Development Loan (1987) Regulations - Singapore Statutes Online

Development Loan (1987) Act

(Chapter 81A, Section 25)

Development Loan (1987) Regulations

Rg 1

REVISED EDITION 1990

(25th March 1992)

[30th April 1987]

Citation

1. These Regulations may be cited as the Development Loan (1987) Regulations.

Definitions

2. In these Regulations, unless the context otherwise requires —

“application” means an application to purchase stock, bearer bonds or book-entry Government securities;

“approved” means approved by the Minister;

“auction day” means such date as is specified in a public notice as the auction day of an issue of stock, bearer bonds or book-entry Government securities;

“maturity date” means such date on which any stock, bearer bond or book-entry Government security is redeemable at par;

“owner”, in relation to stock, means an owner of stock or the owners of stock in joint account;

“primary dealer” means any financial institution specified in the First Schedule;

“public notice” means a public notice issued by the Authority under section 24 of the Act;

“stock” means registered stock issued under Part III of the Act;

“yield” means the rate of return on any stock, bearer bond or book-entry Government security computed on the basis of the price of such stock, bond or security, the total interest payments and the period commencing from the date of the stock, bearer bond or book-entry Government security to the date of maturity of the stock, bond or security.

Private placements

3.—(1) These Regulations shall not apply in relation to any issue of stock, bearer bonds or book-entry Government securities under the Act which is not offered to the public for purchase by way of a public notice.

(2) The manner in which, the prices at which and the terms and conditions (including terms and conditions as to redemption and interest) on which the stock, bearer bonds or book-entry Government securities referred to in paragraph (1) may be issued shall be as determined by the Minister.

Applications

4.—(1) Any person who intends to purchase stock, bearer bonds or book-entry Government securities in pursuance of a public notice may apply to purchase such stock, bearer bonds or book-entry Government securities on a competitive basis or on a non-competitive basis.

(2) All applications made in pursuance of a public notice shall be in forms as may be prescribed by the Authority for the purpose of this regulation. The forms may be obtained from the Ground Floor Reception Counter at the Monetary Authority of Singapore Building, Singapore during such hours as that office is open for business.

(3) All applications made in pursuance of a public notice shall be accompanied by an authorisation in writing signed by the applicant authorising the transfer of funds to the Authority from a specified account maintained at a specified financial institution in payment of any stock, bearer bonds or book-entry Government securities allotted to the applicant.

(4) Any person may submit more than one application in pursuance of a public notice except that each application shall be made separately in the form referred to in paragraph (2).

(5) All applications made in pursuance of a public notice shall not be for less than the minimum nominal amount of $1,000 and shall be made in multiples of $1,000.

(6) All applications made on a competitive basis in pursuance of a public notice shall be expressed as a yield of the stock, bearer bonds or book-entry Government securities not exceeding two decimal places.

Applications to be submitted through primary dealers

5.—(1) Any application made in pursuance of a public notice by a person other than a primary dealer, shall be given to a primary dealer before the auction day specified in the public notice for endorsement by the primary dealer.

(2) The primary dealer shall submit all applications received before the auction day under paragraph (1) to the Authority not later than 12 noon of the auction day.

Receipt of applications

6.—(1) Applications made in pursuance of a public notice in accordance with these Regulations may be received by the Authority at the Ground Floor Reception Counter at the Monetary Authority of Singapore Building, Singapore during such times as that office is open for business except that no such application shall be received after 12 noon of the auction day specified in the public notice.

(2) The Authority may refuse any application without assigning any reason.

Issue on a non-competitive basis

7. Subject to these Regulations, the Authority shall allot stock, bearer bonds or book-entry Government securities to applications made on a non-competitive basis in priority to all applications made on a competitive basis and at the average yield expressed in the successful applications on a competitive basis.

Issue on a competitive basis

8.—(1) Subject to these Regulations, the Authority shall allot the balance of stock, bearer bonds or book-entry Government securities of any issue remaining after allotment under regulation 7 to successful applications made on a competitive basis in relation to the issue.

(2) The lowest yield in ascending order expressed in the applications made on a competitive basis shall be used to determine the successful applications made on a competitive basis.

(3) Where the same yield has been offered in two or more applications made on a competitive basis and only part of the amount of stock, bearer bonds or book-entry Government securities applied for at such yield can be allotted, the amount of stock, bearer bonds or book-entry Government securities allotted at such yield among the applicants shall be in proportion to the amounts applied for by the respective applicants.

Inadequate applications

9. No allotment of any stock, bearer bonds or book-entry Government securities shall be made on any application made in pursuance of a public notice for an amount of stock, bearer bonds or book-entry Government securities which is less than the minimum nominal amount specified in regulation 4.

Full or partial allotments

10. The Authority may allot the full amount of stock, bearer bonds or book-entry Government securities applied for in an application or part thereof.

Interest

11. Subject to regulation 25, the interest rate of stock, bearer bonds or book-entry Government securities allotted under regulations 7 and 8 shall be the weighted average of the yields expressed in the successful applications made on a competitive basis in pursuance of a public notice, rounded down to the nearest one-eighth percent.

Notification of successful applications

12.—(1) The Authority shall notify every successful applicant who is a primary dealer.

(2) Where a successful applicant is not a primary dealer, the Authority shall give to the primary dealer which had endorsed the application made by the successful applicant a notice specifying the particulars of allotment of stock, bearer bonds or book-entry Government securities to the successful applicant.

(3) The primary dealer on receipt of a notice under paragraph (2) shall forthwith inform the successful applicant of the particulars specified in the notice.

