2.—(1) In these Regulations, unless the context otherwise requires —“affiliated corporation”, in relation to a card issuer, means —(a) | a related corporation, incorporated in Singapore, of the card issuer; or | (b) | where the card issuer has a related corporation incorporated outside Singapore —(i) | the branches and offices, located within Singapore, of the related corporation; or | (ii) | such branch or office, located outside Singapore, of the related corporation as may be designated by the Authority by notice in writing to the card issuer; [S 76/2009 wef 01/03/2009] |
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“borrower” means any person to whom a credit facility is granted by a card issuer or any of its affiliated corporations; [S 76/2009 wef 01/03/2009] |
“business card” means a credit card or charge card issued to —(a) | an employee of a sole proprietorship or partnership; | (b) | a partner of a partnership; or | (c) | a sole proprietor, |
where, under the terms of use of the card — |
(i) | the sole proprietor or partnership bears liability for any amount charged to the card; | (ii) | the employee and the sole proprietor bear liability on a joint and several basis for any amount charged to the card; | (iii) | the employee or partner, as the case may be, and the partnership bear liability on a joint and several basis for any amount charged to the card; or | (iv) | the sole proprietor or partnership bears liability for any amount charged to the card for the purposes of the business of the sole proprietorship or partnership, |
as the case may be, but does not include — |
(A) | a card where the employee or partner is solely liable for any amount charged to the card; or | (B) | a corporate purchasing card; |
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“cardholder” means a person who has been issued a credit card or charge card; |
“card issuer” means any person carrying on a business of issuing credit cards or charge cards in Singapore; [S 76/2009 wef 01/03/2009] |
“corporate card” means a credit card or charge card issued to an employee or officer of a corporation where, under the terms of use of the card —(a) | the corporation bears liability for any amount charged to the card; | (b) | the employee or officer and the corporation bear liability on a joint and several basis for any amount charged to the card; or | (c) | the corporation bears liability for any amount charged to the card for the purposes of the business of the corporation, |
(i) | a card where the employee or officer is solely liable for any amount charged to the card; or | (ii) | a corporate purchasing card; |
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“corporate purchasing card” means a credit card or charge card issued for the purpose of purchasing goods or services, other than services for entertainment purposes, on behalf of a corporation, a partnership or a sole proprietorship, where the corporation, partnership or sole proprietor, as the case may be, bears liability for all amounts charged to the card; |
“corporation”, in relation to a corporate card, means the body corporate in respect of which the card is issued; |
“credit card” or “charge card” has the same meaning as in section 56 of the Act but does not include any credit card or charge card referred to in section 57G of the Act; [S 76/2009 wef 01/03/2009] |
“credit facility” means —(a) | any advance, loan or other facility granted by a corporation whereby a customer of the corporation has access to any funds or financial guarantee; or | (b) | any other liability incurred by a corporation on behalf of its customer; [S 76/2009 wef 01/03/2009] |
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“deposit”, in relation to a finance company, has the same meaning as in section 2 of the Finance Companies Act (Cap. 108); [S 439/2005 wef 06/07/2005] |
“finance company” has the same meaning as in section 2 of the Finance Companies Act; [S 439/2005 wef 06/07/2005] |
“financial institution” means any person licensed, approved, registered or otherwise regulated by the Authority under any written law; [S 76/2009 wef 01/03/2009] |
“lender” means a card issuer or any of its affiliated corporations which grants a credit facility to a person; [S 76/2009 wef 01/03/2009] |
“medical treatment” has the same meaning as in regulation 2 of the Central Provident Fund (MediShield Scheme) Regulations (Cap. 36, Rg 20); [S 76/2009 wef 01/03/2009] |
“merchant bank” means a merchant bank approved under section 28 of the Monetary Authority of Singapore Act (Cap. 186); [S 439/2005 wef 06/07/2005] |
“officer”, in relation to a body corporate, means a director, member of the committee of management, chief executive, manager, secretary or other similar officer of the body corporate; |
“permanent resident” means any individual who is not subject to any restriction as to his period of residence in Singapore imposed under the provisions of any written law relating to immigration for the time being in force; |
“principal cardholder” means a person who has been issued any credit card or charge card in respect of which any supplementary card has been issued; |
“secure”, in relation to a credit limit of a credit card or charge card, means secure by one or more deposits in the name of the cardholder placed with any bank, merchant bank or finance company and includes the setting aside of the whole or part of any deposit of a cardholder placed with the card issuer, together with a contractual set-off agreement, where the deposit or such part of the deposit which has been set aside cannot be withdrawn by the cardholder unless and until the amount charged to or outstanding on the card is fully paid up; [S 198/2004 wef 15/04/2004] [S 439/2005 wef 06/07/2005] [S 76/2009 wef 01/03/2009] |
“securities market” has the same meaning as in paragraph 3 of Part I of the First Schedule to the Securities and Futures Act (Cap. 289); [S 76/2009 wef 01/03/2009] |
“share” has the same meaning as in section 4(1) of the Companies Act (Cap. 50); [S 76/2009 wef 01/03/2009] |
“share financing loan” means any loan the proceeds of which are applied only towards the subscription for shares listed or to be listed on a securities market; [S 76/2009 wef 01/03/2009] |
“unsecured credit facility” means —(a) | a credit facility given without security; or | (b) | in respect of a credit facility given with security, any part thereof which at the time the credit facility is given exceeds the market value or, where the Authority is satisfied that there is no established market value, such other value as may be approved by it, of the assets constituting that security. [S 198/2004 wef 15/04/2004] [S 439/2005 wef 06/07/2005] [S 76/2009 wef 01/03/2009] |
