3.—(1) No person shall carry on business in Singapore as a financial guarantee insurer unless registered by the Authority to do so.
(2) A financial guarantee insurer shall not underwrite any obligation except the following:
(a)
asset-backed obligations — obligations of an entity which owns a diversified pool of assets or to which a diversified pool of assets including residential real estate and other consumer and corporate assets have been pledged, the proceeds of which, whether through collection or sale, are available to make any payments due on the obligations;
(b)
infrastructure obligations — obligations issued to finance construction, maintenance, improvement or expansion of physical infrastructure including power production and distribution, telecommunications, roads, bridges, tunnels, waste disposal and resource recovery facilities, pollution control facilities, airports, schools and hospitals;
(c)
government obligations — obligations that are payable or guaranteed by a government unit or that are payable from tax revenue, rates charges or appropriation imposed or collected by such government unit;
(d)
real estate obligations — obligations that are backed by cash flows or market values associated with income-producing real property excluding residential real estate;
(e)
corporate obligations — obligations related to corporate bonds or promissory notes issued by a corporation; and
(f)
such other financial obligations as the Authority may approve in writing.
[S 360/99 wef 01/09/1999]
Informal Consolidation | Amended S 229/2013
Licensing by Authority
3.—(1) No person shall carry on business in Singapore as a financial guarantee insurer unless licensed by the Authority to do so.
[S 229/2013 wef 18/04/2013]
(2) A financial guarantee insurer shall not issue in Singapore a financial guarantee insurance policy in respect of any obligation other than the following:
(a)
asset-backed obligations — obligations of an entity which owns a diversified pool of assets or to which a diversified pool of assets including residential real estate and other consumer and corporate assets have been pledged, the proceeds of which, whether through collection or sale, are available to make any payments due on the obligations;
(b)
infrastructure obligations — obligations issued to finance construction, maintenance, improvement or expansion of physical infrastructure including power production and distribution, telecommunications, roads, bridges, tunnels, waste disposal and resource recovery facilities, pollution control facilities, airports, schools and hospitals;
(c)
government obligations — obligations that are payable or guaranteed by a government unit or that are payable from tax revenue, rates charges or appropriation imposed or collected by such government unit;
(d)
real estate obligations — obligations that are backed by cash flows or market values associated with income-producing real property excluding residential real estate;
(e)
corporate obligations — obligations related to corporate bonds or promissory notes issued by a corporation; and
(f)
such other financial obligations as the Authority may approve in writing.