MINIMUM LIQUID ASSETS
—(1) Every finance company shall maintain a minimum holding of liquid assets, as defined in subsection (4).
(2) The minimum amount of liquid assets to be maintained by every finance company shall be determined from time to time by the Authority and shall be expressed in the form of a percentage or percentages which those assets shall bear to the liabilities of each finance company on account of deposits and other liabilities, either jointly or separately.
(3) The Authority shall prescribe the method of computing the amount of liquid assets to be held by finance companies.
(4) For the purposes of this section, “liquid assets” means —
notes and coins that are legal tender in Singapore;
Government securities held under overnight repurchase agreements with banks in Singapore and approved primary and registered dealers in Government securities;
bills of exchange denominated in Singapore dollars accepted or endorsed by at least 2 banks in Singapore, which arise from genuine trade transactions and are payable within 3 months; and
such other assets as the Authority may from time to time specify by a notice in writing.
(5) Any finance company which fails to comply with any requirement of this section shall be liable, on being called upon to do so by the Authority (in addition to any other penalty that may be imposed under this Act), to pay a penalty interest charge of $100 per day or such larger amount as the Authority may determine for every day during which the default continues and shall not while the default continues accept any deposits or enter into new commitments without the approval of the Authority.