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(2) For the purposes of these Regulations —(a) | a credit limit of a card is secured if the amount charged to or outstanding on the card, including any amount charged to or outstanding on any supplementary card issued in respect of the card, is secured; and | (b) | a credit limit of a card is unsecured if the amount charged to or outstanding on the card, including any amount charged to or outstanding on any supplementary card issued in respect of the card, is not secured. [S 198/2004 wef 15/04/2004] |
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(3) For the purposes of these Regulations, an unsecured credit facility shall not include the following:(a) | any credit extended on a credit card or charge card; | (b) | any bridging loan which complies with such requirements as may be specified by the Authority by notice in writing to the lender; | (c) | any loan for the furnishing of any security to the Government in connection with any application for the deferment of any liability under the Enlistment Act (Cap. 93); | (d) | any loan for the furnishing of any security to the Government in connection with the employment of a foreign domestic worker; | (e) | any loan for the defraying of expenses which are directly attributable to a course of education, including tuition fees and the costs of accommodation, textbooks and computer equipment, where the lender has taken reasonable steps to ascertain that the proceeds of the loan will be applied only towards the defraying of such expenses; | (f) | any loan to a sole proprietor or a partnership for a business purpose; | (g) | any loan for the repayment of any amount owing by the borrower under another credit facility which has become unsecured as a result of a fall in the value of the security given for that credit facility, where the lender has taken reasonable steps to ensure that the proceeds of the loan are paid to the person who granted that credit facility; | (h) | any renovation loan, where —(i) | the lender (being a card issuer or any of its affiliated corporations) has taken reasonable steps to ascertain that the proceeds of the loan will be applied only towards the defraying of the costs of renovations which have been made or will be made; | (ii) | the loan repayment period does not exceed 5 years; | (iii) | in the case of a renovation loan granted jointly to the borrower and one or more other persons, that other person or each of those other persons is a spouse, child, parent or sibling of the borrower; and | (iv) | the total of the following when added together is not more than 6 months’ income of the borrower or $30,000, whichever is the lower:(A) | the renovation loan or, where the loan is granted jointly to the borrower and one or more other persons, the borrower’s share of the loan; and | (B) | the aggregate of the outstanding balances of all earlier renovation loans granted to the borrower by the card issuer and any of its affiliated corporations, including the borrower’s share of the outstanding balance of every renovation loan granted jointly to the borrower and one or more other persons by the card issuer or its affiliated corporation; |
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| (i) | any loan for the defraying of the costs of any medical treatment, where the lender has taken reasonable steps to ascertain that the proceeds of the loan will be applied only towards the defraying of such costs; | (j) | any share financing loan for the purpose of subscription of shares, where the lender is a financial institution and —(i) | the aggregate of the share financing loan and all other share financing loans obtained by the borrower from other persons for the subscription of those shares, together with all the discounts, rebates and other benefits granted to the borrower, in relation to the subscription of those shares, by the lender and other persons, do not exceed 80% of the amount to be paid by the borrower for the subscription of those shares; and | (ii) | the lender takes reasonable steps to ensure that the aggregate of the share financing loan and all other share financing loans obtained by the borrower from other persons for the subscription of those same shares, together with all the discounts, rebates and other benefits granted to the borrower, in relation to the subscription of those shares, by the lender and other persons, do not exceed 80% of the amount to be paid by the borrower for the subscription of those shares, including obtaining a written declaration from the borrower on —(A) | whether he has obtained any share financing loan from any person for the subscription of those shares, and the amount and other details of such loan; and | (B) | whether he has received any discount, rebate or other benefit from any person in relation to the subscription of those shares, and the amount and other details of such discount, rebate or benefit; |
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| (k) | any loan to an officer (other than a director) or employee of the lender, where the lender is a bank in Singapore and the total of the following when added together is not more than one year’s emoluments of that officer or employee:(i) | the loan; and | (ii) | the aggregate of the outstanding balances of all earlier loans granted by the lender to that officer or employee. [S 76/2009 wef 01/03/2009] |
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(4) In determining whether the total referred to in paragraph (3)(h)(iv) exceeds the amount referred to in that provision, any addition to a renovation loan (included in the aggregate) of any fee, interest, late payment charge or other charge by a lender shall be disregarded. [S 76/2009 wef 01/03/2009] |
(5) For the purposes of paragraph (3)(h)(iv)(A), a borrower’s share of a renovation loan granted jointly to him and one or more other persons shall be the amount derived by dividing the loan by the number of persons to whom the loan is granted. [S 76/2009 wef 01/03/2009] |
(6) For the purposes of paragraph (3)(h)(iv)(B), a borrower’s share of the outstanding balance of a renovation loan granted jointly to him and one or more other persons shall be the amount derived by dividing the outstanding balance of the loan by the number of persons from whom the loan is outstanding. [S 76/2009 wef 01/03/2009] |
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