| Chit Funds Act |
(Chapter 39, Sections 9(2), 21 and 61)
| Chit Funds (Deposits of Percentage of Paid-up Capital and of Security) Regulations |
| Rg 1 |
| G.N. No. S 11/1972 |
| REVISED EDITION 1990 |
| (25th March 1992) |
| [14th January 1972] |
| Citation |
| 1. These Regulations may be cited as the Chit Funds (Deposits of Percentage of Paid-up Capital and of Security) Regulations. |
| Deposit with Monetary Authority of Singapore |
| 2. A chit fund company shall at all times have in respect of its business a deposit in cash with the Monetary Authority of Singapore constituted under the Monetary Authority of Singapore Act [Cap. 186] to the value of not less than 50% of the paid-up capital of that company and such deposit shall be retained by the Authority until the company ceases to hold a licence under the Act. |
| Deposit with bank |
| 3. Immediately after the signing of the agreement by the last intending subscriber, the chit fund company shall, as security for the due discharge of its duty and liability under the agreement, deposit cash to the value of the chit fund amount or securities guaranteed by the Government valued at the equivalent of the chit fund amount, in such bank as may be approved for that purpose by the Authority. |
| Security not to be applied for other purposes |
4. The security furnished under regulations 2 and 3 shall not —
|