the words “14 days” in subsection (3)(b) and substituting the words “7 business days”.

Amendment of section 15

10. Section 15 of the Hire-Purchase Act is amended by deleting the words “14 days” in subsections (1) and (3) and substituting in each case the words “7 business days”.

Amendment of section 16

11. Section 16 of the Hire-Purchase Act is amended by deleting the words “14 days” in paragraph (a) and in the section heading and substituting in each case the words “7 business days”.

Amendment of section 17

12. Section 17 of the Hire-Purchase Act is amended —

(a)	by deleting the words “14 days” in subsections (1)(a) (1st line) and (5)(a) and substituting in each case the words “7 business days”;
(b)	by inserting, immediately after the word “payable” in the 3rd line of subsection (1)(b)(i), the words “under the agreement”;
(c)	by inserting, immediately after the word “payable” in the 3rd line of subsection (1)(b)(ii), the words “under the agreement”;
(d)	by inserting, immediately after the word “payable” in the last line of subsection (2), the words “under the agreement”; and
(e)	by deleting paragraph (a) of subsection (3).

Amendment of section 18

13. Section 18 of the Hire-Purchase Act is amended —

(a)	by deleting the words “14 days” in the 1st line of subsection (1) and substituting the words “7 business days”; and
(b)	by deleting the words “14 days” in subsection (3)(b) and substituting the words “7 business days”.

Amendment of section 26

14. Section 26 of the Hire-Purchase Act is amended by deleting subsection (4) and substituting the following subsection:

“(4) Where any goods comprised in a hire-purchase agreement are insured in the joint names of the owner and the hirer against any risk with a particular registered insurer, there shall be an implied condition in the agreement that the hirer shall not, during the period of the agreement, insure those goods against any risk with another registered insurer without first informing the owner thereof.”.

Amendment of section 29

15. Section 29 of the Hire-Purchase Act is amended by deleting subsection (1) and substituting the following subsection:

“(1) The terms charges in relation to a hire-purchase agreement shall not exceed such amount as may be prescribed in respect of any goods or class of goods.”.

Repeal of sections 30 and 31

16. Sections 30 and 31 of the Hire-Purchase Act are repealed.

Amendment of section 33

17. Section 33 of the Hire-Purchase Act is amended by inserting, immediately after the words “exceeding that” in paragraph (c), the words “as may be”.

Amendment of section 35

18. Section 35 of the Hire-Purchase Act is amended by deleting “$3,000” in the penultimate line and substituting “$5,000”.

Amendment of section 36

19. Section 36(2) of the Hire-Purchase Act is amended —

(a)	by deleting the words “14 days” in paragraph (a) and substituting the words “7 business days”; and
(b)	by deleting “$3,000” and substituting “$5,000”.

Amendment of section 37

20. Section 37 of the Hire-Purchase Act is amended by deleting “$3,000” and substituting “$5,000”.

Amendment of section 48

21. Section 48 of the Hire-Purchase Act is amended —

(a)	by deleting “$1,000” and substituting “$3,000”; and
(b)	by deleting the words “6 months” and substituting the words “12 months”.

Amendment of First Schedule

22. The First Schedule to the Hire-Purchase Act is amended —

(a)

by deleting paragraph 1 and substituting the following paragraph:

“1. Any consumer goods the value of which does not exceed $20,000 (inclusive of any Goods and Services Tax).”; and

(b)

by deleting the definitions of “certificate of entitlement” and “motor vehicle” in paragraph 3.

Repeal of Second to Sixth Schedules and re-enactment of Second to Fifth Schedules

23. The Second to Sixth Schedules to the Hire-Purchase Act are repealed and the following Schedules substituted therefor:

“SECOND SCHEDULE

Section 3(1) and (3)

Information for Prospective Hirers

THIRD SCHEDULE

Section 4(1)

Notice to Hirers

FOURTH SCHEDULE

Section 15(1)

Notice of Intention to Repossess

FIFTH SCHEDULE

Sections 13(3) and 15 (3)

Notice to Hirers After Repossession of Goods

”.

Transitional and savings provisions

24. The Minister may, by regulations, prescribe such transitional and savings provisions as he may consider necessary or expedient within 2 years of the date of commencement of this Act.

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