Government Securities Act

• Jurisdiction: Singapore
• Coming into Force: 30 April 2014
• copyrightNote: © Singapore legislation sourced from Singapore Statutes Online. It is subject to copyright of the Singapore Government and is reproduced with the permission of the Attorney-General’s Chambers of Singapore.
• Enactment Date: 06 March 1992
• Published date: 30 April 2014
• Record Number: Cap. 121A
• Act Number: (Original Enactment: Act 1 of 1992)

Government Securities Act

(CHAPTER 121A)

(Original Enactment: Act 1 of 1992)

REVISED EDITION 2014

(30th April 2014)

An Act to establish and regulate the Government Securities Fund and to provide for the borrowing of moneys by the issue of Government securities in Singapore.

[6th March 1992]

PART I PRELIMINARY Short title 1. This Act may be cited as the Government Securities Act. Interpretation 2. In this Act, unless the context otherwise requires — “advance deposits” means such deposits as are received under section 27; “Authority” means the Monetary Authority of Singapore established under the Monetary Authority of Singapore Act (Cap. 186); “bearer bonds” means bearer bonds issued under Part IV; “book-entry Government securities” means any stock or bond issued in Singapore under Part V in the form of an entry on the records of the Authority; “financial institution” means any person licensed, approved, registered or regulated by the Authority, or exempted from such licensing, approval, registration or regulation, under any written law administered by the Authority; “Government securities” means stocks, bearer bonds, book-entry Government securities or other securities which may be issued under this Act; “Government Securities Fund” means the Government Securities Fund established under Part II; “primary dealer” means a person approved under Part VIIA to be a primary dealer; “regulations” means regulations made under this Act and, in relation to any particular issue of Government securities, includes any notification in the Gazette varying such regulations in relation to that issue; “sinking fund” means the sinking fund created under section 25; “stocks” means stocks issued under Part IV; “trustee stock” means any of the securities mentioned in the Trustees Act (Cap. 337) in which trustees may invest. [2/2010]

PART II ESTABLISHMENT AND REGULATION OF GOVERNMENT SECURITIES FUND Government Securities Fund 3.—(1) A Government Securities Fund is hereby established into which shall be paid — (a) all sums representing the proceeds of loans raised or advance deposits accepted under this Act; (b) all sums representing the proceeds of loans raised under the Local Treasury Bills Act (Cap. 167) on or after 1st April 19961; 1 Date of commencement of the Local Treasury Bills (Amendment) Act 1996 (Act 6 of 1996). (c) all moneys from time to time authorised to be paid into the Government Securities Fund by this Act or any other written law; and (d) all income from the investment of moneys in the Government Securities Fund authorised to be made by this Act, and all profits arising from the realisation of any such investments. [9/96] (2) The Government Securities Fund shall be deemed to be a Government fund for the purposes of any written law. Application of moneys in Government Securities Fund 4.—(1) The Minister may at any time apply all or any part of the moneys in the Government Securities Fund to the purchase of trustee stock or of any other stock, fund, security or investment mentioned in section 7(3) of the Financial Procedure Act (Cap. 109), except any stock, bond, fund or security issued by the Government. (2) Nothing in subsection (1) shall prohibit the conversion of advance deposits to Government securities issued under this Act. Expenses 5. There shall be charged upon and payable out of the Government Securities Fund all expenses — (a) arising from or incidental to the investment and management of moneys in the Government Securities Fund; and (b) arising from or incidental to — (i) the borrowing and repayment of moneys; and (ii) the investment and management of moneys in any sinking fund created, under this Act, the Local Treasury Bills Act (Cap. 167) on or after 1st April 1996, and under any other written law authorising moneys borrowed to be paid into the Government Securities Fund. [9/96] Deficiencies in Government Securities Fund 6. Where the moneys in the Government Securities Fund are insufficient — (a) to repay any principal sum or interest payable on any Government securities issued or advance deposits accepted under this Act; (b) to repay any principal sum payable on any Treasury Bill or book-entry Treasury Bill issued under the Local Treasury Bills Act (Cap. 167) on or after 1st April 1996; or (c) to meet any other obligation charged upon the Government Securities Fund arising from this Act or any other written law, at the time when they become due, the deficiency shall be charged upon and payable out of the Consolidated Fund. [9/96] Surpluses in Government Securities Fund 7. The Minister may by warrant under his hand authorise the transfer to the Consolidated Fund of any moneys in the Government Securities Fund which, in the opinion of the Minister, are not required to meet the liabilities of the Government Securities Fund. Application of Financial Procedure Act 8. Sections 6 and 13 of the Financial Procedure Act (Cap. 109) shall not apply to any loan raised under the provisions of this Act or to moneys in the Government Securities Fund. Withdrawal of moneys from Government Securities Fund 9. No moneys shall be withdrawn from the Government Securities Fund unless they are charged on the Government Securities Fund or otherwise authorised to be withdrawn under this Act. Mode of payment out of Government Securities Fund 10. No payment shall be made out of the Government Securities Fund unless such payment is authorised by a warrant signed by the Minister.

