MAS is agent
Open ↗17.—(1) The MAS is by this Act appointed to act on the Government’s behalf as an agent —(a)
for issuing of securities for moneys borrowed under this Act; and
(b)
for any other purpose that is connected with paragraph (a).
(2) Without limiting subsection (1), the MAS may —(a)
by public notice invite the public to apply to take up securities issued under this Act; and
(b)
refuse any application to take up securities issued under this Act without assigning any reason.
(3) Subsection (1) does not prevent the exercise by the Minister of any power under this Act.
Securities lending arrangements
Open ↗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.
Issue of book‑entry securities
Open ↗19.—(1) The MAS may —(a)
issue book‑entry securities for moneys borrowed under this Act, 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 securities for moneys borrowed under this Act —(i)
for any depositor on such terms and conditions as may be specified by the MAS for such securities the depositor holds for its own account and, where the depositor is a depositary institution, for the account of its customers;
(ii)
for the Government; and
(iii)
for the MAS; and
(c)
otherwise service and maintain such book‑entry securities.
(2) The MAS is authorised to take all action necessary in respect of book‑entry securities to enable the MAS in its own capacity to perform its obligations as depositary with respect to such securities.
Transfers and pledges of book‑entry securities
Open ↗20.—(1) A transfer or pledge of a book‑entry security to the MAS or to the Government or to any transferee or pledgee eligible to maintain an appropriate account in its name with the MAS must be effected, despite any law to the contrary, by the MAS making an appropriate entry in its records of the security transferred or pledged.
(2) The making of an entry in the records of the MAS under subsection (1) —(a)
has the effect of delivery of the book‑entry security as if the security had been issued in the form of an engraved or a printed certificate;
(b)
has the effect of a taking of delivery by the transferee or pledgee;
(c)
constitutes the transferee or pledgee a holder; and
(d)
if a pledge, has the effect of vesting a security interest in favour of the pledgee.
(3) A transfer or pledge of a book‑entry security effected in accordance with this section has priority over any transfer or pledge involving, or any interest in, the security effected or created in any other manner before, on or after the date of the transfer or pledge in accordance with this section.
Transfers and pledges effected by other means
Open ↗21.—(1) Despite section 20, a transfer or pledge of book‑entry securities, or any interest in such securities, which is maintained by the MAS in an account may be effected by any means that would be effective to effect a transfer or pledge of book‑entry securities, or any interest therein, if the securities were issued by the MAS in the form of engraved or printed certificates.
(2) The MAS must not be treated as —(a)
a bailee for the purposes of notification of pledges of book‑entry securities not effected in accordance with section 20; or
(b)
a person in possession of book‑entry securities for the purposes of acknowledgment of transfers of such securities not effected in accordance with section 20.
(3) Where a book‑entry security is recorded on the books of a depositary institution for the account of the pledgor or transferor of the security and the security is on deposit with the MAS in an account, that depositary institution must, for the purposes of effecting delivery of the book‑entry security to a purchaser or pledgee, be treated as —(a)
the bailee to which notification of the pledge of the securities may be given; and
(b)
the person in possession from which acknowledgment of the holding of the securities may be obtained.
(4) The MAS must not accept any notice or advice of a transfer or pledge of any book‑entry security not effected in accordance with section 20, and any such notice or advice is void.
(5) The MAS may continue to deal with its depositor in accordance with this Part despite any transfer or pledge not effected in accordance with section 20.
MAS to be discharged by action on instructions
Open ↗22.—(1) The MAS is not liable for conversion or for participation in any breach of fiduciary duty where the MAS has, in respect of book‑entry securities maintained in accounts maintained by the MAS —(a)
effected pledges or made entries regarding the securities; or
(b)
transferred or delivered the securities,
according to the instructions of its depositor even though the depositor had no right to dispose of or take any other action in respect of the securities.
(2) The MAS is fully discharged of its obligations under this Part by the transfer or delivery of book‑entry securities upon the instructions of its depositor.
Confirmation of transactions
Open ↗23.—(1) The MAS must, following any transaction affecting book‑entry securities maintained for any depositor under this Part, issue to each depositor a confirmation of the transaction in the form of an advice (serially numbered or otherwise).
(2) The advice referred to in subsection (1) must specify the amount and description of the securities and any other pertinent transaction data.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