Payment

13. Payment for stock, bearer bonds or book-entry Government securities allotted shall be made by way of a preauthorised funds transfer to the Authority in accordance with such terms of authorisation as are specified in the application to purchase such stock, bearer bonds or book-entry Government securities and shall be made on such date as may be specified in the public notice relating to the issue of such stock, bearer bonds or book-entry Government securities.

Interest payments

14.—(1) The interest payments on any issue of stock, bearer bonds or book-entry Government securities shall be made half-yearly on such dates as are specified in the public notice relating to that issue.

(2) Interest on any issue of stock, bearer bonds or book-entry Government securities shall cease and determine on such approved maturity date as may be specified in the public notice relating to that issue.

Interest payments for stock

15.—(1) Unless otherwise requested, interest on stock shall be paid by interest statements accompanied by a cheque made payable to the owner thereof and forwarded by post to the owner at the address given to the Authority by that owner.

(2) Unless otherwise requested, interest shall be paid to the owner.

(3) Upon a request in accordance with the Second Schedule being made by the owner of stock or, in the case of a joint account, by all the owners, interest may be paid into any bank account in which case, the interest statement shall be accompanied by a credit advice relating to such payment and forwarded to the person into whose bank account the interest was paid.

(4) The owner to whom an interest statement is to be forwarded shall forthwith notify the Authority of any change in the address given to the Authority by that person and request that interest statements be forwarded to the new address.

(5) Where any request referred to in paragraph (3) or (4) reaches the Authority less than 14 days before the next interest is due, the Authority may decline to act thereon until after the payment of that interest.

(6) Any owner who does not receive his interest statement on the dates specified in the public notice for the payment of interest shall forthwith notify the Authority.

Interest payments for bearer bonds

16.—(1) Interest coupons shall be attached to all bearer bonds.

(2) Any holder of a bearer bond may, on such dates for the payment of interest as are specified in the public notice relating to the issue of the bearer bond, present to the Authority or at any financial institution in Singapore appointed by the Authority for the purposes of this regulation such interest coupons for encashment.

Interest payments for book-entry Government securities

17.—(1) Interest on any book-entry Government security shall be credited into the appropriate account for book-entry Government securities maintained by the Authority for the owner of such security or for the depositary institution which holds the book-entry Government security for the account of the owner.

(2) When interest on any book-entry Government security is credited into an account of book-entry Government securities maintained by the Authority for a depositary institution which holds the book-entry Government security for the account of the owner thereof, the depositary institution shall forthwith credit such interest into the appropriate account of the owner of the book-entry Government security maintained at that institution.

Redemption

18. The maturity date of any stock, bearer bond or book-entry Government security shall be such approved maturity date as is specified in the public notice relating to the issue of the stock, bearer bond or book-entry Government security.

Income tax

19.—(1) If —

(a)	any person derives interest from stock, bearer bonds or book-entry Government securities; and
(b)	the public notice relating to the issue of such stock, bearer bonds or book-entry Government securities states that the interest will not be liable to income tax,

the interest so derived shall be exempt from tax in accordance with any notification made by the Minister under section 13(2) of the Income Tax Act (Cap. 134) in relation to that issue of stock, bearer bonds or book-entry Government securities.

(2) In the case of banks and other financial institutions which receive interest on any issue of stock, bearer bonds or book-entry Government securities referred to in paragraph (1) as part of their normal business or as trading income, such interest shall be treated as part of their normal profits or gains with a right to deduction of expenses incurred in the production of such income as provided by the Income Tax Act (Cap. 134). In this case one-half of the tax chargeable on such receipt shall be treated as a business or trading income and shall be available as a credit to such institutions.

Conditions of taxable stock, bonds or securities

20. No person or beneficial owner who is exempt from paying income tax in respect of interest on any stock, bearer bonds or book-entry Government securities, other than those stock, bonds or securities referred to in regulation 19, may hold any such stock, bearer bonds or book-entry Government securities without the written permission of the Authority.

Withholding taxes

21. All interest earned by persons not resident in Singapore on any stock, bearer bonds or book-entry Government securities, other than those stock, bonds or securities referred to in regulation 19, shall be subject to deduction of tax under section 45 of the Income Tax Act.

Estate duty

22.—(1) Any stock, bearer bond or book-entry Government security may be accepted in payment of estate duty payable under the Estate Duty Act (Cap. 96) if the stock, bearer bond or book-entry Government security formed part of the property passing on the death of the deceased owner of such stock, bearer bond or book-entry Government security for a period of not less than 6 months before the date of death.

(2) The value at which any stock, bearer bond or book-entry Government security may be accepted in payment of estate duty shall be the market value of such stock, bearer bond or book-entry Government security on the date the stock, bearer bond or book-entry Government security is presented in payment of estate duty.

Sinking Fund

23. The amount of contributions to be paid into the Sinking Fund under section 17 of the Act in relation to any issue of stock, bearer bonds or book-entry Government securities shall be such approved amount as is specified in the public notice relating to the issue of such stock, bearer bonds or book-entry Government securities.

Transfers

24.—(1) Subject to paragraph (2), stock shall be transferable by way of an instrument of transfer which is registered with the Authority signed by the owner and the transferee.

(2) No stock of less than the minimum nominal amount of $1,000 may be transferred under paragraph (1).

(3) Book-entry Government securities maintained in any account with the Authority may be transferred to another account maintained by the Authority through such means (including a computer-based communications system) as the Authority may prescribe from time to time.

Re-opened issues

25. Where a public notice relating to an issue of stock, bearer bonds or book-entry Government securities states that the Authority reserves the right to issue, after the stock, bonds or securities of the issue have been allotted, additional stock, bearer bonds or book-entry Government securities in excess of the amount of the issue as disclosed in the public notice, the additional stock, bonds or securities shall be issued by the Authority on the same terms and conditions as to redemption and interest as the issue to which the public notice relates.

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