PART III AUTHORISATION OF BORROWING AND APPLICATION OF PROCEEDS Power to issue Government securities 11.—(1) The Parliament may, by a resolution under Article 144(1)(a) of the Constitution with which the President concurs, authorise the amount of borrowing by the issue of Government securities in Singapore under this Act, and may, from time to time, vary that amount. [29/2004] (2) The Minister may, from time to time, borrow such sums by the issue of Government securities in Singapore except that the aggregate amount borrowed (whether before, on or after 14th September 2004) and outstanding at any time shall not exceed the amount specified in any resolution (varied or otherwise) referred to in subsection (1). [29/2004] (3) The Authority may, on behalf of the Minister, undertake the issue and management of Government securities issued under this Act. Securities lending arrangements 11A.—(1) The Authority may, from time to time, enter into securities lending arrangements by lending Government securities issued under this Act to primary dealers. [2/2010] (2) Lending Government securities shall include an arrangement under which Government securities are sold and repurchased. [2/2010] (3) Nothing in this section affects the power of the Minister to make investments under section 7 of the Financial Procedure Act (Cap. 109). [2/2010] Payment into Government Securities Fund 12. All moneys, including advance deposits, received under this Act shall be paid into the Government Securities Fund. Principal sums and interest charged on Government Securities Fund 13. The principal sums and interest payable on Government securities issued and advance deposits accepted under this Act are hereby charged upon and shall be payable out of the Government Securities Fund.

PART IV PROVISIONS APPLICABLE TO ISSUE AND REGISTRATION OF STOCKS AND BEARER BONDS Issue and form of stocks 14.—(1) Any stock issued under this Act shall be — (a) issued by the Authority upon such terms as may be prescribed; and (b) authenticated either by the signature of the Minister or by facsimile of his signature or in such manner as may be approved by the Minister. (2) Any stock issued under this Act shall be in such form as the Minister may from time to time approve. Register of stocks 15.—(1) All stocks issued under this Act shall be entered in a register to be kept by the Authority. (2) All stocks issued under this Act and the right to receive the principal sums and interest payable on such stocks shall be transferable by an instrument of transfer registered by the Authority. (3) No stock issued under this Act shall be registered except in the name of an individual person or persons or of a corporation. Bearer bonds 16.—(1) Bearer bonds issued under this Act shall be — (a) issued by the Authority upon such terms as may be prescribed; and (b) authenticated either by the signature of the Minister or by facsimile of his signature or in such other manner as may be approved by the Minister. (2) Every bearer bond shall, when issued, bind the Government to pay the bearer the principal sum mentioned in that bond and interest on that sum in accordance with the terms and conditions of the issue. (3) Bearer bonds shall be transferable by delivery without endorsement.

PART V BOOK-ENTRY GOVERNMENT SECURITIES Interpretation of this Part 17. In this Part, unless the context otherwise requires — “depositary institution” means a financial institution approved by the Authority which regularly — (a) accepts in the course of its business book-entry Government securities by way of a custodial service for its customers; and (b) maintains accounts in the names of its customers reflecting ownership or interest in such book-entry Government securities; “depositor” means any person in whose name an account is established and maintained on the records of the Authority; “pledge” includes a pledge of, or any security interest in, book‑entry Government securities — (a) as collateral for loans or advances; or (b) to secure deposits of public moneys or the performance of an obligation; “security interest” means an interest, not being an interest arising from a trust, in property which secures the payment of a debt or performance of an obligation. Issue of book-entry Government securities 18.—(1) The Authority may — (a) issue book-entry Government securities upon such terms as may be prescribed by means of entries on its records which include the name of the depositor and the amount and description of the securities; (b) maintain accounts of book-entry Government securities — (i) for any depositor on such terms and conditions as may be specified by the Authority ...