§ 18 — Securities lending arrangements

18.—(1) The MAS may, from time to time and on the Government’s behalf as an agent, but subject to subsection (2), enter into securities lending arrangements by lending securities issued under this Act to primary dealers, including an arrangement under which such securities are sold and repurchased.(2) The total outstanding amount of securities issued under this Act and on loan by the MAS at any time by way of any securities lending arrangement on behalf of the Government entered into under subsection (1) must not exceed —(a)

$6,500,000,000; or

(b)

a higher sum specified by Parliament in a resolution in substitution for the amount in paragraph (a).

(3) Lending security is taken to include an arrangement under which it is sold and repurchased.

(4) In the case of securities issued under this Act that are held by the MAS for the purpose of securities lending to primary dealers under this section, those securities are redeemable on such conditions as are agreed upon between the Government and the MAS.

(5) To avoid doubt, nothing in this section affects the power of the Minister to make investments under section 7 of the Financial Procedure Act 1966.

—(1) The MAS may, from time to time and on the Government’s behalf as an agent, but subject to subsection (2), enter into securities lending arrangements by lending securities issued under this Act to primary dealers, including an arrangement under which such securities are sold and repurchased.

(2) The total outstanding amount of securities issued under this Act and on loan by the MAS at any time by way of any securities lending arrangement on behalf of the Government entered into under subsection (1) must not exceed —(a)

$6,500,000,000; or

(b)

a higher sum specified by Parliament in a resolution in substitution for the amount in paragraph (a).

(3) Lending security is taken to include an arrangement under which it is sold and repurchased.

(4) In the case of securities issued under this Act that are held by the MAS for the purpose of securities lending to primary dealers under this section, those securities are redeemable on such conditions as are agreed upon between the Government and the MAS.

(5) To avoid doubt, nothing in this section affects the power of the Minister to make investments under section 7 of the Financial Procedure Act 1966.