Comparison View

Formal Consolidation |  1998 RevEd
Definitions
2.  In these Regulations —
“average annual debt service” means the amount determined in accordance with the formula
 
 
(A x B)
 
 
 
——— ,
 
 
 
C
 
 
 
 
 
where
A
is the amount of insured unpaid principal and interest on an obligation;
 
B
is the number of such insured obligations (assuming each obligation represents US$1,000 par value); and
 
C
is the amount equal to “B” multiplied by the number of years of the term of such insured obligations;
“capital on call” means capital commitments backed by proper agreements to effect the call on capital on demand;
“eligible collateral” means —
(a)cash, letters of credit issued by eligible banks, guarantees issued by eligible companies, recourse to eligible banks or eligible companies, reinsurance agreements with eligible insurance companies;
(b)the scheduled cash flow from obligations issued by government units; and
(c)the market value (as determined by reference to market rates or by an independent third party) of marketable securities of investment grade or its equivalent,
which must be available to make payment on the guaranteed obligation at the time payment on the guaranteed obligation is due or to reimburse the financial guarantee insurer for any payment made under the related financial guarantee insurance policy;
“eligible company”, “eligible bank” or “eligible insurance company” means —
(a)a company, bank or insurance company (providing the eligible collateral) which is in one of the top 4 generic lettered rating classifications or its equivalent awarded by an internationally recognised credit rating agency; or
(b)such other company, bank or insurance company as the Authority may determine;
“financial guarantee insurance policy” means a policy that guarantees to the beneficiary of the policy the performance of a financial obligation in accordance with the terms of the obligation, including the right to receive scheduled payments in a trust certificate or other equity security but excludes letters of credit issued by licensed banks, performance bonds, fidelity bonds and such other similar contracts of guarantee as the Authority may determine;
“financial guarantee insurer” means an insurer whose registration under the Act is restricted to the carrying on of the business of issuing financial guarantee insurance policies;
“government unit” means a local, regional, national or supranational government entity or any agency thereof;
“net exposure” under a financial guarantee insurance policy means the guaranteed unpaid principalamount, net of any eligible collateral;
“qualified capital” shall include only shareholders’ equity (paid-up share capital, share premium reserves and retained earnings), capital on call and the Reserve Fund referred to in regulation 6.
Informal Consolidation | Amended S 229/2013
Definitions
2.  In these Regulations, unless the context otherwise requires —
“average annual debt service” means the amount determined in accordance with the formula
where A
is the amount of guaranteed unpaid principal and interest on an obligation;
B
is the number of such insured obligations (assuming each obligation represents US$1,000 par value); and
C
is the amount equal to “B” multiplied by the number of years of the term of such insured obligations;
[S 360/1999 wef 01/09/1999]
“capital on call” means capital commitments backed by proper agreements to effect the call on capital on demand;
“electronic record” has the same meaning as in section 2 of the Electronic Transactions Act (Cap. 88);
[S 802/2004 wef 01/01/2005]
“eligible collateral” means —
(a)cash, letters of credit issued by eligible banks, guarantees issued by eligible companies, recourse to eligible banks or eligible companies, reinsurance agreements with eligible insurance companies;
(b)the scheduled cash flow from obligations issued by government units; and
(c)the market value (as determined by reference to market rates or by an independent third party) of marketable securities of investment grade or its equivalent,
which must be available to make payment on the guaranteed obligation at the time payment on the guaranteed obligation is due or to reimburse the financial guarantee insurer for any payment made under the related financial guarantee insurance policy;
“eligible company”, “eligible bank” or “eligible insurance company” means —
(a)a company, bank or insurance company (providing the eligible collateral) which is in one of the top 4 generic lettered rating classifications or its equivalent awarded by an internationally recognised credit rating agency; or
(b)such other company, bank or insurance company as the Authority may determine;
“financial guarantee insurance policy” means a policy that guarantees to the beneficiary of the policy the performance of a financial obligation in accordance with the terms of the obligation, including the right to receive scheduled payments in a trust certificate or other equity security but excludes letters of credit issued by licensed banks, performance bonds, fidelity bonds and such other similar contracts of guarantee as the Authority may determine;
“financial guarantee insurer” means an insurer who is licensed under the Act and who is permitted by his licence to carry on the business of issuing financial guarantee insurance policies;
[S 360/1999 wef 01/09/1999]
[S 229/2013 wef 18/04/2013]
“government unit” means a local, regional, national or supranational government entity or any agency thereof;
“guaranteed unpaid principal”, in relation to a financial guarantee insurance policy, means the outstanding amount of the principal the payment of which is guaranteed by the policy;
[S 360/1999 wef 01/09/1999]
“net exposure” under a financial guarantee insurance policy means the guaranteed unpaid principal, net of any eligible collateral;
[S 360/1999 wef 01/09/1999]
“qualified capital” means —
(a)in the case of a company incorporated in Singapore, the shareholders’ equity (paid-up share capital, share premium reserves and retained earnings) and capital on call of the company, and the Contingency Reserves maintained by the company under regulation 6; or
[S 802/2004 wef 01/01/2005]
(b)in the case of a company incorporated outside Singapore, the Contingency Reserves maintained by the company under regulation 6 and —
(i)the shareholders’ equity (paid-up share capital, share premium reserves and retained earnings) and capital on call of the company; and
(ii)such other securities and interests of the company as the Authority may consider to be qualified capital,
reported by the company in its most recent financial statement filed with the authority regulating insurance business in the country or territory in which it is incorporated.
[S 360/99 wef 01/09/1999]
[S 802/2004 wef 01/01/2005]